Taboola Misses Revenue Forecast, Cuts Annual Outlook; Shares Plunge 26% on Nasdaq

Taboola, the Israeli-founded digital content recommendation and advertising platform led by Adam Singolda, reported its second-quarter 2026 financial results showing a mixed performance. While the company returned to net profitability and raised its annual adjusted EBITDA forecast, it missed revenue expectations and lowered its full-year revenue guidance, triggering a 26% drop in its Nasdaq share price.

The company posted second-quarter revenues of $476.8 million, a 2.4% increase year-over-year but below analysts' forecast of $499.4 million. Adjusted EBITDA reached $55.5 million, surpassing the $52 million estimate, and gross profit excluding traffic acquisition costs rose 11.8% to $192.4 million. Taboola swung to a net profit of $4.3 million from a $4.3 million loss in the same quarter last year.

For the third quarter, Taboola projected revenues between $460 million and $473 million, with a midpoint of $466.5 million, representing a 10% shortfall against the $518.1 million analyst consensus and a 6.1% decline from the prior year. The company also trimmed its 2026 revenue forecast to a range of $1.93 billion to $1.96 billion, down from the previous $2.03 billion guidance and below the $2.04 billion analyst estimate.

Despite revenue challenges, Taboola raised its full-year adjusted EBITDA guidance to $228 million to $240 million, reflecting confidence in profitability improvements. CEO Adam Singolda highlighted strong momentum from the Realize platform, the addition of Fox News as a partner, and other strategic achievements that reinforce Taboola's leadership in performance-based advertising.