Taboola (NASDAQ:TBLA) reported stronger-than-expected second-quarter revenue on Wednesday and raised its outlook for the full year, highlighting ongoing growth in its advertising operations. Following the announcement, shares gained 4.36% in pre-market trading.
The company recorded $465.5 million in revenue for the quarter ending June 30, 2025, beating the consensus estimate of $448.7 million and marking an 8.7% increase compared to the same period last year. Adjusted EBITDA grew 21.3% to $45.2 million, with margins expanding from 24.9% to 26.2%. Taboola posted a net loss of $0.01 per share, matching analyst expectations.
“We delivered a strong second quarter, beating the high end of our guidance across our key metrics,” said Adam Singolda, CEO of Taboola. “We bought back nearly 12% of the company in the first half of the year which reflects our confidence in the business and our long-term vision.”
Revenue gains were mainly fueled by an 8.5% rise in Scaled Advertisers and a 1.8% increase in Average Revenue per Scaled Advertiser. The company also saw solid results from its Taboola News and Bidded Supply divisions.
Taboola’s Ex-TAC Gross Profit, a critical measure for the business, climbed 15.1% to $172.1 million, including a 0.5% positive impact from currency fluctuations. Free Cash Flow improved to $34.2 million from $26.2 million a year earlier.
Looking forward, Taboola raised its full-year 2025 revenue forecast to a range of $1.858 billion to $1.888 billion, up from previous estimates and above the consensus of $1.86 billion. For Q3, the company projects revenue between $461 million and $469 million, aligning with analyst expectations of $462.8 million.
Taboola has actively repurchased shares, buying back nearly 12% of its outstanding stock in the first half of 2025, and plans to continue this buyback program.
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