Taboola.com(TBLA) - 2025 Q3 - Quarterly Results

Financial Performance - Revenues for Q3 2025 were $496.8 million, representing a 14.7% increase compared to Q3 2024, driven by a 4.4% growth in Scaled Advertisers and a 10.9% increase in Average Revenue per Scaled Advertiser[4] - Gross Profit for Q3 2025 was $139.0 million, up 4.6%, with ex-TAC Gross Profit at $176.8 million, a 6.3% increase, benefiting from strong advertising spend[4] - Net Income improved to $5.2 million from a Net Loss of $(6.5) million in Q3 2024, with Adjusted EBITDA at $48.2 million, a 0.6% increase[4] - Revenues for Q3 2025 reached $496.764 million, a 14.7% increase from $433.012 million in Q3 2024[19] - Gross profit for Q3 2025 was $139.019 million, compared to $132.877 million in Q3 2024, reflecting a growth of 4.3%[19] - Net income for Q3 2025 was $5.244 million, a significant improvement from a net loss of $6.454 million in Q3 2024[20] - Adjusted EBITDA for Q3 2025 was $48,223, slightly higher than $47,927 in Q3 2024, indicating stable operational performance[30] Cash Flow and Liquidity - Cash Flow from operating activities was $53.2 million, up from $49.8 million, while Free Cash Flow increased to $46.3 million from $42.9 million[4] - Cash flows from operating activities for Q3 2025 were $53,203, compared to $49,772 in Q3 2024, showing improved cash generation[23] - Cash and cash equivalents at the end of Q3 2025 were $115,475, down from $217,230 at the end of Q3 2024, indicating liquidity challenges[23] - Free Cash Flow for the three months ended September 30, 2025, was $46,289, compared to $42,864 in the same period of 2024, indicating a year-over-year increase of 8.9%[39] - The company reported a Free Cash Flow of $116,520 for the nine months ended September 30, 2025, an increase from $97,266 in the same period of 2024, reflecting a growth of 19.8%[39] Shareholder Equity and Liabilities - Total current liabilities decreased to $466.223 million as of September 30, 2025, down from $485.582 million at the end of 2024, a reduction of 4.4%[18] - Long-term liabilities decreased to $151.661 million as of September 30, 2025, compared to $181.170 million at the end of 2024, a decline of 16.3%[18] - Total shareholders' equity as of September 30, 2025, was $911.462 million, down from $1,051.906 million at the end of 2024, a decrease of 13.4%[18] Expenses - Research and development expenses for Q3 2025 were $37.867 million, slightly up from $36.727 million in Q3 2024[19] - Total operating expenses for Q3 2025 were $132.514 million, compared to $128.319 million in Q3 2024, an increase of 3.5%[19] - Share-based compensation expenses totaled $15.714 million for Q3 2025, down from $17.186 million in Q3 2024[21] - Total depreciation and amortization expense for Q3 2025 was $20.331 million, compared to $24.793 million in Q3 2024, a decrease of 18.0%[22] Future Guidance - For Q4 2025, the company expects revenues between $1,914 million and $1,932 million, with a gross profit guidance of $550 million to $564 million[3] - The company expects Q4 2025 revenues to be between $532 million and $542 million, with a projected Gross Profit of $166 million to $171 million[42] - For the full year 2025, the company projects revenues of $1,914 million to $1,932 million, with an ex-TAC Gross Profit guidance of $700 million to $710 million[42] Strategic Initiatives - The company continues to focus on expanding its performance platform, Realize, which is driving significant success for advertisers[2] - The company has repurchased 14% of its shares this year, reflecting confidence in its strategy and performance[2] Tax and Financing Activities - The company reported a significant increase in income tax payments, totaling $9,202 in Q3 2025 compared to $3,796 in Q3 2024[25] - The company experienced a net cash used in financing activities of $46,476 in Q3 2025, compared to $9,741 in Q3 2024, highlighting increased financing pressures[23] Foreign Currency Impact - The company experienced foreign currency exchange rate losses of $(667) for the three months ended September 30, 2025, compared to losses of $(738) in the same period of 2024[34]