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Taboola Reports Strong Q2 2025 Financial Results, Surpassing High-End of Guidance;
 Increases Full-Year Guidance & Announces $200M Share Repurchase Expansion

NEW YORK, Aug. 6, 2025 (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, 2025.

"We delivered a strong second quarter, beating the high end of our guidance across our key metrics,” said Adam Singolda, CEO of Taboola. "We bought back nearly 12% of the company in the first half of the year which reflects our confidence in the business and our long-term vision. As a result, we’re raising full-year guidance across the board and continuing to aggressively buy back shares. We're also seeing exciting early traction with Realize, our new performance advertising platform. We truly believe we're just getting started."
 
Second Quarter 2025 Financial Results
(All comparisons are to the second quarter of 2024 unless otherwise noted.)

 •
Revenues of $465.5 million, an increase of 8.7%. Revenues were primarily driven by an 8.5% growth in Scaled Advertisers, complemented by a 1.8% increase in Average Revenue per Scaled Advertiser. Q2 revenue growth primarily reflects broad-based growth, including growth in our existing Native business and strong contributions from Taboola News and Bidded Supply.

•
Gross Profit of $135.6 million, an increase of 18.2%. Ex-TAC Gross Profit was $172.1 million, an increase of 15.1% which included a 0.5% benefit from currency. Ex-TAC Gross Profit was primarily driven by growth in advertising spend and a mix shift to higher margin digital property partners, as well as a partial benefit from the onboarding of Yahoo in the year-ago quarter.

•
Net Loss of $(4.3) million and was flat with a Net Loss of $(4.3) million. Adjusted EBITDA was $45.2 million, up 21.3%. Adjusted EBITDA growth was primarily driven by ad spend growth and continued cost discipline. Adjusted EBITDA margins expanded to 26.2% from 24.9%.

•
Cash Flow generated by operating activities was $47.4 million, compared to $38.8 million. Free Cash Flow was $34.2 million, compared to $26.2 million. Increases in cash flow generated by operating activities and free cash flow were primarily due to strong collections, lower publisher prepayments, and continued cost discipline.
Third Quarter and Full Year 2025 Guidance
For the Third Quarter and Full Year 2025, the Company currently expects (dollars in millions):
   
Q3 2025
Guidance
    
FY 2025
Guidance
  
   
Unaudited
  
   
(dollars in millions)
  
Revenues
  
$
461 - $469
    
$
1,858 - $1,888
  
Gross profit
  
$
127 - $133
    
$
541 - $555
  
ex-TAC Gross Profit*
  
$
166 - $172
    
$
689 - $703
  
Adjusted EBITDA*
  
$
43 - $48
    
$
208 - $214
  
Non-GAAP Net Income (Loss)*
  
$
29 - $34
    
$
138 - $144
  

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 and warrant valuations, 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/BI66bbf11936d147898488004a728e0c4b 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 7, 2026.

*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 the non-cash amortization of the Commercial agreement asset because it is unique primarily due to the issuance of equity rather than 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.

•
Scaled Advertisers: An Advertiser that has more than $100,000 of cumulative gross spend on the network on a trailing four quarter basis.

•
Average Revenue per Scaled Advertiser: The aggregate cumulative gross spend of all Scaled Advertisers for a given period divided by the number of Scaled Advertisers for that period.

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, 2024 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.

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 approximately 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 Contacts:
Jessica Kourakos
Aadam Anwar
investors@taboola.com

Press Contact:
Dave Struzzi
press@taboola.com

Second Quarter 2025 Financial Results
The following table summarizes our consolidated financial results for the three months ended June 30, 2025 and 2024:
 
(dollars in millions, except per share data)
  
Three months ended
June 30,
  
   
2025
    
2024
  
   
Unaudited
  
Revenues
  
$
465.5
    
$
428.2
  
Gross profit
  
$
135.6
    
$
114.8
  
Net loss
  
$
(4.3
)
  
$
(4.3
)
EPS diluted (1)
  
$
(0.01
)
  
$
(0.01
)
Ratio of net loss to gross profit
    
(3.2
)%
    
(3.7
)%
Cash flow provided by operating activities
  
$
47.4
    
$
38.8
  
Cash, cash equivalents, short-term deposits and investments
  
$
115.2
    
$
182.2
  
                 
Non-GAAP Financial Data *
                
ex-TAC Gross Profit
  
$
172.1
    
$
149.5
  
Adjusted EBITDA
  
$
45.2
    
$
37.2
  
Non-GAAP Net Income (Loss)
  
$
30.2
    
$
23.0
  
Ratio of Adjusted EBITDA to ex-TAC Gross Profit
    
26.2
%
    
24.9
%
Free Cash Flow
  
$
34.2
    
$
26.2
  

(1) The weighted-average shares used in the computation of the diluted EPS for the three months ended June 30, 2025 and 2024 are 313,572,282 and 342,566,112, respectively. The weighted-average shares for the three months ended June 30, 2025 and 2024, included 277,929,745 and 297,660,641 Ordinary shares, and 35,642,537 and 44,905,471 Non-voting Ordinary shares, respectively.

Third Quarter and Full Year 2025 Guidance
For the Third Quarter and Full Year 2025, the Company currently expects (dollars in millions):
 
   
Q3 2025
Guidance
    
FY 2025
Guidance
  
   
Unaudited
  
   
(dollars in millions)
  
Revenues
  
$
461 - $469
    
$
1,858 - $1,888
  
Gross profit
  
$
127 - $133
    
$
541 - $555
  
ex-TAC Gross Profit*
  
$
166 - $172
    
$
689 - $703
  
Adjusted EBITDA*
  
$
43 - $48
    
$
208 - $214
  
Non-GAAP Net Income (Loss)*
  
$
29 - $34
    
$
138 - $144
  

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 and warrant valuations, 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.

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

   
June 30,
2025
    
December 31,
2024
  
    Unaudited    
 
ASSETS
            
CURRENT ASSETS
            
Cash and cash equivalents
  
$
115,241
    
$
226,583
  
Short-term investments
    
—
      
3,780
  
Restricted deposits
    
200
      
200
  
Trade receivables (net of allowance for credit losses of $12,997 and $11,815 as of June 30, 2025 and December 31, 2024, respectively) (1)
    
295,778
      
370,110
  
Prepaid expenses and other current assets
    
61,758
      
55,328
  
Total current assets
    
472,977
      
656,001
  
NON-CURRENT ASSETS
                
Long-term prepaid expenses
    
24,500
      
25,193
  
Commercial agreement asset
    
278,501
      
286,619
  
Restricted deposits
    
1,462
      
1,462
  
Operating lease right of use assets
    
78,430
      
58,997
  
Property and equipment, net
    
79,207
      
69,388
  
Intangible assets, net
    
37,573
      
65,067
  
Goodwill
    
555,931
      
555,931
  
Total non-current assets
    
1,055,604
      
1,062,657
  
Total assets
  
$
1,528,581
    
$
1,718,658
  

(1) Includes related party trade receivables of $34,552 and $76,677, as of June 30, 2025 and December 31, 2024, respectively.

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

   
June 30,
    
December 31,
  
   
2025
    
2024
  
   
Unaudited
        
LIABILITIES AND SHAREHOLDERS' EQUITY
            
CURRENT LIABILITIES
            
Trade payables (2)
  
$
290,883
    
$
309,229
  
Short-term operating lease liabilities
    
27,748
      
21,881
  
Accrued expenses and other current liabilities
    
121,360
      
154,472
  
Total current liabilities
    
439,991
      
485,582
  
LONG-TERM LIABILITIES
                
Long-term loan and revolving credit facility (3)
    
88,000
      
116,452
  
Long-term operating lease liabilities
    
59,702
      
42,561
  
Warrants liability
    
2,545
      
3,368
  
Deferred tax liabilities, net
    
688
      
5,497
  
Other long-term liabilities
    
12,622
      
13,292
  
Total long-term liabilities
    
163,557
      
181,170
  
COMMITMENTS AND CONTINGENCIES (Note 11)
                
SHAREHOLDERS' EQUITY
                
Ordinary shares with no par value - Authorized: 700,000,000 as of June 30, 2025 and December 31, 2024; 333,646,088 and 325,674,930 shares issued, and 264,392,831 and 293,134,865 shares outstanding as of June 30, 2025 and December 31, 2024, respectively
    
—
      
—
  
Non-voting Ordinary shares with no par value - Authorized: 46,000,000 as of June 30, 2025 and December 31, 2024; 45,198,702 shares issued, and 32,692,444 and 44,210,406 shares outstanding as of June 30, 2025 and December 31, 2024, respectively
    
—
      
—
  
Treasury Ordinary shares, at cost - 81,759,515 (69,253,257 Ordinary shares and 12,506,258 Non-voting Ordinary shares) and 33,528,361 (32,540,065 Ordinary shares and 988,296 Non-voting Ordinary shares) as of June 30, 2025 and December 31, 2024, respectively
    
(280,290
)
    
(130,117
)
Additional paid-in capital
    
1,369,870
      
1,335,825
  
Accumulated other comprehensive income
    
2,768
      
418
  
Accumulated deficit
    
(167,315
)
    
(154,220
)
Total shareholders' equity
    
925,033
      
1,051,906
  
Total liabilities and shareholders' equity
  
$
1,528,581
    
$
1,718,658
  

(2) Includes related party trade payables of $60,916 and $68,556, as of June 30, 2025 and December 31, 2024, respectively.
(3) The balance as of June 30, 2025, reflects $88,000,000 outstanding under the revolving credit facility. The December 31, 2024, balance reflects $116,452,000 under the long-term loan. See Note 8 of Notes to the Unaudited Consolidated Interim Financial Statements.

CONSOLIDATED STATEMENTS OF LOSS
U.S. dollars in thousands, except share and per share data

   
Three months ended
June 30,
    
Six months ended
June 30,
  
   
2025
    
2024
    
2025
    
2024
  
   
Unaudited
  
Revenues (1)
  
$
465,474
    
$
428,160
    
$
892,967
    
$
842,168
  
Cost of revenues:
                                
Traffic acquisition cost (2)
    
297,423
      
278,620
      
577,220
      
553,740
  
Other cost of revenues
    
32,440
      
34,762
      
60,829
      
64,697
  
Total cost of revenues
    
329,863
      
313,382
      
638,049
      
618,437
  
Gross profit
    
135,611
      
114,778
      
254,918
      
223,731
  
Operating expenses:
                                
Research and development
    
37,482
      
33,288
      
73,438
      
69,537
  
Sales and marketing
    
71,248
      
64,837
      
137,138
      
132,445
  
General and administrative
    
26,837
      
24,284
      
50,560
      
47,613
  
Total operating expenses
    
135,567
      
122,409
      
261,136
      
249,595
  
Operating profit (loss)
    
44
      
(7,631
)
    
(6,218
)
    
(25,864
)
Finance income (expenses), net (3)
    
(2,491
)
    
1,004
      
(6,991
)
    
(2,634
)
Loss before income taxes
    
(2,447
)
    
(6,627
)
    
(13,209
)
    
(28,498
)
Income tax benefit (expenses)
    
(1,898
)
    
2,336
      
114
      
(1,951
)
Net loss
  
$
(4,345
)
  
$
(4,291
)
  
$
(13,095
)
  
$
(30,449
)
                                 
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic and diluted
  
$
(0.01
)
  
$
(0.01
)
  
$
(0.04
)
  
$
(0.09
)
Weighted-average shares used in computing net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic and diluted
    
313,572,282
      
342,566,112
      
327,578,134
      
344,003,462
  

(1) Includes revenues from related party of $46,455 and $60,302, for the three months ended June 30, 2025 and 2024, respectively, and $94,780 and $112,426 for the six months ended June 30, 2025 and 2024, respectively.
(2) Includes traffic acquisition cost to related party of $84,154 and $78,433 for the three months ended June 30, 2025 and 2024, respectively, and $159,556 and $152,044 for the six months ended June 30, 2025 and 2024, respectively.
(3) Includes loss on extinguishment of debt of 6,597 for the six months ended June 30, 2025.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
U.S. dollars in thousands

   
Three months ended
June 30,
    
Six months ended
June 30,
  
   
2025
    
2024
    
2025
    
2024
  
   
Unaudited
  
Net loss
  
$
(4,345
)
  
$
(4,291
)
  
$
(13,095
)
  
$
(30,449
)
Other comprehensive loss:
                                
Unrealized and realized gains on available-for-sale marketable securities, net
    
—
      
7
      
—
      
6
  
Unrealized gains (losses) on derivative instruments, net
    
3,541
      
(211
)
    
2,350
      
(987
)
Other comprehensive income (loss)
    
3,541
      
(204
)
    
2,350
      
(981
)
Comprehensive loss
  
$
(804
)
  
$
(4,495
)
  
$
(10,745
)
  
$
(31,430
)

SHARE-BASED COMPENSATION BREAK-DOWN BY EXPENSE LINE
U.S. dollars in thousands

   
Three months ended
June 30,
    
Six months ended
June 30,
  
   
2025
    
2024
    
2025
    
2024
  
   
Unaudited
  
Cost of revenues
  
$
956
    
$
1,096
    
$
1,823
    
$
2,107
  
Research and development
    
6,734
      
6,852
      
13,128
      
13,230
  
Sales and marketing
    
4,602
      
4,532
      
8,823
      
8,855
  
General and administrative
    
4,280
      
5,825
      
8,315
      
10,514
  
Total share-based compensation expenses
  
$
16,572
    
$
18,305
    
$
32,089
    
$
34,706
  

DEPRECIATION AND AMORTIZATION BREAK-DOWN BY EXPENSE LINE
U.S. dollars in thousands

   
Three months ended
June 30,
    
Six months ended
June 30,
  
   
2025
    
2024
    
2025
    
2024
  
   
Unaudited
  
Cost of revenues
  
$
8,744
    
$
9,909
    
$
17,443
    
$
20,626
  
Research and development
    
524
      
1,222
      
1,055
      
2,109
  
Sales and marketing
    
11,190
      
13,410
      
22,453
      
26,928
  
General and administrative
    
318
      
1,321
      
495
      
1,520
  
Total depreciation and amortization expense
  
$
20,776
    
$
25,862
    
$
41,446
    
$
51,183
  

CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
 
   
Three months ended June
30,
    
Six months ended June 30,
  
   
2025
    
2024
    
2025
    
2024
  
   
Unaudited
  
Cash flows from operating activities
                        
Net loss
  
$
(4,345
)
  
$
(4,291
)
  
$
(13,095
)
  
$
(30,449
)
Adjustments to reconcile net loss to net cash flows provided by operating activities:
                                
Depreciation, amortization and write-off
    
23,705
      
25,862
      
44,387
      
51,183
  
Share-based compensation expenses
    
16,572
      
18,305
      
32,089
      
34,706
  
Net loss (gain) from financing expenses
    
(3,637
)
    
1,186
      
(4,675
)
    
778
  
Revaluation of the Warrants liability
    
903
      
(3,926
)
    
(823
)
    
(3,887
)
Amortization of loan and credit facility issuance costs
    
184
      
375
      
597
      
729
  
Amortization of premium and accretion of discount on short-term investments, net
    
—
      
(59
)
    
—
      
83
  
Loss on extinguishment of debt
    
—
      
—
      
6,597
      
—
  
Commercial agreement asset amortization
    
4,082
      
—
      
8,119
      
—
  
Change in operating assets and liabilities:
                                
Decrease in trade receivables, net (1)
    
9,136
      
2,565
      
74,332
      
24,633
  
Decrease in prepaid expenses and other current assets and long-term prepaid expenses
    
(1,717
)
    
5,791
      
2,717
      
14,990
  
Decrease in trade payables (2)
    
12,037
      
(3,635
)
    
(19,721
)
    
(11,897
)
Increase (decrease) in accrued expenses and other current liabilities and other long-term liabilities
    
(11,586
)
    
1,616
      
(33,782
)
    
1,578
  
Decrease in deferred taxes, net
    
(1,689
)
    
(4,216
)
    
(4,809
)
    
(7,901
)
Change in operating lease right of use assets
    
6,443
      
4,831
      
12,654
      
9,284
  
Change in operating lease liabilities
    
(2,691
)
    
(5,613
)
    
(9,079
)
    
(11,206
)
Net cash provided by operating activities
    
47,397
      
38,791
      
95,508
      
72,624
  
Cash flows from investing activities
                                
Purchase of property and equipment, including capitalized internal-use software
    
(13,236
)
    
(12,633
)
    
(25,277
)
    
(18,222
)
Business acquisition deferred payment
    
—
      
—
      
—
      
(719
)
Proceeds from maturities of short-term investments
    
—
      
2,500
      
3,780
      
5,765
  
Net cash used in investing activities
    
(13,236
)
    
(10,133
)
    
(21,497
)
    
(13,176
)
Cash flows from financing activities
                                
Issuance costs
    
(275
)
    
(239
)
    
(938
)
    
(695
)
Exercise of options and vested RSUs
    
2,501
      
2,932
      
3,206
      
4,741
  
Payment of tax withholding for share-based compensation expenses
    
(1,135
)
    
(978
)
    
(1,977
)
    
(1,687
)
Repurchase of ordinary shares and non-voting ordinary shares
    
(100,666
)
    
(25,049
)
    
(150,008
)
    
(54,465
)
Payments on account of repurchase of ordinary shares
    
(705
)
    
(474
)
    
(3,060
)
    
(474
)
Repayment of Long term loan
    
—
      
—
      
(122,736
)
    
—
  
Proceeds from revolving credit line, net of issuance costs
    
—
      
—
      
123,985
      
—
  
Additional proceeds from revolving credit line
    
76,000
    
$
—
      
76,000
      
—
  
Repayment of revolving credit line
    
(114,500
)
  
$
—
      
(114,500
)
    
—
  
Net cash used in financing activities
    
(138,780
)
    
(23,808
)
    
(190,028
)
    
(52,580
)
Exchange rate differences on balances of cash and cash equivalents
    
3,637
      
(1,186
)
    
4,675
      
(778
)
Increase (decrease) in cash and cash equivalents
    
(100,982
)
    
3,664
      
(111,342
)
    
6,090
  
Cash and cash equivalents - at the beginning of the period
    
216,223
      
178,534
      
226,583
      
176,108
  
Cash and cash equivalents - at end of the period
  
$
115,241
    
$
182,198
    
$
115,241
    
$
182,198
  

(1) Includes a decrease (increase) in related party trade receivables of $14,032 and $(1,240), for the three months ended June 30, 2025 and 2024, respectively, and a decrease (increase) of $42,125 and $(30,935) for the six months ended June 30, 2025 and 2024, respectively.
(2) Includes an increase (decrease) in related party trade payables of $3,083 and $(1,943), for the three months ended June 30, 2025 and 2024, respectively,and a (decrease) increase in related party trade payables of $(7,640) and $20,537, for the six months ended June 30, 2025 and 2024, respectively.

CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands

   
Three months ended June
30, 2025
    
Six months ended
June 30,
  
   
2025
    
2024
    
2025
    
2024
  
   
Unaudited
  
Supplemental disclosures of cash flow information:
                        
Cash paid during the year for:
                        
Income taxes
  
$
10,443
    
$
6,357
    
$
14,207
    
$
9,600
  
Interest
  
$
1,766
    
$
3,684
    
$
3,955
    
$
7,294
  
Non-cash investing and financing activities:
                                
Purchase of property and equipment, including capitalized internal-use software
  
$
3
    
$
292
    
$
1,898
    
$
292
  
Share-based compensation included in capitalized internal-use software
  
$
448
    
$
700
    
$
727
    
$
1,306
  
Creation of operating lease right-of-use assets and operating lease liability
  
$
3,165
    
$
3,664
    
$
32,087
    
$
3,676
  
 
APPENDIX: Non-GAAP Reconciliation
 
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (UNAUDITED)
 
The following table provides a reconciliation of revenues to ex-TAC Gross Profit.
 
   
Three months ended
June 30,
    
Six months ended
June 30,
  
   
2025
    
2024
    
2025
    
2024
  
   
(dollars in thousands)
  
Revenues
  
$
465,474
    
$
428,160
    
$
892,967
    
$
842,168
  
Traffic acquisition cost (1)
    
297,423
      
278,620
      
577,220
      
553,740
  
Other cost of revenues
    
32,440
      
34,762
      
60,829
      
64,697
  
Gross profit
  
$
135,611
    
$
114,778
    
$
254,918
    
$
223,731
  
Add back: Other cost of revenues (1)
    
36,522
      
34,762
      
68,948
      
64,697
  
ex-TAC Gross Profit
  
$
172,133
    
$
149,540
    
$
323,866
    
$
288,428
  

1 The three and six months ended June 30, 2025 included $4,082 and $8,119 amortization expense of the non-cash based Commercial agreement asset respectively. See Note 1(b) 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,
  
   
2025
    
2024
    
2025
    
2024
  
   
(dollars in thousands)
  
Net loss
  
$
(4,345
)
  
$
(4,291
)
  
$
(13,095
)
  
$
(30,449
)
Adjusted to exclude the following:
  
​
    
​
    
​
    
​
  
Finance expenses (income), net
    
2,491
      
(1,004
)
    
6,991
      
2,634
  
Income tax expenses (benefit)
    
1,898
      
(2,336
)
    
(114
)
    
1,951
  
Depreciation and amortization (1)
    
27,659
      
25,862
      
52,366
      
51,183
  
Share-based compensation expenses
    
16,571
      
15,659
      
32,089
      
29,415
  
Holdback compensation expenses (2)
    
—
      
2,646
      
—
      
5,291
  
Other costs (3)
    
904
      
695
      
2,876
      
695
  
Adjusted EBITDA
  
$
45,178
    
$
37,231
    
$
81,113
    
$
60,720
  

1 The three and six months ended June 30, 2025, included a write-off of internal use software in the amount of $2,800 and amortization expenses of the non-cash based Commercial agreement asset in the amount of $4,082 and  $8,119, respectively. See Note 1(b) of Notes to the Unaudited  Interim  Consolidated Financial Statements.
 
2 Represents share-based compensation due to holdback of Ordinary shares issuable under compensatory arrangements relating to Connexity acquisition.
 
3 The three and six months ended June 30, 2025 included $904 and $2,876 in 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.

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,
  
   
2025
    
2024
    
2025
    
2024
  
   
(dollars in thousands)
  
Net loss
  
$
(4,345
)
  
$
(4,291
)
  
$
(13,095
)
  
$
(30,449
)
Amortization of acquired intangibles (1)
    
17,828
      
15,754
      
35,611
      
31,689
  
Share-based compensation expenses
    
16,572
      
15,659
      
32,089
      
29,415
  
Holdback compensation expenses (2)
    
—
      
2,646
      
—
      
5,291
  
Other costs (3)
    
904
      
695
      
2,876
      
695
  
Revaluation of Warrants
    
903
      
(3,926
)
    
(823
)
    
(3,887
)
Foreign currency exchange rate losses (gains) (4)
    
265
      
347
      
(1,259
)
    
1,388
  
Income tax effects
    
(1,918
)
    
(3,874
)
    
(6,788
)
    
(7,300
)
Loss on extinguishment of debt (5)
    
—
      
—
      
6,597
      
—
  
Non-GAAP Net Income (Loss)
  
$
30,209
    
$
23,010
    
$
55,208
    
$
26,842
  

1 The three and six months ended June 30, 2025, included a write-off of internal use software in the amount of $2,800 and amortization expenses of the non-cash based Commercial agreement asset in the amount of $4,082 and $8,119, respectively. See Note 1(b) of Notes to the Unaudited Interim Consolidated  Financial Statements.
2 Represents share-based compensation due to holdback of Ordinary shares issuable under compensatory arrangements relating to Connexity acquisition.
3 The three and six months ended June 30, 2025 included $904 and $2,876 in 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.
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 8 of Notes to the Unaudited Interim Consolidated  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,
  
   
2025
    
2024
    
2025
    
2024
  
   
(dollars in thousands)
  
Net cash provided by operating activities
  
$
47,397
    
$
38,791
    
$
95,508
    
$
72,624
  
Purchases of property and equipment, including capitalized internal-use software
    
(13,236
)
    
(12,633
)
    
(25,277
)
    
(18,222
)
Free Cash Flow
  
$
34,161
    
$
26,158
    
$
70,231
    
$
54,402
  
 
APPENDIX: Non-GAAP Guidance Reconciliation
 
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q2 2025 AND FULL YEAR 2025 GUIDANCE
 
(Unaudited)
 
The following table provides a reconciliation of projected Gross profit to ex-TAC Gross Profit.
 
   
Q2 2025
Guidance
  
​
  
FY 2025
Guidance
  
   
Unaudited
  
   
(dollars in millions)
          
Revenues
   $461 - $469      
$1,858 - $1,888
  
Traffic acquisition cost
  
($295) - ($297)

   
($1,169) - ($1,185)

Other cost of revenues
   ($39) - ($39)

   
($148) - ($148)

Gross profit
  
$127 - $133
      
$541 - $555
  
Add back: Other cost of revenues
  
($39) - ($39)

​
  
($148) - ($148)

ex-TAC Gross Profit
  
$166 - $172
  
​
  
$689 - $703
  

Although we provide a projection for Free Cash Flow, we are not able to provide a projection for net cash provided by operating activities, the most directly comparable GAAP measure. Certain elements of net cash provided by operating activities, including taxes and timing of collections and payments, are not predictable therefore projecting an accurate forecast is difficult. As a result, it is impractical for us to provide projections on net cash provided by operating activities or to reconcile our Free Cash Flow projections without unreasonable efforts. Consequently, no disclosure of projected net cash provided by operating activities is included. For the same reasons, we are unable to address the probable significance of the unavailable information.