EL7.AI
StocksMedium•4 November 2026•
4 min read

Taboola Reports Third-Quarter Revenue of $462.3 Million Despite Profit Growth

Key Facts

1Taboola revenue was $462.3 million in the third quarter, down 6.9% year over year.
2Gross profit rose to $152.3 million, and gross profit ex-TAC to $188.8 million.
3Net income was $18.4 million, compared with $5.2 million in the third quarter of 2025.
4The company forecast annual revenue of $1.8825 billion to $1.8985 billion in 2026.
5The Dianomi deal was expected to become effective on November 16, 2026, subject to the conditions and court approval.

Taboola reported on November 4 results for the third quarter ended September 30, posting revenue of $462.3 million, down 6.9% from the same period in 2025. The results showed a divergence between declining revenue and improving profitability metrics: gross profit rose to $152.3 million, up 9.6%. Gross profit ex-TAC, a measure that excludes traffic acquisition costs, increased to $188.8 million, up 6.8%. Net income was $18.4 million, compared with $5.2 million a year earlier. The company said these figures were for the third quarter and presented new ranges for its 2026 fiscal-year outlook alongside them.

Adjusted EBITDA rose to $56.0 million, up 16.1% year over year, and its margin widened to 29.7% from 27.3% in the third quarter of 2025. The wider margin indicates improved adjusted operating profitability during the period, despite lower revenue. Cash flow, however, declined from a year earlier: cash generated from operating activities was $35.6 million, compared with $53.2 million. Free cash flow also fell to $20.4 million from $46.3 million. The results therefore combined growth in reported and adjusted earnings with declines in cash flow and revenue.

Taboola set its 2026 fiscal-year outlook at revenue of $1.8825 billion to $1.8985 billion, gross profit ex-TAC of $754 million to $763 million, and Adjusted EBITDA of $212 million to $221 million. The revenue range was below the previous estimate, which stood at $1.930 billion to $1.956 billion in the second-quarter outlook. The Adjusted EBITDA range also narrowed from the previous estimate of $228 million to $240 million. The second-quarter update had pointed to higher estimates for gross profit ex-TAC and Adjusted EBITDA after the company exceeded its guidance for both metrics. The new outlook sets a narrower and lower range for revenue and Adjusted EBITDA, alongside the release of third-quarter results.

On its publisher network, Taboola said full-page monetization had become available across NBCUniversal and that Fox News was fully available on its platform. The statement did not specify which NBCUniversal platforms were covered by the availability, nor did it describe the Fox News step as an expansion of the partnership. Chief Executive Adam Singolda said the company was focused on “bringing more premium publishers onto our platform and increasing the revenue we generate with our existing publisher partners.” He added that its priorities included investment in Taboola News and social commerce. The company describes its Realize platform as combining advertising supply, first-party data and artificial intelligence algorithms to run performance campaigns across publishers worldwide.

Meanwhile, the acquisition of Dianomi, announced by Taboola on September 18, is progressing, with completion expected before the end of 2026, subject to customary regulatory approvals and approval by Dianomi shareholders. Taboola said when announcing the deal that Dianomi works with hundreds of premium publishers and gives advertisers access to audiences in the business, finance and lifestyle sectors. It added that more than 600 advertisers and publishers trust the company. By Taboola’s description of Dianomi’s platform, the business places the deal in the specialized advertising segment that Taboola is seeking to expand. The expected timing does not mean the deal will be completed before the stated approvals and conditions are met.

According to an updated deal timetable published on November 2, Dianomi’s two shareholder votes were scheduled for November 6, with the court hearing set for November 12. The timetable set November 16 as the expected effective date of the deal, subject to the conditions being met and court approval. These dates represent steps following the September announcement, while completion remains subject to the required approvals. Taboola said in its initial announcement that it expected the deal to close before the end of 2026. As of that update, the expected effective date did not confirm that the deal had been completed.