Taboola Cuts Full-Year Outlook After Revenue Turns Down

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter revenue was $462.3 million, down 6.9% from a year earlier, as the company lowered 2026 revenue guidance to $1,882.5 million to $1,898.5 million.

Taboola.com (TBLA), a performance-advertising platform, reported third-quarter revenue of $462.3 million, down 6.9% from a year earlier, reversing two quarters of year-over-year growth and prompting a cut to its full-year 2026 outlook.

The sequential turn was the quarter’s defining break. Revenue had risen 9.1% in the first quarter and 2.4% in the second, each versus the same quarter a year earlier. The third-quarter decline marked the first year-over-year contraction in that run.

Gross profit was $152.3 million, up 9.6% from a year earlier. Ex-TAC gross profit was $188.8 million, up 6.8%. That ex-TAC growth rate slowed from 11.8% in the second quarter and 10.8% in the first.

Net income was $18.4 million, compared with $5.2 million a year earlier. Adjusted EBITDA was $56.0 million, up 16.1%. Adjusted EBITDA margin expanded to 29.7% from 27.3%. Adjusted EBITDA growth slowed from 22.8% in the second quarter.

Cash provided by operating activities was $35.6 million, compared with $53.2 million a year earlier. Free cash flow was $20.4 million, compared with $46.3 million.

Traffic acquisition cost was $277.6 million in the quarter. Related-party revenue was $68.2 million, versus $52.1 million a year earlier.

Chief Executive Adam Singolda said the company delivered $189 million in ex-TAC and $56 million in Adjusted EBITDA. He said the company is focused on bringing more premium publishers onto the platform, growing revenue with existing publisher partners, and investing in complementary growth areas including Taboola News and social commerce.

The company said full-page monetization is live across all NBCUniversal and that Fox News is live 100%. It said the Dianomi acquisition is expected to close before year-end.

For the fourth quarter of 2026, Taboola expects revenue of $477 million to $493 million, gross profit of $174 million to $183 million, ex-TAC gross profit of $204.5 million to $213.5 million, Adjusted EBITDA of $73.5 million to $82.5 million, and non-GAAP net income of $53 million to $62 million.

Full-year 2026 revenue guidance was lowered to $1,882.5 million to $1,898.5 million from $1,930 million to $1,956 million. Full-year ex-TAC gross profit guidance was lowered to $754 million to $763 million from $772 million to $783 million. Full-year Adjusted EBITDA guidance was lowered to $212 million to $221 million from $228 million to $240 million. Full-year non-GAAP net income guidance was lowered to $151 million to $160 million from $168 million to $176 million.

Cash and cash equivalents were $128.7 million at September 30, 2026. Trade receivables were $303.2 million. The revolving credit facility balance was $78.5 million. Treasury ordinary shares stood at a cost of $481.2 million.

The company said it is not able to provide guidance for projected net income, the most directly comparable GAAP measure, citing unpredictable items including share-based compensation.