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COMMITMENTS AND CONTINGENCIES
9 Months Ended
Sep. 30, 2026
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Commercial Commitments
In the ordinary course of the business, the Company enters into agreements with certain digital properties, under which, in some cases it agrees to pay them a guaranteed amount, generally per thousand page views on a monthly basis. These agreements could cause a gross loss on digital property accounts in which the guarantee is higher than the actual revenue generated. These contracts generally range in duration from 2 to 5 years, though some can be shorter or longer.
Non-cancelable Purchase Obligations
In the normal course of business, the Company enters into non-cancelable purchase commitments with various parties to purchase primarily software and IT related-based services. As of September 30, 2026, the Company had outstanding non-cancelable purchase obligations in the amount of $24,688.
Legal Proceedings
In the ordinary course of business, the Company may be subject from time to time to various proceedings, lawsuits, disputes, or claims. The Company investigates these claims as they arise and records a provision, as necessary. Provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. Although claims and proceedings are inherently unpredictable, the Company is not currently aware of any matters, other than those described below, that it believes would individually or in the aggregate have a material adverse effect on its business, financial position, results of operations, or cash flows.
On February 5, 2026, the Company entered into a binding settlement agreement regarding a legal matter in which the Company acted as the plaintiff, resulting in pre-tax income of approximately $77,000, net of legal fees and other related expenses. This amount was recognized in the interim consolidated statement of income (loss) for the nine months ended September 30, 2026 as other income, net.
On August 21, 2026, a putative securities class action was filed in the United States District Court for the Southern District of New York, captioned Fortin v. Taboola.Com Ltd., et al, No. 1:26-cv-07170-VM (S.D.N.Y.) against the Company and certain of the Company’s officers. The complaint purports to allege that the defendants made false and misleading statements about the Company’s relationships with certain publishers and its anticipated earnings in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and seeks unspecified compensatory damages, fees, and costs. The Company believes that it has strong defenses to the claims in this lawsuit and intends to vigorously defend against them. At this time, the Company is unable to predict the outcome of this matter or to reasonably estimate the possible loss or range of loss, if any.