Taboola (NASDAQ:TBLA) reported fourth-quarter results on Wednesday that exceeded profit expectations but came in below forecasts on revenue, sending shares up 2.87% in after-hours trading as investors reacted positively to stronger profitability.
The digital advertising company posted adjusted earnings per share of $0.17 for the quarter, beating the analyst consensus estimate of $0.11 by $0.06.
Revenue totaled $522.3 million, missing expectations of $537.14 million, although it marked a 6.4% increase from $491.0 million recorded in the same period a year earlier. Net income rose to $50.1 million, compared with $33.1 million in the prior-year quarter.
“2025 was not just about beating guidance – it was a turning point for Taboola and validation that Realize is working,” said Adam Singolda, CEO of Taboola. “We accelerated growth throughout the year, improved advertiser outcomes, generated strong free cash flow, and reduced our share count by 18%, all while continuing to invest heavily in AI-driven innovation.”
For the first quarter of 2026, Taboola forecast revenue in the range of $444 million to $462 million. The midpoint of $453 million sits below analyst expectations of $457.2 million.
Looking at the full year 2026, the company guided for revenue between $1.99 billion and $2.05 billion, with the midpoint of $2.02 billion slightly under the consensus estimate of $2.04 billion.
Adjusted EBITDA for the fourth quarter came in at $86.1 million, down 6.6% year on year, with adjusted EBITDA margins of 40.5%. Free cash flow totaled $46.9 million, compared with $51.9 million in the same period last year.
For the full year 2025, Taboola generated revenue of $1.9 billion, representing an 8.3% annual increase, while net income reached $42.3 million, compared with a loss of $3.8 million in 2024.