Taboola (NASDAQ:TBLA) reported third-quarter 2026 revenue of $462.3 million, down 6.9% year over year, while adjusted EBITDA increased 16.1% to $56.0 million as the digital advertising company continued expanding its publisher partnerships and improving profitability.
For the quarter ended September 30, gross profit rose 9.6% to $152.3 million, while ex-TAC gross profit, a non-GAAP measure, increased 6.8% to $188.8 million.
Net income climbed to $18.4 million from $5.2 million a year earlier, while adjusted EBITDA margin improved to 29.7% from 27.3%.
Profitability Improves Despite Lower Revenue
Taboola’s third-quarter results showed improved profitability despite a decline in overall revenue.
Adjusted EBITDA reached $56.0 million, compared with approximately $48.2 million in the prior-year period, representing growth of 16.1%.
Operating cash flow declined to $35.6 million from $53.2 million, while free cash flow decreased to $20.4 million from $46.3 million.
Chief Executive Officer Adam Singolda said the company remained focused on expanding its advertising platform and strengthening relationships with publishers.
“In the third quarter, we delivered $189 million in ex-TAC and $56 million in Adjusted EBITDA,” Singolda said.
He added that Taboola was concentrating on attracting premium publishers, increasing revenue from existing partners and developing complementary businesses, including Taboola News and social commerce.
NBCUniversal and Fox News Partnerships Advance
Taboola reported that its full-page monetisation technology was operational across NBCUniversal properties, while its deployment with Fox News had reached 100%.
The developments form part of the company’s strategy to expand its presence among major digital publishers and increase monetisation opportunities across its advertising network.
Taboola also highlighted its planned acquisition of Dianomi, which it expects to complete before the end of 2026.
The company continues investing in its advertising technology and publisher relationships as it seeks to strengthen its position in the digital advertising market.
Fourth-Quarter and Full-Year Guidance
For the fourth quarter of 2026, Taboola expects revenue between $477 million and $493 million, with adjusted EBITDA ranging from $73.5 million to $82.5 million.
The company forecasts fourth-quarter ex-TAC gross profit of $204.5 million to $213.5 million and non-GAAP net income between $53 million and $62 million.
For the full year, Taboola expects revenue of $1.8825 billion to $1.8985 billion, gross profit of $595 million to $604 million and ex-TAC gross profit of $754 million to $763 million.
Full-year adjusted EBITDA is projected between $212 million and $221 million, while non-GAAP net income is expected to range from $151 million to $160 million.
Taboola has not provided a reconciliation of its forward-looking adjusted earnings measures to GAAP net income, citing uncertainty surrounding items including share-based compensation.
Outlook for Taboola
Taboola’s third-quarter performance reflected improving profitability despite lower revenue, supported by growth in ex-TAC gross profit and adjusted EBITDA.
The expansion of its NBCUniversal and Fox News deployments, alongside the anticipated Dianomi acquisition, represents part of the company’s broader strategy to increase its presence across premium digital publishing platforms.
Investors will be monitoring the company’s ability to translate these partnerships into revenue growth, maintain improving adjusted margins and complete the Dianomi transaction before year-end.