Taboola Q1 revenue up 9.1% to $466.4M, raises 2026 guidance
Taboola posted Q1 adjusted EPS of $0.20 on revenue of $466.4 million, beating estimates and driving 9.1% year-over-year sales growth with ex-TAC gross profit up 10.8% to $168.1 million. The company reported net income of $59.1 million boosted by a $77 million legal settlement and raised 2026 revenue guidance.
1. Q1 Financial Highlights
Taboola delivered adjusted earnings per share of $0.20 on revenue of $466.4 million, representing a 9.1% increase from $427.5 million a year earlier. Ex-TAC gross profit rose 10.8% to $168.1 million, underscoring strength in its advertising business and Realize platform.
2. Profit and Legal Settlement
Net income jumped to $59.1 million from a loss of $8.8 million in the prior-year quarter, driven by approximately $77 million in pre-tax legal settlement income. Adjusted EBITDA fell 25.7% to $26.7 million, reflecting higher operating costs and investments.
3. Updated Guidance
For Q2 2026, Taboola forecast revenue between $492 million and $505 million, with a midpoint of $498.5 million above analyst expectations. Full-year revenue outlook was raised to $2.006 billion–$2.062 billion, exceeding the previous consensus midpoint of $2.017 billion.
4. Cash Flow Performance
Free cash flow surged to $90.3 million from $36.1 million in Q1 2025, highlighting improved cash generation and operating performance as the company scales its advertising solutions.