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 and Realize platform adoption.

• Net income was $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.

• Raised full-year 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; gross profit was $129.6 million, up 8.6%.

• 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; operating cash flow was $108.7 million.

• Cash and cash equivalents increased to $150.3 million; long-term debt was $66.4 million.

• Diluted EPS was $0.20, compared to $(0.03) a year ago.

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.

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

• FX headwinds expected to impact operating expenses by $13 million for the year.

• Management expects continued investment in R&D and technology platform.