Taboola Reports Strong Q2 2025 Financial Results, Surpassing High-End of Guidance; Increases Full-Year Guidance & Announces $200M Share Repurchase Expansion

Core Insights - Taboola reported strong second quarter results for 2025, exceeding guidance across key metrics and raising full-year guidance [2][3] - The company has repurchased nearly 12% of its shares in the first half of the year, reflecting confidence in its business and long-term vision [2] - Taboola is experiencing early traction with its new performance advertising platform, Realize, indicating potential for future growth [2] Financial Performance - Revenues for Q2 2025 reached $465.5 million, an increase of 8.7% compared to $428.2 million in Q2 2024 [6][16] - Gross profit for Q2 2025 was $135.6 million, up 18.2% from $114.8 million in Q2 2024 [6][16] - Adjusted EBITDA for Q2 2025 was $45.2 million, a 21.3% increase from $37.2 million in Q2 2024 [6][16] - The net loss remained flat at $(4.3) million for both Q2 2025 and Q2 2024 [6][16] Guidance - For Q3 2025, Taboola expects revenues between $461 million and $469 million, and for the full year 2025, revenues are projected at $1.888 billion [3][18] - The company anticipates gross profit for Q3 2025 to be between $127 million and $133 million, and for the full year 2025, gross profit is expected to be between $541 million and $555 million [3][18] - Adjusted EBITDA guidance for Q3 2025 is set between $43 million and $48 million, with full-year guidance between $208 million and $214 million [3][18] Cash Flow and Investments - Cash flow from operating activities for Q2 2025 was $47.4 million, compared to $38.8 million in Q2 2024 [6][16] - Free cash flow for Q2 2025 was $34.2 million, up from $26.2 million in Q2 2024 [6][16] - The company has shown strong collections and lower publisher prepayments contributing to improved cash flow [6][16] Shareholder Returns - The company has aggressively continued its share buyback program, indicating a commitment to returning value to shareholders [2][3] - The weighted-average shares used in computing diluted EPS for Q2 2025 were 313,572,282, compared to 342,566,112 for Q2 2024 [17]