Taboola.com (TBLA) Q3 2025 earnings summary

Executive summary

• Q3 2025 results exceeded the high end of guidance across all key metrics, driven by strong advertiser performance, Realize platform adoption, and increased scaled advertisers and average revenue per advertiser.

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

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

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

• For the nine months ended September 30, 2025, revenue grew 9% year-over-year to $1.39 billion, with a net loss of $7.9 million, an improvement from a $36.9 million loss in the prior year period.

Financial highlights

• Q3 2025 revenue reached $496.8 million, up 15% year-over-year, with ex-TAC gross profit at $176.8 million (+6% YoY), adjusted EBITDA at $48.2 million (+1% YoY), and free cash flow at $46 million.

• Net income for Q3 was $5.2 million; non-GAAP net income was $34.3 million.

• EPS (diluted) was $0.02, compared to $(0.02) in Q3 2024.

• Cash and cash equivalents at September 30, 2025, were $115.5 million, with $74 million outstanding under the revolving credit facility.

• Free cash flow conversion from adjusted EBITDA was 96% in Q3 and over 70% for the last four and eight quarters.

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: 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.

• Seasonality trends are expected to persist, with Q4 typically the strongest quarter.