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Taboola (NASDAQ:TBLA) reported first-quarter results on Wednesday that surpassed Wall Street expectations on both earnings and revenue, supported by continued growth in its advertising business and stronger performance from its Realize platform.
The company posted adjusted earnings per share of $0.20, well ahead of analyst forecasts of a loss of $0.01 per share. Revenue reached $466.4 million, exceeding consensus estimates of $453.24 million.
Despite the earnings beat, Taboola shares were little changed in after-hours trading following the announcement.
First-quarter revenue increased 9.1% year over year from $427.5 million reported in the same period of 2025.
Ex-TAC gross profit — a key profitability metric for the company — rose 10.8% to $168.1 million.
However, adjusted EBITDA declined 25.7% to $26.7 million, compared with $35.9 million a year earlier.
Taboola reported net income of $59.1 million during the quarter, a sharp improvement from the net loss of $8.8 million recorded in the prior-year period.
The company said the result included approximately $77 million in pre-tax settlement income tied to a legal matter.
“We’re starting the year strong, exceeding the high end of our guidance across all metrics and raising our full-year outlook, reflecting accelerated growth,” said Adam Singolda, chief executive officer of Taboola.
“We’re seeing steady progress toward consistent double-digit growth, driven by advertiser success on Realize.”
For the second quarter of 2026, Taboola forecast revenue between $492 million and $505 million.
The midpoint of $498.5 million came in above analyst expectations of $486.1 million.
The company also raised its full-year 2026 revenue outlook to a range of $2.006 billion to $2.062 billion.
The midpoint of $2.034 billion slightly exceeded consensus estimates of $2.017 billion.
Free cash flow during the quarter rose significantly to $90.3 million, compared with $36.1 million in the first quarter of 2025, reflecting stronger operating performance and improved cash generation.