Revenue growth has significantly decelerated from 29.0% in 2024Q2 to 9.1% in 2026Q1, while gross margins remain pressured by traffic acquisition costs, falling to 27.8% in the most recent quarter.
| Sales/Revenue | 1.95B | 1.91B | 664.66M | 1.44B | 1.4B | 1.38B | 1.19B | 1.09B |
| Revenue Growth % | 9.62% | 187.67% | -53.83% | 2.75% | 1.65% | 15.94% | 8.69% | - |
| Cost of Goods Sold | 1.07B | 1.34B | 130.45M | 1.01B | 936.9M | 937.39M | 869.4M | 861.86M |
| COGS % of Revenue | - | 70.21% | 19.63% | 70.44% | 66.87% | 68% | 73.13% | 78.79% |
| Gross Profit | 579.78M | 569.51M | 534.22M | 425.56M | 464.25M | 441.07M | 319.5M | 231.97M |
| Gross Margin % | 29.72% | 29.79% | 80.37% | 29.56% | 33.13% | 32% | 26.87% | 21.21% |
| Gross Profit Growth % | - | 6.61% | 25.53% | -8.33% | 5.26% | 38.05% | 37.73% | - |
| Operating Expenses | 528M | 525.45M | 508.3M | 489.3M | 477.92M | 454.34M | 293.3M | 251.6M |
| OpEx % of Revenue | - | 27.48% | 76.47% | 33.99% | 34.11% | 32.96% | 24.67% | 23% |
| Selling, General & Admin | 385.41M | 377.41M | 365.86M | 353.04M | 348.64M | 336.4M | 193.88M | 166.9M |
| SG&A % of Revenue | - | 19.74% | 55.04% | 24.52% | 24.88% | 24.4% | 16.31% | 15.26% |
| Research & Development | 151.67M | 148.04M | 142.44M | 136.25M | 129.28M | 117.93M | 99.42M | 84.71M |
| R&D % of Revenue | - | 7.74% | 21.43% | 9.46% | 9.23% | 8.56% | 8.36% | 7.74% |
| Other Operating Expenses | -1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 43.44M | 44.06M | 25.92M | -63.74M | -13.66M | -13.27M | 26.19M | -19.64M |
| Operating Margin % | 2.23% | 2.3% | 3.9% | -4.43% | -0.98% | -0.96% | 2.2% | -1.8% |
| Operating Income Growth % | - | 69.99% | 140.66% | -366.43% | -3.02% | -150.64% | 233.39% | - |
| EBITDA | 150.93M | 143.91M | 126.84M | 32.77M | 77.56M | 39.85M | 60.15M | 19.73M |
| EBITDA Margin % | 7.74% | 7.53% | 19.08% | 2.28% | 5.54% | 2.89% | 5.06% | 1.8% |
| EBITDA Growth % | 37.98% | 13.46% | 287.02% | -57.74% | 94.64% | -33.76% | 204.9% | - |
| D&A (Non-Cash Add-back) | 107.49M | 99.86M | 100.93M | 96.51M | 91.22M | 53.11M | 33.96M | 39.36M |
| EBIT | 42.51M | 37.46M | 25.92M | -63.74M | -13.66M | -13.27M | 26.19M | -19.64M |
| Net Interest Income | -2.45M | -4.7M | -9.12M | -12.8M | 9.21M | 11.29M | -2.75M | -3.39M |
| Interest Income | 2.25M | 0 | 0 | 0 | 9.21M | 11.29M | 0 | 0 |
| Interest Expense | 4.7M | 4.7M | 9.12M | 12.8M | 0 | 0 | 2.75M | 3.39M |
| Other Income/Expense | 69.22M | -11.29M | -11.98M | -12.8M | 9.21M | 11.29M | -2.75M | -3.39M |
| Pretax Income | 112.67M | 32.77M | 13.94M | -76.54M | -4.45M | -1.97M | 23.44M | -23.03M |
| Pretax Margin % | 5.77% | 1.71% | 2.1% | -5.32% | -0.32% | -0.14% | 1.97% | -2.11% |
| Income Tax | 2.57M | -9.52M | 17.7M | 5.5M | 7.52M | 22.98M | 14.95M | 5M |
| Effective Tax Rate % | 2.28% | -29.05% | 126.98% | -7.18% | -168.98% | -1165.11% | 63.77% | -21.7% |
| Net Income | 110.1M | 42.28M | -3.76M | -82.04M | -11.97M | -24.95M | 8.49M | -28.02M |
| Net Margin % | 5.64% | 2.21% | -0.57% | -5.7% | -0.85% | -1.81% | 0.71% | -2.56% |
| Net Income Growth % | 229.05% | 1224.57% | 95.42% | -585.09% | 52% | -393.75% | 130.31% | - |
| Net Income (Continuing) | 110.1M | 42.28M | -3.76M | -82.04M | -11.97M | -24.95M | 8.49M | -28.02M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.38 | 0.13 | -0.01 | -0.24 | -0.05 | -0.14 | 1.33 | -0.60 |
| EPS Growth % | 276.48% | 1292.66% | 95.46% | -409.55% | 66.36% | -110.53% | 321.67% | - |
| EPS (Basic) | - | 0.14 | -0.01 | -0.24 | -0.05 | -0.15 | 1.33 | -0.63 |
| Diluted Shares Outstanding | 288.76M | 318.74M | 343.39M | 346.38M | 254.28M | 265.95M | 6.37M | 46.35M |
| Basic Shares Outstanding | 282.24M | 311.66M | 343.39M | 346.38M | 254.28M | 245.61M | 6.37M | 44.32M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Margin compression from TAC
As reported in financial statements, TBLA's year-over-year revenue growth has decelerated from 29.0% in 2024Q2 to 9.1% by 2026Q1, suggesting that the initial tailwinds from major publisher integrations are normalizing as the company faces a more challenging environment for digital advertising spend across its core markets.
The deceleration in top-line expansion indicates that the company's reliance on volume-based clicks is increasingly sensitive to broader macroeconomic volatility. Investors should monitor whether the shift toward OEM-based placements can offset the slowing growth in traditional web-based discovery feeds.
Based on reported figures, TBLA's gross margin has fluctuated significantly, peaking at 36.2% in 2024Q4 before contracting to 27.8% in 2026Q1, highlighting the inherent difficulty in maintaining pricing power when Traffic Acquisition Costs remain the primary variable expense in the company's revenue-share business model.
The structural ceiling on margins appears to be a direct consequence of the competitive nature of publisher contracts, which force the company to pass through a substantial portion of gross billings. This volatility suggests that the firm lacks the pricing leverage necessary to insulate its bottom line from fluctuations in publisher payout requirements.
According to recent SEC filings, TBLA's operating income has struggled to scale, oscillating between negative territory and thin positive margins, with operating income reaching -1.5% in 2026Q1, which implies that the company has yet to achieve the necessary operational efficiency to convert its massive revenue base into sustainable profit.
The inability to consistently scale operating income faster than gross profit suggests that SG&A and R&D expenses remain high relative to the company's net take rate. This lack of operating leverage warrants further investigation into whether the current cost structure is permanently bloated by the integration requirements of large-scale partnerships.
As evidenced by the income statement data, TBLA consistently records significant stock-based compensation expenses, often exceeding $15 million per quarter, which creates a persistent wedge between GAAP net income and the underlying operational performance of the business, potentially masking the true cost of talent retention.
The reliance on equity-based incentives appears to be a standard practice for the firm, yet it complicates the assessment of shareholder dilution and real economic profitability. Investors should be cautious of the discrepancy between reported EPS and the cash-based reality of the company's operating performance.
Quick answers to the most common questions about buying TBLA stock.
For fiscal year 2025, Taboola.com Ltd. (TBLA) reported total revenue of $1.91B. This represents a 74.8% increase compared to $1.09B in 2019.
Taboola.com Ltd. (TBLA) is profitable, generating $42.3M in net income for the fiscal year ending 2025 with a net profit margin of 2.2%.
Taboola.com Ltd. (TBLA) reported an operating income of $44.1M, resulting in an operating profit margin of 2.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Taboola.com Ltd. (TBLA) generated $569.5M in gross profit for the year, representing a gross profit margin of 29.8%. This demonstrates the company's core pricing power and production efficiency.