Taboola’s third quarter results were well received by the market, with shares rallying after the company delivered revenue, net profit, and adjusted EBITDA all above Wall Street’s expectations. Management cited the rollout of its Realize performance platform as a key factor, noting improved traction with larger advertisers and an uptick in average spend per customer. CEO Adam Singolda pointed to momentum from Realize, explaining, “Our new performance platform Realize is beginning to work for both advertisers and publishers.” The company also highlighted strong cash generation, which enabled significant share repurchases during the quarter.
Is now the time to buy TBLA? Find out in our full research report (it’s free for active Edge members).
Taboola (TBLA) Q3 CY2025 Highlights:
- Revenue: $496.8 million vs analyst estimates of $467.2 million (14.7% year-on-year growth, 6.3% beat)
- Adjusted EPS: $0.11 vs analyst estimates of $0.09 (24.6% beat)
- Adjusted EBITDA: $48.22 million vs analyst estimates of $45.77 million (9.7% margin, 5.4% beat)
- Revenue Guidance for Q4 CY2025 is $537 million at the midpoint, above analyst estimates of $519.9 million
- EBITDA guidance for the full year is $211.5 million at the midpoint, in line with analyst expectations
- Operating Margin: 1.3%, in line with the same quarter last year
- Market Capitalization: $1.19 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Taboola’s Q3 Earnings Call
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Zach Cummins (B. Riley Securities) asked about scaling Realize further and what steps are needed to move from strong traction to broader advertiser adoption. CEO Adam Singolda highlighted the importance of ongoing technology iteration and focusing on the right customer segments.
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Laura Martin (Needham & Company) inquired about the quality and sustainability of human traffic as LLMs change search behavior. Singolda noted increasing app traffic and robust quality controls, while CFO Stephen Walker detailed AI-driven monitoring tools for traffic validation.
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Jason Helfstein (Oppenheimer & Co.) questioned the year-over-year deceleration in ex-TAC revenue growth and increases in non-TAC cost of goods sold. Walker explained that last year’s Yahoo testing and unusual demand from Chinese advertisers were factors, and detailed accounting changes that impacted cost trends.
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Mark Zgutowicz (The Benchmark Company) sought clarity on the returns from increased Realize marketing spend and future EBITDA margins. Walker discussed improved advertiser success rates justifying higher spend and reiterated a long-term 30% margin framework.
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James Kopelman (TD Cowen) asked about the future mix of app-based supply and operating expense growth. Singolda sees further increases in app traffic, while Walker said OpEx growth will be aligned with revenue and focused on Realize investments.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team is watching (1) the pace of scaled advertiser growth and average spend on the Realize platform, (2) further expansion of app-based and OEM-driven traffic supply, and (3) signs of operating leverage as marketing and technology investments ramp. Progress on new publisher partnerships, the continued integration of AI, and the resilience of gross profit margins will also be critical indicators of execution and sustainability.
Taboola currently trades at $4.15, up from $3.34 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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