Taboola Posts $462.3 Million in Third-Quarter Revenue, Lowers 2026 Outlook
Key Facts
Taboola reported results on November 4 for the third quarter ended September 30, 2026, with revenue of $462.3 million, down 6.9% from the same period in 2025, according to an investor relations statement. The revenue decline came alongside improved profitability metrics, as net income rose to $18.4 million from $5.2 million a year earlier. Gross profit also increased 9.6% to $152.3 million. Adjusted EBITDA rose to $56.0 million, up 16.1%. But lower revenue and cash flow, together with fourth-quarter guidance, place the stronger earnings in the context of a mixed set of results.
The adjusted earnings margin widened to 29.7% in the third quarter, compared with 27.3% in the same period a year earlier, the company said. The expansion indicates Taboola generated more adjusted earnings relative to revenue despite lower annual sales. However, cash from operating activities fell to $35.6 million from $53.2 million a year earlier. Free cash flow dropped to $20.4 million, versus $46.3 million in the third quarter of 2025. Net and adjusted earnings therefore rose, while operating and free cash flow declined year over year.
The third-quarter results offer an additional comparison with the second quarter of 2026, when the company reported revenue of $476.8 million, up 2.4% year over year. Net income then was $4.3 million, following a net loss of $4.3 million in the second quarter of 2025, according to the prior earnings statement. In the third quarter, revenue fell from its second-quarter level, while net income rose to $18.4 million. The comparison between the periods reflects continued quarterly profitability alongside a shift in annual revenue growth from an increase in the second quarter to a decline in the third. The figures in the results did not include a specific explanation for the divergence between revenue and profitability.
For the fourth quarter, Taboola set a revenue range of $477 million to $493 million and adjusted EBITDA of $73.5 million to $82.5 million. The new range is lower than the previous one, but also narrower, with less distance between its endpoints. The second-quarter estimate had shown annual revenue growth, while current fourth-quarter guidance sets a revenue range without providing a year-over-year comparison. The market is watching for the company to deliver on this guidance in the final quarter, while the full-year outcome remains tied to achieving the annual range the company announced.
Chief Executive Adam Singolda said the company is focused on “bringing more premium publishers onto our platform, increasing the revenue we generate with our existing partners, and investing in complementary growth areas such as Taboola News and social commerce.” These priorities link expansion of the publisher base and deeper revenue from existing partners with investment in other growth channels. In its third-quarter results announcement, the company said full-page monetization had become available across NBCUniversal, and Fox News had become fully available on its platform. The company said the two launches mark steps in the publishing network Taboola is expanding. The statement did not provide further details on the scope of availability at NBCUniversal or Fox News.
The proposed acquisition of Dianomi remains a future development contingent on conditions. When it announced the offer on September 18, Taboola said it expected to complete the acquisition before the end of 2026, subject to customary regulatory conditions and approval by Dianomi shareholders. The company published an update to the transaction timetable on November 2 on its Dianomi offers page. Taboola is scheduled to host its third-quarter earnings call on November 4, 2026, at 8:30 a.m. Eastern Time. Completion of the acquisition remains subject to the conditions and approvals the company announced; publishing a timetable update does not mean the deal has been completed.
Taboola shares closed at $3.40 on November 3, after $3.43 in the previous session, according to EL7 data. After the results announcement, the stock fell 15% in premarket trading on November 4, according to Investing.com, which said revenue came in below analysts’ expectations. The share move before the announcement and the subsequent reaction put the company’s results and outlook in focus for investors. The premarket decline followed results showing lower annual revenue despite higher earnings. It also coincided with the announcement of fourth-quarter and fiscal-year ranges, while the Dianomi deal remained subject to the announced approvals and conditions.