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 FY 2026
Guidance Guidance
Unaudited
------------------------------
(dollars in millions)
Revenues $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 (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
investors@taboola.com
Press Contact:
Dave Struzzi
press@taboola.com
CONSOLIDATED BALANCE SHEETS ---------------------------
U.S. dollars in thousands, except share and per share data
June 30, December 31,
2026 2025
Unaudited
--------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 133,052 $ 120,865
Trade receivables (net of allowance for credit
losses of $15,227 and $13,889 as of June 30,
2026 and December 31, 2025, respectively)
(1) 316,740 360,166
Prepaid expenses and other current assets 69,151 77,000
--------- ----------
Total current assets 518,943 558,031
--------- ----------
NON-CURRENT ASSETS
Long-term prepaid expenses 10,205 15,116
Commercial agreement asset 262,129 270,248
Restricted deposits 1,463 1,462
Deferred tax assets, net 20,422 20,624
Operating lease right of use assets 71,920 79,167
Property and equipment, net 104,758 95,335
Intangible assets, net 2,578 13,925
Goodwill 555,931 555,931
--------- ----------
Total non-current assets 1,029,406 1,051,808
--------- ----------
Total 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
Unaudited
-----------------------------
LIABILITIES 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 Six months ended
June 30, June 30,
----------------------------
2026 2025 2026 2025
-----------
Unaudited
------------------------------------------------------------
Revenues (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 Six months ended
June 30, June 30,
---------------------- --------------------
2026 2025 2026 2025
Unaudited
Net 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 Six months ended
June 30, June 30,
---------------------- --------------------
2026 2025 2026 2025
-------- -------
Unaudited
--------------------------------------------
Cost of revenues $ 710 $ 956 $ 1,449 $ 1,823
Research and
development 4,524 6,734 9,360 13,128
Sales and marketing 4,481 4,602 8,741 8,823
General and
administrative 4,412 4,280 8,772 8,315
-------- ------- ------- ------
Total 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 Six months ended
June 30, June 30,
---------------------- --------------------
2026 2025 2026 2025
-------- -------
Unaudited
--------------------------------------------
Cost of revenues $ 9,469 $ 8,744 $ 18,946 $17,443
Research and
development 733 524 1,215 1,055
Sales and marketing 422 11,190 6,333 22,453
General and
administrative 144 318 346 495
-------- ------- ------- ------
Total depreciation and
amortization expense $ 10,768 $ 20,776 $ 26,840 $41,446
-------- ------- ------- ------
CONSOLIDATED STATEMENTS OF CASH FLOWS
-----------------------------------------------------------------
U.S. dollars in thousands
Three months ended Six months ended
June 30, 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 Six months ended
June 30, June 30,
---------------------- --------------------
2026 2025 2026 2025
-------
Unaudited
--------------------------------------------
Supplemental
disclosures of cash
flow information:
Cash paid during the
year for:
Income taxes $ 6,997 $ 10,443 $ 9,592 $ 14,207
Interest $ 1,333 $ 1,766 $ 2,824 $ 3,955
Non-cash investing
and financing
activities:
--------------------
Purchase of property
and equipment $ 2,074 $ 3 $ 2,691 $ 1,898
Share-based
compensation
included in
capitalized
internal-use
software $ 552 $ 448 $ 1,020 $ 727
Exercise 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 Six months ended
June 30, June 30,
---------------------- ------------------
2026 2025 2026 2025
-------- -------
(dollars in thousands)
Revenues $ 476,826 $465,474 $943,221 $892,967
Traffic acquisition
cost (1) 300,705 297,423 603,084 577,220
Other cost of revenues 36,642 32,440 71,081 60,829
-------- ------- ------- -------
Gross profit $ 139,479 $135,611 $269,056 $254,918
-------- ------- ------- -------
Add back: Other cost
of revenues (1) 52,893 36,522 91,369 68,948
-------- ------- ------- -------
ex-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 Six months ended
June 30, 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 Six months ended
June 30, 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 Six months ended
June 30, 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 FY 2026
Guidance Guidance
Unaudited
------------------------------------
(dollars in millions)
Revenues $460 - $473 $1,930 - $1,956
Traffic acquisition cost ($280) - ($287) ($1,187) - ($1,202)
Other cost of revenues ($32) - ($34) ($138) - ($139)
Gross profit $148 - $152 $605 - $615
Add 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.