Taboola’s Q4 Revenue Grows 6.4% to $522M but Misses Forecast
Taboola’s Q4 revenue rose 6.4% year-on-year to $522.3M, missing analysts’ $537.8M consensus while GAAP EPS of $0.17 beat by 56.6%. Guidance for next-quarter sales of $453M fell 0.9% short and operating margin dipped to 8.4%, highlighting potential valuation pressure.
1. Q4 Financial Results
In Q4 CY2025, Taboola reported revenue of $522.3 million, up 6.4% year-on-year but 2.9% below the $537.8 million analysts expected. GAAP EPS reached $0.17, a 56.6% beat, while adjusted EBITDA was $86.15 million, delivering a 16.5% margin.
2. Q1 2026 Guidance
Management guided Q1 CY2026 revenue at $453 million at the midpoint, falling 0.9% short of the $457.1 million consensus. Full-year 2026 adjusted EBITDA is forecast at $229 million, modestly above the $224.7 million analysts’ estimate.
3. Profitability and Margins
Operating margin in Q4 declined to 8.4% from 9.6% a year earlier, and free cash flow margin eased to 9% versus 10.6%. Despite margin compression, Taboola’s five-year trend shows improving operating leverage off a smaller revenue base.
4. Market Reaction and Outlook
Shares slid about 4% on the mixed results and cautious guidance. Analysts project revenue growth to decelerate to roughly 5.9% over the next 12 months, underscoring questions around Taboola’s near-term momentum.