Taboola published its second-quarter report on 5 August 2026. We are writing about it today, 6 August.
The company's own headline: "Taboola Reports Strong Q2 2026 Financial Results, & Raises Full-Year ex-TAC Gross Profit and Adjusted EBITDA Guidance."
The stock fell 27.50% the same day, from $5.29 to $3.84.
What was reported
| Quarter | Change | |
|---|---|---|
| Revenue | 476.8 | +2.4% |
| Gross profit | 139.5 | +2.9% |
| ex-TAC gross profit | 192.4 | +11.8% |
In millions of dollars
The gap between the two metrics
What ex-TAC is and why it matters
TAC stands for Traffic Acquisition Cost - what Taboola pays the sites that host its content recommendations.
ex-TAC gross profit is profit excluding that payment.
And it is a legitimate metric - it describes how much money is left for the company itself after paying the publishers through which it operates.
But note the gap:
- Revenue grew 2.4%
- Gross profit grew 2.9%
- ex-TAC gross profit grew 11.8%
So the 11.8% growth is not in the scale of activity - it is in improved revenue-share terms with publishers.
That is a real improvement in profitability. But revenue growth of 2.4% is close to standing still.
And the main reason for the fall: the guidance
| Q3 | Full year | |
|---|---|---|
| Revenue | 460-473 | 1,930-1,956 |
| Gross profit | 148-152 | 605-615 |
| ex-TAC gross profit | 184-190 | 772-783 |
| Adjusted EBITDA | 51.5-56.5 | 228-240 |
| Non-GAAP net income | 38-42 | 168-176 |
In millions of dollars
The midpoint of third-quarter revenue guidance is $466.5 million - below the $476.8 million just reported.
And ex-TAC gross profit is guided to $184-190 million - below the quarter's $192.4 million.
So the company raised full-year guidance while guiding to a third quarter weaker than the second on both central metrics.
What the company points to
CEO Adam Singolda: "We delivered another quarter beating our ex-TAC Gross Profit and Adjusted EBITDA guidance and are raising our full-year guidance for both metrics. With the momentum we're seeing with Realize, the addition of Fox News and other strategic wins, we are further strengthening our position as a leader in performance advertising."
My Angle
A personal opinion of Ilan Abramov - not advice, not a recommendation
This report teaches a lesson about the metrics a company chooses to emphasise.
ex-TAC is an entirely legitimate measure, and it genuinely describes better what Taboola keeps. But when revenue grows 2.4% and ex-TAC grows 11.8%, the difference is not in how much business was done - it is in how much of it was retained.
Improving revenue-share terms is a good thing. It is simply not the same thing as growth.
And what decided the day was the guidance. A company raising full-year guidance while in the same breath guiding a third quarter below the second is signalling that the first half was stronger than the second will be - the opposite of what a growth investor wants to see.
And what I note for the longer term: full-year revenue guidance is $1.93 to $1.96 billion. Against a current annual run rate of roughly $1.9 billion. This is a company that has stabilised at its size, and it needs to find the next growth engine - which is exactly what Realize is meant to be.
