Taboola Reports 7% Ex-TAC Profit Gain and Sets May 6 Q1 Call
Taboola’s Realize AI platform delivered a 7% increase in ex-TAC gross profit for 2025 versus 2% guidance, backed by robust free cash flow and buybacks, leaving valuation at 6.3x forward P/E and 4.9x EV/EBITDA. Taboola will report Q1 2026 results on May 6 in an 8:30 a.m. ET conference call.
1. Bullish Rating and Valuation
Taboola maintains a Buy rating supported by disciplined capital allocation and strong cash conversion, with shares trading at 6.3x forward P/E and 4.9x EV/EBITDA, reflecting muted valuation despite operational strength.
2. Ex-TAC Gross Profit Acceleration
The Realize AI ad platform drove a 7% rise in ex-TAC gross profit for 2025, significantly above the initial 2% guidance, indicating improved advertiser engagement and pricing power.
3. Cash Flow and Buybacks
Robust free cash flow generation enabled a string of share buybacks, demonstrating management’s focus on returning capital to shareholders and supporting per-share metrics.
4. Q1 2026 Earnings Schedule
Taboola will release first-quarter 2026 financial results on May 6 and host a conference call at 8:30 a.m. ET to discuss performance and outlook.