Taboola Reports Strong Fourth Quarter & Full Year 2025 Financial Results
Rhea-AI Summary
Taboola (Nasdaq: TBLA) reported Q4 2025 revenue of $522.3M and full-year 2025 revenue of $1.9B, up 6.4% and 8.3% year-over-year. Q4 net income was $50.1M; full-year net income improved to $42.3M from a prior-year loss. The company generated $163.4M free cash flow for 2025 and reduced share count by 18%. Taboola provided Q1 2026 and FY 2026 guidance, including FY revenue guidance of $1,993M–$2,054M and FY Adjusted EBITDA of $222M–$236M.
Positive
- Revenue +6.4% in Q4 2025 to $522.3M
- Full-year revenue +8.3% to $1.9B
- Full-year net income swing to $42.3M from $(3.8)M
- Share count reduced by 18%
- FY 2026 revenue guidance of $1,993M–$2,054M
Negative
- Q1 2026 Adjusted EBITDA guidance of $20M–$26M implies sharp quarterly decline
- Company cannot provide GAAP net income guidance due to unpredictable items
- Q4 ex-TAC gross profit rose only 0.1% year-over-year
News Market Reaction – TBLA
On the day this news was published, TBLA declined 6.05%, reflecting a notable negative market reaction. Argus tracked a trough of -3.7% from its starting point during tracking. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $58M from the company's valuation, bringing the market cap to $905M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
While TBLA was down 3.38%, peers like BMBL, GRPN, EVER, CARS, and FVRR showed gains today, and momentum peers GRPN, FVRR, BMBL, and GETY were all moving up, suggesting TBLA’s action was stock-specific rather than sector-driven.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 05 | Q3 2025 earnings | Positive | +11.4% | Strong Q3 2025 results surpassing guidance and raising full-year outlook. |
| May 07 | Q1 2025 earnings | Positive | -1.0% | Q1 2025 results above guidance across metrics with improved profitability. |
| Mar 26 | Q1 2025 update | Positive | +0.7% | Pre-announcement that Q1 2025 was tracking to high end of guidance. |
| Nov 07 | Q3 2024 earnings | Positive | -0.6% | Q3 2024 beat on revenues, ex-TAC and Adj. EBITDA with FCF target raised. |
| Aug 07 | Q2 2024 earnings | Positive | +7.9% | Q2 2024 beats on key metrics and reiterates full-year guidance while buying back shares. |
Earnings releases are typically positive on fundamentals, but share price reactions have been mixed, with both strong rallies and modest selloffs following upbeat results.
Over the past few quarters, Taboola has repeatedly reported strong earnings, with Q2 and Q3 2024 and Q1 and Q3 2025 highlighting revenue growth, rising ex-TAC gross profit, and expanding Adjusted EBITDA. Several of these reports beat guidance or tracked to the high end of ranges, and management has raised full-year outlooks at times. Price reactions have alternated between sharp gains and mild declines, indicating that even strong prints do not always translate into immediate upside.
Historical Comparison
Past earnings-related releases saw an average move of 3.68%, with mostly positive fundamentals but mixed price follow-through. This report continues the pattern of revenue growth, margin focus, and detailed guidance.
Earnings updates from Q2 2024 through Q3 2025 show a progression of rising revenues, stronger ex-TAC gross profit, and improving Adjusted EBITDA, with guidance often at or above prior ranges and share repurchases supporting per-share metrics.
Market Pulse Summary
The stock moved -6.0% in the session following this news. A negative reaction despite strong headline numbers would fit prior instances where upbeat earnings were followed by modest declines. Historical earnings events averaged about 3.68% moves and sometimes saw pullbacks even when guidance was solid. Such reactions can reflect positioning or expectations rather than a simple read-through of revenue or Adjusted EBITDA trends. If selling pressure intensified, it could have reflected concerns around growth pacing, guidance interpretation, or broader market risk rather than a single datapoint.
Key Terms
ex-tac gross profit financial
adjusted ebitda financial
free cash flow financial
non-gaap net income (loss) financial
forward-looking statements regulatory
form 10-k regulatory
AI-generated analysis. Not financial advice.
NEW YORK, Feb. 25, 2026 (GLOBE NEWSWIRE) -- Taboola (Nasdaq: TBLA), a global leader in delivering performance at scale for advertisers, today announced its results for the fourth quarter ended December 31, 2025.
"2025 was not just about beating guidance — it was a turning point for Taboola and validation that Realize is working," said Adam Singolda, CEO of Taboola. "We accelerated growth throughout the year, improved advertiser outcomes, generated strong free cash flow, and reduced our share count by
Fourth Quarter and Full Year 2025 Financial Results
(All comparisons are to the fourth quarter and full year of 2024 unless otherwise noted.)
- Revenues in the fourth quarter were
$522.3 million and$1.9 billion for the full year, an increase of6.4% and8.3% , respectively. - Gross Profit in the fourth quarter was
$175.6 million and$569.5 million for the full year, a decrease of1.1% and increase of6.6% , respectively. Ex-TAC Gross Profit in the fourth quarter was$212.8 million , and$713.5 million for the full year, an increase of0.1% and6.9% , respectively. - Net Income in the fourth quarter was
$50.1 million , and$42.3 million for the full year, improving from a Net Income (loss) of$33.1 million and$(3.8) million , respectively. Adjusted EBITDA in the fourth quarter was$86.1 million , and$215.5 million for the full year, a decrease of6.6% and increase of7.2% , respectively. Adjusted EBITDA margins of30.2% compared to30.1% from last year. - Cash Flow generated by operating activities in the fourth quarter was
$59.7 million , and$208.4 million for the full year, compared to$61.9 million and$184.3 million , respectively. Free Cash Flow in the fourth quarter was$46.9 million and$163.4 million for the full year, compared to$51.9 million and$149.2 million , respectively.
First Quarter and Full Year 2026 Guidance
For the First Quarter and Full Year 2026, the Company currently expects (dollars in millions):
| Q1 2026 Guidance | | FY 2026 Guidance | |
| Unaudited | |||
| Revenues | |||
| Gross profit | |||
| ex-TAC Gross Profit* | |||
| Adjusted EBITDA* | |||
| Non-GAAP Net Income (Loss)* | ( | ||
Although we provide guidance for Adjusted EBITDA and Non-GAAP Net Income (Loss), we are not able to provide guidance for projected net income (loss), the most directly comparable GAAP measure. Certain elements of net income (loss), including share-based compensation expenses and warrant valuations, are not predictable due to the high variability and difficulty of making accurate forecasts. As a result, it is impractical for us to provide guidance on net income (loss) or to reconcile our Adjusted EBITDA and Non-GAAP Net Income (Loss) guidance without unreasonable efforts. Consequently, no disclosure of projected net income (loss) is included. For the same reasons, we are unable to address the probable significance of the unavailable information.
Webcast & Conference Call
Taboola’s senior management team will discuss the Company's earnings on a call that can be accessed via webcast at https://investors.taboola.com. To access the call by phone, please go to this link: https://register-conf.media-server.com/register/BI4b6a251069304db0b673999b819f7c19 to register at and you will be provided with dial in details. The webcast will be available for replay for one year, through the close of business on February 25, 2027.
*About Non-GAAP Financial Information
This press release includes ex-TAC Gross Profit, Adjusted EBITDA, Ratio of Adjusted EBITDA to ex-TAC Gross Profit, Free Cash Flow, Non-GAAP Net Income (Loss), which are non-GAAP financial measures. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to revenues, gross profit, net income (loss), cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company’s presentation of these measures may not be comparable to similarly-titled measures used by other companies. The Company believes non-GAAP financial measures provide useful supplemental information to management and investors regarding future financial and business trends relating to the Company. The Company believes that the use of these measures provides an additional tool for investors to use in evaluating operating results and trends and in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial measures are subject to inherent limitations because they reflect the exercise of judgments by management about which items are excluded or included in calculating them, which may vary from period to period. Please refer to the appendix at the end of this press release for reconciliations to the most directly comparable measures in accordance with GAAP.
Definitions
- ex-TAC Gross Profit: Gross profit adjusted to add back other cost of revenues and non-cash amortization of the Commercial agreement asset. We add back the non-cash amortization of the Commercial agreement asset because it is unique primarily due to the issuance of equity rather than cash, such that ex-TAC Gross Profit includes solely direct cash contribution components.
- Adjusted EBITDA: Net income (loss) before finance income (expenses), net, income tax expenses, depreciation and amortization and non-cash amortization of the Commercial agreement asset, further adjusted to exclude share-based compensation including Connexity holdback compensation expenses and other noteworthy income and expense items such as M&A costs and restructuring costs which may vary from period-to-period.
- Adjusted EBITDA margins: The ratio of Adjusted EBITDA to ex-TAC Gross Profit as Adjusted EBITDA divided by ex-TAC Gross Profit.
Note Regarding Forward-Looking Statements
Certain statements in this press release are forward-looking statements. Forward-looking statements generally relate to future events including future financial or operating performance of Taboola.com Ltd. (the “Company”). In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “guidance”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “target”, “potential” or “continue”, or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.
These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Uncertainties and risk factors that could affect the Company’s future performance and cause results to differ from the forward-looking statements in this press release include, but are not limited to: the Company’s ability to grow and manage growth profitably, maintain relationships with customers and retain its management and key employees; changes in applicable laws or regulations; the degree to which, or whether, Realize can achieve its intended performance objectives and attract, retain and grow advertisers and advertising spending; the Company’s estimates of expenses and profitability and underlying assumptions with respect to accounting presentations and purchase price and other adjustments; the extent to which we will buyback any of our shares pursuant to authority granted by the Company’s Board of Directors, which may depend upon market and economic conditions, other business opportunities and priorities, satisfying required conditions under the Israeli Companies Law and the Companies Regulations or other factors; the ability to attract new digital properties and advertisers; ability to meet minimum guarantee requirements in contracts with digital properties; intense competition in the digital advertising space, including with competitors who have significantly more resources; ability to grow and scale the Company’s ad and content platform through new relationships with advertisers and digital properties; ability to secure high quality content from digital properties; ability to maintain relationships with current advertiser and digital property partners; ability to prioritize investments to improve profitability and free cash flow; ability to make continued investments in the Company’s AI-powered technology platform; the need to attract, train and retain highly-skilled technical workforce; changes in the regulation of, or market practice with respect to, “third party cookies” and its impact on digital advertising; continued engagement by users who interact with the Company’s platform on various digital properties; reliance on a limited number of partners for a significant portion of the Company’s revenue; changes in laws and regulations related to privacy, data protection, advertising regulation, competition and other areas related to digital advertising; ability to enforce, protect and maintain intellectual property rights; the potential or expected impact of tariffs on advertising spend, consumer and business sentiment, and the general economic environment; risks related to the fact that we are incorporated in Israel and governed by Israeli law; the potential impacts of conflicts in Israel to the Company’s operations; and other risks and uncertainties set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 under Part 1, Item 1A “Risk Factors” and in the Company’s subsequent filings with the Securities and Exchange Commission.
Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on these forward-looking statements, which speak only as of the date they were made. The Company undertakes no duty to update these forward-looking statements except as may be required by law.
About Taboola
Taboola empowers businesses to grow through performance advertising technology that goes beyond search and social and delivers measurable outcomes at scale.
Taboola works with thousands of businesses who advertise directly on Realize, Taboola’s powerful ad platform, reaching over 600 million daily active users across some of the best publishers in the world. Publishers like NBC News, Yahoo, and OEMs such as Samsung, Xiaomi and others use Taboola’s technology to grow audience and revenue, enabling Realize to offer unique data, specialized algorithms, and unmatched scale.
Investor Contact:
Aadam Anwar
investors@taboola.com
Fourth Quarter and Full Year 2025 Financial Results
| (dollars in millions, except per share data) | Three months Ended December 31, | Year ended December 31, | |||||||||||||
| 2025 | | 2024 | 2025 | 2024 | |||||||||||
| Unaudited | |||||||||||||||
| Revenues | $ | 522.3 | $ | 491.0 | $ | 1,912.0 | $ | 1,766.2 | |||||||
| Gross profit | $ | 175.6 | $ | 177.6 | $ | 569.5 | $ | 534.2 | |||||||
| Net income (loss) | $ | 50.1 | $ | 33.1 | $ | 42.3 | $ | (3.8 | ) | ||||||
| EPS diluted (1) | $ | 0.17 | $ | 0.10 | $ | 0.13 | $ | (0.01 | ) | ||||||
| Ratio of net income (loss) to gross profit | 28.6 | % | 18.7 | % | 7.4 | % | (0.7) % | ||||||||
| Cash flow provided by operating activities | $ | 59.7 | $ | 61.9 | $ | 208.4 | $ | 184.3 | |||||||
| Cash, cash equivalents, short-term deposits and investments | $ | 120.9 | $ | 230.4 | $ | 120.9 | $ | 230.4 | |||||||
| Non-GAAP Financial Data * | |||||||||||||||
| ex-TAC Gross Profit | $ | 212.8 | $ | 212.7 | $ | 713.5 | $ | 667.5 | |||||||
| Adjusted EBITDA | $ | 86.1 | $ | 92.3 | $ | 215.5 | $ | 200.9 | |||||||
| Non-GAAP Net Income | $ | 79.1 | $ | 73.3 | $ | 168.6 | $ | 122.4 | |||||||
| Ratio of Adjusted EBITDA to ex-TAC Gross Profit | 40.5 | % | 43.4 | % | 30.2 | % | 30.1 | % | |||||||
| Free Cash Flow | $ | 46.9 | $ | 51.9 | $ | 163.4 | $ | 149.2 | |||||||
(1) The weighted-average shares used in the computation of the diluted EPS for the three months ended December 31, 2025 and 2024, are 297,893,227 and 348,834,250 respectively. The weighted-average shares used in the computation of the diluted EPS for the years ended December 31, 2025 and 2024 are 318,741,962 and 343,388,908, respectively. The weighted-average shares for the three months ended December 31, 2025 and 2024, included 267,813,982 and 304,623,844 Ordinary shares, and 30,079,245 and 44,210,406 Non-voting Ordinary shares, respectively. The weighted-average shares for the years ended December 31, 2025 and 2024, included 283,538,088 and 298,769,457 Ordinary shares, and 35,203,874 and 44,619,451 Non-voting Ordinary shares, respectively.
| CONSOLIDATED BALANCE SHEETS | |||||
| U.S. dollars in thousands, except share and per share data | |||||
| December 31, | December 31, | ||||
| 2025 | 2024 | ||||
| ASSETS | |||||
| CURRENT ASSETS | |||||
| Cash and cash equivalents | $ | 120,865 | $ | 226,583 | |
| Short-term investments | — | 3,780 | |||
| Restricted deposits | — | 200 | |||
| Trade receivables (net of allowance for credit losses of | 360,166 | 370,110 | |||
| Prepaid expenses and other current assets | 77,000 | 55,328 | |||
| Total current assets | 558,031 | 656,001 | |||
| NON-CURRENT ASSETS | |||||
| Long-term prepaid expenses | 15,116 | 25,193 | |||
| Commercial agreement asset | 270,248 | 286,619 | |||
| Restricted deposits | 1,462 | 1,462 | |||
| Deferred tax assets, net | 20,624 | — | |||
| Operating lease right of use assets | 79,167 | 58,997 | |||
| Property and equipment, net | 95,335 | 69,388 | |||
| Intangible assets, net | 13,925 | 65,067 | |||
| Goodwill | 555,931 | 555,931 | |||
| Total non-current assets | 1,051,808 | 1,062,657 | |||
| Total assets | $ | 1,609,839 | $ | 1,718,658 | |
(1) Includes related party trade receivables of
| CONSOLIDATED BALANCE SHEETS | |||||||
| U.S. dollars inthousands, except share and per share data | |||||||
| December 31, | December 31, | ||||||
| 2025 | 2024 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Trade payables (2) | $ | 330,684 | $ | 309,229 | |||
| Short-term operating lease liabilities | 30,408 | 21,881 | |||||
| Accrued expenses and other current liabilities | 159,874 | 154,472 | |||||
| Total current liabilities | 520,966 | 485,582 | |||||
| LONG-TERM LIABILITIES | |||||||
| Long-term loan and revolving credit facility (3) | 102,300 | 116,452 | |||||
| Long-term operating lease liabilities | 61,382 | 42,561 | |||||
| Warrants liability | 501 | 3,368 | |||||
| Deferred tax liabilities, net | 628 | 5,497 | |||||
| Other long-term liabilities | 16,867 | 13,292 | |||||
| Total long-term liabilities | 181,678 | 181,170 | |||||
| COMMITMENTS AND CONTINGENCIES (Note 15) | |||||||
| SHAREHOLDERS' EQUITY | |||||||
| Ordinary shares with no par value- Authorized: 700,000,000 as of December 31, 2025 and 2024; 341,610,237 and 325,674,930 shares issued, and 246,330,707 and 293,134,865 outstanding as of December 31, 2025 and 2024, respectively | — | — | |||||
| Non-voting Ordinary shares with no par value- Authorized: 46,000,000 as of December 31, 2025 and 2024; 45,198,702 shares issued, and 30,039,644 and 44,210,406 outstanding as of December 31, 2025 and 2024, respectively | — | — | |||||
| Treasury Ordinary shares, at cost - 110,438,588 (95,279,530 Ordinary shares and 15,159,058 Non-voting Ordinary shares) and 33,528,361 (32,540,065 Ordinary shares and 988,296 Non-voting Ordinary shares) as of December 31, 2025 and 2024, respectively | (385,651 | ) | (130,117 | ) | |||
| Additional paid-in capital | 1,404,248 | 1,335,825 | |||||
| Accumulated other comprehensive income | 534 | 418 | |||||
| Accumulated deficit | (111,936 | ) | (154,220 | ) | |||
| Total shareholders' equity | 907,195 | 1,051,906 | |||||
| Total liabilities and shareholders' equity | $ | 1,609,839 | $ | 1,718,658 | |||
(2) Includes related party trade payables of
(3) The balance as of December 31, 2025, reflects
| CONSOLIDATED STATEMENTS OF LOSS | |||||||||||||||
| U.S. dollars in thousands, except share and per sharedata | |||||||||||||||
| Three months Ended December 31, | Year ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Unaudited | |||||||||||||||
| Revenues (1) | $ | 522,309 | $ | 491,040 | $ | 1,912,040 | $ | 1,766,220 | |||||||
| Cost of revenues: | |||||||||||||||
| Traffic acquisition cost (2) | $ | 313,602 | $ | 279,819 | $ | 1,214,901 | $ | 1,101,556 | |||||||
| Other cost of revenues | $ | 33,134 | $ | 33,611 | $ | 127,629 | $ | 130,446 | |||||||
| Total cost of revenues | $ | 346,736 | $ | 313,430 | $ | 1,342,530 | $ | 1,232,002 | |||||||
| Gross profit | $ | 175,573 | $ | 177,610 | $ | 569,510 | $ | 534,218 | |||||||
| Operating expenses: | |||||||||||||||
| Research and development | $ | 36,739 | $ | 36,174 | $ | 148,044 | $ | 142,438 | |||||||
| Sales and marketing | $ | 67,982 | $ | 68,273 | $ | 275,210 | $ | 268,526 | |||||||
| General and administrative | $ | 27,082 | $ | 25,940 | $ | 102,199 | $ | 97,337 | |||||||
| Total operating expenses | $ | 131,803 | $ | 130,387 | $ | 525,453 | $ | 508,301 | |||||||
| Operating income | $ | 43,770 | $ | 47,223 | $ | 44,057 | $ | 25,917 | |||||||
| Finance expenses, net | $ | (4,801 | ) | $ | (8,240 | ) | $ | (4,695 | ) | $ | (11,980 | ) | |||
| Loss on extinguishment of debt | $ | — | $ | — | $ | (6,597 | ) | $ | — | ||||||
| Income before income taxes expenses | $ | 38,969 | $ | 38,983 | $ | 32,765 | $ | 13,937 | |||||||
| Income tax benefit (expenses) | $ | 11,166 | $ | (5,840 | ) | $ | 9,519 | $ | (17,697 | ) | |||||
| Net income (loss) | $ | 50,135 | $ | 33,143 | $ | 42,284 | $ | (3,760 | ) | ||||||
| Net income (loss) per share attributable to Ordinary and Non-voting Ordinary shareholders, basic | $ | 0.17 | $ | 0.10 | $ | 0.14 | $ | (0.01 | ) | ||||||
| Weighted-average shares used in computing net income (loss) per share, basic | 290,888,626 | 344,451,734 | 311,660,379 | 343,388,908 | |||||||||||
| Net income (loss) per share attributable to Ordinary and Non-voting Ordinary shareholders, diluted | $ | 0.17 | $ | 0.10 | $ | 0.13 | $ | (0.01 | ) | ||||||
| Weighted-average shares used in computing net income (loss) per share, diluted | 297,893,227 | 348,834,250 | 318,741,962 | 343,388,908 | |||||||||||
(1) Includes revenues from related party of
(2) Includes traffic acquisition cost to related party of
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||||||||||
| U.S. dollars in thousands | |||||||||||||
| Three months Ended December 31, | Year ended December 31, | ||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||
| Unaudited | |||||||||||||
| Net income (loss) | $ | 50,135 | $ | 33,143 | $ | 42,284 | $ | (3,760 | ) | ||||
| Other comprehensive income (loss): | |||||||||||||
| Unrealized gains on available-for-sale marketable securities, net | — | — | — | 6 | |||||||||
| Unrealized gains (losses) on derivative instruments, net | (959 | ) | 253 | 116 | (530 | ) | |||||||
| Other comprehensive income (loss) | (959 | ) | 253 | 116 | (524 | ) | |||||||
| Comprehensive income (loss) | $ | 49,176 | $ | 33,396 | $ | 42,400 | $ | (4,284 | ) | ||||
| SHARE-BASED COMPENSATION BREAK-DOWN BY EXPENSE LINE | |||||||||||
| U.S. dollars in thousands | |||||||||||
| Three months Ended December 31, | Year ended December 31, | ||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| Unaudited | |||||||||||
| Cost of revenues | $ | 864 | $ | 813 | $ | 3,592 | $ | 3,853 | |||
| Research and development | 6,249 | 5,861 | 25,792 | 25,876 | |||||||
| Sales and marketing | 4,265 | 4,321 | 17,358 | 17,847 | |||||||
| General and administrative | 4,755 | 4,211 | 17,194 | 19,522 | |||||||
| Total share-based compensation expenses | $ | 16,133 | $ | 15,206 | $ | 63,936 | $ | 67,098 | |||
| DEPRECIATION AND AMORTIZATION BREAK-DOWN BY EXPENSE LINE | |||||||||||
| U.S. dollars in thousands | |||||||||||
| Three months Ended December 31, | Year ended December 31, | ||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| Unaudited | |||||||||||
| Cost of revenues | $ | 9,151 | $ | 10,919 | $ | 35,667 | $ | 42,125 | |||
| Research and development | 929 | 729 | 2,524 | 4,222 | |||||||
| Sales and marketing | 8,681 | 11,310 | 41,488 | 50,907 | |||||||
| General and administrative | 147 | 1,423 | 1,005 | 599 | |||||||
| Total depreciation and amortization expense | $ | 18,908 | $ | 24,381 | $ | 80,684 | $ | 97,853 | |||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
| U.S. dollars in thousands | |||||||||||||||
| Three months Ended December 31, | Year ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Unaudited | |||||||||||||||
| Cash flows from operating activities | |||||||||||||||
| Net income (loss) | $ | 50,135 | $ | 33,143 | $ | 42,284 | $ | (3,760 | ) | ||||||
| Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | |||||||||||||||
| Depreciation, amortization and write-off | 18,908 | 24,952 | 83,484 | 100,928 | |||||||||||
| Share-based compensation expenses | 16,133 | 15,206 | 63,936 | 67,098 | |||||||||||
| Net loss (gain) from financing expenses | 726 | 4,895 | (4,170 | ) | 3,764 | ||||||||||
| Revaluation of the Warrants liability | (396 | ) | 1,864 | (2,867 | ) | (2,761 | ) | ||||||||
| Amortization of loan and credit facility issuance costs | 184 | 444 | 1,058 | 1,536 | |||||||||||
| Amortization of premium and accretion of discount on short-term investments, net | — | (53 | ) | — | 177 | ||||||||||
| Loss on extinguishment of debt | — | — | 6,597 | — | |||||||||||
| Commercial agreement asset amortization | 4,126 | 1,442 | 16,371 | 2,832 | |||||||||||
| Loss from disposal of property and equipment | 87 | — | 339 | — | |||||||||||
| Change in operating assets and liabilities: | |||||||||||||||
| Decrease (increase) in trade receivables, net (1) | (51,266 | ) | (76,780 | ) | 9,944 | (63,803 | ) | ||||||||
| Decrease (increase) in prepaid expenses and other current assets and long-term prepaid expenses | (9,476 | ) | 4,876 | (8,620 | ) | 28,663 | |||||||||
| Increase in trade payables (2) | 19,424 | 38,821 | 11,829 | 25,920 | |||||||||||
| Increase in accrued expenses and other current liabilities and other long-term liabilities | 30,087 | 12,550 | 8,977 | 35,577 | |||||||||||
| Decrease (increase) in deferred taxes, net | (20,013 | ) | 1,644 | (25,493 | ) | (9,318 | ) | ||||||||
| Change in operating lease right of use assets | 6,459 | 5,276 | 25,804 | 19,914 | |||||||||||
| Change in operating lease liabilities | (5,465 | ) | (6,345 | ) | (21,109 | ) | (22,436 | ) | |||||||
| Net cash provided by operating activities | 59,653 | 61,935 | 208,364 | 184,331 | |||||||||||
| Cash flows from investing activities | |||||||||||||||
| Purchase of property and equipment, including intangible assets | (12,727 | ) | (10,025 | ) | (44,918 | ) | (35,155 | ) | |||||||
| Cash paid in connection with acquisitions, net of cash acquired | — | — | — | (719 | ) | ||||||||||
| Proceeds from maturities of short-term investments and restricted deposits | — | — | 3,980 | 5,765 | |||||||||||
| Net cash (used in) investing activities | (12,727 | ) | (10,025 | ) | (40,938 | ) | (30,109 | ) | |||||||
| Cash flows from financing activities | |||||||||||||||
| Issuance costs | — | — | (938 | ) | (695 | ) | |||||||||
| Exercise of options | 3,555 | 1,855 | 8,851 | 7,564 | |||||||||||
| Payment of tax withholding for share-based compensation expenses | (2,832 | ) | (689 | ) | (5,965 | ) | (3,085 | ) | |||||||
| shares | (70,770 | ) | (8,663 | ) | (255,369 | ) | (73,602 | ) | |||||||
| Payments on account of repurchase of Ordinary shares | 937 | (165 | ) | (942 | ) | (165 | ) | ||||||||
| Repayment of Long term loan | — | (30,000 | ) | (122,736 | ) | (30,000 | ) | ||||||||
| Proceeds from revolving credit line, net of issuance costs | — | — | 123,985 | — | |||||||||||
| Additional proceeds from revolving credit line | 153,800 | — | 382,500 | — | |||||||||||
| Repayment of revolving credit line | (125,500 | ) | — | (406,700 | ) | — | |||||||||
| Net cash (used in) financing activities | (40,810 | ) | (37,662 | ) | (277,314 | ) | (99,983 | ) | |||||||
| equivalents | (726 | ) | (4,895 | ) | 4,170 | (3,764 | ) | ||||||||
| Increase (decrease) in cash and cash equivalents | 5,390 | 9,353 | (105,718 | ) | 50,475 | ||||||||||
| Cash and cash equivalents - at the beginning of the period | 115,475 | 217,230 | 226,583 | 176,108 | |||||||||||
| Cash and cash equivalents - at the end of the period | $ | 120,865 | $ | 226,583 | $ | 120,865 | $ | 226,583 | |||||||
(1) Includes a decrease (increase) in related party trade receivables of
(2) Includes an increase in related party trade payables of
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| U.S. dollars in thousands | |||||||||||
| Three months Ended December 31, | Year ended December 31, | ||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| Unaudited | |||||||||||
| Supplemental disclosures of cash flow information: | |||||||||||
| Cash paid during the year for: | |||||||||||
| Income taxes | $ | 6,286 | $ | 6,482 | $ | 29,695 | $ | 19,878 | |||
| Interest | $ | 715 | $ | 3,259 | $ | 5,577 | $ | 14,313 | |||
| Non-cash investing and financing activities: | |||||||||||
| Purchase of property and equipment | $ | 10,247 | $ | 1,080 | $ | 10,925 | $ | 1,080 | |||
| Share-based compensation included in capitalized internal-use software | $ | 471 | $ | 411 | $ | 1,601 | $ | 2,156 | |||
| Creation and modification of operating lease right-of-use assets and operating lease liability | $ | 2,619 | $ | 3,944 | $ | 48,457 | $ | 17,165 | |||
| Lease incentive | $ | 2,483 | $ | 3,944 | $ | 2,483 | $ | 17,165 | |||
| Reclassification of Restricted deposit to Short-term deposit | $ | — | $ | 3,780 | $ | — | $ | 3,780 | |||
APPENDIX: Non-GAAP Reconciliation
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR THE THREE MONTHS AND THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (UNAUDITED)
The following table provides a reconciliation of revenues to ex-TAC Gross Profit.
| Three months Ended December 31, | Year ended December 31, | ||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| (dollars in thousands) | |||||||||||
| Revenues | $ | 522,309 | | $ | 491,040 | | $ | 1,912,040 | | $ | 1,766,220 |
| Traffic acquisition cost | 313,602 | 279,819 | 1,214,901 | 1,101,556 | |||||||
| Other cost of revenues | 33,134 | 33,611 | 127,629 | 130,446 | |||||||
| Gross profit | $ | 175,573 | $ | 177,610 | $ | 569,510 | $ | 534,218 | |||
| Add back: Other cost of revenues and amortization (1) | 37,261 | | 35,053 | | 144,001 | | 133,278 | ||||
| ex-TAC Gross Profit | $ | 212,834 | | $ | 212,663 | | $ | 713,511 | | $ | 667,496 |
___________________________________
1 The three months ended December 31, 2025 and 2024, included
The following table provides a reconciliation of net income (loss) to Adjusted EBITDA.
| Three months Ended December 31, | Year ended December 31, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| (dollars in thousands) | ||||||||||||||
| Net income (loss) | $ | 50,135 | $ | 33,143 | $ | 42,284 | $ | (3,760 | ) | |||||
| Adjusted to exclude the following: | | | | | ||||||||||
| Finance (income) expenses, net (1) | 4,801 | 8,240 | 11,292 | 11,980 | ||||||||||
| Income tax (benefit) expenses | (11,166 | ) | 5,840 | (9,519 | ) | 17,697 | ||||||||
| Depreciation and amortization (2) | 23,033 | 26,356 | 99,855 | 103,722 | ||||||||||
| Share-based compensation expenses | 16,133 | 15,206 | | 63,936 | 60,044 | |||||||||
| Holdback compensation expenses (3) | — | — | — | 7,054 | ||||||||||
| Other costs (4) | 3,213 | 3,494 | | 7,637 | | 4,189 | ||||||||
| Adjusted EBITDA | $ | 86,149 | | $ | 92,279 | | $ | 215,485 | | $ | 200,926 | |||
__________________________________
1Represents total finance expenses including 6,597 loss on extinguishment of debt.
2 The years ended December 31, 2025 and December 31, 2024, includes write-off of internal use software in the amount of
3 Represents share-based compensation due to holdback of Ordinary shares issuable under compensatory arrangements relating to Connexity acquisition.
4 The three months and year ended December 31, 2025, includes professional and legal expenses related to a litigation matter in which the Company is the plaintiff and is not related to our ongoing business operations in the amounts of
The following table provides a reconciliation of net income (loss) to Non-GAAP Net Income (loss).
| Three months Ended December 31, | Year ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (dollars in thousands) | |||||||||||||||
| Net income (loss) | $ | 50,135 | $ | 33,143 | $ | 42,284 | $ | (3,760 | ) | ||||||
| Amortization of acquired intangibles (1) | $ | 15,214 | $ | 16,972 | $ | 67,813 | $ | 65,135 | |||||||
| Share-based compensation expenses | $ | 16,133 | $ | 15,206 | $ | 63,936 | $ | 60,044 | |||||||
| Holdback compensation expenses (2) | $ | — | $ | — | $ | — | $ | 7,054 | |||||||
| M&A and Other costs (3) | $ | 3,213 | $ | 3,494 | $ | 7,637 | $ | 4,189 | |||||||
| Revaluation of Warrants | $ | (396 | ) | $ | 1,863 | $ | (2,867 | ) | $ | (2,761 | ) | ||||
| Foreign currency exchange rate losses (gains) (4) | $ | 3,678 | $ | 4,975 | $ | 1,752 | $ | 5,625 | |||||||
| Income tax effects | $ | (8,854 | ) | $ | (2,329 | ) | $ | (18,558 | ) | $ | (13,149 | ) | |||
| Loss on extinguishment of debt (5) | $ | — | $ | — | $ | 6,597 | $ | — | |||||||
| Non-GAAP Net Income | $ | 79,123 | $ | 73,324 | $ | 168,594 | $ | 122,377 | |||||||
1 The three months ended December 31, 2025 and 2024, includes
2 Represents share-based compensation due to holdback of Ordinary shares issuable under compensatory arrangements relating to Connexity acquisition.
3 The three months and year ended December 31, 2025, includes professional and legal expenses related to a litigation matter in which the Company is the plaintiff and is not related to our ongoing business operations in the amounts of
4 Represents foreign currency exchange rate gains or losses related to the remeasurement of monetary assets and liabilities to the Company’s functional currency using exchange rates in effect at the end of the reporting period.
5 See Note 11 of Notes to the Financial Statements.
The following table provides a reconciliation of net cash provided by operating activities to Free Cash Flow.
| Three months Ended December 31, | Year ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (dollars in thousands) | |||||||||||||||
| Net cash provided by operating activities | $ | 59,653 | $ | 61,935 | $ | 208,364 | $ | 184,331 | |||||||
| Purchases of property and equipment, including capitalized internal-use software | (12,727 | ) | (10,025 | ) | (44,918 | ) | (35,155 | ) | |||||||
| Free Cash Flow | $ | 46,926 | $ | 51,910 | $ | 163,446 | $ | 149,176 | |||||||
APPENDIX: Non-GAAP Guidance Reconciliation
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q1 2026 AND FULL YEAR 2026 GUIDANCE
(Unaudited)
The following table provides a reconciliation of projected Gross profit to ex-TAC Gross Profit.
| Q1 2026 Guidance | | FY 2026 Guidance | |
| Unaudited | |||
| (dollars in millions) | |||
| Revenues | |||
| Traffic acquisition cost | ( | ( | |
| Other cost of revenues | ( | ( | |
| Gross profit | |||
| Add back: Other cost of revenues & amortization | | ||
| ex-TAC Gross Profit | | ||
Although we provide guidance for Adjusted EBITDA and Non-GAAP Net Income (Loss), we are not able to provide guidance for projected net income (loss), the most directly comparable GAAP measure. Certain elements of net income (loss), including share-based compensation expenses and warrant valuations, are not predictable due to the high variability and difficulty of making accurate forecasts. As a result, it is impractical for us to provide guidance on net income (loss) or to reconcile our Adjusted EBITDA and Non-GAAP Net Income (Loss) guidance without unreasonable efforts. Consequently, no disclosure of projected net income (loss) is included. For the same reasons, we are unable to address the probable significance of the unavailable information.
FAQ
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