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NEW YORK - On Wednesday, Taboola (NASDAQ:TBLA) reported second-quarter revenue that exceeded analyst expectations and raised its full-year guidance, signaling continued momentum in its advertising business.
The digital advertising company’s shares rose 4.36% in pre-market trading after the release.
The company posted revenue of $465.5 million for the quarter ended June 30, 2025, surpassing the consensus estimate of $448.7 million and representing an 8.7% increase from the same period last year. Adjusted EBITDA rose 21.3% to $45.2 million, with margins expanding to 26.2% from 24.9% a year earlier. Taboola reported a quarterly net loss of $0.01 per share, in line with analyst expectations.
"We delivered a strong second quarter, beating the high end of our guidance across our key metrics," said Adam Singolda, CEO of Taboola. "We bought back nearly 12% of the company in the first half of the year which reflects our confidence in the business and our long-term vision."
Revenue growth was primarily driven by an 8.5% increase in Scaled Advertisers, complemented by a 1.8% rise in Average Revenue per Scaled Advertiser. The company also reported strong contributions from its Taboola News and Bidded Supply segments.
Taboola’s Ex-TAC Gross Profit, a key metric for the company, increased 15.1% to $172.1 million, which included a 0.5% benefit from currency. Free Cash Flow improved to $34.2 million compared to $26.2 million in the year-ago quarter.
Looking ahead, Taboola raised its full-year 2025 revenue guidance to $1.858-$1.888 billion, up from its previous forecast and above the consensus estimate of $1.86 billion. For the third quarter, the company expects revenue between $461 million and $469 million, in line with analyst expectations of $462.8 million.
The company has been actively repurchasing shares, buying back nearly 12% of outstanding stock in the first half of 2025, and indicated plans to continue the buyback program.
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