Taboola.com Ltd (NASDAQ:TBLA) Q3 2025 Earnings Beat Estimates and Lift Full-Year Outlook

Taboola.com Ltd (NASDAQ:TBLA) has reported financial results for the third quarter of 2025 that surpassed analyst expectations, leading to a notable positive reaction in pre-market trading. The company’s performance was driven by strong advertising spend and the continued momentum of its recently launched Realize platform.

Earnings and Revenue Performance Versus Estimates

The company delivered a clear beat on both the top and bottom lines for the quarter. Revenue and earnings per share came in above the forecasts provided by analysts.

• Q3 2025 Revenue: $496.8 million, compared to analyst estimates of $475.4 million.
• Q3 2025 Non-GAAP EPS: $0.11, compared to analyst estimates of $0.09.

This represents a revenue beat of approximately 4.5% and an earnings per share beat of over 22%. The company's revenue grew 14.7% year-over-year, primarily driven by a 4.4% growth in its base of Scaled Advertisers and a 10.9% increase in Average Revenue per Scaled Advertiser.

Market Reaction and Price Action

The market responded favorably to the earnings beat and the company's raised outlook. In pre-market trading following the announcement, Taboola's stock price increased by approximately 7.8%. This positive movement indicates investor confidence in the company's current trajectory and future guidance, marking a significant rebound from the stock's slight decline over the past week.

Updated Financial Outlook

Adding to the positive sentiment, Taboola raised its full-year 2025 guidance. The company's new revenue forecast for the full year is now set between $1.914 billion and $1.932 billion. This updated range sits comfortably above the analyst consensus estimate of $1.913 billion for the full year.

For the fourth quarter of 2025, the company issued the following guidance:

• Q4 2025 Revenue Guidance: $532 million to $542 million
• Analyst Q4 2025 Revenue Estimate: $526.6 million

The company's Q4 revenue guidance midpoint of $537 million also exceeds analyst expectations, signaling continued confidence in its operational performance heading into the final quarter of the year.

Key Takeaways from the Quarter

Beyond the headline numbers, the earnings release highlighted several important financial improvements and strategic actions:

• Profitability Shift: The company reported a net income of $5.2 million, a significant improvement from a net loss of $6.5 million in the same quarter last year.
• Strong Cash Generation: Cash flow from operating activities was $53.2 million, with Free Cash Flow reaching $46.3 million.
• Aggressive Share Repurchases: CEO Adam Singolda emphasized the company's ongoing share buyback program, noting that Taboola has already repurchased 14% of its shares this year.

Conclusion

Taboola's third-quarter results demonstrate a strong execution of its strategy, culminating in revenue and earnings that exceeded expectations. The decision to raise its full-year outlook, which now surpasses analyst estimates, has been met with positive reinforcement from the market. The company's return to GAAP profitability and robust cash flow generation further solidify a constructive financial picture.

For a detailed look at Taboola's historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. All investment decisions carry risk, and individuals should conduct their own research or consult with a qualified financial advisor before making any investment decisions.