The sharp deceleration in revenue growth to 2.4% YoY is the key concern, especially after Q1's 9.1% pace. The GAAP EPS miss vs Street consensus ($0.01 vs $0.09) adds to the bearish case. However, the raised full-year ex-TAC Gross Profit and Adjusted EBITDA guidance, combined with strong margin expansion, provides a bullish counterweight. Traders should watch the earnings call for commentary on the revenue deceleration and whether the Fox News win can re-accelerate growth in H2.
Price Chart
Executive Summary
Taboola reported Q2 2026 revenue of $476.8M (+2.4% YoY), in-line with consensus, and GAAP EPS of $0.01 (diluted), which is below the Street EPS consensus of $0.09. The company beat its own ex-TAC Gross Profit and Adjusted EBITDA guidance and raised full-year guidance for both metrics. However, revenue growth decelerated sharply from 9.1% in Q1 to 2.4% in Q2, and free cash flow fell to $17.3M from $34.2M a year ago, signaling a mixed quarter with strong profitability but slowing top-line momentum.
Key Financial Metrics
Key Facts
- Revenue of $476.8M, +2.4% YoY, decelerating from 9.1% growth in Q1 2026
- GAAP diluted EPS of $0.01 vs Street consensus of $0.09 — a significant miss on the Street-quoted metric
- Ex-TAC Gross Profit of $192.4M, +11.8% YoY, beating guidance
- Adjusted EBITDA of $55.5M, +22.8% YoY, with margins expanding to 28.8% from 26.2%
- Free Cash Flow fell to $17.3M from $34.2M in Q2 2025
- Full-year 2026 ex-TAC Gross Profit guidance raised to $772M-$783M (from $760M-$781M) and Adjusted EBITDA guidance raised to $228M-$240M (from $222M-$240M)
- Net income of $4.3M improved from a net loss of $(4.3)M in Q2 2025
- Company repurchased $41.5M of shares in Q2 2026
Financial Impact
Revenue growth decelerated to 2.4% YoY, well below Q1's 9.1% pace. Free cash flow halved to $17.3M. However, ex-TAC Gross Profit grew 11.8% and Adjusted EBITDA grew 22.8%, with full-year guidance raised for both.
Risk Factors
- Revenue growth decelerating sharply from 9.1% to 2.4% YoY signals potential market share loss or macro headwinds
- Free cash flow halved to $17.3M from $34.2M, reducing financial flexibility
- GAAP EPS of $0.01 significantly missed the Street consensus of $0.09, which may pressure the stock
- Q3 2026 revenue guidance of $460M-$473M implies continued deceleration, with the midpoint below Q2's actual
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001140361-26-031336 |
| Document: ef20078191_8k.htm | 0001140361-26-031336 |
| Document: 0001140361-26-031336-index-headers.html | 0001140361-26-031336 |
| Document: 0001140361-26-031336-index.html | 0001140361-26-031336 |
| Document: 0001140361-26-031336.txt | 0001140361-26-031336 |
| 8-K Data (Synthetic) | 0001140361-26-031336 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 11d ago | Press Release | $3.44 | awaiting T+60 | — | $3.38 (−1.74%) |
Sep 18, 2026 5w ago | Press Release | $3.60 | awaiting T+60 | — | $3.38 (−6.11%) |
Aug 5, 2026 11w ago | Press Release | $3.84 | awaiting T+60 | — | $3.38 (−11.86%) |
Aug 5, 2026 11w ago | 8-K | $3.84 | awaiting T+60 | — | $3.38 (−11.86%) |
Jul 15, 2026 14w ago | Press Release | $5.44 | awaiting T+60 | — | $3.38 (−37.87%) |
Jun 29, 2026 17w ago | 25-NSE | $5.00 $3.40 | ▼ −32.00% | ▼ −34.82% | $3.38 (−32.40%) |
May 7, 2026 24w ago | Insider Cluster | $5.21 $5.19 | ▲ +0.38% | ▲ +4.22% | $3.38 (+35.12%) |
May 6, 2026 24w ago | Press Release | $4.75 $5.01 | ▲ +5.47% | ▲ +3.41% | $3.38 (−28.84%) |
Apr 22, 2026 26w ago | Press Release | $3.80 $5.28 | ▲ +38.95% | ▲ +34.17% | $3.38 (−11.05%) |
Feb 25, 2026 34w ago | 8-K | $2.95 $4.93 | ▲ +67.12% | ▲ +60.17% | $3.38 (+14.58%) |
US Market Status
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