Taboola.com 2025 Q2 Earnings Beats Expectations as Revenue Surges 8.7%

Taboola.com (TBLA) delivered mixed financial results in Q2 2025, with revenue surpassing expectations but the company maintaining a stable net loss. The company raised full-year guidance across all key metrics, driven by strong performance from its Realize platform and broader advertiser traction.

Revenue
Taboola.com reported total revenue of $465.47 million in Q2 2025, a 8.7% increase from $428.16 million in the same period in 2024. The growth was primarily fueled by an 8.5% rise in Scaled Advertisers, complemented by a 1.8% increase in Average Revenue per Scaled Advertiser. This broad-based growth included contributions from Taboola News and Bidded Supply, alongside continued expansion in its existing Native business. The company's overall revenue growth was in line with expectations, and it exceeded the high end of its own guidance.

Earnings/Net Income
The company maintained a stable EPS of $-0.01 in Q2 2025 compared to Q2 2024. However, the net loss widened slightly to $-4.34 million in Q2 2025, up from $-4.29 million in the prior-year period. Despite this, Taboola reported a significant increase in Adjusted EBITDA, which rose to $45.2 million, a 21.3% increase year-over-year. Adjusted EBITDA margins expanded to 26.2%, reflecting cost discipline and improved operational efficiency.

Price Action
Following the earnings report, Taboola’s stock price fell 8.65% during the latest trading day. However, it recovered some ground with a 4.64% rise in the subsequent full trading week. Over the past month, the stock has declined by 8.15%. The stock's performance post-earnings suggests mixed investor sentiment, influenced by the net loss and cautious market conditions.

Post-Earnings Price Action Review
The investment strategy of buying TBLA shares after a revenue increase quarter-over-quarter on the report date and holding for 30 days yielded moderate returns but underperformed the broader market. The strategy recorded a compound annual growth rate (CAGR) of 10.31%, lagging the market benchmark by 18.05 percentage points. Despite minimal volatility, as reflected in a Sharpe ratio of 0.15 and a maximum drawdown of 0%, the strategy is considered suitable for conservative investors due to its low-risk profile.

CEO Commentary
Adam Singolda, CEO of Taboola, expressed optimism about the company’s momentum, particularly in its Realize performance advertising platform. He emphasized Taboola’s competitive edge in AI and first-party data, positioning the company as a scalable alternative to search and social platforms. Singolda also highlighted the company’s confidence in the OpenWeb's resilience amid large language model-driven changes, with minimal disruption to current operations. Looking ahead, he outlined strategic priorities including expanding Realize into display and social advertising and forming new publisher partnerships to diversify supply.

Guidance
For Q3 2025, Taboola expects revenue in the range of $461 million to $469 million, ex-TAC gross profit between $166 million and $172 million, and adjusted EBITDA of $43 million to $48 million. The company is projecting full-year 2025 revenue between $1.86 billion and $1.89 billion, ex-TAC gross profit between $689 million and $703 million, and adjusted EBITDA of $208 million to $214 million. The company expects normalized growth of 3% to 5% for the year, excluding the impact of Yahoo onboarding, with Realize driving a return to double-digit growth over time.

Additional News
In recent weeks, Taboola has made significant strides in its performance advertising platform, Realize, gaining early traction among advertisers. The CEO highlighted the company’s aggressive share repurchase strategy, having bought back nearly 12% of the company in the first half of the year. Additionally, Taboola is expanding its reach through new publisher partnerships and exploring opportunities in display and social advertising to capture larger advertiser budgets. The company’s focus on AI and first-party data is positioning it as a competitive alternative in the digital advertising space.