Taboola's Q2 2025: Unpacking Contradictions in Revenue Growth, Market Strategy, and Tariff Impacts

Realize's impact on revenue growth, Taboola News' growth opportunities, Realize's impact on growth and market position, advertiser acquisition and growth strategy, and tariff impact on China revenue are the key contradictions discussed in Taboola's latest 2025Q2 earnings call.



Revenue and Profitability Growth:
- Taboola reported revenues of $465 million for Q2 2025, representing 9% year-over-year growth.
- Ex-TAC gross profit increased by 15% year-over-year, reaching $172 million, and adjusted EBITDA rose by 21% to $45 million.
- Growth was primarily driven by an increase in scaled advertisers and margin expansion on certain digital publishers.

Realize Platform Performance:
- Taboola's new performance advertising platform, Realize, is showing early traction with 650 advertisers testing its capabilities since launch.
- The platform has helped advertisers achieve high performance goals, leading to increased budgets, such as a 34% performance improvement for an aviation company.
- Realize is expected to expand Taboola's reach into display and social advertising, capturing larger budgets from existing clients and attracting new ones.

Share Repurchase and Financial Strength:
- Taboola's Board approved an additional $200 million for its share repurchase program, bringing its total authorization to $285 million.
- After buying back 12% of its shares in the first half of the year, the company's share price has been impacted positively.
- This reflects confidence in the company's financial health and long-term growth prospects.

Macroeconomic Stability and Tariff Impacts:
- Taboola reported stability in the digital ad market amidst macroeconomic uncertainties, with no significant declines in advertiser spend.
- The company noted minimal impact from tariff headwinds, with less than 1% of revenue reduction from China.
- This stability has allowed Taboola to maintain its financial guidance for the second half of the year.