Free cash flow generation remains volatile, with margins fluctuating from 2.5% in 2023Q4 to 19.4% in 2026Q1, while management prioritized $186.5 million in share repurchases during 2025Q4.
| Cash from Operations | 268.91M | 208.36M | 184.33M | 84.37M | 53.48M | 63.52M | 139.09M | 18.06M |
| Operating CF Margin % | - | 10.9% | 27.73% | 5.86% | 3.82% | 4.61% | 11.7% | 1.65% |
| Operating CF Growth % | 146.87% | 13.04% | 118.47% | 57.75% | -15.8% | -54.33% | 670.31% | - |
| Net Income | 110.1M | 50.13M | -3.76M | -82.04M | -11.97M | -24.95M | 8.49M | -28.02M |
| Depreciation & Amortization | 95.25M | 99.86M | 100.93M | 96.51M | 91.22M | 53.11M | 33.96M | 39.36M |
| Stock-Based Compensation | 48.42M | 63.94M | 67.1M | 64.33M | 74.92M | 127.96M | 28.28M | 8.25M |
| Deferred Taxes | -25.49M | -25.49M | -9.32M | -15.5M | -17.33M | -1.58M | -3.38M | -239K |
| Other Non-Cash Items | 37.73M | 6.89M | 14.87M | 833K | -1.34M | -24.57M | -2.8M | -615K |
| Working Capital Changes | 2.91M | 13.04M | 14.52M | 20.23M | -82.02M | -66.44M | 74.54M | -678K |
| Change in Receivables | -5M | 9.94M | -63.8M | -49.6M | -11.24M | -40.11M | -3.29M | -15.33M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -10.47M | 0 | 25.92M | 36.56M | -16.82M | 25.48M | 23.43M | 31.62M |
| Cash from Investing | -51.05M | -40.94M | -30.11M | 59.64M | -139.56M | -620.46M | 10.88M | -47.47M |
| Capital Expenditures | -51.25M | -44.92M | -35.16M | -32.13M | -34.91M | -39.07M | -17.77M | -44.33M |
| CapEx % of Revenue | 2.63% | 2.35% | 5.29% | 2.23% | 2.49% | 2.83% | 1.49% | 4.05% |
| Acquisitions | 0 | 0 | -719K | 0 | -7.98M | -583.46M | -202K | -3.97M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 91K | 2.07M | -104K | -583K |
| Cash from Financing | -286.73M | -277.31M | -99.98M | -134.61M | -62.87M | 631.13M | 2.6M | 991K |
| Debt Issued (Net) | -37.15M | 0 | -30M | -82.25M | -64.26M | 288M | 0 | 0 |
| Equity Issued (Net) | 30M | 0 | -73.77M | -55.51M | 0 | 285.38M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 29.01M | 0 | -73.77M | -55.51M | 0 | 0 | 0 | 0 |
| Other Financing | -279.58M | -277.31M | 3.78M | 3.15M | 1.39M | 57.75M | 2.6M | 991K |
| Net Change in Cash | -65.95M | -105.72M | 50.48M | 10.21M | -153.43M | 76.51M | 155.89M | -27.96M |
| Free Cash Flow | 217.66M | 163.45M | 149.18M | 52.24M | 18.57M | 24.45M | 121.31M | -26.27M |
| FCF Margin % | 11.16% | 8.55% | 22.44% | 3.63% | 1.33% | 1.77% | 10.2% | -2.4% |
| FCF Growth % | 37.38% | 9.57% | 185.56% | 181.31% | -24.05% | -79.84% | 561.76% | - |
| FCF per Share | 0.75 | 0.51 | 0.43 | 0.15 | 0.07 | 0.09 | 19.06 | -0.57 |
| FCF Conversion (FCF/Net Income) | 1.98x | 4.93x | -49.02x | -1.03x | -4.47x | -2.55x | 16.38x | -0.64x |
| Interest Paid | -2.19M | 0 | 14.31M | 18.49M | 20.71M | 1.13M | 715K | 0 |
| Taxes Paid | -3.76M | 0 | 19.88M | 18.01M | 28.8M | 15.47M | 9.98M | 7.95M |
Margin compression from TAC
As reported in financial statements, TBLA's operating cash flow consistently exceeds net income, with the OCF/NI ratio reaching extreme levels like 10.15 in 2025Q3, suggesting that GAAP net income is a poor proxy for the company's actual ability to generate cash from its core operations.
The persistent gap between net income and operating cash flow appears driven by significant non-cash charges, including depreciation and amortization, which frequently dwarf reported net earnings. Investors should monitor whether this cash conversion quality remains sustainable as the company matures and capital expenditure requirements potentially shift.
Based on TBLA's reported figures, free cash flow margins have shown significant volatility, ranging from a low of 2.5% in 2023Q4 to a peak of 19.4% in 2026Q1, indicating that cash generation remains highly sensitive to quarterly fluctuations in working capital and traffic acquisition cost settlements.
While the recent expansion in FCF margin suggests improved efficiency, the historical inconsistency warrants caution regarding the predictability of future cash flows. The reliance on high-volume, low-margin ad placements means that even minor shifts in publisher payout terms can disproportionately impact the company's free cash flow trajectory.
According to recent SEC filings, TBLA's working capital changes have been erratic, swinging from a $31.6 million outflow in 2025Q4 to a $15.3 million inflow in 2026Q1, which highlights the inherent difficulty in managing cash cycles within a complex, multi-party digital advertising ecosystem.
These fluctuations suggest that the company's cash position is frequently influenced by the timing of payments to publishers versus collections from advertisers. Such variability may indicate that the company's liquidity is subject to the payment behaviors of its partners, which could create temporary cash flow pressure during periods of industry-wide budget tightening.
As evidenced by the provided data, TBLA has prioritized significant share repurchases, including a $186.5 million outlay in 2025Q4, despite thin operating margins, suggesting a management focus on supporting equity value that may come at the expense of reinvesting in long-term operational infrastructure or debt reduction.
The decision to deploy substantial cash toward buybacks while net income remains inconsistent may signal management's confidence in the business model, yet it also limits the company's financial flexibility. Analysts should investigate whether this capital allocation strategy is sustainable if the current ad-tech market environment experiences a prolonged downturn.
Quick answers to the most common questions about buying TBLA stock.
Taboola.com Ltd. (TBLA) generated $208.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Taboola.com Ltd. (TBLA) generated $163.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Taboola.com Ltd. (TBLA) spent $44.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.