Taboola.com (TBLA) Q3 2025 earnings summary

Executive summary

• Q3 2025 results exceeded the high end of guidance for the third consecutive quarter, driven by strong advertiser performance and Realize platform adoption, signaling business momentum and an inflection point.

• Raised full-year outlook due to continued outperformance and confidence in returning to double-digit growth over time.

• Aggressively repurchased shares, buying back 14% of the company year to date, reflecting strategic confidence.

• Net income for Q3 2025 was $5.2 million, reversing a net loss in the prior year.

Financial highlights

• Q3 2025 revenue reached $496.8 million, up 15% year-over-year, with ex-TAC gross profit at $176.8 million (+6.3% YoY) and adjusted EBITDA at $48.2 million (27.3% margin).

• Free cash flow for Q3 was $46.3 million, representing 96% conversion from adjusted EBITDA.

• Non-GAAP net income for Q3 was $34.3 million.

• EPS (diluted) was $0.02, up from $(0.02) in Q3 2024.

• Cash and equivalents at quarter-end were $115.5 million, with $74 million in long-term debt.

Outlook and guidance

• Q4 2025 guidance: revenue $532–$542 million, ex-TAC gross profit $204–$210 million, adjusted EBITDA $83–$85 million, non-GAAP net income $52–$56 million.

• Full-year 2025 guidance raised: revenue $1.91–$1.93 billion, ex-TAC gross profit $700–$710 million, adjusted EBITDA $209–$214 million, non-GAAP net income $139–$144 million.

• Projected full-year growth rate of 6% at midpoint, normalizing for Yahoo onboarding and Chinese advertiser demand.

• Management expects continued growth in scaled advertisers and average revenue per advertiser, supported by investments in AI and new ad formats.