Overview

• Digital advertising platform's Q1 revenue rose 9%, beating analyst expectations

• Company swung to net profit from loss a year earlier

• Adjusted EBITDA fell yr/yr, while cash flow from operations more than doubled

Outlook

• Taboola sees Q2 revenue between $492 mln and $505 mln

• Company raises full-year 2026 revenue outlook to $2,006 mln-$2,062 mln

• Taboola expects full-year 2026 adjusted EBITDA of $222 mln-$240 mln

Result Drivers

• ADVERTISER ACTIVITY - Co said growth was driven by advertiser success on its Realize platform

• TECHNOLOGY AND DATA - Co cited unique data, AI, and distribution as supporting performance outcomes

• LEGAL SETTLEMENT - Net income included a $77 mln pre-tax gain from a legal settlement

Company press release: ID:nGNX54lbyL

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$466.40 mln	$453.28 mln (7 Analysts)
Q1 EPS		$0.2
Q1 Net Income		$59.07 mln
Q1 Gross Profit		$129.58 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Taboola.com Ltd is $4.75, about 24.7% above its May 5 closing price of $3.81

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago

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