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NEW YORK - Taboola (NASDAQ:TBLA), a digital advertising platform provider currently trading at $3.21, reported second-quarter results that exceeded its guidance across key metrics, prompting the company to raise its full-year 2025 outlook. According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculations, with analysts setting price targets between $4.00 and $4.50.
The company posted revenues of $465.5 million for the quarter ended June 30, representing an 8.7% increase from the same period last year. This growth was primarily driven by an 8.5% increase in scaled advertisers and a 1.8% rise in average revenue per scaled advertiser. The company maintains strong financial health with a current ratio of 1.32 and holds more cash than debt on its balance sheet, as highlighted by InvestingPro data.
Taboola’s ex-TAC gross profit, a non-GAAP measure that adds back other cost of revenues and non-cash amortization, rose 15.1% to $172.1 million compared to the prior year quarter. The company attributed this growth to increased advertising spend and a shift toward higher-margin digital property partners.
Despite the revenue growth, Taboola reported a net loss of $4.3 million for the quarter, unchanged from the same period last year. Adjusted EBITDA, however, increased 21.3% to $45.2 million, with margins expanding to 26.2% from 24.9% a year earlier.
"We delivered a strong second quarter, beating the high end of our guidance across our key metrics," said Adam Singolda, CEO of Taboola, in the company’s press release.
Cash flow from operations reached $47.4 million, up from $38.8 million in the prior year quarter, while free cash flow increased to $34.2 million from $26.2 million.
The company has been actively repurchasing shares, buying back nearly 12% of outstanding stock in the first half of 2025. Taboola also reported early traction with Realize, its new performance advertising platform.
Based on the strong performance, Taboola raised its full-year 2025 guidance, now projecting revenues between $1.86 billion and $1.89 billion, with adjusted EBITDA expected to range from $208 million to $214 million.
For the third quarter, the company forecasts revenues between $461 million and $469 million, with adjusted EBITDA projected between $43 million and $48 million.
In other recent news, Taboola.com Ltd. reported strong second-quarter earnings, with revenue reaching $465.5 million, an 8.7% increase compared to the same period last year. The company’s Ex-TAC Gross Profit rose by 15.1% to $172.1 million, and its adjusted EBITDA grew by 21.3% to $45.2 million, with margins expanding to 26.2%. These results prompted Taboola to raise its full-year guidance. Additionally, B.Riley upgraded Taboola’s stock rating to Buy, setting a price target of $4, citing the company’s solid financial outlook and attractive valuation. The analyst noted that Taboola’s reaffirmed outlook for fiscal year 2025 helps mitigate risks in a challenging advertising market. Meanwhile, JMP Securities reiterated its Market Perform rating on Taboola, focusing on the progress of its new advertising platform, Realize. Taboola also beat first-quarter 2025 forecasts, with revenue surpassing expectations and showing a smaller-than-anticipated loss per share. These developments have set a promising tone for the company as it continues to navigate the advertising market.
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