Content discovery platform Taboola (NASDAQ:TBLA) reported Q1 CY2026 results beating Wall Street’s revenue expectations, with sales up 9.1% year on year to $466.4 million. Guidance for next quarter’s revenue was optimistic at $498.5 million at the midpoint, 2.5% above analysts’ estimates. Its GAAP profit of $0.20 per share was significantly above analysts’ consensus estimates.
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Taboola (TBLA) Q1 CY2026 Highlights:
- Revenue: $466.4 million vs analyst estimates of $453.3 million (9.1% year-on-year growth, 2.9% beat)
- EPS (GAAP): $0.20 vs analyst estimates of -$0.03 (significant beat)
- Adjusted EBITDA: $26.69 million vs analyst estimates of $24.62 million (5.7% margin, 8.4% beat)
- The company slightly lifted its revenue guidance for the full year to $2.03 billion at the midpoint from $2.02 billion
- EBITDA guidance for the full year is $231 million at the midpoint, above analyst estimates of $228.4 million
- Operating Margin: 14.9%, up from -1.5% in the same quarter last year
- Free Cash Flow Margin: 19.4%, up from 8.4% in the same quarter last year
- Market Capitalization: $1.06 billion
“We’re starting the year strong, exceeding the high end of our guidance across all metrics and raising our full-year outlook, reflecting accelerated growth,” said Adam Singolda, CEO of Taboola.
Company Overview
Often appearing as those "You May Also Like" or "Recommended For You" boxes at the bottom of news articles, Taboola (NASDAQ:TBLA) operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.
With $1.95 billion in revenue over the past 12 months, Taboola is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. On the bright side, it can still flex high growth rates because it’s working from a smaller revenue base.
As you can see below, Taboola’s sales grew at an impressive 10% compounded annual growth rate over the last five years. This is an encouraging starting point for our analysis because it shows Taboola’s demand was higher than many business services companies.
We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Taboola’s annualized revenue growth of 13.1% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
This quarter, Taboola reported year-on-year revenue growth of 9.1%, and its $466.4 million of revenue exceeded Wall Street’s estimates by 2.9%. Company management is currently guiding for a 7.1% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 5.2% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above average for the sector and indicates the market is baking in some success for its newer products and services.
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Adjusted Operating Margin
Adjusted operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. It also removes various one-time costs to paint a better picture of normalized profits.
Taboola was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 5.4% was weak for a business services business.
On the plus side, Taboola’s adjusted operating margin rose by 2.4 percentage points over the last five years, as its sales growth gave it operating leverage.
In Q1, Taboola generated an adjusted operating margin profit margin of 17.9%, up 15.8 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Sadly for Taboola, its EPS declined by 14.4% annually over the last five years while its revenue grew by 10%. However, its adjusted operating margin actually improved during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings.
Diving into the nuances of Taboola’s earnings can give us a better understanding of its performance. A five-year view shows Taboola has diluted its shareholders, growing its share count by 284%. This dilution overshadowed its increased operational efficiency and has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don’t tell us as much about a company’s fundamentals. 
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For Taboola, its two-year annual EPS growth of 92.1% was higher than its five-year trend. This acceleration made it one of the faster-growing business services companies in recent history.
In Q1, Taboola reported EPS of $0.20, up from negative $0.03 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. We also like to analyze expected EPS growth based on Wall Street analysts’ consensus projections, but there is insufficient data.
Key Takeaways from Taboola’s Q1 Results
It was good to see Taboola beat analysts’ EPS expectations this quarter. We were also glad its revenue guidance for next quarter trumped Wall Street’s estimates. Zooming out, we think this quarter featured some important positives. The stock traded up 5.7% to $4.03 immediately following the results.
Taboola had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).