Taboola.com (TBLA) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 2.4% year-over-year to $476.8 million, with ex-TAC Gross Profit up 11.8% to $192.4 million and Adjusted EBITDA up 22.8% to $55.5 million, despite headwinds from Google policy changes and publisher network cleanup.

• Net income improved to $4.3 million from a net loss of $4.3 million in Q2 2025; Non-GAAP Net Income was $41.3 million.

• Achieved strategic wins, including major publisher expansions and the addition of FOX News, supporting long-term growth.

• Continued investment in AI-driven technology, notably the Realize and Realize+ platforms, with over 300 advertisers adopting Realize+.

• Q2 2026 results benefited from a $77 million pre-tax legal settlement and a 6% workforce reduction.

Financial highlights

• Q2 2026 revenue: $476.8 million (+2.4% YoY); ex-TAC Gross Profit: $192.4 million (+11.8% YoY); Adjusted EBITDA: $55.5 million (+22.8% YoY); Gross Profit: $139.5 million (+2.9% YoY).

• Net income for Q2 2026 was $4.3 million; Non-GAAP Net Income was $41.3 million.

• Adjusted EBITDA margin was 28.8% in Q2; would have been 33% excluding FX headwinds.

• Free Cash Flow for Q2 was $17.3 million; cash and cash equivalents at quarter-end were $133.1 million.

• Repurchased approximately 9.4 million shares for $41.4 million in Q2; about 20% of outstanding shares repurchased since 2025.

Outlook and guidance

• Q3 2026 guidance: Revenue $460–$473 million; ex-TAC Gross Profit $184–$190 million; Adjusted EBITDA $51.5–$56.5 million; Non-GAAP Net Income $38–$42 million.

• Full-year 2026 guidance raised: Revenue $1.93–$1.96 billion; ex-TAC Gross Profit $772–$783 million; Adjusted EBITDA $228–$240 million; Non-GAAP Net Income $168–$176 million.

• Ex-TAC guidance raised to 9% growth for the year; quarterly results expected to be weighted more heavily in Q4.