Content recommendation platform Taboola Q3 profit beats estimates on scaled advertisers growth

Taboola.Com

05/11/2025 11:23

Overview

Taboola Q3 revenue grows 14.7% yr/yr, beating analyst expectations

Adjusted EBITDA for Q3 beats estimates, driven by cost discipline and ad spend

Company repurchased 14% of shares this year, continuing aggressive buyback strategy

Outlook

Taboola expects Q4 2025 revenue between $532 mln and $542 mln

Company anticipates FY 2025 revenue of $1,914 mln to $1,932 mln

Taboola projects FY 2025 adjusted EBITDA between $209 mln and $214 mln

Result Drivers

SCALED ADVERTISERS - Revenue growth driven by a 4.4% increase in scaled advertisers and a 10.9% rise in average revenue per advertiser

REALIZE PLATFORM - Momentum in Realize platform contributed significantly to Q3 revenue growth

SHARE BUYBACK - Company repurchased 14% of shares this year, continuing aggressive buyback strategy

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$496.80 mln
$466.50 mln (6 Analysts)
Q3 EPS
$0.02
Q3 Adjusted Net Income
Beat
$34.30 mln
$28.10 mln (4 Analysts)
Q3 Net Income
$5.20 mln
Q3 Adjusted EBITDA
Beat
$48.20 mln
$45.40 mln (6 Analysts)
Q3 Free Cash Flow
$46.30 mln
Q3 Gross Profit
$139 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Taboola.com Ltd is $4.25, about 21.6% above its November 4 closing price of $3.33

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNXVHdjj

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)