Key Highlights

  • Published market data on November 4, 2026 showed Taboola (NASDAQ:TBLA) at USD 2.84, down 16.47%, with a market cap of about USD 767.2 million and Volume of 856,770 shares.
  • Taboola (NASDAQ:TBLA) reported third quarter Revenue of USD 462.3 million, down 6.9%, while ex-TAC Gross Profit rose 6.8% to USD 188.8 million.
  • Net income was USD 18.4 million against USD 5.2 million, and adjusted EBITDA rose 16.1% to USD 56.0 million.
  • Fourth quarter guidance is revenue of USD 477 million to USD 493 million and adjusted EBITDA of USD 73.5 million to USD 82.5 million.

A Mixed Quarter

The company reported third quarter 2026 results on November 4, 2026. Revenue of USD 462.3 million was down 6.9%, but ex-TAC gross profit, which is revenue after traffic Acquisition costs paid to publishers, rose 6.8% to USD 188.8 million. That split means the company kept more of each Advertising dollar even as gross billings shrank. Net Income was USD 18.4 million, up from USD 5.2 million, and adjusted EBITDA was USD 56.0 million, up 16.1%, equal to about 29.7% of ex-TAC gross profit, simple arithmetic on two reported figures.

Guidance and the Biggest Losers Screen

For the fourth quarter, the company guided to revenue of USD 477 million to USD 493 million, ex-TAC gross profit of USD 204.5 million to USD 213.5 million and non-GAAP net income of USD 53 million to USD 62 million. Full-year 2026 guidance is revenue of USD 1.8825 billion to USD 1.8985 billion, ex-TAC gross profit of USD 754 million to USD 763 million and adjusted EBITDA of USD 212 million to USD 221 million. A biggest losers screen ranks stocks by one-day decline within a market cap band of USD 300 million to USD 2 billion. The decline came on the day of the results, but the cause has not been confirmed.

Risks and What to Watch

Falling revenue can worry investors even when profit measures improve, because it may point to lost publisher traffic or lower advertiser spend. The company does not guide GAAP net income, which limits comparability. Taboola (NASDAQ:TBLA) relies on large publisher and platform partners, and losing or repricing a major contract can change the Economics quickly. At a quote of USD 2.84 and a market cap of about USD 767 million, the stock trades near five times the midpoint of non-GAAP net income guidance of USD 155.5 million, simple arithmetic. Published market data lists an analyst rating of Buy. A fall of 16.5% can extend or reverse, and the next dated event is the fourth quarter report.

Where Things Stand

The 16.5% fall came on the day of results and probably reflects the 6.9% drop in revenue and caution around the fourth quarter guide, but the cause has not been confirmed. Profit measures improved, with net income up to USD 18.4 million and adjusted EBITDA up 16.1%. The gap between shrinking revenue and rising gross profit is the central question. Taboola (NASDAQ:TBLA) must show that ex-TAC gross profit growth can continue without a further drop in billings. Fourth quarter guidance implies a seasonal step up in revenue and a larger EBITDA figure, so delivery on that range will help judge whether the market reaction on November 4 was an overreaction or an early warning about advertising demand.