|
|
|
|
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(IRS Employer Identification Number)
|
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which
registered
|
|
|
|
|
| Item 2.02. |
Results of Operations and Financial Condition.
|
| Item 7.01. |
Regulation FD Disclosure.
|
| Item 9.01. |
Financial Statement and Exhibits.
|
| (d) |
Exhibits
|
|
Exhibit No.
|
Description
|
||
|
Press Release dated August 5, 2026
|
|||
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
|
TABOOLA.COM LTD.
|
|||
|
By:
|
/s/ Stephen Walker
|
||
|
Name:
|
Stephen Walker
|
||
|
Title:
|
Chief Financial Officer
|
||
|
Date: August 5, 2026
|
| • |
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.
|
|
Q3 2026
Guidance
|
FY 2026
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
|
||||
| • |
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.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
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
|
||||
|
CONSOLIDATED BALANCE SHEETS
|
|
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
|
||||
|
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
|
|
Three months ended
June 30,
|
Six months ended
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
|
||||||||||||
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|
Three months ended
June 30,
|
Six months ended
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
|
|
Three months ended
June 30,
|
Six months ended
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
|
|
Three months ended
June 30,
|
Six months ended
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
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
|
||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
Three months ended
June 30,
|
Six months ended
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
|
$
|
—
|
|||||||
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
|
2026
|
2025
|
2026
|
2025
|
|||||||||||||
|
(dollars in thousands)
|
||||||||||||||||
|
Revenues
|
$
|
476,826
|
$
|
465,474
|
$
|
943,221
|
$
|
892,967
|
||||||||
|
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
|
||||||||
|
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.
|
|
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.
|
|
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
|
||||||||
|
Q3 2026
Guidance
|
FY 2026
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.
|