10-Q · May 6, 2026
Taboola.com Ltd. reported a strong Q1 2026 performance, achieving total revenues of $466.4 million, up 9.1% from the prior year, primarily driven by increased advertiser demand and improved operational efficiencies. The…
Earnings analysis · 10-Q
TBLA earnings analysis
Filed August 5, 2026 · Our reading of the company's report
The latest report
Taboola delivered modest Q2 revenue growth of 2.4% to $476.826 million and expanded GAAP gross margin to 29.3%, returning to a $4.317 million GAAP profit. However, diluted EPS declined sharply from $0.20 in Q1 to $0.01…
Read full summary
Taboola delivered modest Q2 revenue growth of 2.4% to $476.826 million and expanded GAAP gross margin to 29.3%, returning to a $4.317 million GAAP profit. However, diluted EPS declined sharply from $0.20 in Q1 to $0.01 because first-quarter results contained a $77.000 million legal-settlement gain, and quarterly free cash flow fell to $17.316 million. The balance sheet improved, with cash increasing to $133.052 million and revolver borrowings declining to $72.000 million, but the $12.169 million publisher-prepayment impairment and rising Yahoo concentration are notable watch items.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.01
- Segment
- Single reportable segment: consolidated revenue was $476.826 million; the company does not report operating-segment revenue. Geographic revenue included United States $259.108 million, Rest of World $149.853 million, Germany $33.321 million, United Kingdom $17.330 million, and Israel $17.214 million.
What stood out
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Revenue and gross profit grew modestly
Q2 revenue grew 2.4% year over year to $476.826 million from $465.474 million, and increased 2.2% sequentially from $466.395 million in Q1 2026. Gross profit rose 2.9% year over year to $139.479 million.
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Gross-margin improvement continued
GAAP gross margin was 29.3%, up from 29.1% a year ago and 27.8% in Q1 2026. Ex-TAC Gross Profit increased 11.8% to $192.372 million, with management citing higher margins at certain digital-property partners and advertising-spend growth.
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Returned to modest GAAP profitability
The company returned to a GAAP profit of $4.317 million, or $0.01 diluted EPS, versus a $4.345 million loss and $(0.01) diluted EPS in Q2 2025. Operating income improved to $7.259 million from $0.044 million.
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First-half cash generation strengthened
First-half operating cash flow increased to $139.908 million from $95.508 million, while first-half free cash flow increased to $107.597 million from $70.231 million. The increase was supported by a $43.426 million reduction in receivables and $63.383 million of first-half net income.
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Cash increased and revolver debt declined
Liquidity improved despite buybacks: cash rose to $133.052 million from $120.865 million at year-end, while revolving-facility borrowings fell to $72.000 million from $102.300 million. The company repurchased 16.244 million shares for $64.233 million during the first half.
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Scaled-advertiser and Yahoo revenue expanded
Operating indicators advanced: scaled advertisers increased to approximately 2,100 from approximately 2,000 a year earlier, while Yahoo-related revenue increased to $79.267 million from $46.455 million.
What to watch
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No formal risk-factor updates disclosed
There were no additional material changes to the risk factors in the 2025 Form 10-K, according to Item 1A. However, the filing identifies volatile macro conditions; revenues were only $476.826 million in Q2 2026, a 2.4% year-over-year increase.
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Quarterly free cash flow declined sharply
Q2 free cash flow fell 49.3% to $17.316 million from $34.161 million a year earlier, as operating cash flow declined to $31.253 million from $47.397 million while capex was $13.937 million. Capex represented 2.9% of Q2 revenue.
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Publisher-prepayment impairment hit Q2 margin
The company recorded a $12.169 million publisher-prepayment write-off in traffic acquisition cost after expected future economic benefits of certain arrangements declined. This charge contributed to other cost of revenues rising 13.0% to $36.642 million.
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Yahoo concentration increased
Yahoo represented $79.267 million, or 16.6%, of Q2 revenue and $104.270 million of Q2 traffic-acquisition cost; Yahoo receivables were $49.760 million, or approximately 15.0% of total trade receivables. This creates meaningful counterparty and partner concentration.
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Sequential earnings fell after one-time Q1 gain
Diluted EPS fell sequentially to $0.01 from $0.20 in Q1 2026, largely because Q1 included $77.000 million of other income from a legal settlement. Q2 also included $5.970 million of workforce-reduction costs tied to an approximately 6% reduction in force.
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Variable-rate debt and fixed commitments remain
The company has $72.000 million outstanding under a variable-rate revolving facility and $37.284 million of non-cancelable purchase obligations. The facility matures March 18, 2030 and is subject to a net-leverage covenant.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management states it expects fourth-quarter revenue and margins to be seasonally strongest and first-quarter results to be seasonally weakest, and expects R&D expense to increase over time while G&A expense remains relatively flat in 2026.
Earlier filings 4
10-K · February 25, 2026
Taboola achieved revenues of $1.91 billion in 2025, a growth of 8.3% over the previous year, supported by the integration of their new Realize advertising platform and an increase in Scaled Advertisers. The company…
10-Q · November 5, 2025
Taboola reported strong Q3 2025 results, with revenues increasing to $496.8 million, up 14.7% YoY. Gross profit rose to $139.0 million, while net income turned positive at $5.2 million, marking an improvement from…
10-Q · August 6, 2025
Taboola.com Ltd. reported Q2 2025 results with revenues of $465.5 million, up 8.7% year-over-year, driven by increased advertiser engagement and new digital properties. Despite a net loss of $4.35 million, the company…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.