A blow to investors: Taboola shares crash by 27%
Despite positive second-quarter financial results, Taboola shares plummeted on the Nasdaq due to investor concerns over a new policy planned by Google regarding web navigation.
Taboola, the technology company founded by Adam Singolda that provides content recommendation and digital advertising services, recorded a sharp decline on the Nasdaq last night. According to Matan Hodorov, economic commentator for News 13, the stock crashed by approximately 27% following a shift in the online commerce landscape.
"Until today, when users reached a content site through Google, clicking the back button would in many cases lead to an additional page of the same system with advertisements adapted using Taboola's technologies. Recently, Google announced that it would consider punishing sites for 'hijacking' the back button by pushing them down in search results. Investors are concerned about a reduction in exposure to the links that Taboola generates," the journalist reported.
The technology giant recently published its financial results for the second quarter of 2026, ending June 30. The company showed growth in key metrics, a transition to net profit, and an increase in annual forecasts. According to the data, company revenues totaled 476.8 million dollars, representing a 2.4% increase compared to the same period last year.
Gross profit totaled 139.5 million dollars, a 2.9% increase, while gross profit excluding traffic acquisition costs (Ex-TAC) grew by 11.8% to reach 192.4 million dollars. The company recorded a transition to a net profit of 4.3 million dollars, compared to a net loss of 4.3 million dollars in the second quarter of 2025.
Adjusted EBITDA jumped by 22.8% to 55.5 million dollars, with the adjusted EBITDA margin expanding to 28.8% compared to 26.2% in the corresponding quarter. Cash flow from operating activities stood at 31.3 million dollars, and free cash flow reached 17.3 million dollars.
Following these results, the company updated its 2026 full-year forecasts upward. Taboola expects annual revenues in the range of 1.93 to 1.956 billion dollars and a gross profit of 605 to 615 million dollars. The Ex-TAC gross profit for the full year is expected to total 772 to 783 million dollars, and annual adjusted EBITDA is projected to reach 228 to 240 million dollars. Non-GAAP net profit for 2026 is estimated at 168 to 176 million dollars.
