Taboola.com (TBLA)

• Taboola (TBLA) launched its new Realize advertising platform in February 2025, transitioning from native advertising to offering all types of performance advertising across the open internet.
• The company measures its success by XTAC gross profit (revenue minus traffic acquisition cost), targeting an adjusted EBITDA margin above 30% on XTAC and converting 60-70% or more to free cash flow.
• TBLA is observing an "inflection point" with the Realize platform, noting increased advertiser spend and success, which provides confidence for a return to double-digit growth.
• Taboola estimates a $10 billion opportunity in performance budgets currently handled by other ad tech players in the open internet, expanding its addressable market from $3 billion-$4 billion (native ads) to an overall $50 billion-$55 billion for "all things performance".
• The company reports low exposure to the impact of LLMs on search traffic, with only about 5% of its US traffic and high single digits globally originating from search.

• Taboola launched its Realize advertising platform in February 2025, migrating all advertisers to it. This platform supports various performance ad formats and incorporates new algorithms and features to improve advertiser success.
• The company believes Realize is crucial for its return to double-digit growth, noting an inflection point where advertisers are increasing spend and achieving greater success with the new platform.
• Taboola is transitioning from a native advertising business to an "all things performance" platform across the open internet, aiming to expand its addressable market from an estimated $3 billion-$4 billion to $50 billion-$55 billion.
• The company identifies an opportunity to capture an estimated $10 billion in performance budgets currently handled by other ad tech players in the open internet, leveraging its unique data and technology.
• Taboola has low exposure to search traffic, with approximately 5% of its US traffic and high single digits globally originating from search, which limits the impact of large language models (LLMs) on its business.

• Taboola reported strong Q3 2025 results, with revenue of $496.8 million and adjusted EBITDA of $48.2 million, both exceeding the high end of guidance.
• The company raised its full-year 2025 outlook, now projecting revenues between $1.91 billion and $1.93 billion and adjusted EBITDA between $209 million and $214 million.
• The new Realize performance platform is showing an inflection point, evidenced by a 4.4% increase in scaled advertisers and a 10.9% increase in average revenue per scaled advertiser in Q3 2025.
• Taboola repurchased approximately 10 million shares for $34.4 million during Q3 2025, contributing to a total of 14% of the company bought back year-to-date.
• The company generated $46.3 million in free cash flow in Q3 2025, maintaining a net cash balance of $41.5 million.

• Taboola reported 2,164 Scaled Advertisers and approximately $208K Revenue Per Scaled Advertiser for Q3 2025.
• For Q3 2025, the company achieved Adjusted EBITDA of $48.2 million , Non-GAAP Net Income of $34.3 million , and Free Cash Flow of $46 million.
• The company provided Q4 2025 revenue guidance of $532 million to $542 million.
• For the full year 2025, Taboola projects revenues between $1,914 million and $1,932 million , ex-TAC Gross Profit of $700 million to $710 million , and Adjusted EBITDA of $209 million to $214 million.

• TBLA's Q3 2025 actuals exceeded the high end of guidance across all key metrics, with revenue reaching $496.8 million (+15% YoY) and Adjusted EBITDA at $46.3 million (+1% YoY).
• The company's revenue growth was primarily fueled by Scaled Advertisers, which saw a 10.9% year-over-year increase in their number to 2,064, alongside a 4.4% rise in average revenue per scaled advertiser to approximately $208,000.
• For Q4 2025, TBLA anticipates revenues between $532 million and $542 million and Adjusted EBITDA between $83 million and $85 million.
• Full Year 2025 guidance projects revenues in the range of $1,914 million to $1,932 million and Adjusted EBITDA between $209 million and $214 million, with Non-GAAP Net Income expected to be $139 million to $144 million.

• Taboola reported Q3 2025 revenues of $496.8 million, an increase of 14.7% compared to Q3 2024, and achieved Net Income of $5.2 million, improving from a net loss in the prior year period.
• Adjusted EBITDA for Q3 2025 was $48.2 million, and Free Cash Flow was $46.3 million.
• The company has aggressively repurchased 14% of its shares this year.
• For Q4 2025, Taboola expects Revenues between $532 million and $542 million, and Adjusted EBITDA between $83 million and $85 million.
• Full Year 2025 guidance projects Revenues between $1,914 million and $1,932 million, and Adjusted EBITDA between $209 million and $214 million.

• Taboola reported revenues of $496.8 million for Q3 2025, an increase of 14.7% compared to Q3 2024, and achieved a net income of $5.2 million, improving from a net loss of $(6.5) million in the prior year period.
• Adjusted EBITDA for Q3 2025 was $48.2 million, a 0.6% increase year-over-year, with cash flow generated by operating activities at $53.2 million and Free Cash Flow at $46.3 million.
• The company surpassed the high-end of its guidance across all metrics for Q3 2025 and has repurchased 14% of the company's shares this year.
• Taboola raised its full-year 2025 outlook, now expecting revenues between $1,914 million and $1,932 million and Adjusted EBITDA between $209 million and $214 million.

Q3 2025 Financial Results

Q4 2025 and FY 2025 Guidance

• Gelt, an AI-native tax firm, has raised $13 million in Series A funding, bringing its total funding to $21.2 million.
• The Series A funding was led by Zvi Limon of the Rimon Group, Vintage Investment Partners, and TLV Partners, and Yoram Tietz was appointed Chairman of the Board.
• Gelt has tripled its user base year over year and increased its profit margins from a historical average of 20-30% to a current range of 55-66%.
• The company plans to use the funding to accelerate platform development, expand into new markets, and triple its team by adding top-tier CPAs, engineers, and client experience professionals.

• Taboola.com reported a Q2 beat and raised guidance for the remainder of the year, supported by approximately $2 billion in revenue, over $200 million in adjusted EBITDA, and 70% free cash flow conversion.
• The company's new Realize platform, launched in Q1, aims to capture a larger share of the $55 billion performance advertising market by enabling advertisers to use diverse creative formats, moving beyond native advertising.
• Taboola.com is aggressively buying back shares, having repurchased 12% of the company in the first half of the year, believing it to be the best investment given the current stock valuation.
• Taboola is leveraging AI, including generative AI for ad creatives, and is developing its "Deeper Dive" initiative to become a top 5 LLM company, utilizing its daily reach of 600 million people across the open web.