Press Releases August 5, 2026 06:15 AM

Taboola Reports Strong Q2 2026 Financial Results, & Raises Full-Year ex-TAC Gross Profit and Adjusted EBITDA Guidance

Taboola beats Q2 2026 ex-TAC Gross Profit and Adjusted EBITDA estimates, raises full-year financial guidance

By Hana Yamamoto
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TBLA

Taboola reported strong financial results for Q2 2026, with revenues rising 2.4% year-over-year to $476.8 million. Excluding traffic acquisition costs (ex-TAC), Gross Profit increased by 11.8%, and Adjusted EBITDA grew by 22.8% with margin expansion. Net income turned positive at $4.3 million compared to a net loss in the prior year. The company raised its full-year guidance for ex-TAC Gross Profit and Adjusted EBITDA, signaling confidence from new partnerships and product momentum.

Taboola Reports Strong Q2 2026 Financial Results, & Raises Full-Year ex-TAC Gross Profit and Adjusted EBITDA Guidance
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Key Points

  • Q2 2026 revenues reached $476.8 million, a 2.4% increase year-over-year.
  • Ex-TAC Gross Profit increased 11.8% to $192.4 million, supporting improved profitability.
  • Adjusted EBITDA rose 22.8% with margin expansion to 28.8%, accompanied by positive net income.
  • Raised full-year 2026 guidance for revenues, gross profit, ex-TAC Gross Profit, and Adjusted EBITDA reflecting strong operational momentum.

NEW YORK, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Taboola (Nasdaq: TBLA), a global leader in delivering performance at scale for advertisers, today announced its results for the second quarter ended June 30, 2026.

"We delivered another quarter beating our ex-TAC Gross Profit and Adjusted EBITDA guidance and raising our full-year guidance for both metrics,” said Adam Singolda, CEO of Taboola. "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 and executing on our vision to build the leading platform for the Open Web."

Second Quarter 2026 Financial Results
(All comparisons are to the second quarter of 2025 unless otherwise noted.)

  • Revenues of $476.8 million, an increase of 2.4%.
  • Gross Profit of $139.5 million, an increase of 2.9%. Ex-TAC Gross Profit was $192.4 million, an increase of 11.8%.
  • Net Income was $4.3 million improved from a Net Loss of $(4.3) million. Adjusted EBITDA was $55.5 million, up 22.8%. Adjusted EBITDA margins expanded to 28.8% from 26.2%.
  • Cash Flow provided by operating activities of $31.3 million, compared to $47.4 million. Free Cash Flow was $17.3 million, compared to $34.2 million.

Third Quarter and Full Year 2026 Guidance
For the Third Quarter and Full Year 2026, the Company currently expects (dollars in millions):

 Q3 2026
GuidanceFY 2026
Guidance Unaudited (dollars in millions)Revenues$460 - $473 $1,930 - $1,956Gross profit$148 - $152 $605 - $615ex-TAC Gross Profit*$184 - $190 $772 - $783Adjusted EBITDA*$51.5 - $56.5 $228 - $240Non-GAAP Net Income (Loss)*$38 - $42 $168 - $176    

Although we provide guidance for Adjusted EBITDA and Non-GAAP Net Income (Loss), we are not able to provide guidance for projected net income (loss), the most directly comparable GAAP measure. Certain elements of net income (loss), including share-based compensation expenses are not predictable due to the high variability and difficulty of making accurate forecasts. As a result, it is impractical for us to provide guidance on net income (loss) or to reconcile our Adjusted EBITDA and Non-GAAP Net Income (Loss) guidance without unreasonable efforts. Consequently, no disclosure of projected net income (loss) is included. For the same reasons, we are unable to address the probable significance of the unavailable information.

Webcast & Conference Call
Taboola’s senior management team will discuss the Company's earnings on a call that can be accessed via webcast at https://investors.taboola.com.

To access the call by phone, please go to this link: https://register-conf.media-server.com/register/BI9e7de4b306b347a4848f5087865fc7c2 to register at and you will be provided with dial in details. The webcast will be available for replay for one year, through the close of business on August 5, 2027.

*About Non-GAAP Financial Information
This press release includes ex-TAC Gross Profit, Adjusted EBITDA, Ratio of Adjusted EBITDA to ex-TAC Gross Profit, Free Cash Flow, Non-GAAP Net Income (Loss), which are non-GAAP financial measures. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to revenues, gross profit, net income (loss), cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company’s presentation of these measures may not be comparable to similarly-titled measures used by other companies. The Company believes non-GAAP financial measures provide useful supplemental information to management and investors regarding future financial and business trends relating to the Company. The Company believes that the use of these measures provides an additional tool for investors to use in evaluating operating results and trends and in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial measures are subject to inherent limitations because they reflect the exercise of judgments by management about which items are excluded or included in calculating them, which may vary from period to period. Please refer to the appendix at the end of this press release for reconciliations to the most directly comparable measures in accordance with GAAP.

Definitions

  • Ex-TAC Gross Profit: Gross profit adjusted to add back other cost of revenues and non-cash amortization of the Commercial agreement asset. We add back (i) the non-cash amortization of the Commercial agreement asset because it is unique primarily due to the issuance of equity rather than cash and (ii) Publisher’s prepayments write-off that are one time non cash, such that ex-TAC Gross Profit includes solely direct cash contribution components.
  • Adjusted EBITDA: Net income (loss) before finance income (expenses), net, income tax expenses, depreciation and amortization and non-cash amortization of the Commercial agreement asset, further adjusted to exclude share-based compensation including Connexity holdback compensation expenses and other noteworthy income and expense items such as M&A costs and restructuring costs which may vary from period-to-period.
  • Adjusted EBITDA margins: The ratio of Adjusted EBITDA to ex-TAC Gross Profit as Adjusted EBITDA divided by ex-TAC Gross Profit.

Note Regarding Forward-Looking Statements
Certain statements in this press release are forward-looking statements. Forward-looking statements generally relate to future events including future financial or operating performance of Taboola.com Ltd. (the “Company”). In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “guidance”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “target”, “potential” or “continue”, or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Uncertainties and risk factors that could affect the Company’s future performance and cause results to differ from the forward-looking statements in this press release include, but are not limited to: the Company’s ability to grow and manage growth profitably, maintain relationships with customers and retain its management and key employees; changes in applicable laws or regulations; the degree to which, or whether, Realize can achieve its intended performance objectives and attract, retain and grow advertisers and advertising spending; the Company’s estimates of expenses and profitability and underlying assumptions with respect to accounting presentations and purchase price and other adjustments; the extent to which we will buyback any of our shares pursuant to authority granted by the Company’s Board of Directors, which may depend upon market and economic conditions, other business opportunities and priorities, satisfying required conditions under the Israeli Companies Law and the Companies Regulations or other factors; the ability to attract new digital properties and advertisers; ability to meet minimum guarantee requirements in contracts with digital properties; intense competition in the digital advertising space, including with competitors who have significantly more resources; ability to grow and scale the Company’s ad and content platform through new relationships with advertisers and digital properties; ability to secure high quality content from digital properties; ability to maintain relationships with current advertiser and digital property partners; ability to prioritize investments to improve profitability and free cash flow; ability to make continued investments in the Company’s AI powered technology platform; the need to attract, train and retain highly-skilled technical workforce; changes in the regulation of, or market practice with respect to, “third party cookies” and its impact on digital advertising; continued engagement by users who interact with the Company’s platform on various digital properties; reliance on a limited number of partners for a significant portion of the Company’s revenue; changes in laws and regulations related to privacy, data protection, advertising regulation, competition and other areas related to digital advertising; ability to enforce, protect and maintain intellectual property rights; the potential or expected impact of tariffs on advertising spend, consumer and business sentiment, and the general economic environment; risks related to the fact that we are incorporated in Israel and governed by Israeli law; the potential impacts of the war in Israel to the Company’s operations; and other risks and uncertainties set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 under Part 1, Item 1A “Risk Factors” and in the Company’s subsequent filings with the Securities and Exchange Commission.  Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on these forward-looking statements, which speak only as of the date they were made. The Company undertakes no duty to update these forward-looking statements except as may be required by law.

Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on these forward-looking statements, which speak only as of the date they were made. The Company undertakes no duty to update these forward-looking statements except as may be required by law.

About Taboola

Taboola empowers businesses to grow through performance advertising technology that goes beyond search and social and delivers measurable outcomes at scale.

Taboola works with thousands of businesses who advertise directly on Realize, Taboola’s powerful ad platform, reaching over 600 million daily active users across some of the best publishers in the world. Publishers like NBC News, Yahoo, and OEMs such as Samsung, Xiaomi and others use Taboola’s technology to grow audience and revenue, enabling Realize to offer unique data, specialized algorithms, and unmatched scale.

Investor Contact:
Aadam Anwar
[email protected]

Press Contact:
Dave Struzzi
[email protected]

 

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands, except share and per share data

 June 30, December 31,  2026  2025 UnauditedASSETS   CURRENT ASSETS   Cash and cash equivalents$133,052 $120,865Trade receivables (net of allowance for credit losses of $15,227 and $13,889 as of June 30, 2026 and December 31, 2025, respectively) (1) 316,740  360,166Prepaid expenses and other current assets 69,151  77,000Total current assets 518,943  558,031NON-CURRENT ASSETS   Long-term prepaid expenses 10,205  15,116Commercial agreement asset 262,129  270,248Restricted deposits 1,463  1,462Deferred tax assets, net 20,422  20,624Operating lease right of use assets 71,920  79,167Property and equipment, net 104,758  95,335Intangible assets, net 2,578  13,925Goodwill 555,931  555,931Total non-current assets 1,029,406  1,051,808Total assets$1,548,349 $1,609,839

(1) Includes related party trade receivables of $49,760 and $39,210, as of June 30, 2026 and December 31, 2025, respectively.



CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands, except share and per share data

 June 30, December 31,  2026   2025  UnauditedLIABILITIES AND SHAREHOLDERS' EQUITY   CURRENT LIABILITIES   Trade payables (2)$275,949  $330,684 Short-term operating lease liabilities 33,787   30,408 Accrued expenses and other current liabilities 159,204   159,874 Total current liabilities 468,940   520,966 LONG-TERM LIABILITIES   Revolving credit facility 72,000   102,300 Long-term operating lease liabilities 51,615   61,382 Warrants liability —   501 Deferred tax liabilities, net 561   628 Other long-term liabilities 17,240   16,867 Total long-term liabilities 141,416   181,678 COMMITMENTS AND CONTINGENCIES (Note 10)   SHAREHOLDERS' EQUITY   Ordinary shares with no par value- Authorized: 700,000,000 as of  June 30, 2026 and December 31, 2025;  363,374,228 and 341,610,237 shares issued, and 251,850,218 and 246,330,707 shares outstanding as of June 30, 2026 and December 31, 2025, respectively —   — Non-voting Ordinary shares with no par value - Authorized: 46,000,000 as of June 30, 2026 and December 31, 2025; 33,198,702 and 45,198,702 shares issued, and 18,039,644 and 30,039,644 shares outstanding as of June 30, 2026 and December 31, 2025, respectively —   — Treasury Ordinary shares, at cost - 126,683,068 (111,524,010 Ordinary shares and 15,159,058 Non-voting Ordinary shares) and 110,438,588 (95,279,530 Ordinary shares and 15,159,058 Non-voting Ordinary shares) as of June 30, 2026 and December 31, 2025, respectively (450,826)  (385,651)Additional paid-in capital 1,435,861   1,404,248 Accumulated other comprehensive income 1,511   534 Accumulated deficit (48,553)  (111,936)Total shareholders' equity 937,993   907,195 Total liabilities and shareholders' equity$1,548,349  $1,609,839 

(2) Includes related party trade payables of $72,723 and $70,950, as of June 30, 2026 and December 31, 2025, respectively.



CONSOLIDATED STATEMENTS OF INCOME (LOSS)

U.S. dollars in thousands, except share and per share data

 Three months ended
June 30, Six months ended
June 30,  2026   2025   2026   2025  UnauditedRevenues (1)$476,826  $465,474  $943,221  $892,967 Cost of revenues:       Traffic acquisition cost (2) 300,705   297,423   603,084   577,220 Other cost of revenues 36,642   32,440   71,081   60,829 Total cost of revenues 337,347   329,863   674,165   638,049 Gross profit 139,479   135,611   269,056   254,918 Operating expenses:       Research and development, net 38,435   37,482   78,015   73,438 Sales and marketing 67,156   71,248   139,721   137,138 General and administrative 26,629   26,837   51,677   50,560 Other income, net (3) —   —   (77,000)  — Total operating expenses 132,220   135,567   192,413   261,136 Operating profit (loss) 7,259   44   76,643   (6,218)Finance income (expenses), net (4) 33   (2,491)  (212)  (6,991)Income (loss) before income taxes 7,292   (2,447)  76,431   (13,209)Income tax benefit (expenses) (2,975)  (1,898)  (13,048)  114 Net income (loss)$4,317  $(4,345) $63,383  $(13,095)        Net income (loss) per share attributable to Ordinary and Non-voting Ordinary shareholders, basic$0.02  $(0.01) $0.23  $(0.04)Net income (loss) per share attributable to Ordinary and Non-voting Ordinary shareholders, diluted 0.01   (0.01)  0.22   (0.04)Weighted-average shares used in computing net income (loss) per share attributable to Ordinary and Non-voting Ordinary shareholders, basic 278,160,082   313,572,282   280,185,111   327,578,134 Weighted-average shares used in computing net income (loss) per share attributable to Ordinary and Non-voting Ordinary shareholders, diluted 291,392,907   313,572,282   290,505,359   327,578,134 

(1) Includes revenues from related party of $79,267 and $46,455, for the three months ended June 30, 2026 and 2025, respectively, and $148,947 and $94,780 for the six months ended June 30, 2026 and 2025, respectively.
(2) Includes traffic acquisition cost to related party of $104,270 and $84,154 for the three months ended June 30, 2026 and 2025, respectively, and $201,060 and $159,556 for the six months ended June 30, 2026 and 2025, respectively.
(3) See Note 10 Commitments and Contingencies.
(4) Includes loss on extinguishment of debt of $6,597 for the six months ended June 30, 2025.


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

U.S. dollars in thousands

     Three months ended
June 30, Six months ended
June 30,  2026  2025   2026  2025  UnauditedNet income (loss)$4,317 $(4,345) $63,383 $(13,095)Other comprehensive income:       Unrealized gains on derivative instruments, net 1,845  3,541   977  2,350 Other comprehensive income 1,845  3,541   977  2,350 Other Comprehensive income (loss)$6,162 $(804) $64,360 $(10,745)




SHARE-BASED COMPENSATION BREAK-DOWN BY EXPENSE LINE

U.S. dollars in thousands

 Three months ended
June 30, Six months ended
June 30,  2026  2025  2026  2025 UnauditedCost of revenues$710 $956 $1,449 $1,823Research and development 4,524  6,734  9,360  13,128Sales and marketing 4,481  4,602  8,741  8,823General and administrative 4,412  4,280  8,772  8,315Total share-based compensation expenses$14,127 $16,572 $28,322 $32,089



DEPRECIATION AND AMORTIZATION BREAK-DOWN BY EXPENSE LINE 

U.S. dollars in thousands

 Three months ended
June 30, Six months ended
June 30,  2026  2025  2026  2025 UnauditedCost of revenues$9,469 $8,744 $18,946 $17,443Research and development 733  524  1,215  1,055Sales and marketing 422  11,190  6,333  22,453General and administrative 144  318  346  495Total depreciation and amortization expense$10,768 $20,776 $26,840 $41,446



CONSOLIDATED STATEMENTS OF CASH FLOWSU.S. dollars in thousands             Three months ended
June 30, Six months ended
June 30,  2026   2025   2026   2025  Unaudited        Cash flows from operating activities       Net income (loss)$4,317  $(4,345) $63,383  $(13,095)Adjustments to reconcile net loss to net cash flows provided by operating activities:       Depreciation, amortization and write-off 10,768   23,705   26,840   44,387 Share-based compensation expenses 14,127   16,572   28,322   32,089 Net gain from financing expenses (649)  (3,637)  (440)  (4,675)Revaluation of the Warrants liability (105)  903   (501)  (823)Amortization of loan and credit facility issuance costs 167   184   351   597 Loss on extinguishment of debt —   —   —   6,597 Commercial agreement asset amortization 4,082   4,082   8,119   8,119 Loss from disposal of property and equipment 181   —   181   — Change in operating assets and liabilities:       Decrease in trade receivables, net (1) (6,831)  9,136   43,426   74,332 Decrease in prepaid expenses and other current assets and long-term prepaid expenses (226)  (1,717)  16,031   2,717 Decrease in trade payables (2) (4,272)  12,037   (46,501)  (19,721)Increase in accrued expenses and other current liabilities and other long-term liabilities 7,226   (11,586)  (297)  (33,782)Decrease (Increase) in deferred taxes, net 1,642   (1,689)  135   (4,809)Change in operating lease right of use assets 7,762   6,443   14,802   12,654 Change in operating lease liabilities (6,936)  (2,691)  (13,943)  (9,079)Net cash provided by operating activities 31,253   47,397   139,908   95,508 Cash flows from investing activities       Purchase of property and equipment (13,937)  (13,236)  (32,311)  (25,277)Proceeds from maturities of short-term investments —   —   —   3,780 Net cash used in investing activities (13,937)  (13,236)  (32,311)  (21,497)Cash flows from financing activities       Issuance costs —   (275)  —   (938)Exercise of options 8,141   2,501   9,138   3,206 Payment of tax withholding for share-based compensation expenses (4,327)  (1,135)  (6,902)  (1,977)Repurchase of Ordinary shares and non-voting Ordinary shares (41,542)  (100,666)  (64,233)  (150,008)Payments on account of repurchase of Ordinary shares (3,059)  (705)  (3,552)  (3,060)Repayment of long-term loan —   —   —   (122,736)Proceeds from revolving credit line, net of issuance costs —   —   —   123,985 Additional proceeds from revolving credit line 133,100   76,000   242,100   76,000 Repayment of revolving credit line (127,500)  (114,500)  (272,400)  (114,500)Net cash used in financing activities (35,187)  (138,780)  (95,849)  (190,028)Exchange rate differences on balances of cash and cash equivalents 648   3,637   439   4,675 Increase (decrease) in cash and cash equivalents (17,223)  (100,982)  12,187   (111,342)Cash and cash equivalents - at the beginning of the period 150,275   216,223   120,865   226,583 Cash and cash equivalents - at end of the period$133,052  $115,241  $133,052  $115,241 

(1) Includes a decrease (increase) in related party trade receivables of $14,032 and $1,553, for the three months ended June 30, 2026 and 2025, respectively, and a decrease (increase) of $(10,550) and $42,125 for the six months ended June 30, 2026 and 2025, respectively.

(2) Includes an increase (decrease) in related party trade payables of $3,083 and $1,494, for the three months ended June 30, 2026 and 2025, respectively, and a (decrease) increase in related party trade payables of $1,773 and $(7,640), for the six months ended June 30, 2026 and 2025, respectively.



CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

 Three months ended
June 30, Six months ended
June 30,  2026   2025  2026  2025 UnauditedSupplemental disclosures of cash flow information:       Cash paid during the year for:       Income taxes$6,997  $10,443 $9,592 $14,207Interest$1,333  $1,766 $2,824 $3,955Non-cash investing and financing activities:       Purchase of property and equipment$2,074  $3 $2,691 $1,898Share-based compensation included in capitalized internal-use software$552  $448 $1,020 $727Exercise of options$(450) $92 $35 $—


APPENDIX: Non-GAAP Reconciliation

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (UNAUDITED)

The following table provides a reconciliation of revenues to ex-TAC Gross Profit.

 Three months ended
June 30, Six months ended
June 30,  2026  2025  2026  2025 (dollars in thousands)Revenues$476,826$465,474$943,221$892,967Traffic acquisition cost (1) 300,705  297,423  603,084  577,220Other cost of revenues 36,642  32,440  71,081  60,829Gross profit$139,479 $135,611 $269,056 $254,918Add back: Other cost of revenues (1) 52,893​ 36,522​ 91,369​ 68,948ex-TAC Gross Profit$192,372$172,133$360,425$323,866

(1) The three and six months ended June 30, 2026, included $4,082 and $8,119 amortization expense of the non-cash based Commercial agreement asset respectively, and $12,169 write-off of Publisher’s prepayments. See Note 1(b) and 2  respectively of Notes to the Unaudited Interim Consolidated  Financial Statements.


The following table provides a reconciliation of net income (loss) to Adjusted EBITDA.

 Three months ended
June 30, Six months ended
June 30,  2026   2025   2026   2025  (dollars in thousands)Net income (loss)$4,317  $(4,345) $63,383  $(13,095)Adjusted to exclude the following:​ ​​​​​Finance expenses (income), net (33)  2,491   212   6,991 Income tax expenses (benefit) 2,975   1,898   13,048   (114)Depreciation and amortization (1) 27,019   27,659 ​ 47,128 ​ 52,366 Share-based compensation expenses 14,127   16,571 ​ 28,322 ​ 32,089 Reduction in workforce expenses (2) 5,970   —   5,970   — Other costs (3) 1,116   904 ​ (75,884)​ 2,876 Adjusted EBITDA$55,491 $45,178 $82,179 $81,113 

(1) The three and six months ended June 30, 2026, included $4,082 and $8,119 amortization expense of the non-cash based Commercial agreement asset respectively, and $12,169 write-off of Publisher’s prepayments. See Note 1(b) and 2  respectively of Notes to the Unaudited Interim Consolidated  Financial Statements.
(2) Costs associated with the Company’s reduction of its workforce implemented in April 2026.
(3) The three and six months ended June 30, 2026, includes expenses related to a litigation matter in which the Company is the plaintiff and is not related to our ongoing business operations in the amount of $1,116 and the six months ended June 30, 2026 included a pre-tax income of approximately $77,000, net of legal fees and other related expenses related to a binding settlement agreement regarding a legal matter in which the Company acted as the plaintiff. The three and six months ended June 30, 2025, includes professional and legal expenses related to a litigation matter in which the Company is the plaintiff and is not related to our ongoing business operations it the amount of $904 and $2,876, respectively.

The following table provides a reconciliation of net income (loss) to Non-GAAP Net Income (loss).

 Three months ended
June 30, Six months ended
June 30,  2026   2025   2026   2025  (dollars in thousands)Net income (loss)$4,317  $(4,345) $63,383  $(13,095)Amortization of intangible assets (1) 19,210   17,828   31,635   35,611 Share-based compensation expenses 14,127   16,572   28,322   32,089 Other costs (2) 1,116   904   (75,884)  2,876 Reduction in workforce expenses (3) 5,970   —   5,970   — Revaluation of Warrants (105)  903   (501)  (823)Foreign currency exchange rate gains (losses) (4) (546)  265   (1,227)  (1,259)Income tax effects (2,809)  (1,918)  6,777   (6,788)Loss on extinguishment of debt (5) —      —   6,597 Non-GAAP Net Income$41,280  $30,209  $58,475  $55,208 

(1) The three and six months ended June 30, 2026, included $4,082 and $8,119 amortization expense of the non-cash based Commercial agreement asset respectively, and $12,169 write-off of Publisher’s prepayment. See Note 1(b) and 2 respectively of Notes to the Unaudited Interim Consolidated  Financial Statements.
(2) The three and six months ended June 30, 2026, include expenses related to a litigation matter in which the Company is the plaintiff and is not related to our ongoing business operations in the amount of $1,116 and the six months ended June 30, 2026 included a pre-tax income of approximately $77,000, net of legal fees and other related expenses related to a binding settlement agreement regarding a legal matter in which the Company acted as the plaintiff. The three and six months ended June 30, 2025, include professional and legal expenses related to a litigation matter in which the Company is the plaintiff and is not related to our ongoing business operations it the amount of $904 and $2,876, respectively.
(3) Costs associated with the Company’s reduction of its workforce implemented in April 2026.
(4) Represents foreign currency exchange rate gains or losses related to the remeasurement of monetary assets and liabilities to the Company’s functional currency using exchange rates in effect at the end of the reporting period.
(5) See Note 7 of Notes to the Unaudited Consolidated Interim Financial Statements.

The following table provides a reconciliation of net cash provided by operating activities to Free Cash Flow.

 Three months ended
June 30, Six months ended
June 30,  2026   2025   2026   2025  (dollars in thousands)Net cash provided by operating activities$31,253  $47,397  $139,908  $95,508 Purchases of property and equipment, including capitalized internal-use software (13,937)  (13,236)  (32,311)  (25,277)Free Cash Flow$17,316  $34,161  $107,597  $70,231 



APPENDIX: Non-GAAP Guidance Reconciliation

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q3 2026 AND FULL YEAR 2026 GUIDANCE

(Unaudited)

The following table provides a reconciliation of projected Gross profit to ex-TAC Gross Profit.

 Q3 2026
GuidanceFY 2026
Guidance Unaudited (dollars in millions)Revenues$460 - $473 $1,930 - $1,956Traffic acquisition cost($280) - ($287) ($1,187) - ($1,202)Other cost of revenues($32) - ($34) ($138) - ($139)Gross profit$148 - $152 $605 - $615Add back: Other cost of revenues (1)($36) - ($38)​($167) - ($168)ex-TAC Gross Profit$184 - $190​$772 - $783

(1)    Third-Quarter and Full-Year 2026 guidance includes $4,126 and $16,372 amortization expense of the non-cash based Commercial agreement asset, respectively. Full-Year 2026 includes $12,169 write-off of Publisher’s prepayments. See Note 1(b) and 2 respectively of Notes to the Unaudited Interim Consolidated Financial Statements.


Risks

  • Dependence on key advertising partners and digital properties may impact revenue if relationships weaken.
  • Changes in digital advertising regulations (e.g., data privacy and third-party cookie restrictions) could affect business model.
  • Market competition from larger digital advertising companies with more resources could pressure margins and growth.

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