Taboola Posts Q2 Profit Boost as Revenue Guidance Slips and Investigation Looms

Taboola.com Ltd. reported second‑quarter results that beat its profitability outlook. Revenue rose 2 % year‑over‑year to $476.8 million, ex‑TAC gross profit increased 12 % to $192.4 million, and adjusted EBITDA reached $55.5 million, delivering a 29 % margin. Net income was $4.3 million and non‑GAAP net income $41.3 million. CEO Adam Singolda called the quarter “another important step forward” as the firm pushes its performance‑advertising platform for the open web, while CFO Steve Walker said revenue fell short of prior guidance because Taboola removed lower‑quality publishers and because Google changed its policy, ending the Explore More feature that had driven additional sponsored content. The loss from the policy change is expected to cut ex‑TAC gross profit by more than $20 million in the second half of 2026. Taboola has introduced a replacement product, Next Engage, to recoup some of the lost revenue. The publisher cleanup was concentrated among international publishers, largely in the Greater China region.

Separately, litigation firm Levi & Korsinsky LLP (operating as SueWallSt) notified investors of a pending securities‑law investigation into Taboola’s public statements about its revenue trajectory. The company had cut its full‑year 2026 revenue guidance to $1.93‑$1.956 billion, below consensus estimates, prompting a share price decline. The investigation will examine whether Taboola’s disclosures were materially false or misleading.