Taboola Beats Expectations in Q3 2025: Accelerated Share Buybacks and Strong Guidance Signal Confidence

Double-Digit Revenue Growth and a Swing to Profit Highlight Taboola’s Strong Quarter

Taboola (NASDAQ: TBLA) reported third quarter 2025 results that topped its own forecasts, continuing its track record of steady growth and margin discipline. Revenues for the quarter reached $496.8 million—a 14.7% year-over-year increase—driven by higher spend from both new and existing scaled advertisers. Notably, Taboola’s net income flipped to a positive $5.2 million from a $6.5 million loss in Q3 last year, showing meaningful bottom-line improvement. Gross profit rose to $139.0 million (up 4.6%), while ex-TAC gross profit—a preferred profitability measure in digital advertising—climbed to $176.8 million, a 6.3% rise from the prior year.

Aggressive Share Repurchase Underscores Leadership Confidence

Beyond the strong quarterly performance, Taboola’s management doubled down on shareholder value, revealing that 14% of outstanding shares have been repurchased in 2025 alone. This marks a significant vote of confidence in the company’s long-term prospects and is especially notable at a time when many technology firms are scaling back capital returns in favor of preserving cash. CEO Adam Singolda called out the impact of Taboola’s “Realize” performance platform as a key growth driver and signaled that continued share buybacks could remain on the table, subject to market conditions and other factors.

Guidance Raised as Revenue and Profitability Momentum Continues

Looking ahead, Taboola issued higher full-year guidance, with projected revenues of $1,914 to $1,932 million and adjusted EBITDA expected between $209 and $214 million. Fourth-quarter projections are also robust, setting up the company for a strong finish to 2025. Taboola expects continued expansion of ex-TAC gross profit and non-GAAP net income, reflecting its strategy of scaling profitable growth across its core advertising, news, and supply platforms.

Operational Highlights: Strong Collections, Margin Discipline, and Focused Growth

Operational discipline remains a clear theme in Taboola’s report, with increased cash flow from operations ($53.2 million, up from $49.8 million) and healthy free cash flow supporting investments in innovation and buybacks. While adjusted EBITDA margins were slightly lower year-over-year (27.3% vs. 28.8%), this reflects incremental investments in hosting, marketing, and the “Realize” platform, alongside currency headwinds. Importantly, the growth in advertising spend—especially from scaled advertisers and improved average revenue per client—points to deeper market penetration.

Balance Sheet Shows Strategic Investments Amid Lower Cash Reserves

Taboola’s cash, cash equivalents, and short-term deposits fell to $115.5 million from $217.2 million a year earlier, largely a result of the share buyback program and strategic spending. Trade receivables and intangible assets declined, suggesting management is focused on efficient capital deployment rather than chasing pure top-line growth at any cost.

Key Takeaways for Investors

Taboola’s Q3 2025 results highlight robust growth, prudent operational management, and clear strategic priorities: namely, returning capital to shareholders and scaling its new ad tech initiatives. Investors may find Taboola’s approach of balancing innovation investment with profitability—and the willingness to buy back a large portion of shares—a noteworthy vote of confidence by management. As the company moves into Q4 with raised guidance, all eyes will be on whether this momentum is sustainable into 2026, particularly as competitive pressures and market uncertainties remain ever-present.

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