Taboola.com (TBLA) Q2 2025 earnings summary

Executive summary

• Q2 2025 results exceeded the high end of guidance across all key metrics, with revenue up 8.7% to $465.5M and strong profitability growth year-over-year.

• Aggressive share repurchases continued, with nearly 12% of shares bought back in H1 2025, reflecting management's confidence in long-term prospects.

• Early traction for the Realize performance advertising platform, with 650 advertisers testing since launch, expanding reach beyond native advertising.

• Revenue growth was driven by an increase in scaled advertisers and higher average revenue per advertiser, with broad-based gains across geographies and segments.

• Taboola News and Bidded Supply contributed to double-digit growth and expanding device partnerships.

Financial highlights

• Q2 2025 revenue reached $465.5M, up 8.7% year-over-year; ex-TAC Gross Profit was $172.1M, up 15.1% year-over-year.

• Adjusted EBITDA was $45.2M, up 21.3% year-over-year, with a margin of 26.2%.

• Free Cash Flow was $34.2M, up over 30% year-over-year.

• Net loss was $4.3M, flat year-over-year; Non-GAAP Net Income was $30.2M.

• Cash and equivalents at quarter-end were $115.2M, with $88M outstanding under the revolving credit facility.

Outlook and guidance

• Q3 2025 guidance: revenue $461–$469M, ex-TAC Gross Profit $166–$172M, Adjusted EBITDA $43–$48M.

• Full-year 2025 guidance raised: revenue $1.86–$1.89B, ex-TAC Gross Profit $689–$703M, Adjusted EBITDA $208–$214M.

• Projected normalized core business growth rate of 3–5% for the year, with seasonality expected and Q4 typically strongest.

• Non-GAAP Net Income for Q3 projected at $29M–$34M; full-year at $138M–$144M.

• Effective tax rate expected to be 18–20% over the long term.