Start here if you're new
what it is
Taboola helps websites, apps, and devices show ads and content recommendations, then gets paid when that traffic converts.
how it gets paid
Last year Taboola made $1.9B in revenue. Publisher recommendations was the main engine at $0.95B, or 50% of sales.
why it's growing
Revenue grew 8.3% last year. Annual revenue was $1.9B, up 8.3% vs. prior year, while gross margin was 28.3%.
what just happened
Revenue hit $1.4B, but EPS stayed negative at -$0.02.
At a glance
B balance sheet — gets the job done, barely
24.3x trailing p/e — priced about right
4.2% return on capital — nothing to write home about
$0.13 fy2025 eps est
$2B fy2026 rev est
xvary composite: 47/100 — below average
What they do
Taboola helps websites, apps, and devices show ads and content recommendations, then gets paid when that traffic converts.
Taboola says its ad engine runs on 17 years of publisher data. Algorithmic engine → software that decides what you see → better matches can make publishers more money. You are betting that the open web still wants an ad partner outside Google and Meta, and $1.9B of annual revenue says many publishers do.
How they make money
$1.9B
annual revenue · their business grew +8.3% last year
Publisher recommendations
$0.95B
+5.0%
OEM and device partnerships
$0.38B
+4.0%
Realize performance advertising
$0.33B
+20.0%
CTV and video ads
$0.24B
+25.0%
The products that matter
AI performance ad platform
Realize
$95M · 5% of revenue · +40%
This $95M platform grew 40% last year. It matters because it is the only piece of the story growing fast enough to change how you value the company.
the growth bet
publisher monetization network
Publisher Network
$1.8B · 95% of revenue · +6.4%
It generates about $1.8B by placing ads across publisher sites. This is the business you actually own today, and it still decides whether the quarter feels good or bad.
the cash engine
Key numbers
$1.9B
annual revenue
This tells you Taboola is not a concept stock. It already handles a real ad business at scale.
6.7%
operating margin
Operating margin → profit left after running the business → so what: Taboola sells a lot, but it keeps only a thin slice.
4.2%
return on capital
Return on capital → profit earned on money invested → so what: each dollar inside the business is not working very hard yet.
$164M
long-term debt
Debt is 16% of capital, which means lenders have a claim on cash flow, but the balance sheet is not stretched.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 10 / 100
- long-term debt $164M (16% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for TBLA right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Revenue hit $1.4B, but EPS stayed negative at -$0.02.
Annual revenue was $1.9B, up 8.3% vs. prior year, while gross margin was 28.3%. The quiet part is simple: sales are growing faster than profits.
$1.4B
revenue
-$0.02
eps
28.3%
gross margin
180% revenue jump
That jump is huge, but you should care more about the -$0.02 EPS because sales growth without earnings is just expensive cardio.
source: company earnings report, 2026
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What could go wrong
TBLA's risk stack is unusually concentrated: 95% of revenue still sits in the mature publisher network, while the faster Realize business is only 5% of the base.
med
Publisher Network still carries almost everything
The legacy network generates about $1.8B, or 95% of revenue, and grew 6.4%. That is fine. It also means almost the entire business still depends on a mature ad product.
If open-web ad demand softens, most of the $1.9B revenue base feels it immediately.
med
Realize is growing fast from a very small base
Realize grew 40%, but it is only a $95M business. That's 5% of revenue. Great growth helps the story more than the income statement at this stage.
Realize needs years of outsized growth to offset a segment that is roughly 19 times larger.
med
Bigger ad platforms still set the rules
Google and Facebook control more than 60% of the digital ad market. Taboola operates outside the center of power, which limits pricing strength.
That helps explain why a 6.7% operating margin still looks more like distribution economics than platform economics.
med
Profitability is still thin
Gross margin is 28.3%, return on capital is 4.2%, and fy2025 EPS is estimated at just $0.13. There is not much room here for operational mistakes.
A small revenue miss or cost spike matters a lot when your earnings base is this narrow.
The combined risk picture is simple: 95% of revenue sits in the slower business, while the faster one is still only 5% of the base. Until that ratio changes, the transition case stays fragile.
source: institutional data · regulatory filings · risk analysis
Pay attention to
next catalyst
Q1 2026 results need to back up the Q4 beat
Management guided Q1 revenue to $444M–$462M. If results land near the high end and margin commentary improves, you get evidence that the earnings beat was not a one-quarter event.
growth mix
Realize still needs to outrun the legacy business by a mile
A 40% growth rate sounds great. The catch is scale. You want to see Realize keep growing far faster than the Publisher Network's 6.4% pace.
profitability
$222M–$236M adjusted EBITDA is the quality checkpoint
This is the margin test. If EBITDA improves while revenue stays around the $1.9B–$2B level, the stock starts to look less like a low-margin ad rail.
market risk
open-web ad demand still decides most of the quarter
With 95% of revenue tied to the legacy network, any softening in publisher monetization or advertiser budgets still overwhelms the better narrative around Realize.
Analyst rankings
xvary composite
47
47 / 100 puts TBLA below average on our combined view of growth, value, risk, and momentum. in human-speak, the stock has a story but not a clean edge.
balance sheet grade
B
A B grade means the balance sheet is serviceable. You are not looking at distress, but you are also not looking at fortress finances.
risk profile
3
Risk rank 3 puts TBLA around the middle of the pack on overall safety. The 10 / 100 price stability score is the part you actually feel in your account.
source: institutional data
Institutional activity
institutional ownership data for TBLA is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$3
current price
n/a
target midpoint · n/a from current
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