| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 91 | 9.9x | 17.8x | Top tier | |
Growth | 86 | 8.0% | 7.1% | Top tier | |
Quality | 73 | 11.6% | 4.5% | Top tier | |
Safety | 88 | — | 2.6x | Top tier | |
Capital Return | 89 | — | 2.12% | Top tier | |
Momentum | 52 | 23.5% | 2.9% | Around median | |
Sentiment | 68 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Taboola operates a performance advertising platform for the open web outside the search and social media ecosystems, turning intent signals derived from billions of users’ interactions with publishers’ websites, apps, and device manufacturer platforms into measurable outcomes for advertisers. The company generates revenue by monetizing publishers’ advertising inventory, including native, display, and vertical video ads, while expanding its Realize platform to increase advertiser spending and Taboola’s share of publishers’ wallets. Higher-margin mix drivers include Realize and Taboola News, while DeeperDive aims to monetize AI-powered conversations within publishers’ websites.
In quarter 2 of fiscal year 2026, revenue increased 2% year over year to $476.8 million, and gross profit reached $139.5 million at a margin of approximately 29.3%, while ex-TAC gross profit grew 12% to $192.4 million. Taboola recorded net income of $4.3 million, compared with non-GAAP net income of $41.3 million, and adjusted EBITDA reached $55.5 million at a 29% margin. Gross profit included a one-time non-cash reduction of approximately $12 million related to publisher prepayments that the company no longer expects to recover.
Ex-TAC gross profit grew faster than revenue due to the removal of underperforming publishers, higher advertising prices, a mix shift toward higher-margin activities, and the expansion of Realize and contribution from Taboola News. Meanwhile, average revenue per scaled advertiser remained approximately flat, while the number of those advertisers increased 2% year over year. The business generated $31.3 million in operating cash flow and $17.3 million in free cash flow in quarter 2 of fiscal year 2026.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $5.50, which is identical to both the highest and lowest targets and reflects a consensus Buy rating, but it does not provide a varied range of estimates through which to assess differences of opinion. This target is approximately 3.7% below the 52-week range high of $5.71, while the range low is $2.835; therefore, achieving the valuation primarily depends on Taboola’s ability to offset the more than $20 million impact from Explore More and accelerate the contributions of Realize, DeeperDive, and new partnerships.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Taboola connects advertisers with advertising inventory across publishers, apps, and device manufacturers on the open web, using proprietary intent data and AI technologies to improve conversions. It earns revenue by monetizing placements such as native, display, and vertical video ads, then reports ex-TAC gross profit to measure business economics after partner payments. In quarter 2 of fiscal year 2026, revenue was $476.8 million and ex-TAC gross profit was $192.4 million.
Google’s policy ended the Explore More experience starting in quarter 2 of fiscal year 2026 after the change was announced in April 2026 and implemented faster than Taboola expected. The product had been expected to add more than $20 million to ex-TAC gross profit in the second half of fiscal year 2026, with the comparison impact continuing into the first half of fiscal year 2027. The company launched the Engage product within Google’s policies in an attempt to recover a large portion of the revenue, but management did not commit to recovering it in full.
DeeperDive adds an AI-powered conversational experience within publishers’ websites instead of relying solely on traditional page views. Since its launch in September 2025, the product has approached 10 million users, and its usage rate has exceeded 10% of visitors to websites that offer it. Management said its monetization opportunity per thousand views is 5 to 10 times that of traditional views and that directing approximately 10% of traffic to it could increase publisher revenue by about 10%.
Realize Plus is an AI-based optimization framework for automating advertising campaign decisions across the open web, and more than 300 advertisers had adopted its beta version by the August 5, 2026 call. A few million dollars of advertiser spending also flowed through MCP and cloud integrations that enable campaign management through natural-language conversations. The FOX News agreement adds premium inventory to Taboola’s existing relationships with Fox Local, Fox Sports, and Fox Weather, expanding Realize’s reach to a major U.S. publisher.
Taboola expects revenue of between $1.93 billion and $1.96 billion and gross profit of between $605 million and $615 million in fiscal year 2026. It also raised its ex-TAC gross profit outlook to $772–783 million and its adjusted EBITDA outlook to $228–240 million. Its non-GAAP net income outlook ranges between $168 million and $176 million, and the impact of discontinuing Explore More and cleaning up the publisher network is included in this outlook.
Taboola ended the period on June 30, 2026 with $133.1 million in cash and cash equivalents versus $72 million in long-term debt, with approximately $198 million of available liquidity under a $270 million revolving facility. In quarter 2 of fiscal year 2026, it generated $31.3 million in operating cash flow and $17.3 million in free cash flow. It repurchased approximately 9.4 million shares for $41.4 million during the quarter, with approximately $114 million remaining under the authorization, while targeting the conversion of 60% to 70% of adjusted EBITDA into free cash flow over any typical four-quarter period.
