Taboola shares fall 27.41% after earnings shortfall as Pomerantz announces class action

  • Pomerantz announced a securities class action against Taboola and certain officers or directors.
  • 27.41%: Taboola shares fell to $3.84 after second-quarter revenue missed guidance.
  • Investors purchased securities during the alleged class period from May 6 through Aug. 4, 2026.

Taboola.com Ltd. faces a securities class action announced by Pomerantz LLP concerning whether the company and certain officers or directors engaged in securities fraud or other unlawful business practices. The action follows Taboola's Aug. 5 report of second-quarter 2026 revenue of $476.8 million, below prior guidance of $492 million to $505 million. Taboola reduced full-year revenue guidance to $1.93 billion to $1.956 billion and gross-profit guidance to $605 million to $615 million, cuts of $91 million and $10 million, respectively, at the midpoints. Chief Financial Officer Stephen Walker attributed part of the revenue shortfall to exiting publisher relationships that failed to meet advertiser-success standards, while Chief Executive Officer Adam Singolda cited the removal of low-quality publishers. Taboola shares fell $1.45, or 27.41%, to close at $3.84 on Aug. 5. Investors who purchased securities between May 6 and Aug. 4, 2026, may seek appointment as lead plaintiff by Oct. 20, 2026, subject to the court's decision. The complaint also alleges that Taboola failed to disclose publisher-quality risks, the potential effect of ending those relationships, related valuation issues and a Google policy change affecting its "explore more" product.

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