{"success":true,"data":{"pressRelease":{"id":"40369","rtpr_id":"nBw4SR010a","ticker":"PERI","exchange":"","all_tickers":["PERI"],"title":"Perion Reports First Quarter 2026 Results","author":"Business Wire","published_at":"2026-05-20T11:00:00.720Z","article_body":"Perion Reports First Quarter 2026 Results\n\nCTV spend grew 68%, DOOH spend grew 29%,\n\nOutmax AI Agent spend grew 316% year-over-year\n\nReiterating 2026 Guidance\n\nPerion Network Ltd\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.perion.com%2F&esheet=54539036&newsitemid=20260520875705&lan=en-US&anchor=Perion+Network+Ltd&index=1&md5=93a5f6cae102fd6ef1475adc39c990c0)\n. (NASDAQ and TASE: PERI\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.nasdaq.com%2Fmarket-activity%2Fstocks%2Fperi&esheet=54539036&newsitemid=20260520875705&lan=en-US&anchor=PERI&index=2&md5=11fa3b1126b648d9172b9450646b738f)\n), an advanced technology leader solving for the complexities of digital\nadvertising through AI-native execution infrastructure, today reported its\nfinancial results for the first quarter ended March 31, 2026.\n\n“During the quarter, we continued to advance the Perion One platform and our\nOutmax AI Agent technology, with encouraging adoption from customers and new\nglobal partnerships. We extended Outmax into a new social channel with its\nlaunch on TikTok, and formed an exclusive partnership in Africa, adding a new\ndistribution channel in this high-growth digital advertising market,” said\nTal Jacobson, Perion’s CEO.\n\nMr. Jacobson added, “Perion’s vision is centered on fully integrating AI\nacross every facet of our business. We are leveraging AI not only as the core\nengine that drives higher ROI and measurable outcomes for our customers, but\nalso internally to streamline our operations, optimize our cost structure, and\ndrive greater efficiency across the company.”\n\nFirst Quarter 2026 Business and Financial Highlights\n\n\n * Growth engines performance:\n\n\n* Outmax AI agent adoption - spend(1) increased by 316% YoY\n\n * CTV spend increased 68% YoY\n\n * DOOH spend increased 29% YoY\n\n * Retail Media(2) vertical spend increased 27% YoY\n\n\n\n\n * Perion One spend increased 6% YoY\n\n * Total revenue of $90.4 million, increased 1% YoY\n\n * Total contribution ex-TAC remained flat YoY at $39.7 million, with a 44%\nmargin\n\n * Adjusted EBITDA of $0.5 million\n\n * Cash flow from operations of $6.7 million, adjusted free cash flow of $7.0\nmillion\n\n * Repurchased 2.5 million shares for a total of $24.1 million\n\n * Expanded partnerships and integrations:\n\n\n* Exclusive Outmax partnership in Africa with Mediamark and McSorely Media\n\n * Outmax AI agent now available for TikTok\n\n * Bouygues Telecom adopts Outmax\n\n\n\n\nFirst Quarter 2026 Financial Highlights(3)\n In millions, Three months ended \n \nexcept per share data \n   March 31, \n   2026     2025     % \n Advertising Solutions Revenue $ 66.7     $ 69.7     (4 %) \n Search Advertising Revenue $ 23.7     $ 19.6     21 % \n Total Revenue $ 90.4     $ 89.3     1 % \n Contribution ex-TAC (Revenue ex-TAC) $ 39.7     $ 39.7     0 % \n GAAP Net loss $ (10.0 )   $ (8.3 )   (20 %) \n Non-GAAP Net Income $ 4.8     $ 5.4     (11 %) \n Adjusted EBITDA $ 0.5     $ 1.8     (75 %) \n Adjusted EBITDA to Contribution ex-TAC   1 %     5 %     \n Net Cash from Operations $ 6.7     $ (7.1 )   NM   \n Adjusted Free Cash Flow $ 7.0     $ (6.1 )   NM   \n GAAP Diluted EPS $ (0.26 )   $ (0.19 )   (37 %) \n Non-GAAP Diluted EPS $ 0.11     $ 0.11     0 % \n                 \n\n\nFinancial Outlook for Full-Year 2026(4)\n\nBased on current expectations, the Company is reiterating its full-year 2026\noutlook ranges:\n\n\n * Contribution ex-TAC(5) of $215 to $235 million\n\n * Adjusted EBITDA(5) of $50 to $54 million\n\nShare Repurchase Program\n\n\n * During the first quarter of 2026, the Company repurchased a total of 2.5\nmillion shares for a total amount of $24.1 million\n\n * As of March 31, 2026, under the authorized $200 million share repurchase plan,\nthe Company repurchased a total of 15.3 million shares for a total amount of\n$142.2 million\n\nFinancial Comparison for the First Quarter of 2026\n\nRevenue: Revenue increased by 1% to $90.4 million in the first quarter of 2026\nfrom $89.3 million in the first quarter of 2025. Advertising Solutions revenue\ndecreased 4% year-over-year, accounting for 74% of revenue, primarily due to\ndecline in our Web channel, partially offset by an increase in CTV and Digital\nOut of Home channels. Search Advertising revenue increased by 21%\nyear-over-year, accounting for 26% of revenue.\n\nTraffic Acquisition Costs and Media Buy (“TAC”): TAC amounted to $50.7\nmillion, or 56% of revenue, in the first quarter of 2026, compared with $49.7\nmillion, or 56% of revenue, in the first quarter of 2025.\n\nGAAP Net Loss: GAAP net loss was $10.0 million in the first quarter of 2026,\ncompared with $8.3 million in the first quarter of 2025.\n\nNon-GAAP Net Income: Non-GAAP net income was $4.8 million, or 5% of revenue,\nin the first quarter of 2026, compared with $5.4 million, or 6% of revenue, in\nthe first quarter of 2025. A reconciliation of GAAP to non-GAAP net income is\nincluded in this press release.\n\nAdjusted EBITDA: Adjusted EBITDA was $0.5 million, or 1% of revenue and 1% of\nContribution ex-TAC in the first quarter of 2026, compared with $1.8 million,\nor 2% of revenue and 5% of Contribution ex-TAC in the first quarter of 2025. A\nreconciliation of GAAP income from operations to Adjusted EBITDA is included\nin this press release.\n\nCash Flow from Operations: Net cash provided by operating activities in the\nfirst quarter of 2026 was $6.7 million, compared with net cash used in\noperating activities of $7.1 million in the first quarter of 2025.\n\nNet cash: As of March 31, 2026, cash and cash equivalents, short-term bank\ndeposits and marketable securities, amounted to $293.0 million, compared with\n$312.9 million as of December 31, 2025.\n\nConference Call\n\nPerion’s management will host a conference call to discuss the results at\n8:30 a.m. ET today:\n\nRegistration link: https://perion-q1-2026-earnings-call.open-exchange.net\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fperion-q1-2026-earnings-call.open-exchange.net&esheet=54539036&newsitemid=20260520875705&lan=en-US&anchor=https%3A%2F%2Fperion-q1-2026-earnings-call.open-exchange.net&index=3&md5=dfd7cc359e124fb309731ab958f473ed)\n\nA replay of the call and a transcript will be available within approximately\n24 hours of the live event on Perion’s website\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fperion.com%2F&esheet=54539036&newsitemid=20260520875705&lan=en-US&anchor=website&index=4&md5=e94b31e70e5bd2c0e110ff53e81f41e7)\n.\n\nAbout Perion Network Ltd.\n\nPerion helps brands, agencies, and retailers maximize the value of their\nadvertising investments with advanced AI and creative technologies. Its\nunified platform, Perion One, bridges media, data, and performance across\ndigital channels to deliver superior results in an increasingly complex\nadvertising environment.\n\nFor more information, visit www.perion.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.perion.com%2F&esheet=54539036&newsitemid=20260520875705&lan=en-US&anchor=www.perion.com&index=5&md5=9eed72098ba69464d7c0ee3cc467a9bf)\n\nNon-GAAP Measures\n\nNon-GAAP financial measures consist of GAAP financial measures adjusted to\nexclude certain items. This press release includes certain non-GAAP measures,\nincluding Contribution ex-TAC, Adjusted EBITDA, Adjusted free cash flow,\nNon-GAAP net income and non-GAAP diluted earnings per share.\n\nContribution ex-TAC presents revenue reduced by traffic acquisition costs and\nmedia buy, reflecting a portion of our revenue that must be directly passed to\npublishers or advertisers and presents our revenue excluding such items. We\nbelieve Contribution ex-TAC is a useful measure in assessing the performance\nof the Company because it facilitates a consistent comparison against our core\nbusiness without considering the impact of traffic acquisition costs and media\nbuy related to revenue reported on a gross basis.\n\nAdjusted Earnings Before Interest, Taxes, Depreciation and Amortization\n(“Adjusted EBITDA”) is defined as GAAP income (loss) from operations\nexcluding stock-based compensation expenses, retention and other\nacquisition-related expenses, unusual legal costs, gains and losses recognized\nwith respect to changes in fair value of contingent consideration,\namortization of acquired intangible assets, restructuring costs and other\ncharges as well as depreciation.\n\nAdjusted free cash flow is defined as net cash provided by (or used in)\noperating activities less cash used for the purchase of property and\nequipment, net of sales and capitalized software development costs, but\nexcluding the purchase of property and equipment related to our new corporate\nheadquarter office, the portion of the cash payment of contingent\nconsideration in excess of the acquisition date fair value and retention\npayment related to acquisitions, as we do not view either of those expenses as\nreflective of our normal on-going expenses. It is important to note that these\nexpenses are in fact cash expenditures.\n\nNon-GAAP net income and non-GAAP diluted earnings per share are defined as\nGAAP net income (loss) and GAAP net earnings (loss) per share excluding\nstock-based compensation expenses, amortization of acquired intangible assets\nand the related taxes thereon, retention and other acquisition-related\nexpenses, unusual legal costs, gains and losses recognized with respect to\nchanges in fair value of contingent consideration, restructuring costs and\nother charges as well as foreign exchange gains and losses associated with\nASC-842.\n\nThe purpose of such adjustments is to give an indication of our performance\nexclusive of non-cash charges and other items that are considered by\nmanagement to be outside of our core operating results. These non-GAAP\nmeasures are among the primary factors management uses in planning for and\nforecasting future periods. Furthermore, the non-GAAP measures are regularly\nused internally to understand, manage and evaluate our business and make\noperating decisions, and we believe that they are useful to investors as a\nconsistent and comparable measure of the ongoing performance of our business.\nHowever, our non-GAAP financial measures are not meant to be considered in\nisolation or as a substitute for comparable GAAP measures and should be read\nonly in conjunction with our consolidated financial statements prepared in\naccordance with GAAP. Additionally, these non-GAAP financial measures may\ndiffer materially from the non-GAAP financial measures used by other\ncompanies. Due to the high variability and difficulty in making accurate\nforecasts and projections of some of the information excluded from these\nprojected measures, together with some of the excluded information not being\nascertainable or accessible, we are unable to quantify certain amounts that\nwould be required for such presentation without unreasonable effort.\nConsequently, no reconciliation of the forward-looking non-GAAP financial\nmeasures is included in this press release. A reconciliation between results\non a GAAP and non-GAAP basis is provided in the last table of this press\nrelease.\n\nForward Looking Statements\n\nThis press release contains historical information and forward-looking\nstatements within the meaning of the Securities Act of 1933, as amended, the\nSecurities Exchange Act of 1934, as amended, and the safe- harbor provisions\nof the Private Securities Litigation Reform Act of 1995 with respect to the\nbusiness, financial condition and results of operations of Perion. The words\n“will,” “believe,” “expect,” “intend,” “plan,”\n“should,” “estimate” and similar expressions are intended to identify\nforward-looking statements. Such statements reflect the current views,\nassumptions and expectations of Perion with respect to future events and are\nsubject to risks and uncertainties. All statements other than statements of\nhistorical fact included in this press release are forward-looking statements.\nMany factors could cause the actual results, performance or achievements of\nPerion to be materially different from any future results, performance or\nachievements that may be expressed or implied by such forward-looking\nstatements, or financial information, including, but not limited to,\npolitical, economic and other developments (including the current war between\nIsrael and Hamas and other armed groups in the region), the failure to realize\nthe anticipated benefits of companies and businesses we acquired and may\nacquire in the future, risks entailed in integrating the companies and\nbusinesses we acquire, including employee retention and customer acceptance,\nthe risk that such transactions will divert management and other resources\nfrom the ongoing operations of the business or otherwise disrupt the conduct\nof those businesses, and general risks associated with the business of Perion\nincluding, loss of, or reduction in our business with, key customers or other\npartners that are material to our business, the impact of the rapid\ndevelopment and broad adoption of generative AI on our business, the\ntransformation in our strategy, intended to unify our business units under the\nPerion brand (Perion One), intense and frequent changes in the markets in\nwhich the businesses operate and in general economic and business conditions\n(including the fluctuation of our share price), armed conflicts with Iran and\nother parties, the outcome of any pending or future proceedings against\nPerion, data breaches, cyber-attacks and other similar incidents,\nunpredictable sales cycles, competitive pressures, market acceptance of new\nproducts and of the Perion One strategy, changes in applicable laws and\nregulations as well as industry self-regulation, negative or unexpected tax\nconsequences, inability to meet efficiency and cost reduction objectives,\nchanges in business strategy and various other factors, whether referenced or\nnot referenced in this press release. We urge you to consider those factors,\ntogether with the other risks and uncertainties described in our most recent\nAnnual Report on Form 20-F for the year ended December 31, 2025 as filed with\nthe Securities and Exchange Commission (SEC) on March 16, 2026, and our other\nreports filed with the SEC, in evaluating our forward-looking statements and\nother risks and uncertainties that may affect Perion and its results of\noperations. Perion does not assume any obligation to update these\nforward-looking statements.\n PERION NETWORK LTD. AND ITS SUBSIDIARIES   \n \n \n \nCONSOLIDATED STATEMENTS OF OPERATIONS \n In thousands (except share and per share data) Three months ended \n March 31, \n   2026       2025   \n (Unaudited) (Unaudited) \n   \n Revenue \n Advertising Solutions $ 66,703   $ 69,705   \n Search Advertising   23,671     19,637   \n Total Revenue   90,374     89,342   \n   \n Costs and Expenses \n Cost of revenue   12,318     12,341   \n Traffic acquisition costs and media buy   50,695     49,681   \n Research and development   6,949     8,452   \n Selling and marketing   21,367     17,725   \n General and administrative   9,408     9,376   \n Change in fair value of contingent consideration   225     -   \n Depreciation and amortization   4,900     3,472   \n Restructuring costs and other charges   -     1,322   \n Total Costs and Expenses   105,862     102,369   \n   \n Loss from Operations   (15,488 )   (13,027 ) \n Financial income, net   2,277     3,407   \n Loss before Taxes on income   (13,211 )   (9,620 ) \n Tax benefit   3,210     1,274   \n Net loss $ (10,001 ) $ (8,346 ) \n   \n Net loss per Share \n Basic $ (0.26 ) $ (0.19 ) \n Diluted $ (0.26 ) $ (0.19 ) \n   \n Weighted average number of shares \n Basic   39,102,892     44,866,925   \n Diluted   39,102,892   44,866,925 \n\n PERION NETWORK LTD. AND ITS SUBSIDIARIES   \n \n \n \nCONDENSED CONSOLIDATED BALANCE SHEETS \n In thousands   \n     March 31,   December 31, \n     2026       2025   \n   (Unaudited)   (Audited) \n ASSETS       \n Current Assets       \n Cash and cash equivalents $ 52,057   $ 89,997   \n Restricted cash   1,184     1,176   \n Short-term bank deposits   173,354     151,030   \n Marketable securities   67,560     71,877   \n Accounts receivable, net   150,779     187,871   \n Prepaid expenses and other current assets   25,433     17,830   \n Total Current Assets   470,367     519,781   \n   \n Long-Term Assets \n Property and equipment, net   14,152     11,685   \n Operating lease right-of-use assets   16,297     17,171   \n Goodwill and intangible assets, net   351,084     355,235   \n Deferred taxes   13,724     9,266   \n Other assets   567     620   \n Total Long-Term Assets   395,824     393,977   \n Total Assets $ 866,191   $ 913,758   \n   \n LIABILITIES AND SHAREHOLDERS' EQUITY \n Current Liabilities \n Accounts payable $ 113,888   $ 129,882   \n Accrued expenses and other liabilities   33,987     37,821   \n Short-term operating lease liability   1,663     2,324   \n Deferred revenue   1,173     1,206   \n Short-term payment obligation related to acquisitions   16,938     17,348   \n Total Current Liabilities   167,649     188,581   \n   \n Long-Term Liabilities \n Payment obligation related to acquisition   10,499     10,383   \n Long-term operating lease liability   19,743     20,034   \n Deferred taxes   7,109     7,397   \n Other long-term liabilities   11,633     11,357   \n Total Long-Term Liabilities   48,984     49,171   \n Total Liabilities   216,633     237,752   \n   \n Shareholders' equity \n Ordinary shares   327     341   \n Additional paid-in capital   471,697     487,716   \n Treasury shares at cost   (1,002 )   (1,002 ) \n Accumulated other comprehensive gain (loss)   (147 )   267   \n Retained earnings   178,683     188,684   \n Total Shareholders' Equity   649,558     676,006   \n Total Liabilities and Shareholders' Equity $ 866,191   $ 913,758    \n \n \n \n  \n\n PERION NETWORK LTD. AND ITS SUBSIDIARIES   \n \n \n \nCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS \n In thousands   \n Three months ended \n March 31, \n   2026       2025   \n (Unaudited) (Unaudited) \n   \n Cash flows from operating activities \n Net loss $ (10,001 ) $ (8,346 ) \n Adjustments required to reconcile net loss to net cash provided by (used in) \n operating activities: \n Depreciation and amortization   4,900     3,472   \n Stock-based compensation expense   8,020     7,587   \n Foreign currency translation   3     10   \n Accrued interest, net   3,321     2,914   \n Deferred taxes, net   (4,749 )   3,318   \n Accrued severance pay, net   71     (998 ) \n Restructuring costs and other charges   -     1,322   \n Gain from sale of property and equipment   (12 )   (24 ) \n Net changes in operating assets and liabilities   5,102     (16,305 ) \n Net cash provided by (used in) operating activities $ 6,655   $ (7,050 ) \n   \n Cash flows from investing activities \n Purchases of property and equipment, net of sales   (251 )   (1,698 ) \n Capitalized software development costs   (2,118 )   -   \n Investment in marketable securities, net of sales   4,170     11,571   \n Short-term deposits, net   (22,324 )   (1,983 ) \n Net cash provided by (used in) investing activities $ (20,523 ) $ 7,890   \n   \n Cash flows from financing activities \n Proceeds from exercise of stock-based compensation   33     17   \n Repurchase of shares for retirement   (24,086 )   (6,501 ) \n Net cash used in financing activities $ (24,053 ) $ (6,484 ) \n   \n Effect of exchange rate changes on cash and cash equivalents and restricted   (11 )   144   \n cash \n Net decrease in cash and cash equivalents and restricted cash   (37,932 )   (5,500 ) \n Cash and cash equivalents and restricted cash at beginning of period   91,173     157,362   \n Cash and cash equivalents and restricted cash at end of period $ 53,241   $ 151,862   \n \n \n \n  \n\n PERION NETWORK LTD. AND ITS SUBSIDIARIES   \n \n \n \nRECONCILIATION OF GAAP TO NON-GAAP RESULTS \n In thousands   \n Three months ended \n March 31, \n   2026       2025   \n (Unaudited) \n   \n Revenue $ 90,374   $ 89,342   \n Traffic acquisition costs and media buy   50,695     49,681   \n Contribution ex-TAC $ 39,679   $ 39,661   \n   \n   \n Three months ended \n March 31, \n   2026       2025   \n (Unaudited) \n   \n GAAP loss from Operations $ (15,488 ) $ (13,027 ) \n Stock-based compensation expenses   8,020     7,587   \n Retention and other acquisition related expenses   2,550     1,878   \n Unusual legal costs   248     564   \n Change in fair value of contingent consideration   225     -   \n Amortization of acquired intangible assets   4,152     2,914   \n Restructuring costs and other charges   -     1,322   \n Depreciation   748     558   \n Adjusted EBITDA $ 455   $ 1,796   \n\n PERION NETWORK LTD. AND ITS SUBSIDIARIES \n \n \n \n  \n \n \n \nRECONCILIATION OF GAAP TO NON-GAAP RESULTS \n In thousands (except share and per share data) \n Three months ended \n March 31, \n   2026       2025   \n (Unaudited) \n       \n GAAP Net loss $ (10,001 ) $ (8,346 ) \n Stock-based compensation expenses   8,020     7,587   \n Amortization of acquired intangible assets   4,152     2,914   \n Retention and other acquisition related expenses   2,550     1,878   \n Unusual legal costs   248     564   \n Change in fair value of contingent consideration   225     -   \n Restructuring costs and other charges   -     1,322   \n Foreign exchange losses (gains) associated with ASC-842   94     (361 ) \n Taxes on the above items   (505 )   (188 ) \n Non-GAAP Net Income $ 4,783   $ 5,370   \n   \n Non-GAAP diluted earnings per share $ 0.11   $ 0.11   \n   \n Shares used in computing non-GAAP diluted earnings per share   43,154,462     49,056,439   \n\n PERION NETWORK LTD. AND ITS SUBSIDIARIES \n \n \n \nRECONCILIATION OF GAAP TO NON-GAAP RESULTS \n In thousands Three months ended \n March 31, \n   2026       2025   \n (Unaudited) \n   \n Net cash provided by (used in) operating activities $ 6,655   $ (7,050 ) \n Purchases of property and equipment, net of sales   (251 )   (1,698 ) \n Capitalized software development costs   (2,118 )   -   \n Free cash flow $ 4,286   $ (8,748 ) \n Purchase of property and equipment related to our new corporate headquarter office   -     1,337   \n Retention payment related to acquisitions   2,700     1,300 (6)   \n Adjusted free cash flow $ 6,986   $ (6,111 ) \n\n PERION NETWORK LTD. AND ITS SUBSIDIARIES   \n \n \n \nRECONCILIATION OF GAAP TO NON-GAAP FULL YEAR 2026 GUIDANCE \n In thousands   \n   \n Low   High \n   \n Revenue $ 460 $ 490 \n Traffic acquisition costs and media buy   245   255 \n Contribution ex-TAC $ 215 $ 235 \n\n\n(1) On a proforma basis\n\n(2 )Retail Media revenue includes several media channels, such as CTV, DOOH\nand others\n\n(3 )Contribution ex-TAC, non-GAAP Net Income, Adjusted EBITDA, Adjusted Free\nCash Flow and non-GAAP Diluted EPS are non-GAAP measures. See below\nreconciliation of GAAP to non-GAAP measures. Numbers may not add up due to\nrounding. \n\n(4) We have not provided an outlook for GAAP Income from operations or\nreconciliation of Adjusted EBITDA guidance to GAAP Income from operations, the\nclosest corresponding GAAP measure, because we do not provide guidance for\ncertain of the reconciling items on a consistent basis due to the variability\nand complexity of these items, including but not limited to the measures and\neffects of our stock-based compensation expenses directly impacted by\nunpredictable fluctuation in our share price and amortization in connection\nwith future acquisitions. Hence, we are unable to quantify these amounts\nwithout unreasonable efforts.\n\n(5 )Contribution ex-TAC, non-GAAP Net Income, Adjusted EBITDA and non-GAAP\nDiluted EPS are non-GAAP measures. See below reconciliation of GAAP to\nnon-GAAP measures.\n\n(6) An acquisition-related retention payment in the amount of $1.3M was made\nin Q1 2025. We have added this item back in our calculation of free cash flow,\nas we do not consider it indicative of ongoing operating performance absent\nacquisition activity.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260520875705/en/\n(https://www.businesswire.com/news/home/20260520875705/en/)\n\nPerion Network Ltd.\n\nDudi Musler, VP of Investor Relations\n\n+972 (54) 7876785\n\ndudim@perion.com (mailto:dudim@perion.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw4SR010a","title":"Perion Reports First Quarter 2026 Results","author":"Business Wire","ticker":"PERI","created":"2026-05-20T11:00:00.720Z","tickers":["PERI"],"exchange":"","article_body":"Perion Reports First Quarter 2026 Results\n\nCTV spend grew 68%, DOOH spend grew 29%,\n\nOutmax AI Agent spend grew 316% year-over-year\n\nReiterating 2026 Guidance\n\nPerion Network Ltd\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.perion.com%2F&esheet=54539036&newsitemid=20260520875705&lan=en-US&anchor=Perion+Network+Ltd&index=1&md5=93a5f6cae102fd6ef1475adc39c990c0)\n. (NASDAQ and TASE: PERI\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.nasdaq.com%2Fmarket-activity%2Fstocks%2Fperi&esheet=54539036&newsitemid=20260520875705&lan=en-US&anchor=PERI&index=2&md5=11fa3b1126b648d9172b9450646b738f)\n), an advanced technology leader solving for the complexities of digital\nadvertising through AI-native execution infrastructure, today reported its\nfinancial results for the first quarter ended March 31, 2026.\n\n“During the quarter, we continued to advance the Perion One platform and our\nOutmax AI Agent technology, with encouraging adoption from customers and new\nglobal partnerships. We extended Outmax into a new social channel with its\nlaunch on TikTok, and formed an exclusive partnership in Africa, adding a new\ndistribution channel in this high-growth digital advertising market,” said\nTal Jacobson, Perion’s CEO.\n\nMr. Jacobson added, “Perion’s vision is centered on fully integrating AI\nacross every facet of our business. We are leveraging AI not only as the core\nengine that drives higher ROI and measurable outcomes for our customers, but\nalso internally to streamline our operations, optimize our cost structure, and\ndrive greater efficiency across the company.”\n\nFirst Quarter 2026 Business and Financial Highlights\n\n\n * Growth engines performance:\n\n\n* Outmax AI agent adoption - spend(1) increased by 316% YoY\n\n * CTV spend increased 68% YoY\n\n * DOOH spend increased 29% YoY\n\n * Retail Media(2) vertical spend increased 27% YoY\n\n\n\n\n * Perion One spend increased 6% YoY\n\n * Total revenue of $90.4 million, increased 1% YoY\n\n * Total contribution ex-TAC remained flat YoY at $39.7 million, with a 44%\nmargin\n\n * Adjusted EBITDA of $0.5 million\n\n * Cash flow from operations of $6.7 million, adjusted free cash flow of $7.0\nmillion\n\n * Repurchased 2.5 million shares for a total of $24.1 million\n\n * Expanded partnerships and integrations:\n\n\n* Exclusive Outmax partnership in Africa with Mediamark and McSorely Media\n\n * Outmax AI agent now available for TikTok\n\n * Bouygues Telecom adopts Outmax\n\n\n\n\nFirst Quarter 2026 Financial Highlights(3)\n In millions, Three months ended \n \nexcept per share data \n   March 31, \n   2026     2025     % \n Advertising Solutions Revenue $ 66.7     $ 69.7     (4 %) \n Search Advertising Revenue $ 23.7     $ 19.6     21 % \n Total Revenue $ 90.4     $ 89.3     1 % \n Contribution ex-TAC (Revenue ex-TAC) $ 39.7     $ 39.7     0 % \n GAAP Net loss $ (10.0 )   $ (8.3 )   (20 %) \n Non-GAAP Net Income $ 4.8     $ 5.4     (11 %) \n Adjusted EBITDA $ 0.5     $ 1.8     (75 %) \n Adjusted EBITDA to Contribution ex-TAC   1 %     5 %     \n Net Cash from Operations $ 6.7     $ (7.1 )   NM   \n Adjusted Free Cash Flow $ 7.0     $ (6.1 )   NM   \n GAAP Diluted EPS $ (0.26 )   $ (0.19 )   (37 %) \n Non-GAAP Diluted EPS $ 0.11     $ 0.11     0 % \n                 \n\n\nFinancial Outlook for Full-Year 2026(4)\n\nBased on current expectations, the Company is reiterating its full-year 2026\noutlook ranges:\n\n\n * Contribution ex-TAC(5) of $215 to $235 million\n\n * Adjusted EBITDA(5) of $50 to $54 million\n\nShare Repurchase Program\n\n\n * During the first quarter of 2026, the Company repurchased a total of 2.5\nmillion shares for a total amount of $24.1 million\n\n * As of March 31, 2026, under the authorized $200 million share repurchase plan,\nthe Company repurchased a total of 15.3 million shares for a total amount of\n$142.2 million\n\nFinancial Comparison for the First Quarter of 2026\n\nRevenue: Revenue increased by 1% to $90.4 million in the first quarter of 2026\nfrom $89.3 million in the first quarter of 2025. Advertising Solutions revenue\ndecreased 4% year-over-year, accounting for 74% of revenue, primarily due to\ndecline in our Web channel, partially offset by an increase in CTV and Digital\nOut of Home channels. Search Advertising revenue increased by 21%\nyear-over-year, accounting for 26% of revenue.\n\nTraffic Acquisition Costs and Media Buy (“TAC”): TAC amounted to $50.7\nmillion, or 56% of revenue, in the first quarter of 2026, compared with $49.7\nmillion, or 56% of revenue, in the first quarter of 2025.\n\nGAAP Net Loss: GAAP net loss was $10.0 million in the first quarter of 2026,\ncompared with $8.3 million in the first quarter of 2025.\n\nNon-GAAP Net Income: Non-GAAP net income was $4.8 million, or 5% of revenue,\nin the first quarter of 2026, compared with $5.4 million, or 6% of revenue, in\nthe first quarter of 2025. A reconciliation of GAAP to non-GAAP net income is\nincluded in this press release.\n\nAdjusted EBITDA: Adjusted EBITDA was $0.5 million, or 1% of revenue and 1% of\nContribution ex-TAC in the first quarter of 2026, compared with $1.8 million,\nor 2% of revenue and 5% of Contribution ex-TAC in the first quarter of 2025. A\nreconciliation of GAAP income from operations to Adjusted EBITDA is included\nin this press release.\n\nCash Flow from Operations: Net cash provided by operating activities in the\nfirst quarter of 2026 was $6.7 million, compared with net cash used in\noperating activities of $7.1 million in the first quarter of 2025.\n\nNet cash: As of March 31, 2026, cash and cash equivalents, short-term bank\ndeposits and marketable securities, amounted to $293.0 million, compared with\n$312.9 million as of December 31, 2025.\n\nConference Call\n\nPerion’s management will host a conference call to discuss the results at\n8:30 a.m. ET today:\n\nRegistration link: https://perion-q1-2026-earnings-call.open-exchange.net\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fperion-q1-2026-earnings-call.open-exchange.net&esheet=54539036&newsitemid=20260520875705&lan=en-US&anchor=https%3A%2F%2Fperion-q1-2026-earnings-call.open-exchange.net&index=3&md5=dfd7cc359e124fb309731ab958f473ed)\n\nA replay of the call and a transcript will be available within approximately\n24 hours of the live event on Perion’s website\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fperion.com%2F&esheet=54539036&newsitemid=20260520875705&lan=en-US&anchor=website&index=4&md5=e94b31e70e5bd2c0e110ff53e81f41e7)\n.\n\nAbout Perion Network Ltd.\n\nPerion helps brands, agencies, and retailers maximize the value of their\nadvertising investments with advanced AI and creative technologies. Its\nunified platform, Perion One, bridges media, data, and performance across\ndigital channels to deliver superior results in an increasingly complex\nadvertising environment.\n\nFor more information, visit www.perion.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.perion.com%2F&esheet=54539036&newsitemid=20260520875705&lan=en-US&anchor=www.perion.com&index=5&md5=9eed72098ba69464d7c0ee3cc467a9bf)\n\nNon-GAAP Measures\n\nNon-GAAP financial measures consist of GAAP financial measures adjusted to\nexclude certain items. This press release includes certain non-GAAP measures,\nincluding Contribution ex-TAC, Adjusted EBITDA, Adjusted free cash flow,\nNon-GAAP net income and non-GAAP diluted earnings per share.\n\nContribution ex-TAC presents revenue reduced by traffic acquisition costs and\nmedia buy, reflecting a portion of our revenue that must be directly passed to\npublishers or advertisers and presents our revenue excluding such items. We\nbelieve Contribution ex-TAC is a useful measure in assessing the performance\nof the Company because it facilitates a consistent comparison against our core\nbusiness without considering the impact of traffic acquisition costs and media\nbuy related to revenue reported on a gross basis.\n\nAdjusted Earnings Before Interest, Taxes, Depreciation and Amortization\n(“Adjusted EBITDA”) is defined as GAAP income (loss) from operations\nexcluding stock-based compensation expenses, retention and other\nacquisition-related expenses, unusual legal costs, gains and losses recognized\nwith respect to changes in fair value of contingent consideration,\namortization of acquired intangible assets, restructuring costs and other\ncharges as well as depreciation.\n\nAdjusted free cash flow is defined as net cash provided by (or used in)\noperating activities less cash used for the purchase of property and\nequipment, net of sales and capitalized software development costs, but\nexcluding the purchase of property and equipment related to our new corporate\nheadquarter office, the portion of the cash payment of contingent\nconsideration in excess of the acquisition date fair value and retention\npayment related to acquisitions, as we do not view either of those expenses as\nreflective of our normal on-going expenses. It is important to note that these\nexpenses are in fact cash expenditures.\n\nNon-GAAP net income and non-GAAP diluted earnings per share are defined as\nGAAP net income (loss) and GAAP net earnings (loss) per share excluding\nstock-based compensation expenses, amortization of acquired intangible assets\nand the related taxes thereon, retention and other acquisition-related\nexpenses, unusual legal costs, gains and losses recognized with respect to\nchanges in fair value of contingent consideration, restructuring costs and\nother charges as well as foreign exchange gains and losses associated with\nASC-842.\n\nThe purpose of such adjustments is to give an indication of our performance\nexclusive of non-cash charges and other items that are considered by\nmanagement to be outside of our core operating results. These non-GAAP\nmeasures are among the primary factors management uses in planning for and\nforecasting future periods. Furthermore, the non-GAAP measures are regularly\nused internally to understand, manage and evaluate our business and make\noperating decisions, and we believe that they are useful to investors as a\nconsistent and comparable measure of the ongoing performance of our business.\nHowever, our non-GAAP financial measures are not meant to be considered in\nisolation or as a substitute for comparable GAAP measures and should be read\nonly in conjunction with our consolidated financial statements prepared in\naccordance with GAAP. Additionally, these non-GAAP financial measures may\ndiffer materially from the non-GAAP financial measures used by other\ncompanies. Due to the high variability and difficulty in making accurate\nforecasts and projections of some of the information excluded from these\nprojected measures, together with some of the excluded information not being\nascertainable or accessible, we are unable to quantify certain amounts that\nwould be required for such presentation without unreasonable effort.\nConsequently, no reconciliation of the forward-looking non-GAAP financial\nmeasures is included in this press release. A reconciliation between results\non a GAAP and non-GAAP basis is provided in the last table of this press\nrelease.\n\nForward Looking Statements\n\nThis press release contains historical information and forward-looking\nstatements within the meaning of the Securities Act of 1933, as amended, the\nSecurities Exchange Act of 1934, as amended, and the safe- harbor provisions\nof the Private Securities Litigation Reform Act of 1995 with respect to the\nbusiness, financial condition and results of operations of Perion. The words\n“will,” “believe,” “expect,” “intend,” “plan,”\n“should,” “estimate” and similar expressions are intended to identify\nforward-looking statements. Such statements reflect the current views,\nassumptions and expectations of Perion with respect to future events and are\nsubject to risks and uncertainties. All statements other than statements of\nhistorical fact included in this press release are forward-looking statements.\nMany factors could cause the actual results, performance or achievements of\nPerion to be materially different from any future results, performance or\nachievements that may be expressed or implied by such forward-looking\nstatements, or financial information, including, but not limited to,\npolitical, economic and other developments (including the current war between\nIsrael and Hamas and other armed groups in the region), the failure to realize\nthe anticipated benefits of companies and businesses we acquired and may\nacquire in the future, risks entailed in integrating the companies and\nbusinesses we acquire, including employee retention and customer acceptance,\nthe risk that such transactions will divert management and other resources\nfrom the ongoing operations of the business or otherwise disrupt the conduct\nof those businesses, and general risks associated with the business of Perion\nincluding, loss of, or reduction in our business with, key customers or other\npartners that are material to our business, the impact of the rapid\ndevelopment and broad adoption of generative AI on our business, the\ntransformation in our strategy, intended to unify our business units under the\nPerion brand (Perion One), intense and frequent changes in the markets in\nwhich the businesses operate and in general economic and business conditions\n(including the fluctuation of our share price), armed conflicts with Iran and\nother parties, the outcome of any pending or future proceedings against\nPerion, data breaches, cyber-attacks and other similar incidents,\nunpredictable sales cycles, competitive pressures, market acceptance of new\nproducts and of the Perion One strategy, changes in applicable laws and\nregulations as well as industry self-regulation, negative or unexpected tax\nconsequences, inability to meet efficiency and cost reduction objectives,\nchanges in business strategy and various other factors, whether referenced or\nnot referenced in this press release. We urge you to consider those factors,\ntogether with the other risks and uncertainties described in our most recent\nAnnual Report on Form 20-F for the year ended December 31, 2025 as filed with\nthe Securities and Exchange Commission (SEC) on March 16, 2026, and our other\nreports filed with the SEC, in evaluating our forward-looking statements and\nother risks and uncertainties that may affect Perion and its results of\noperations. Perion does not assume any obligation to update these\nforward-looking statements.\n PERION NETWORK LTD. AND ITS SUBSIDIARIES   \n \n \n \nCONSOLIDATED STATEMENTS OF OPERATIONS \n In thousands (except share and per share data) Three months ended \n March 31, \n   2026       2025   \n (Unaudited) (Unaudited) \n   \n Revenue \n Advertising Solutions $ 66,703   $ 69,705   \n Search Advertising   23,671     19,637   \n Total Revenue   90,374     89,342   \n   \n Costs and Expenses \n Cost of revenue   12,318     12,341   \n Traffic acquisition costs and media buy   50,695     49,681   \n Research and development   6,949     8,452   \n Selling and marketing   21,367     17,725   \n General and administrative   9,408     9,376   \n Change in fair value of contingent consideration   225     -   \n Depreciation and amortization   4,900     3,472   \n Restructuring costs and other charges   -     1,322   \n Total Costs and Expenses   105,862     102,369   \n   \n Loss from Operations   (15,488 )   (13,027 ) \n Financial income, net   2,277     3,407   \n Loss before Taxes on income   (13,211 )   (9,620 ) \n Tax benefit   3,210     1,274   \n Net loss $ (10,001 ) $ (8,346 ) \n   \n Net loss per Share \n Basic $ (0.26 ) $ (0.19 ) \n Diluted $ (0.26 ) $ (0.19 ) \n   \n Weighted average number of shares \n Basic   39,102,892     44,866,925   \n Diluted   39,102,892   44,866,925 \n\n PERION NETWORK LTD. AND ITS SUBSIDIARIES   \n \n \n \nCONDENSED CONSOLIDATED BALANCE SHEETS \n In thousands   \n     March 31,   December 31, \n     2026       2025   \n   (Unaudited)   (Audited) \n ASSETS       \n Current Assets       \n Cash and cash equivalents $ 52,057   $ 89,997   \n Restricted cash   1,184     1,176   \n Short-term bank deposits   173,354     151,030   \n Marketable securities   67,560     71,877   \n Accounts receivable, net   150,779     187,871   \n Prepaid expenses and other current assets   25,433     17,830   \n Total Current Assets   470,367     519,781   \n   \n Long-Term Assets \n Property and equipment, net   14,152     11,685   \n Operating lease right-of-use assets   16,297     17,171   \n Goodwill and intangible assets, net   351,084     355,235   \n Deferred taxes   13,724     9,266   \n Other assets   567     620   \n Total Long-Term Assets   395,824     393,977   \n Total Assets $ 866,191   $ 913,758   \n   \n LIABILITIES AND SHAREHOLDERS' EQUITY \n Current Liabilities \n Accounts payable $ 113,888   $ 129,882   \n Accrued expenses and other liabilities   33,987     37,821   \n Short-term operating lease liability   1,663     2,324   \n Deferred revenue   1,173     1,206   \n Short-term payment obligation related to acquisitions   16,938     17,348   \n Total Current Liabilities   167,649     188,581   \n   \n Long-Term Liabilities \n Payment obligation related to acquisition   10,499     10,383   \n Long-term operating lease liability   19,743     20,034   \n Deferred taxes   7,109     7,397   \n Other long-term liabilities   11,633     11,357   \n Total Long-Term Liabilities   48,984     49,171   \n Total Liabilities   216,633     237,752   \n   \n Shareholders' equity \n Ordinary shares   327     341   \n Additional paid-in capital   471,697     487,716   \n Treasury shares at cost   (1,002 )   (1,002 ) \n Accumulated other comprehensive gain (loss)   (147 )   267   \n Retained earnings   178,683     188,684   \n Total Shareholders' Equity   649,558     676,006   \n Total Liabilities and Shareholders' Equity $ 866,191   $ 913,758    \n \n \n \n  \n\n PERION NETWORK LTD. AND ITS SUBSIDIARIES   \n \n \n \nCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS \n In thousands   \n Three months ended \n March 31, \n   2026       2025   \n (Unaudited) (Unaudited) \n   \n Cash flows from operating activities \n Net loss $ (10,001 ) $ (8,346 ) \n Adjustments required to reconcile net loss to net cash provided by (used in) \n operating activities: \n Depreciation and amortization   4,900     3,472   \n Stock-based compensation expense   8,020     7,587   \n Foreign currency translation   3     10   \n Accrued interest, net   3,321     2,914   \n Deferred taxes, net   (4,749 )   3,318   \n Accrued severance pay, net   71     (998 ) \n Restructuring costs and other charges   -     1,322   \n Gain from sale of property and equipment   (12 )   (24 ) \n Net changes in operating assets and liabilities   5,102     (16,305 ) \n Net cash provided by (used in) operating activities $ 6,655   $ (7,050 ) \n   \n Cash flows from investing activities \n Purchases of property and equipment, net of sales   (251 )   (1,698 ) \n Capitalized software development costs   (2,118 )   -   \n Investment in marketable securities, net of sales   4,170     11,571   \n Short-term deposits, net   (22,324 )   (1,983 ) \n Net cash provided by (used in) investing activities $ (20,523 ) $ 7,890   \n   \n Cash flows from financing activities \n Proceeds from exercise of stock-based compensation   33     17   \n Repurchase of shares for retirement   (24,086 )   (6,501 ) \n Net cash used in financing activities $ (24,053 ) $ (6,484 ) \n   \n Effect of exchange rate changes on cash and cash equivalents and restricted   (11 )   144   \n cash \n Net decrease in cash and cash equivalents and restricted cash   (37,932 )   (5,500 ) \n Cash and cash equivalents and restricted cash at beginning of period   91,173     157,362   \n Cash and cash equivalents and restricted cash at end of period $ 53,241   $ 151,862   \n \n \n \n  \n\n PERION NETWORK LTD. AND ITS SUBSIDIARIES   \n \n \n \nRECONCILIATION OF GAAP TO NON-GAAP RESULTS \n In thousands   \n Three months ended \n March 31, \n   2026       2025   \n (Unaudited) \n   \n Revenue $ 90,374   $ 89,342   \n Traffic acquisition costs and media buy   50,695     49,681   \n Contribution ex-TAC $ 39,679   $ 39,661   \n   \n   \n Three months ended \n March 31, \n   2026       2025   \n (Unaudited) \n   \n GAAP loss from Operations $ (15,488 ) $ (13,027 ) \n Stock-based compensation expenses   8,020     7,587   \n Retention and other acquisition related expenses   2,550     1,878   \n Unusual legal costs   248     564   \n Change in fair value of contingent consideration   225     -   \n Amortization of acquired intangible assets   4,152     2,914   \n Restructuring costs and other charges   -     1,322   \n Depreciation   748     558   \n Adjusted EBITDA $ 455   $ 1,796   \n\n PERION NETWORK LTD. AND ITS SUBSIDIARIES \n \n \n \n  \n \n \n \nRECONCILIATION OF GAAP TO NON-GAAP RESULTS \n In thousands (except share and per share data) \n Three months ended \n March 31, \n   2026       2025   \n (Unaudited) \n       \n GAAP Net loss $ (10,001 ) $ (8,346 ) \n Stock-based compensation expenses   8,020     7,587   \n Amortization of acquired intangible assets   4,152     2,914   \n Retention and other acquisition related expenses   2,550     1,878   \n Unusual legal costs   248     564   \n Change in fair value of contingent consideration   225     -   \n Restructuring costs and other charges   -     1,322   \n Foreign exchange losses (gains) associated with ASC-842   94     (361 ) \n Taxes on the above items   (505 )   (188 ) \n Non-GAAP Net Income $ 4,783   $ 5,370   \n   \n Non-GAAP diluted earnings per share $ 0.11   $ 0.11   \n   \n Shares used in computing non-GAAP diluted earnings per share   43,154,462     49,056,439   \n\n PERION NETWORK LTD. AND ITS SUBSIDIARIES \n \n \n \nRECONCILIATION OF GAAP TO NON-GAAP RESULTS \n In thousands Three months ended \n March 31, \n   2026       2025   \n (Unaudited) \n   \n Net cash provided by (used in) operating activities $ 6,655   $ (7,050 ) \n Purchases of property and equipment, net of sales   (251 )   (1,698 ) \n Capitalized software development costs   (2,118 )   -   \n Free cash flow $ 4,286   $ (8,748 ) \n Purchase of property and equipment related to our new corporate headquarter office   -     1,337   \n Retention payment related to acquisitions   2,700     1,300 (6)   \n Adjusted free cash flow $ 6,986   $ (6,111 ) \n\n PERION NETWORK LTD. AND ITS SUBSIDIARIES   \n \n \n \nRECONCILIATION OF GAAP TO NON-GAAP FULL YEAR 2026 GUIDANCE \n In thousands   \n   \n Low   High \n   \n Revenue $ 460 $ 490 \n Traffic acquisition costs and media buy   245   255 \n Contribution ex-TAC $ 215 $ 235 \n\n\n(1) On a proforma basis\n\n(2 )Retail Media revenue includes several media channels, such as CTV, DOOH\nand others\n\n(3 )Contribution ex-TAC, non-GAAP Net Income, Adjusted EBITDA, Adjusted Free\nCash Flow and non-GAAP Diluted EPS are non-GAAP measures. See below\nreconciliation of GAAP to non-GAAP measures. Numbers may not add up due to\nrounding. \n\n(4) We have not provided an outlook for GAAP Income from operations or\nreconciliation of Adjusted EBITDA guidance to GAAP Income from operations, the\nclosest corresponding GAAP measure, because we do not provide guidance for\ncertain of the reconciling items on a consistent basis due to the variability\nand complexity of these items, including but not limited to the measures and\neffects of our stock-based compensation expenses directly impacted by\nunpredictable fluctuation in our share price and amortization in connection\nwith future acquisitions. Hence, we are unable to quantify these amounts\nwithout unreasonable efforts.\n\n(5 )Contribution ex-TAC, non-GAAP Net Income, Adjusted EBITDA and non-GAAP\nDiluted EPS are non-GAAP measures. See below reconciliation of GAAP to\nnon-GAAP measures.\n\n(6) An acquisition-related retention payment in the amount of $1.3M was made\nin Q1 2025. We have added this item back in our calculation of free cash flow,\nas we do not consider it indicative of ongoing operating performance absent\nacquisition activity.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260520875705/en/\n(https://www.businesswire.com/news/home/20260520875705/en/)\n\nPerion Network Ltd.\n\nDudi Musler, VP of Investor Relations\n\n+972 (54) 7876785\n\ndudim@perion.com (mailto:dudim@perion.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-05-20T11:00:00.756010683Z","server_sent_at_ms":1779274800756},"received_at":"2026-05-20T11:00:01.090Z","source_url":"https://www.businesswire.com/news/home/20260520875705/en/"},"analysis":{"id":"29812","press_release_id":"40369","analysis_json":{"industry":{"label":"Interactive Media & Services","sector":"Information Technology"},"redFlags":["Adjusted EBITDA declined 75% YoY","Core Advertising Solutions revenue declined 4% YoY","GAAP Net Loss widened 20% YoY to $10.0 million"],"eventType":"earnings","narrative":"Perion reported Q1 2026 revenue of $90.4 million, a 1% increase year-over-year, driven by 21% growth in Search Advertising which offset a 4% decline in Advertising Solutions.\n\nAdjusted EBITDA fell 75% year-over-year to $0.5 million, while Contribution ex-TAC remained flat at $39.7 million with a 44% margin. The company reiterated its full-year 2026 guidance for Contribution ex-TAC ($215M-$235M) and Adjusted EBITDA ($50M-$54M).\n\nOperational highlights included 68% growth in CTV spend and 316% growth in Outmax AI Agent spend. The company repurchased 2.5 million shares for $24.1 million during the quarter.","sentiment":"neutral","agentHooks":{"shouldPost":false,"suggestedAngle":"Mixed Q1: Revenue flat, EBITDA down 75%, but strong growth in AI/CTV channels and continued buybacks."},"keyFigures":{"revenue":90374000,"guidance":"FY26 Contribution ex-TAC $215M-$235M; Adjusted EBITDA $50M-$54M (reiterated)","revenueYoy":"1%","customDimensions":{"fcf":4286000,"adjusted_fcf":6986000,"adjusted_ebitda":455000,"ctv_spend_growth":"68%","repurchase_value":24086000,"dooh_spend_growth":"29%","shares_repurchased":2500000,"adjusted_ebitda_yoy":"-75%","contribution_ex_tac":39679000,"outmax_ai_spend_growth":"316%","contribution_ex_tac_margin":"44%"}},"quotedText":"Perion’s vision is centered on fully integrating AI across every facet of our business. We are leveraging AI not only as the core engine that drives higher ROI and measurable outcomes for our customers, but also internally to streamline our operations, optimize our cost structure, and drive greater efficiency across the company.","namedEntities":{"people":[{"name":"Tal Jacobson","role":"CEO"},{"name":"Dudi Musler","role":"VP of Investor Relations"}],"products":["Perion One","Outmax AI Agent"],"companies":[{"name":"Perion Network Ltd","ticker":"PERI"},{"name":"Mediamark","relationship":"partner"},{"name":"McSorely Media","relationship":"partner"},{"name":"Bouygues Telecom","relationship":"customer"},{"name":"TikTok","relationship":"platform partner"}],"dollarAmounts":[{"amount":"$90.4 million","context":"Q1 2026 Total Revenue"},{"amount":"$39.7 million","context":"Q1 2026 Contribution ex-TAC"},{"amount":"$0.5 million","context":"Q1 2026 Adjusted EBITDA"},{"amount":"$6.7 million","context":"Q1 2026 Cash flow from operations"},{"amount":"$7.0 million","context":"Q1 2026 Adjusted free cash flow"},{"amount":"$24.1 million","context":"Q1 2026 share repurchase amount"},{"amount":"$200 million","context":"Authorized share repurchase plan"},{"amount":"$142.2 million","context":"Total shares repurchased under plan YTD"},{"amount":"$293.0 million","context":"Net cash position"},{"amount":"$215 to $235 million","context":"FY26 Contribution ex-TAC guidance"},{"amount":"$50 to $54 million","context":"FY26 Adjusted EBITDA guidance"}]},"materialImpact":{"score":2,"reasoning":"Revenue growth was flat (1% YoY) and Adjusted EBITDA declined significantly (-75% YoY). Guidance was merely reiterated, not raised. The positive spin on specific channel growth (CTV, DOOH, AI) is offset by the decline in core Web channel revenue and overall profitability metrics."},"tickerRelevance":{"others":[],"primary":"PERI"},"globalImportance":25,"audienceRelevance":15,"eventTypeSecondary":["guidance_update","buyback"],"importanceComponents":{"tickerTier":"small-cap","eventGravity":"routine_earnings","sectorWeight":"neutral","householdBrandBoost":0,"marketCapAdjustment":"low","retailFavoriteBoost":0}},"event_type":"earnings","event_type_secondary":["guidance_update","buyback"],"sentiment":"neutral","material_impact_score":2,"narrative":"Perion reported Q1 2026 revenue of $90.4 million, a 1% increase year-over-year, driven by 21% growth in Search Advertising which offset a 4% decline in Advertising Solutions.\n\nAdjusted EBITDA fell 75% year-over-year to $0.5 million, while Contribution ex-TAC remained flat at $39.7 million with a 44% margin. The company reiterated its full-year 2026 guidance for Contribution ex-TAC ($215M-$235M) and Adjusted EBITDA ($50M-$54M).\n\nOperational highlights included 68% growth in CTV spend and 316% growth in Outmax AI Agent spend. The company repurchased 2.5 million shares for $24.1 million during the quarter.","key_figures":{"revenue":90374000,"guidance":"FY26 Contribution ex-TAC $215M-$235M; Adjusted EBITDA $50M-$54M (reiterated)","revenueYoy":"1%","customDimensions":{"fcf":4286000,"adjusted_fcf":6986000,"adjusted_ebitda":455000,"ctv_spend_growth":"68%","repurchase_value":24086000,"dooh_spend_growth":"29%","shares_repurchased":2500000,"adjusted_ebitda_yoy":"-75%","contribution_ex_tac":39679000,"outmax_ai_spend_growth":"316%","contribution_ex_tac_margin":"44%"}},"named_entities":{"people":[{"name":"Tal Jacobson","role":"CEO"},{"name":"Dudi Musler","role":"VP of Investor Relations"}],"products":["Perion One","Outmax AI Agent"],"companies":[{"name":"Perion Network Ltd","ticker":"PERI"},{"name":"Mediamark","relationship":"partner"},{"name":"McSorely Media","relationship":"partner"},{"name":"Bouygues Telecom","relationship":"customer"},{"name":"TikTok","relationship":"platform partner"}],"dollarAmounts":[{"amount":"$90.4 million","context":"Q1 2026 Total Revenue"},{"amount":"$39.7 million","context":"Q1 2026 Contribution ex-TAC"},{"amount":"$0.5 million","context":"Q1 2026 Adjusted EBITDA"},{"amount":"$6.7 million","context":"Q1 2026 Cash flow from operations"},{"amount":"$7.0 million","context":"Q1 2026 Adjusted free cash flow"},{"amount":"$24.1 million","context":"Q1 2026 share repurchase amount"},{"amount":"$200 million","context":"Authorized share repurchase plan"},{"amount":"$142.2 million","context":"Total shares repurchased under plan YTD"},{"amount":"$293.0 million","context":"Net cash position"},{"amount":"$215 to $235 million","context":"FY26 Contribution ex-TAC guidance"},{"amount":"$50 to $54 million","context":"FY26 Adjusted EBITDA guidance"}]},"model_name":"qwen3_6_27b_awq","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-05-20T11:01:50.866Z","global_importance":25,"audience_relevance":15,"importance_components":{"tickerTier":"small-cap","eventGravity":"routine_earnings","sectorWeight":"neutral","householdBrandBoost":0,"marketCapAdjustment":"low","retailFavoriteBoost":0}},"durationMs":35323,"modelName":"george-droid-qwen-72b"}}