Taboola.com Ltd (NASDAQ: TBLA) shares surged 8.11% in pre-market trading on Wednesday following the release of its strong third-quarter 2025 financial results and an upward revision of its full-year guidance. The content recommendation platform provider demonstrated robust growth and profitability, surpassing analyst expectations across key metrics.

For the third quarter ended September 30, 2025, Taboola reported revenues of $496.8 million, marking a 14.7% increase year-over-year and beating the consensus estimate of $466.5 million. The company's adjusted EBITDA reached $48.2 million, up 0.6% from the previous year and exceeding the expected $45.4 million. Notably, Taboola swung to profitability with a net income of $5.2 million, compared to a net loss of $6.5 million in the same period last year.

CEO Adam Singolda highlighted the company's performance, stating, "We delivered another strong quarter with our third quarter results beating the high-end of our guidance across all metrics. Realize is at an inflection point and driving meaningful success for our advertisers." The company's growth was primarily driven by a 4.4% increase in scaled advertisers and a 10.9% rise in average revenue per scaled advertiser. Taboola's recently launched Realize performance platform has shown significant momentum, contributing to the strong results.

In light of its strong performance, Taboola raised its full-year 2025 outlook. The company now expects revenues between $1.914 billion and $1.932 billion, up from the previous forecast and surpassing the Wall Street consensus of $1.88 billion. Additionally, Taboola projects adjusted EBITDA for the full year to be in the range of $209 million to $214 million.

Investors were also encouraged by Taboola's aggressive share repurchase program, with the company having bought back 14% of its shares year-to-date. This demonstrates management's confidence in the company's future prospects and commitment to delivering shareholder value. As Taboola continues to invest in its AI-powered technology platform and expand its partnerships with digital properties and advertisers, the market appears optimistic about its growth trajectory in the evolving digital advertising landscape.