Taboola Reports Strong Q2 2026 Financial Results, & Raises Full-Year ex-TAC Gross Profit and Adjusted EBITDA Guidance
Rhea-AI Summary
Taboola (Nasdaq: TBLA) reported Q2 2026 revenues of $476.8 million, up 2.4% year over year, and gross profit of $139.5 million, up 2.9%. Ex-TAC Gross Profit reached $192.4 million, an 11.8% increase.
Net income was $4.3 million, compared with a net loss of $(4.3) million a year earlier. Adjusted EBITDA rose 22.8% to $55.5 million, with Adjusted EBITDA margin expanding to 28.8% from 26.2%. Operating cash flow was $31.3 million and free cash flow $17.3 million, both lower than the prior year.
For Q3 2026, Taboola expects revenues of $460–$473 million, ex-TAC Gross Profit of $184–$190 million, and Adjusted EBITDA of $51.5–$56.5 million. Full-year 2026 guidance is revenues of $1.93–$1.956 billion, ex-TAC Gross Profit of $772–$783 million, and Adjusted EBITDA of $228–$240 million, which the company said it has raised for ex-TAC Gross Profit and Adjusted EBITDA.
Positive
- Ex-TAC Gross Profit up 11.8% YoY to $192.4 million
- Adjusted EBITDA up 22.8% YoY to $55.5 million; margin 28.8%
- Net income of $4.3 million versus $(4.3) million loss prior year
- Full-year 2026 guidance: ex-TAC Gross Profit $772–$783m, Adjusted EBITDA $228–$240m, both raised
- Cash and cash equivalents increased to $133.1 million from $120.9 million year-end 2025
- Revolving credit facility balance reduced to $72.0 million from $102.3 million
Negative
- Operating cash flow declined to $31.3 million from $47.4 million
- Free cash flow declined to $17.3 million from $34.2 million
- Revenues grew 2.4% YoY, slower than ex-TAC Gross Profit growth of 11.8%
- Total assets decreased to $1.55 billion from $1.61 billion at year-end 2025
Market Reaction – TBLA
Following this news, TBLA has declined 25.99%, reflecting a significant negative market reaction. Our momentum scanner has triggered 38 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $3.92. Trading volume is elevated at 2.0x the average, suggesting increased selling activity.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 06 | Q1 2026 earnings | Positive | +24.7% | Results exceeded guidance and full-year outlook was raised |
| Feb 25 | Q4 2025 earnings | Positive | -6.0% | Quarterly and full-year results improved alongside new guidance |
| Nov 05 | Q3 2025 earnings | Positive | +11.4% | Results surpassed guidance and the full-year outlook was raised |
| May 07 | Q1 2025 earnings | Positive | -1.0% | Key metrics exceeded the high end of guidance ranges |
| Mar 26 | Q1 2025 outlook | Positive | +0.7% | Preliminary performance tracked toward high-end guidance ranges |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tagged reactions were mixed, with three aligned positive responses and two divergences.
Key Terms
ex-tac gross profit financial
adjusted ebitda financial
non-gaap financial measures financial
traffic acquisition cost financial
free cash flow financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
NEW YORK, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Taboola (Nasdaq: TBLA), a global leader in delivering performance at scale for advertisers, today announced its results for the second quarter ended June 30, 2026.
"We delivered another quarter beating our ex-TAC Gross Profit and Adjusted EBITDA guidance and raising our full-year guidance for both metrics,” said Adam Singolda, CEO of Taboola. "With the momentum we’re seeing with Realize, the addition of Fox News and other strategic wins, we are further strengthening our position as a leader in performance advertising and executing on our vision to build the leading platform for the Open Web."
Second Quarter 2026 Financial Results
(All comparisons are to the second quarter of 2025 unless otherwise noted.)
- Revenues of
$476.8 million , an increase of2.4% . - Gross Profit of
$139.5 million , an increase of2.9% . Ex-TAC Gross Profit was$192.4 million , an increase of11.8% . - Net Income was
$4.3 million improved from a Net Loss of$(4.3) million . Adjusted EBITDA was$55.5 million , up22.8% . Adjusted EBITDA margins expanded to28.8% from26.2% . - Cash Flow provided by operating activities of
$31.3 million , compared to$47.4 million . Free Cash Flow was$17.3 million , compared to$34.2 million .
Third Quarter and Full Year 2026 Guidance
For the Third Quarter and Full Year 2026, the Company currently expects (dollars in millions):
| Q3 2026 Guidance | | FY 2026 Guidance | |
| Unaudited | |||
| (dollars in millions) | |||
| 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 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/BI9e7de4b306b347a4848f5087865fc7c2 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 August 5, 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 (i) the non-cash amortization of the Commercial agreement asset because it is unique primarily due to the issuance of equity rather than cash and (ii) Publisher’s prepayments write-off that are one time non 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 the war 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.
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
Press Contact:
Dave Struzzi
press@taboola.com
| |
| CONSOLIDATED BALANCE SHEETS |
U.S. dollars in thousands, except share and per share data
| June 30, | December 31, | ||||
| 2026 | 2025 | ||||
| Unaudited | |||||
| ASSETS | |||||
| CURRENT ASSETS | |||||
| Cash and cash equivalents | $ | 133,052 | $ | 120,865 | |
| Trade receivables (net of allowance for credit losses of | 316,740 | 360,166 | |||
| Prepaid expenses and other current assets | 69,151 | 77,000 | |||
| Total current assets | 518,943 | 558,031 | |||
| NON-CURRENT ASSETS | |||||
| Long-term prepaid expenses | 10,205 | 15,116 | |||
| Commercial agreement asset | 262,129 | 270,248 | |||
| Restricted deposits | 1,463 | 1,462 | |||
| Deferred tax assets, net | 20,422 | 20,624 | |||
| Operating lease right of use assets | 71,920 | 79,167 | |||
| Property and equipment, net | 104,758 | 95,335 | |||
| Intangible assets, net | 2,578 | 13,925 | |||
| Goodwill | 555,931 | 555,931 | |||
| Total non-current assets | 1,029,406 | 1,051,808 | |||
| Total assets | $ | 1,548,349 | $ | 1,609,839 | |
(1) Includes related party trade receivables of
| CONSOLIDATED BALANCE SHEETS |
U.S. dollars in thousands, except share and per share data
| June 30, | December 31, | ||||||
| 2026 | 2025 | ||||||
| Unaudited | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Trade payables (2) | $ | 275,949 | $ | 330,684 | |||
| Short-term operating lease liabilities | 33,787 | 30,408 | |||||
| Accrued expenses and other current liabilities | 159,204 | 159,874 | |||||
| Total current liabilities | 468,940 | 520,966 | |||||
| LONG-TERM LIABILITIES | |||||||
| Revolving credit facility | 72,000 | 102,300 | |||||
| Long-term operating lease liabilities | 51,615 | 61,382 | |||||
| Warrants liability | — | 501 | |||||
| Deferred tax liabilities, net | 561 | 628 | |||||
| Other long-term liabilities | 17,240 | 16,867 | |||||
| Total long-term liabilities | 141,416 | 181,678 | |||||
| COMMITMENTS AND CONTINGENCIES (Note 10) | |||||||
| SHAREHOLDERS' EQUITY | |||||||
| Ordinary shares with no par value- Authorized: 700,000,000 as of June 30, 2026 and December 31, 2025; 363,374,228 and 341,610,237 shares issued, and 251,850,218 and 246,330,707 shares outstanding as of June 30, 2026 and December 31, 2025, respectively | — | — | |||||
| Non-voting Ordinary shares with no par value - Authorized: 46,000,000 as of June 30, 2026 and December 31, 2025; 33,198,702 and 45,198,702 shares issued, and 18,039,644 and 30,039,644 shares outstanding as of June 30, 2026 and December 31, 2025, respectively | — | — | |||||
| Treasury Ordinary shares, at cost - 126,683,068 (111,524,010 Ordinary shares and 15,159,058 Non-voting Ordinary shares) and 110,438,588 (95,279,530 Ordinary shares and 15,159,058 Non-voting Ordinary shares) as of June 30, 2026 and December 31, 2025, respectively | (450,826 | ) | (385,651 | ) | |||
| Additional paid-in capital | 1,435,861 | 1,404,248 | |||||
| Accumulated other comprehensive income | 1,511 | 534 | |||||
| Accumulated deficit | (48,553 | ) | (111,936 | ) | |||
| Total shareholders' equity | 937,993 | 907,195 | |||||
| Total liabilities and shareholders' equity | $ | 1,548,349 | $ | 1,609,839 | |||
(2) Includes related party trade payables of
| CONSOLIDATED STATEMENTS OF INCOME (LOSS) |
U.S. dollars in thousands, except share and per share data
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Unaudited | |||||||||||||||
| Revenues (1) | $ | 476,826 | $ | 465,474 | $ | 943,221 | $ | 892,967 | |||||||
| Cost of revenues: | |||||||||||||||
| Traffic acquisition cost (2) | 300,705 | 297,423 | 603,084 | 577,220 | |||||||||||
| Other cost of revenues | 36,642 | 32,440 | 71,081 | 60,829 | |||||||||||
| Total cost of revenues | 337,347 | 329,863 | 674,165 | 638,049 | |||||||||||
| Gross profit | 139,479 | 135,611 | 269,056 | 254,918 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development, net | 38,435 | 37,482 | 78,015 | 73,438 | |||||||||||
| Sales and marketing | 67,156 | 71,248 | 139,721 | 137,138 | |||||||||||
| General and administrative | 26,629 | 26,837 | 51,677 | 50,560 | |||||||||||
| Other income, net (3) | — | — | (77,000 | ) | — | ||||||||||
| Total operating expenses | 132,220 | 135,567 | 192,413 | 261,136 | |||||||||||
| Operating profit (loss) | 7,259 | 44 | 76,643 | (6,218 | ) | ||||||||||
| Finance income (expenses), net (4) | 33 | (2,491 | ) | (212 | ) | (6,991 | ) | ||||||||
| Income (loss) before income taxes | 7,292 | (2,447 | ) | 76,431 | (13,209 | ) | |||||||||
| Income tax benefit (expenses) | (2,975 | ) | (1,898 | ) | (13,048 | ) | 114 | ||||||||
| Net income (loss) | $ | 4,317 | $ | (4,345 | ) | $ | 63,383 | $ | (13,095 | ) | |||||
| Net income (loss) per share attributable to Ordinary and Non-voting Ordinary shareholders, basic | $ | 0.02 | $ | (0.01 | ) | $ | 0.23 | $ | (0.04 | ) | |||||
| Net income (loss) per share attributable to Ordinary and Non-voting Ordinary shareholders, diluted | 0.01 | (0.01 | ) | 0.22 | (0.04 | ) | |||||||||
| Weighted-average shares used in computing net income (loss) per share attributable to Ordinary and Non-voting Ordinary shareholders, basic | 278,160,082 | 313,572,282 | 280,185,111 | 327,578,134 | |||||||||||
| Weighted-average shares used in computing net income (loss) per share attributable to Ordinary and Non-voting Ordinary shareholders, diluted | 291,392,907 | 313,572,282 | 290,505,359 | 327,578,134 | |||||||||||
(1) Includes revenues from related party of
(2) Includes traffic acquisition cost to related party of
(3) See Note 10 Commitments and Contingencies.
(4) Includes loss on extinguishment of debt of
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
U.S. dollars in thousands
| Three months ended June 30, | Six months ended June 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| Unaudited | |||||||||||||
| Net income (loss) | $ | 4,317 | $ | (4,345 | ) | $ | 63,383 | $ | (13,095 | ) | |||
| Other comprehensive income: | |||||||||||||
| Unrealized gains on derivative instruments, net | 1,845 | 3,541 | 977 | 2,350 | |||||||||
| Other comprehensive income | 1,845 | 3,541 | 977 | 2,350 | |||||||||
| Other Comprehensive income (loss) | $ | 6,162 | $ | (804 | ) | $ | 64,360 | $ | (10,745 | ) | |||
SHARE-BASED COMPENSATION BREAK-DOWN BY EXPENSE LINE |
U.S. dollars in thousands
| Three months ended June 30, | Six months ended June 30, | ||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||
| Unaudited | |||||||||||
| Cost of revenues | $ | 710 | $ | 956 | $ | 1,449 | $ | 1,823 | |||
| Research and development | 4,524 | 6,734 | 9,360 | 13,128 | |||||||
| Sales and marketing | 4,481 | 4,602 | 8,741 | 8,823 | |||||||
| General and administrative | 4,412 | 4,280 | 8,772 | 8,315 | |||||||
| Total share-based compensation expenses | $ | 14,127 | $ | 16,572 | $ | 28,322 | $ | 32,089 | |||
| DEPRECIATION AND AMORTIZATION BREAK-DOWN BY EXPENSE LINE |
U.S. dollars in thousands
| Three months ended June 30, | Six months ended June 30, | ||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||
| Unaudited | |||||||||||
| Cost of revenues | $ | 9,469 | $ | 8,744 | $ | 18,946 | $ | 17,443 | |||
| Research and development | 733 | 524 | 1,215 | 1,055 | |||||||
| Sales and marketing | 422 | 11,190 | 6,333 | 22,453 | |||||||
| General and administrative | 144 | 318 | 346 | 495 | |||||||
| Total depreciation and amortization expense | $ | 10,768 | $ | 20,776 | $ | 26,840 | $ | 41,446 | |||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
| U.S. dollars in thousands | |||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Unaudited | |||||||||||||||
| Cash flows from operating activities | |||||||||||||||
| Net income (loss) | $ | 4,317 | $ | (4,345 | ) | $ | 63,383 | $ | (13,095 | ) | |||||
| Adjustments to reconcile net loss to net cash flows provided by operating activities: | |||||||||||||||
| Depreciation, amortization and write-off | 10,768 | 23,705 | 26,840 | 44,387 | |||||||||||
| Share-based compensation expenses | 14,127 | 16,572 | 28,322 | 32,089 | |||||||||||
| Net gain from financing expenses | (649 | ) | (3,637 | ) | (440 | ) | (4,675 | ) | |||||||
| Revaluation of the Warrants liability | (105 | ) | 903 | (501 | ) | (823 | ) | ||||||||
| Amortization of loan and credit facility issuance costs | 167 | 184 | 351 | 597 | |||||||||||
| Loss on extinguishment of debt | — | — | — | 6,597 | |||||||||||
| Commercial agreement asset amortization | 4,082 | 4,082 | 8,119 | 8,119 | |||||||||||
| Loss from disposal of property and equipment | 181 | — | 181 | — | |||||||||||
| Change in operating assets and liabilities: | |||||||||||||||
| Decrease in trade receivables, net (1) | (6,831 | ) | 9,136 | 43,426 | 74,332 | ||||||||||
| Decrease in prepaid expenses and other current assets and long-term prepaid expenses | (226 | ) | (1,717 | ) | 16,031 | 2,717 | |||||||||
| Decrease in trade payables (2) | (4,272 | ) | 12,037 | (46,501 | ) | (19,721 | ) | ||||||||
| Increase in accrued expenses and other current liabilities and other long-term liabilities | 7,226 | (11,586 | ) | (297 | ) | (33,782 | ) | ||||||||
| Decrease (Increase) in deferred taxes, net | 1,642 | (1,689 | ) | 135 | (4,809 | ) | |||||||||
| Change in operating lease right of use assets | 7,762 | 6,443 | 14,802 | 12,654 | |||||||||||
| Change in operating lease liabilities | (6,936 | ) | (2,691 | ) | (13,943 | ) | (9,079 | ) | |||||||
| Net cash provided by operating activities | 31,253 | 47,397 | 139,908 | 95,508 | |||||||||||
| Cash flows from investing activities | |||||||||||||||
| Purchase of property and equipment | (13,937 | ) | (13,236 | ) | (32,311 | ) | (25,277 | ) | |||||||
| Proceeds from maturities of short-term investments | — | — | — | 3,780 | |||||||||||
| Net cash used in investing activities | (13,937 | ) | (13,236 | ) | (32,311 | ) | (21,497 | ) | |||||||
| Cash flows from financing activities | |||||||||||||||
| Issuance costs | — | (275 | ) | — | (938 | ) | |||||||||
| Exercise of options | 8,141 | 2,501 | 9,138 | 3,206 | |||||||||||
| Payment of tax withholding for share-based compensation expenses | (4,327 | ) | (1,135 | ) | (6,902 | ) | (1,977 | ) | |||||||
| Repurchase of Ordinary shares and non-voting Ordinary shares | (41,542 | ) | (100,666 | ) | (64,233 | ) | (150,008 | ) | |||||||
| Payments on account of repurchase of Ordinary shares | (3,059 | ) | (705 | ) | (3,552 | ) | (3,060 | ) | |||||||
| Repayment of long-term loan | — | — | — | (122,736 | ) | ||||||||||
| Proceeds from revolving credit line, net of issuance costs | — | — | — | 123,985 | |||||||||||
| Additional proceeds from revolving credit line | 133,100 | 76,000 | 242,100 | 76,000 | |||||||||||
| Repayment of revolving credit line | (127,500 | ) | (114,500 | ) | (272,400 | ) | (114,500 | ) | |||||||
| Net cash used in financing activities | (35,187 | ) | (138,780 | ) | (95,849 | ) | (190,028 | ) | |||||||
| Exchange rate differences on balances of cash and cash equivalents | 648 | 3,637 | 439 | 4,675 | |||||||||||
| Increase (decrease) in cash and cash equivalents | (17,223 | ) | (100,982 | ) | 12,187 | (111,342 | ) | ||||||||
| Cash and cash equivalents - at the beginning of the period | 150,275 | 216,223 | 120,865 | 226,583 | |||||||||||
| Cash and cash equivalents - at end of the period | $ | 133,052 | $ | 115,241 | $ | 133,052 | $ | 115,241 | |||||||
(1) Includes a decrease (increase) in related party trade receivables of
(2) Includes an increase (decrease) in related party trade payables of
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
U.S. dollars in thousands
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Unaudited | ||||||||||||
| Supplemental disclosures of cash flow information: | ||||||||||||
| Cash paid during the year for: | ||||||||||||
| Income taxes | $ | 6,997 | $ | 10,443 | $ | 9,592 | $ | 14,207 | ||||
| Interest | $ | 1,333 | $ | 1,766 | $ | 2,824 | $ | 3,955 | ||||
| Non-cash investing and financing activities: | ||||||||||||
| Purchase of property and equipment | $ | 2,074 | $ | 3 | $ | 2,691 | $ | 1,898 | ||||
| Share-based compensation included in capitalized internal-use software | $ | 552 | $ | 448 | $ | 1,020 | $ | 727 | ||||
| Exercise of options | $ | (450 | ) | $ | 92 | $ | 35 | $ | — | |||
APPENDIX: Non-GAAP Reconciliation
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (UNAUDITED)
The following table provides a reconciliation of revenues to ex-TAC Gross Profit.
| Three months ended June 30, | Six months ended June 30, | ||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||
| (dollars in thousands) | |||||||||||
| Revenues | $ | 476,826 | | $ | 465,474 | | $ | 943,221 | | $ | 892,967 |
| Traffic acquisition cost (1) | 300,705 | 297,423 | 603,084 | 577,220 | |||||||
| Other cost of revenues | 36,642 | 32,440 | 71,081 | 60,829 | |||||||
| Gross profit | $ | 139,479 | $ | 135,611 | $ | 269,056 | $ | 254,918 | |||
| Add back: Other cost of revenues (1) | 52,893 | | 36,522 | | 91,369 | | 68,948 | ||||
| ex-TAC Gross Profit | $ | 192,372 | | $ | 172,133 | | $ | 360,425 | | $ | 323,866 |
(1) The three and six months ended June 30, 2026, included
The following table provides a reconciliation of net income (loss) to Adjusted EBITDA.
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (dollars in thousands) | |||||||||||||||
| Net income (loss) | $ | 4,317 | $ | (4,345 | ) | $ | 63,383 | $ | (13,095 | ) | |||||
| Adjusted to exclude the following: | | | | | | | |||||||||
| Finance expenses (income), net | (33 | ) | 2,491 | 212 | 6,991 | ||||||||||
| Income tax expenses (benefit) | 2,975 | 1,898 | 13,048 | (114 | ) | ||||||||||
| Depreciation and amortization (1) | 27,019 | 27,659 | | 47,128 | | 52,366 | |||||||||
| Share-based compensation expenses | 14,127 | 16,571 | | 28,322 | | 32,089 | |||||||||
| Reduction in workforce expenses (2) | 5,970 | — | 5,970 | — | |||||||||||
| Other costs (3) | 1,116 | 904 | | (75,884 | ) | | 2,876 | ||||||||
| Adjusted EBITDA | $ | 55,491 | | $ | 45,178 | | $ | 82,179 | | $ | 81,113 | ||||
(1) The three and six months ended June 30, 2026, included
(2) Costs associated with the Company’s reduction of its workforce implemented in April 2026.
(3) The three and six months ended June 30, 2026, includes expenses related to a litigation matter in which the Company is the plaintiff and is not related to our ongoing business operations in the amount of
The following table provides a reconciliation of net income (loss) to Non-GAAP Net Income (loss).
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (dollars in thousands) | |||||||||||||||
| Net income (loss) | $ | 4,317 | $ | (4,345 | ) | $ | 63,383 | $ | (13,095 | ) | |||||
| Amortization of intangible assets (1) | 19,210 | 17,828 | 31,635 | 35,611 | |||||||||||
| Share-based compensation expenses | 14,127 | 16,572 | 28,322 | 32,089 | |||||||||||
| Other costs (2) | 1,116 | 904 | (75,884 | ) | 2,876 | ||||||||||
| Reduction in workforce expenses (3) | 5,970 | — | 5,970 | — | |||||||||||
| Revaluation of Warrants | (105 | ) | 903 | (501 | ) | (823 | ) | ||||||||
| Foreign currency exchange rate gains (losses) (4) | (546 | ) | 265 | (1,227 | ) | (1,259 | ) | ||||||||
| Income tax effects | (2,809 | ) | (1,918 | ) | 6,777 | (6,788 | ) | ||||||||
| Loss on extinguishment of debt (5) | — | — | — | 6,597 | |||||||||||
| Non-GAAP Net Income | $ | 41,280 | $ | 30,209 | $ | 58,475 | $ | 55,208 | |||||||
(1) The three and six months ended June 30, 2026, included
(2) The three and six months ended June 30, 2026, include expenses related to a litigation matter in which the Company is the plaintiff and is not related to our ongoing business operations in the amount of
(3) Costs associated with the Company’s reduction of its workforce implemented in April 2026.
(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 7 of Notes to the Unaudited Consolidated Interim Financial Statements.
The following table provides a reconciliation of net cash provided by operating activities to Free Cash Flow.
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (dollars in thousands) | |||||||||||||||
| Net cash provided by operating activities | $ | 31,253 | $ | 47,397 | $ | 139,908 | $ | 95,508 | |||||||
| Purchases of property and equipment, including capitalized internal-use software | (13,937 | ) | (13,236 | ) | (32,311 | ) | (25,277 | ) | |||||||
| Free Cash Flow | $ | 17,316 | $ | 34,161 | $ | 107,597 | $ | 70,231 | |||||||
APPENDIX: Non-GAAP Guidance Reconciliation
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q3 2026 AND FULL YEAR 2026 GUIDANCE
(Unaudited)
The following table provides a reconciliation of projected Gross profit to ex-TAC Gross Profit.
| Q3 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 (1) | ( | | ( |
| ex-TAC Gross Profit | | ||
(1) Third-Quarter and Full-Year 2026 guidance includes
