TBLA earnings analysis
What we found in TBLA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.01
- Gross margin
- 29.3%
- Operating margin
- 1.5%
- 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 they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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