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Digital ad firm Taboola's Q3 revenue misses estimates 

By Reuters News


Overview

  • Israel-based digital advertising platform's Q3 revenue fell 6.9% and missed analyst expectations

  • Gross profit for Q3 rose 9.6% year-over-year despite lower revenue

  • Net income improved to $18.4 mln from $5.2 mln a year earlier


Outlook

  • Taboola expects Q4 revenue between $477 mln and $493 mln

  • Company forecasts Q4 adjusted EBITDA of $73.5 mln to $82.5 mln

  • Taboola sees full-year 2026 revenue of $1.88 bln to $1.90 bln


Result Drivers

  • PLATFORM EXPANSION - Co said results were driven by efforts to bring more premium publishers onto its platform and grow revenue with existing publisher partners

  • INVESTMENTS IN GROWTH AREAS - Co cited investments in Taboola News and social commerce as contributing to performance


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$462.26 mln

$467.60 mln (5 Analysts)

Q3 Net Income

$18.37 mln

Q3 Gross Profit

$152.34 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 $5.50, about 61.8% above its November 3 closing price of $3.40

  • The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • Nov 2 - Israel's Check Point Software Q3 revenue slightly misses estimates

  • Nov 3 - Sprout Social Q3 revenue rises 8% on larger customer cohort

  • Nov 3 - Duolingo Q3 daily active users accelerated to 29% on gains in every region; shares soar


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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