Content discovery platform Taboola (NASDAQ:TBLA) missed Wall Street’s revenue expectations in Q2 CY2026 as sales rose 2.4% year on year to $476.8 million. Next quarter’s revenue guidance of $466.5 million underwhelmed, coming in 10% below analysts’ estimates. Its GAAP profit of $0.01 per share was 76.9% below analysts’ consensus estimates.
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Taboola (TBLA) Q2 CY2026 Highlights:
- Revenue: $476.8 million vs analyst estimates of $499.4 million (2.4% year-on-year growth, 4.5% miss)
- EPS (GAAP): $0.01 vs analyst expectations of $0.04 (miss)
- Adjusted EBITDA: $55.49 million vs analyst estimates of $52.03 million (11.6% margin, 6.7% beat)
- The company dropped its revenue guidance for the full year to $1.94 billion at the midpoint from $2.03 billion, a 4.5% decrease
- EBITDA guidance for the full year is $234 million at the midpoint, in line with analyst expectations
- Operating Margin: 1.5%, up from 0% in the same quarter last year
- Free Cash Flow Margin: 3.6%, down from 7.3% in the same quarter last year
- Market Capitalization: $1.45 billion
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
A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.
With $1.96 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 grew its sales at an impressive 9% 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 10% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong. 
This quarter, Taboola’s revenue grew by 2.4% year on year to $476.8 million, falling short of Wall Street’s estimates. Company management is currently guiding for a 6.1% year-on-year decline in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 5.8% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above average for the sector and implies the market is forecasting some success for its newer products and services.
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Adjusted Operating Margin
Taboola was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 5.2% was weak for a business services business.
On the plus side, Taboola’s adjusted operating margin rose by 3.6 percentage points over the last five years, as its sales growth gave it operating leverage.
This quarter, Taboola generated an adjusted operating margin profit margin of 4.5%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.
Taboola’s full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it’s at an inflection point.
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 118% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.
In Q2, Taboola reported EPS of $0.01, up from negative $0.01 in the same quarter last year. Despite growing year on year, this print missed analysts’ estimates, but we care more about long-term EPS growth than short-term movements. 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 Q2 Results
We struggled to find many positives in these results. Revenue in the quarter missed. Also, its full-year revenue guidance missed and its revenue guidance for next quarter fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 9.5% to $4.79 immediately after reporting.
Taboola may have had a tough quarter, but does that actually create an opportunity to invest right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).