Taboola.com (TBLA) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 9.1% year-over-year to $466.4 million, exceeding the high end of guidance, driven by strong advertiser demand, increased spend from scaled advertisers, and product innovation, particularly the Realize platform.

• Net income reached $59.1 million, reversing a prior year loss, aided by a $77 million one-time legal settlement.

• Adjusted EBITDA was $26.7 million (15.9% margin), down 25.7% year-over-year but at the high end of guidance, reflecting higher operating expenses and investments.

• Raised full-year 2026 guidance for revenue, ex-TAC gross profit, and Adjusted EBITDA, reflecting confidence in growth trajectory.

• Continued share repurchases, with 19% of shares bought back since 2025 and $22.7 million spent in Q1 2026.

Financial highlights

• ex-TAC gross profit increased 10.8% year-over-year to $168.1 million, above guidance.

• Gross profit was $129.6 million, up 8.6% year-over-year.

• Operating income was $69.4 million, compared to a loss of $6.3 million last year.

• Free cash flow more than doubled to $90.3 million, with operating cash flow at $108.7 million.

• Cash and cash equivalents increased to $150.3 million; net cash balance at quarter-end was $83.9 million.

Outlook and guidance

• Q2 2026 guidance: revenue $492–$505 million, ex-TAC gross profit $189–$194 million, Adjusted EBITDA $49–$55 million.

• Full-year 2026 guidance: revenue $2,006–$2,062 million, ex-TAC gross profit $760–$781 million, Adjusted EBITDA $222–$240 million.

• Adjusted EBITDA guidance reflects a $13 million FX headwind; margin would be ~34% without FX.

• Revenue and profit expected to be weighted more toward the second half of 2026.

• Confident in path to sustainable double-digit organic growth over time.