PERI

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 8:30 a.m. ET Chief Executive Officer - Tal Jacobson Chief Financial Officer - Elad Tzubery Operator: Hello, everybody, and welcome to the Perion Network Second Quarter 2026 Earnings Conference Call. Today's conference call is being recorded. An archive of the webcast will be posted on the company's website. The press release detailing the financial results is available on the company's website at www.perion.com. Before we begin, I'd like to read the following safe harbor statement. Today's discussion includes forward-looking statements. These statements reflect the company's current views with respect to future events. These forward-looking statements involve known and unknown risks, uncertainties and other factors, including those discussed under the headings Risk Factors and elsewhere in the company's annual report on Form 20-F that may cause actual results, performances or achievements to be materially different and any future results, performance or achievements anticipated or implied by these forward-looking statements. The company does not undertake to update any forward-looking statements to reflect future events or circumstances. As in prior quarters, the results reported today will be analyzed both on a GAAP and a non-GAAP basis. While mentioning EBITDA, we will be referring to adjusted EBITDA. We have provided a detailed reconciliation of non-GAAP measures and their comparable GAAP measures in our earnings release, which is available on our website and has also been filed on Form 6-K. Hosting the call today are Tal Jacobson, Perion's Chief Executive Officer; and Elad Tzubery, Perion's Chief Financial Officer. I would now like to turn the call over to Tal Jacobson. Please go ahead. Tal Jacobson: Good morning, and thank you for joining us on Perion's Earnings Call for the second quarter of 2026. Nearly 2 years ago, we made a deliberate decision to diversify Perion away from the open web. We quickly adapted to the demands of the marketplace ahead of the budget shift the industry is experiencing today. This diversification was driven by both our organic investment in CTV and Retail Media and our M&A strategy from Hivestack in Digital Out of Home to Greenbids and the Outmax AI agent. Ever since, we've been doubling down on that strategy. And this quarter's results reflect that conviction with strong traction across all our key growth engines. In the second quarter of 2026, we saw a massive adoption of the Perion One platform and its product lines. This reflects a growing advertising trust and accelerating adoption of our solution across our client base. CTV, Retail Media and Digital Out of Home all outpaced the market, and our advanced AI technology, Outmax, continued to scale rapidly with a triple-digit year-over-year spend growth. We also continue to expand our reach this quarter, both geographically and in the depth of our platform capabilities. In Retail Media, Best Buy Canada selected Perion as its end-to-end in-store Retail Media Technology partner, which is now available to our Retail and Digital Out of Home advertisers. As part of our strategy to double down on Retail Media and Digital Out of Home, especially with in-store inventory, we expect those new partnerships to unlock new budget from high-growth verticals, the same verticals that are targeting consumers at the moment of purchase decisions. This quarter, we also added a new distribution partner to bring Outmax to Greece and to the Central and Eastern Europe. This partnership extended our reach into new regions through the partner-led model. On the technology side, we extended our full stack Digital Out of Home infrastructure into Google DV360, giving buyers the ability to activate our programmatic guaranteed inventory through Google's Media platform. We also launched an Agentic Self-Serve mobile application within Perion One, which we call Ask Perion. This upgrade transforms our execution capability to be more accessible to advertisers and agencies. New distribution channels, new Retail Media and Digital Out of Home partnership and advancing our technologies are exactly what's driving the sustainable momentum we're seeing across our growth engines. Marketers navigate a universe of channels, screens, platform, formats, data sets and buying environments, all while consistently chasing higher performance. Budget, signals and optimization remain siloed by channels. This fragmentation is exactly what breaks efficiency and performance. Perion One is designed to close that gap with advanced technology-driven solutions. Perion One is our unified AI-native execution infrastructure for advertisers. It is built to plan, activate and optimize advertising campaigns across CTV, social, Digital Out of Home, Retail Media and open web. At the center of Perion One is Outmax, our proprietary AI agent, continuously optimizing outcomes across channels and platforms. Perion One is an infrastructure, not a tool set. Here's what it looks like in practice. The advertiser's entry point is Perion One, our platform and AI execution layer. Under the hood, whenever we need outcome-driven activations, Outmax operates as an agent that plans and executes on our advertisers' behalf. Perion One leverages multiple connections to audiences, data and measurement technologies, including our own SORT audience segmentation technology. From there, Perion One reaches into the channels themselves, every major open and walled garden DSP and SSP from YouTube, Meta, TikTok and the broader open web, plus our own Perion-owned Digital Out of Home DSP and SSP. It's an open ecosystem with effectively unlimited connections we keep adding, giving advertisers the reach to the entire global market. Outmax, our AI agent, works across all major channels, which allows us to optimize complex campaigns and drive better business outcomes to advertisers. Outmax removes the guesswork and replaces it with algorithm certainty, allocating spend, managing pacing and optimizing outcomes inside Perion One and beyond. This quarter, we introduced Ask Perion, sparking deeper conversation with CMOs and agencies eager to get ahead of the agentic media buying curve. Ask Perion puts the power of Perion One directly into the hands of advertisers and agencies through a simple conversational interface. Ask Perion is about making sophisticated execution more accessible to more customers. This expansion gives our customers easier access to our technology while embedding Perion One more deeply within the infrastructure they use. This quarter, Best Buy Canada selected Perion as its end-to-end in-store Retail Media Technology partner for its digital signage network. Using Perion's ad server, SSP and header bidding technologies, Best Buy Canada is moving from a fixed loop-based signage to a programmatic retail media model that selects ads dynamically. This technological adoption is designed to give advertisers more measurable in-store Retail Media campaign capabilities. For Perion, this partnership expands our Retail Media reach, deepens our role as a full stack infrastructure partner and supports a repeatable model for building more predictable infrastructure-level revenue streams over time. This full stack infrastructure is also becoming easier for buyers to access. We added programmatic guaranteed deal execution for Digital Out of Home directly within Google's DV360 media platform. This gives buyers access to premium Digital Out of Home inventory through their primary DSP with fixed pricing, committed inventory and predictable delivery. This capability is available across our full global Digital Out of Home supply reach, covering more than 1.6 million screens in over 40 countries. By bringing guaranteed Digital Out of Home buying into the same workflow advertisers already use for display, video and CTV, we are making our supply more accessible and expanding its monetization potential. We are also extending our reach geographically through our capital-efficient partner-led model. Most recently, we partnered with Acrossmedia241 to bring Outmax to agencies and brands across Greece and the broader Central and Eastern European region. Acrossmedia241 brings established relationships across agencies, national tourism boards and international buying desks as well as existing experience with Perion's Digital Out of Home technology. Through this partnership, Outmax can be applied across major digital channels and optimized toward advertiser-defined business outcomes. This builds on a distribution model we have already applied in other markets. The partnership is expected to accelerate Outmax's path to revenue growth and extend our reach with low incremental cost and margin-accretive growth potential. This quarter, we also added a new data partnership with Fetch, the leading consumer reward and purchase intelligence platform, accessed through LiveRamp. This gives our advertisers access to verified SKU-level purchase data from over 13 million monthly active users and 26,000-plus merchants. Purchase behavior is the most direct signal of consumer intent and accessing it at a scale outside the closed platform has been a persistent industry challenge. Fetch data spans more than 1,300 retail agnostic segments from category-level shopper profiles to SKU-specific competitor targeting. Taken together, those initiatives show how Perion One scales, first, by embedding more deeply with enterprise customers; secondly, by expanding access to our infrastructure; and finally, by extending Outmax into new markets through our partners. This reach and trust are the foundation of our land-and-expand model, giving us a strong base to deepen customer relationships and drive sustainable growth over time. With that, I will hand it over to Elad to walk through the financials. Elad Tzubery: Thank you, Tal, and good morning, everyone. Our second quarter performance reflects our continued operational focus on driving scale and adoption across Perion One. In the second quarter, Perion One spend increased 15% year-over-year to $156.7 million. This was driven by the strong momentum in CTV and Digital Out of Home channels, growing 56% and 45% year-over-year, respectively. In addition, our Retail Media vertical spend grew by 60%, partially offset by continued softness in the open web advertising across the industry. Perion One contribution ex-TAC came in at $34.9 million, down 4% year-over-year. This was driven by the use of promotional terms to acquire new accounts and drive incremental spend from existing customers, which temporarily impacted our take rates. As we scale the platform, take rates naturally normalize over time, though we expect them to modestly improve in the second half of the year. Outmax, our AI agent, continued to scale rapidly with spend growing 136% year-over-year on a pro forma basis, reflecting strong adoption across walled gardens. Our focus on delivering advanced technological solutions is translating into tangible enterprise wins. During the quarter, Best Buy Canada selected Perion as its end-to-end retail Digital Out of Home technology partner, deploying our complete ad server, SSP and header bidding technologies to power one of the largest SSP-enabled Digital Out of Home media networks in Canada. This relationship validates our Digital Out of Home business strategy, and it allows us to replicate this offering to other retailers, growing our Retail Media business globally. We also remain focused on creating immediate value through our shareholders' return program. Our highly disciplined approach to capital allocation allowed us to repurchase 2.7 million shares for $24.5 million during the quarter. Finally, based on our growing visibility going into the second half of the year, the strong momentum we are seeing in our pipeline, new strategic agreements and the structural efficiencies we have secured, we are narrowing our full year guidance ranges. We are adjusting the high end of our contribution ex-TAC outlook to reflect the softer first half while maintaining the midpoint of our EBITDA guidance. I will discuss this in more detail shortly. Let's take a look at spend, the top line metric, which reflects customers' adoption of Perion solutions. Total spend for the quarter increased 9% year-over-year, reaching $194.7 million. More importantly, spend on the Perion One platform grew 15% year-over-year to $156.7 million, accounting for 80% of our total spend. This compares to 76% in the same period last year, proving that our unified platform strategy is successfully attracting enterprise media budgets. This was driven by the continuous acceleration of our core growth engines. CTV spend grew 56% year-over-year to $17.7 million. Digital Out of Home spend grew 45% year-over-year to $87.7 million. Both continue to vastly outpace the broader market growth expectations as advertisers are actively shifting budgets towards Perion One to gain precise performance and cross-channel execution. In addition, our Retail Media vertical spend significantly accelerated, growing 60% year-over-year to $59.4 million. Retail Media represents a strategic focus for Perion, bringing together our CTV, Digital Out of Home and display capabilities. Enterprise mandates like Best Buy Canada demonstrate our ability to modernize in-store media networks. This uniquely positions us to bridge the physical and digital worlds. The combination of physical and digital unlocks powerful synergies between in-store digital screens and external digital out-of-home screens, delivering a truly unified end-to-end customer journey that few in the industry can match. Revenue for the second quarter was $98.2 million, down 5% year-over-year. Contribution ex-TAC for the second quarter was $42.3 million, down 11% year-over-year. Perion One contribution ex-TAC was $34.9 million, representing 83% of total contribution ex-TAC in the quarter, up from 76% last year. Perion One contribution ex-TAC declined 4% year-over-year, mainly due to our use of promotional terms to acquire new accounts and drive incremental spend from existing customers through our platform. As we continue to scale the platform, we expect take rates to naturally normalize over time, though modestly improved in the second half of the year. As expected, search revenue declined 2% year-over-year, while search contribution ex-TAC declined 30% year-over-year. We continue to manage the search business to maximize cash flow to reinvest into Perion One and return capital to shareholders through share repurchase program. Adjusted EBITDA for the second quarter was $2.8 million, representing a 7% margin of contribution ex-TAC. This includes a $1.6 million of foreign exchange headwind. Excluding this foreign exchange impact, adjusted EBITDA would have been $4.4 million. As we are scaling our top line and capturing more market share, we remain focused and disciplined on improving our operational efficiency. At the end of the second quarter, we executed targeted efficiency initiatives to optimize our cost base as part of this year's efficiency plan. While the second quarter did not benefit from these actions, we expect adjusted EBITDA margin to meaningfully inflect upward in the second half of the year to reach our full year targets. On a GAAP basis, second quarter net loss was $6.8 million or $0.18 per diluted share. On a non-GAAP basis, net income was $3.9 million or $0.09 per diluted share. It is important to emphasize that the year-over-year increase in our GAAP net loss was almost entirely driven by negative foreign exchange impact to our nonoperating finance income and lower interest income from our cash balance. While our underlying operations remain profitable on a non-GAAP basis, the combination of these nonoperating financial headwinds and the lower outstanding share count mathematically amplifies our GAAP loss per share this quarter. However, we are making a highly strategic trade-off. By aggressively executing our buybacks now at depressed valuations, we are permanently reducing our share count. As our profitability scales in the second half of the year and into 2027, this concentrated equity base is expected to serve as a powerful multiplier for future EPS growth. In the second quarter, we generated $2.5 million in net cash from operating activities, while adjusted free cash flow reached $4.8 million. On a yearly basis, we expect to maintain a strong conversion rate relative to adjusted EBITDA as we did in previous years. This reliable cash generation provides us with the financial flexibility to fund our organic growth initiatives, invest in platform innovation and support our shareholders' return commitments, all without stretching our balance sheet. As of June 30, 2026, we held $268 million in cash, cash equivalents, short-term bank deposits and marketable securities with $0 debt. During the second quarter, we continued strong execution of our shareholder return program. We repurchased 2.7 million shares for $24.5 million at an average price of $9.12 per share. Since the initiation of this buyback program, 9 quarters ago, we have repurchased a cumulative total of 18.0 million shares for $166.8 million. By the end of this year, we plan to fully execute the remaining $33.2 million under the current plan. Repurchasing our stock at current valuation levels reflects our confidence in Perion's long-term value and future prospects. Turning to our updated 2026 outlook. Based on our increased visibility for the second half of the year and the momentum we see building in our pipeline, we are narrowing our full year 2026 outlook ranges. We now expect contribution ex-TAC of $215 million to $225 million and adjusted EBITDA of $51 million to $53 million, implying an adjusted EBITDA margin of 24% at the midpoint. Our confidence in meeting this guidance is driven by tangible second half catalysts. Leading these catalysts is the execution of large-scale strategic agreements. These recently signed agreements are actively in the onboarding phase. Their material financial contribution is expected to kick in towards the end of the third quarter and accelerate moving forward. In addition, the continued scaling of Perion One growth engines, combined with a streamlined sales organization is rapidly converting a robust pipeline into realized spend. In parallel to our top line expansion, operational efficiency remains a core priority. In the first half of the year, we took decisive steps to optimize our cost structure and streamline operations. These deliberate actions are yielding productivity gains and cost savings designed to positively impact our profitability starting in the second half of the year and beyond. With an optimized expense base and growing momentum across Perion One, we are scaling our business on a strong agile foundation, and we remain completely on track to achieve our 2028 growth and efficiency targets. With that, I will now turn the call back to the operator for the Q&A session. Thank you. Operator: [Operator Instructions] Our first question comes from Andrew Marok at Raymond James. Andrew Marok: Maybe first on the Outmax and Ask Perion trends that you're seeing so far. Obviously, the double-digit growth in Outmax is great to see. But can you also talk about the synergy possibilities you see between Ask Perion and Outmax? And maybe more generally, what you're seeing with clients with tools like this are helping to make complex workflows more accessible? Tal Jacobson: Thank you, Andrew. You were breaking up, so I'll see if I got all of it. So Outmax grew and continues to grow very fast. We do see synergies between our products as Outmax is now pushing a lot of CTV, Retail and social. And Outmax is becoming an integrated part of Perion One. It actually drives lot of the AI technologies within the platform. Again, you were breaking up a bit, so I'm not sure I answered the entire question. So if you want to -- if I didn't, if you want to repeat the parts that were not answered, that would be great. Andrew Marok: I think you got most of it. It was really just kind of the synergies between Ask Perion and Outmax, both kind of these agentic tools and how generally the agentic workflows that you're bringing to market are helping make some of these complex workflows for advertisers more accessible? Tal Jacobson: Yes. So absolutely. The agentic solution that we have, including Ask Perion, is fully integrated with Outmax. So Outmax actually provides a lot of the answers within Ask Perion, including the suggestion of how do you reallocate budgets in between platforms. If you just completed a campaign on different social platforms, it will suggest what's next, right? So it would say, I would put more money towards open web, CTV or Meta or YouTube or whatever it is, but Outmax is becoming an even more integrated solution within our entire agentic platform and Ask Perion, obviously. Andrew Marok: Maybe one more if my audio will allow me. Can you talk a little bit about the trajectory toward your medium-term goals given the 2026 performance you're seeing so far? Are those still accessible for you and the path to get there? Tal Jacobson: Sorry, it's very hard to hear you, if you can repeat it for a second. Andrew Marok: Just talking about your medium-term goals and the 2026 performance so far, if you are still on track for the medium-term goals at the beginning of the year and the track on how to get there? Elad Tzubery: All right. So I think towards looking at H2 of 2026. First of all, we are starting right now to onboard some strategic agreements we have discussed about in Q1. They're recently signed, we are seeing right now onboarding into our pipeline. And we see all of our growth engines continue to generate healthy pipeline as we are looking at Q3 and Q4. And looking at last year as well, when we see the ex-TAC and EBITDA headwind on second half of the year, we feel that right now, we have the right visibility to narrowing down a bit the guidance for the continuance of the year. And of course, taking into account everything that we already did in -- with respect to efficiency measures that we took in Q1, we have the right visibility right now towards the second half of the year. Operator: Our next question comes from Jason Helfstein at Oppenheimer. Jason Helfstein: Can you hear me okay? Tal Jacobson: Yes. Jason Helfstein: Great. Okay. So can you give us a little bit of help? Obviously, you're giving us kind of the spend for Perion One, but we don't know the revenue. So I mean, obviously, the other parts of the business are still having a negative mix shift because overall revenue is still down, albeit you are guiding for like a mid-teen-ish type of growth in the back half of the year. So just maybe help us understand how much was either Perion One revenue in the quarter or the non-Perion One revenue year-over-year decline? So that's question #1. #2, would you think about perhaps changing like the segment disclosure to revenue ex-TAC since you're now guiding to revenue ex-TAC and not revenue? And so maybe giving us that like level of detail? Next question, you highlighted the RIF, headcount reduction. I'm just curious if we can get some more details like what percent of people -- how many people or what percent did that impact? And then just lastly, with the $268 million of cash, should investors assume it entirely goes to buybacks? Or are there other M&A opportunities you're looking at? Elad Tzubery: Okay. Thank you, Jason. The revenue for Q2 for Perion One was $74.2 million. You have it obviously in the presentation that we will upload again to the website. It did show a slight decline year-over-year when you're looking at the revenue, but it's something that we will expect as we onboard more customers into the Perion One. From a revenue recognition method, most of it will come on a net perspective, not necessarily as gross. So we expect to see it as well. From -- we are looking at the segment and how we are breaking that down, it is important for us to really speak about the spend and how we are contributing to spend towards different channel because we believe that the real adoption of our solution towards our customers is really coming into place when you're looking at the spend level. It's more giving an indication of our -- of the adoption of the customers. And at the end, Perion One is a channel agnostic. So when we are contributing to different channels, it makes more sense to give it -- breaking down through the spend and Perion One is a total number, which obviously is supposed to produce a better ROI for the advertisers. From the reduction standpoint, so as we discussed, I believe even starting last year, we are constantly doing improvements on how we are operating our business and improving our cost base to be more efficient. We'll be able to, first of all, of course, support all of the scale with the current cost base and improve wherever we can. We -- in H1, we're very focused about also creating this operational leverage going into the second half of the year. We just announced right now the restructuring that we did. Roughly, I can tell you that we reduced roughly 10% of the cost base. It was intentionally made also to support the different fluctuation in the FX, but also to give us some room to invest more when we are going into 2027. We want to hit the top line expansion that we are aiming to get and the growth rates to Perion One. So not everything will be baked in 2027 without even getting into the guidance right now. For your question to the -- with respect to the cash, we currently have almost $270 million in cash in our balance sheet. We are continuously trying to do -- also looking at the buybacks. So we expect to end the buyback by the end of -- the current plan by the end of the year. But we are constantly also looking on M&A activities to see if there are any interesting opportunities out there that can generate more value to the Perion customers and to really increase our synergy dollars. Something very important to highlight on that. We are doing -- we are taking a very disciplined approach when we are looking at our cash, and we're always trying to see what will get the best value to our shareholders, whether this can be a buyback or an M&A or investing in our own business for the growth, but we are always trying to balance between those 3. Tal Jacobson: Yes. I'll just echo what Elad said and say, with our current cash, obviously, buyback, we still have a healthy chunk to complete this year. We're investing in our technology. So all the growth engines, we're putting some investment there to make sure that they continue to grow and continue to outpace the market. And we're constantly looking at M&A. But as you can see in the past 2 or 3 years, we've always been disciplined in buying the right things with HiveStack, which is showing almost 3 years after, it's still showing amazing growth with Digital Out of Home. Greenbids with Outmax showing amazing growth. So we're not running to just spend the money. We are looking for good opportunities. And when we find something that makes sense and is extremely synergetic and profitable, then we can explore that. Operator: [Operator Instructions] Our next question today comes from Matthew Weber at Canaccord. Matthew Weber: Can you hear me okay? Tal Jacobson: Yes. Matthew Weber: Just one for me. You talked about execution of recently signed agreements actively on the onboarding phase and starting to kick in towards the end of Q3. Can you just talk about some of the factors that go into sort of the pacing of those contributions and what could cause them to either exceed or drive some variance relative to your expectations and sort of those customers coming online? Elad Tzubery: Yes. Thank you, Matt, for the question. So we gave a bit of color of those agreements, but it's basically a volume play to very large agencies that it operates. I can tell you that it took us a lot of time to do the onboarding and all of the testing phases. In the entire H1, we're focusing about showcasing the Perion One capabilities and why it can drive better results for them and for their customers. Right now, we just recently signed them. I think it will take a bit more time to do the onboarding phase. And then I believe that those contracts will be more materialized towards the end of Q3 and obviously, towards Q4 and mostly kick in, obviously in 2027 as well. It can be faster, and I want to be a bit careful about what -- when you look at a few months of testing, even though onboarding can take more time and it's there -- it's something that they are controlling. We are very capable to take any volume that they will decide to give us. So there can be an upside on that, but it's not under our control. And that's why currently, we still see a range in the ex-TAC level from those specific reasons and the fact that, obviously, the entire industry is very heavy on the second half of the year, specifically towards Q4. Tal Jacobson: Yes. I'll just say, again, to echo what Elad said, we spent H1 mainly showcasing how our technology can provide better outcomes than anything else to those 2 strategic clients that we have now. And we're actually happy to know -- it was a frustrating process to take so long to close those agreements. But the fact that the barrier for entry was so high gives us the confidence that our technology can provide great value and that others are going to have a very high barrier to entry, which we're considering as a very good thing. So we're feeling very optimistic about those 2 agreements, and we're now looking at how do we duplicate that with other clients. Operator: Our next question today comes from Jason Kreyer at Craig-Hallum Capital Group. Jason Kreyer: Can you guys unpack the commentary about the promotional activity on Perion One? It seems like there's maybe some take rate concessions upfront that will moderate over time. I'm just trying to understand how you migrate take rates to normalized levels and why there's more of an outsized impact in the near term? Tal Jacobson: Yes, absolutely. Thanks for the question. So as we said, during H1, we ran a lot of test campaigns. Test campaigns come with very low margins. As their name suggests, it's tests. But now, again, as we close those 2 strategic agreements, obviously, they're not going to stay at testing rates. So that should be normalized. But going forward, even though this -- we do think this is going to be normalized, we think testing budget is a great tool for us to use to showcase our technology and gain market share. So our goal is to gain as much market share as possible. But obviously, once we close those agreements and future agreements, we believe take rates will go back to normal. Elad Tzubery: And just to add on what Tal said, only starting from the second half of the year, I believe that we're going to see the take rate to be a bit slightly increasing towards the second half of the year. Jason Kreyer: And then as a follow-up, you guys had impressive growth across CTV and Out of Home and Retail Media. Can you just reconcile that to the CXT growth that was -- that declined in the quarter? When do you think the consolidated growth rates more closely align with these segments as opposed to kind of the legacy segments, which are in decline? Elad Tzubery: So I think it's not a secret that the web is driving it down. The entire industry is -- we see budget shifting away from the open web and moving towards Digital Out of Home and CTV. Our solutions of Digital Out of Home and CTV are very much focusing most of them around self-serve which increasing the take rate from what we used to see in the past. But having said that, I think that our take rates are still very healthy when you are looking at total Perion One. And we even -- they were even relatively high when we're looking at, so it gives us some room for all of those promotional years that we have discussed. When we are looking about the different channels, again, in our opinion, the best structured way to give it is on the spend because this is what really -- the discussion with the customers showcase really the adoption of how much we are using the platform. And the Perion One, usually, it's a channel agnostic and it's not something that's under our control in terms of the take rate. We are, of course, controlling the overall take rate that we are expecting to get out of certain campaign, but not necessarily about where the money will be deployed in which channel. So I'm assuming also next, we'll start to see more -- it leans towards CTV and Digital Out of Home as well. And obviously, we will influence that. But I would not expect it to grow relatively lower than the 20% rate that we see right now. As said, in H2, even we're going to see a moderate increase. Operator: Our final question today comes from Eric Martinuzzi at Lake Street. Eric Martinuzzi: Curious to know the repeat customers that are using Outmax. Are you seeing larger spend on subsequent campaigns? Tal Jacobson: Yes. Thank you. I think the interesting thing about Outmax, specifically, it's a great product for the land and expand model. The majority of our clients that are using it started from small budgets and now they're growing quarter-over-quarter within the same account. So since Outmax is outcome driven, it can show actual business results for our clients. It's a very natural land-and-expand type of model with the majority of our clients of Outmax. Eric Martinuzzi: And I noticed in your guidance, you lowered the midpoint for the contribution ex-TAC for 2026. Was this a result of a slower-than-expected ramping of these 2 large strategic accounts? Elad Tzubery: Yes, Eric, I think that -- first of all, it's we -- our initial expectation was that this onboarding and those agreements will be signed earlier in the year, and we will be able to see more growth out there. But also factoring all of the macro headwinds that we saw in H1, we had better visibility to see where we are. But the reduce of the ex-TAC was -- narrowing down to the lower end was actually because of those 2 main factors. Eric Martinuzzi: Yes. And I did note that you reiterated the midpoint on the adjusted EBITDA. So that was good to see. Tal Jacobson: Yes. Elad Tzubery: Yes. Operator: This concludes today's Q&A. I'll now hand back to management for any closing remarks. Thank you. Tal Jacobson: Thank you. Thank you all for joining. Perion One adoption is accelerating across every growth engine, and we're entering the second half with clear momentum. We look forward to updating you in the next quarter. Thank you for your time. Operator: This concludes today's call. 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Perion One adoption accelerated with spend up 15% YoY,driven by strong growth of CTV by 56%, DOOH by 45%, Retail Media by 60%, and Outmax AI Agent by 136%Narrowing 2026 Guidance range NEW YORK & TEL AVIV, Israel, August 10, 2026--(BUSINESS WIRE)--Perion Network Ltd. (NASDAQ and TASE: PERI), an advanced technology leader solving for the complexities of digital advertising through AI-native execution infrastructure, today reported its financial results for the second quarter ended June 30, 2026. "In the second quarter, we continued to strengthen the foundation for Perion’s next phase of growth," said Tal Jacobson, Perion’s CEO. "Our strategy has long been built around diversifying away from the Open Web. Over the past two years, we have accelerated that shift through both organic investment and M&A, responding to changing customer demand and market dynamics. This quarter’s results reflect that progress, with strong momentum across CTV, DOOH, Retail Media, and Outmax, our AI Agent. Recent strategic wins, including Best Buy Canada’s selection of Perion as its in-store Retail Media DOOH technology partner and the rollout of our Ask Perion AI application, further demonstrate that momentum. We remain focused on the expected second-half ramp, supported by continued investment in these growth engines, while the efficiency measures to optimize our cost base, which were completed this quarter, create additional capacity to support that growth." Second Quarter 2026 Business and Financial Highlights Perion One's spend increased 15% YoY to $156.7 million Growth engines performance: Total revenue of $98.2 million Total contribution ex-TAC of $42.3 million, with a 43% margin Adjusted EBITDA of $2.8 million Cash flow from operations of $2.5 million, adjusted free cash flow of $4.8 million Repurchased 2.7 million shares for a total of $24.5 million Business highlights: Second Quarter 2026 Financial Highlights2 Financial Outlook for Full-Year 20263 Based on current expectations, the Company is narrowing its full-year 2026 outlook ranges: Contribution ex-TAC2 of $215 to $225 million, from $215 to $235 previously Adjusted EBITDA2 of $51 to $53 million, from $50 to $54 previously "We are narrowing our full-year outlook to reflect our first half performance and increased visibility into second-half trends," said Elad Tzubery, Perion’s CFO. "Our comfort in delivering this updated outlook is supported by tangible catalysts. Our structural cost reductions have established a streamlined, highly optimized expense base. This positions us to capture significant operating leverage as recently signed strategic agreements begin contributing and momentum across Perion One accelerates. Together, these operational efficiencies and top-line drivers protect our profitability and support our second-half 2026 acceleration." Share Repurchase Program During the second quarter of 2026, the Company repurchased a total of approximately 2.7 million shares for a total amount of $24.5 million As of June 30, 2026, under the authorized $200 million share repurchase plan, the Company repurchased a total of 18.0 million shares for a total amount of $166.8 million Financial Comparison for the Second Quarter of 2026 Revenue: Revenue decreased by 5% to $98.2 million in the second quarter of 2026 from $103.0 million in the second quarter of 2025. Advertising Solutions revenue decreased 5% year-over-year, accounting for 78% of revenue, primarily due to a decrease in our Web channel. Search Advertising revenue decreased by 2% year-over-year, accounting for 22% of revenue. Traffic Acquisition Costs and Media Buy ("TAC"): TAC amounted to $55.9 million, or 57% of revenue, in the second quarter of 2026, compared with $55.4 million, or 54% of revenue, in the second quarter of 2025. GAAP Net loss: GAAP net loss was $6.8 million in the second quarter of 2026, compared with $3.5 million in the second quarter of 2025. GAAP net loss in the second quarter of 2026 includes $2.5 million in restructuring costs and other charges, partially offset by $1.9 million in income related to change in fair value of contingent consideration. Non-GAAP Net Income: Non-GAAP net income was $3.9 million, or 4% of revenue, in the second quarter of 2026, compared with $12.0 million, or 12% of revenue, in the second quarter of 2025. A reconciliation of GAAP to non-GAAP net income is included in this press release. Adjusted EBITDA: Adjusted EBITDA was $2.8 million, or 3% of revenue and 7% of Contribution ex-TAC in the second quarter of 2026, compared with $7.1 million, or 7% of revenue and 15% of Contribution ex-TAC in the second quarter of 2025. A reconciliation of GAAP income from operations to Adjusted EBITDA is included in this press release. Cash Flow from Operations: Net cash provided by operating activities in the second quarter of 2026 was $2.5 million, compared with net cash provided by operating activities of $21.3 million in the second quarter of 2025. Net cash: As of June 30, 2026, cash and cash equivalents, short-term bank deposits and marketable securities, amounted to $267.8 million, compared with $312.9 million as of December 31, 2025. Conference Call Perion’s management will host a conference call to discuss the results at 8:30 a.m. ET today: Registration link: https://perion-q2-2026-earnings-call.open-exchange.net/ A replay of the call and a transcript will be available within approximately 24 hours of the live event on Perion’s website. About Perion Network Ltd. Perion is an advanced technology leader redefining advertising through AI-native infrastructure, delivering real-time media execution across CTV, digital out-of-home, commerce and retail media, social and digital environments. Powered by Outmax, the company's proprietary AI engine, Perion helps brands, agencies, and retailers optimize spend and performance, driving measurable outcomes at scale. For more information, visit www.perion.com Non-GAAP Measures Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude certain items. This press release includes certain non-GAAP measures, including Contribution ex-TAC, Adjusted EBITDA, Adjusted free cash flow, Non-GAAP net income and non-GAAP diluted earnings per share. Contribution ex-TAC presents revenue reduced by traffic acquisition costs and media buy, reflecting a portion of our revenue that must be directly passed to publishers or advertisers and presents our revenue excluding such items. We believe Contribution ex-TAC is a useful measure in assessing the performance of the Company because it facilitates a consistent comparison against our core business without considering the impact of traffic acquisition costs and media buy related to revenue reported on a gross basis. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") is defined as GAAP income (loss) from operations excluding stock-based compensation expenses, retention and other acquisition-related expenses, unusual legal costs, gains and losses recognized with respect to changes in fair value of contingent consideration, amortization of acquired intangible assets, restructuring costs and other charges as well as depreciation. Adjusted free cash flow is defined as net cash provided by (or used in) operating activities less cash used for the purchase of property and equipment, net of sales and capitalized software development costs, but excluding the purchase of property and equipment related to our new corporate headquarter office, the portion of the cash payment of contingent consideration in excess of the acquisition date fair value and retention payment related to acquisitions, as we do not view either of those expenses as reflective of our normal on-going expenses. It is important to note that these expenses are in fact cash expenditures. Non-GAAP net income and non-GAAP diluted earnings per share are defined as GAAP net income (loss) and GAAP net earnings (loss) per share excluding stock-based compensation expenses, amortization of acquired intangible assets and the related taxes thereon, retention and other acquisition-related expenses, unusual legal costs, gains and losses recognized with respect to changes in fair value of contingent consideration, restructuring costs and other charges as well as foreign exchange gains and losses associated with ASC-842. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage and evaluate our business and make operating decisions, and we believe that they are useful to investors as a consistent and comparable measure of the ongoing performance of our business. However, our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these projected measures, together with some of the excluded information not being ascertainable or accessible, we are unable to quantify certain amounts that would be required for such presentation without unreasonable effort. Consequently, no reconciliation of the forward-looking non-GAAP financial measures is included in this press release. A reconciliation between results on a GAAP and non-GAAP basis is provided in the last table of this press release. Forward Looking Statements This press release contains historical information and forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the safe- harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of Perion. The words "will," "believe," "expect," "intend," "plan," "should," "estimate" and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of Perion with respect to future events and are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Many factors could cause the actual results, performance or achievements of Perion to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, or financial information, including, but not limited to, political, economic and other developments (including the current war between Israel and Hamas and other armed groups in the region), the failure to realize the anticipated benefits of companies and businesses we acquired and may acquire in the future, risks entailed in integrating the companies and businesses we acquire, including employee retention and customer acceptance, the risk that such transactions will divert management and other resources from the ongoing operations of the business or otherwise disrupt the conduct of those businesses, and general risks associated with the business of Perion including, loss of, or reduction in our business with, key customers or other partners that are material to our business, the impact of the rapid development and broad adoption of generative AI on our business, the transformation in our strategy, intended to unify our business units under the Perion brand (Perion One), intense and frequent changes in the markets in which the businesses operate and in general economic and business conditions (including the fluctuation of our share price), armed conflicts with Iran and other parties, the outcome of any pending or future proceedings against Perion, data breaches, cyber-attacks and other similar incidents, unpredictable sales cycles, competitive pressures, market acceptance of new products and of the Perion One strategy, changes in applicable laws and regulations as well as industry self-regulation, negative or unexpected tax consequences, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, whether referenced or not referenced in this press release. We urge you to consider those factors, together with the other risks and uncertainties described in our most recent Annual Report on Form 20-F for the year ended December 31, 2025 as filed with the Securities and Exchange Commission (SEC) on March 16, 2026, and our other reports filed with the SEC, in evaluating our forward-looking statements and other risks and uncertainties that may affect Perion and its results of operations. Perion does not assume any obligation to update these forward-looking statements. View source version on businesswire.com: https://www.businesswire.com/news/home/20260810317766/en/ Contacts Perion Network Ltd.Dudi Musler, VP of Investor Relations+972 (54) [email protected]

This article first appeared on GuruFocus. Total Spend: Increased 9% year-over-year to $194.7 million. PerionOne Spend: Grew 15% year-over-year to $156.7 million, accounting for 80% of total spend. CTV Spend: Grew 56% year-over-year to $17.7 million. Digital Out-of-Home Spend: Grew 45% year-over-year to $87.7 million. Retail Media Spend: Grew 60% year-over-year to $59.4 million. Outmax Spend: Grew 136% year-over-year on a pro forma basis. Revenue: $98.2 million, down 5% year-over-year. Contribution ex-TAC: $42.3 million, down 11% year-over-year. PerionOne Contribution ex-TAC: $34.9 million, down 4% year-over-year, representing 83% of total contribution ex-TAC. Search Revenue: Declined 2% year-over-year. Search Contribution ex-TAC: Declined 30% year-over-year. Adjusted EBITDA: $2.8 million, representing a 7% margin of contribution ex-TAC, including a $1.6 million foreign exchange headwind. GAAP Net Loss: $6.8 million, or $0.18 per diluted share. Non-GAAP Net Income: $3.9 million, or $0.09 per diluted share. Net Cash from Operating Activities: $2.5 million. Adjusted Free Cash Flow: $4.8 million. Cash and Marketable Securities: $268 million as of June 30, 2026, with zero debt. Share Repurchases: Repurchased 2.7 million shares for $24.5 million during the quarter at an average price of $9.12 per share. 2026 Guidance: Contribution ex-TAC of $215 to $225 million and adjusted EBITDA of $51 to $53 million. Warning! GuruFocus has detected 2 Warning Sign with PERI. Is PERI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. PerionOne platform spend grew 15% year-over-year to $156.7 million, with CTV and digital out-of-home channels growing 56% and 45%, respectively. Outmax, the AI agent, continued to scale rapidly with spend growing 136% year-over-year on a pro forma basis. Retail media vertical spend significantly accelerated, growing 60% year-over-year to $59.4 million. Best Buy Canada selected Perion as its end-to-end in-store retail media technology partner, expanding the company's reach in the retail media and digital out-of-home sectors. The company maintains a strong balance sheet with $268 million in cash and zero debt, and continues to execute a disciplined share repurchase program, buying back 2.7 million shares for $24.5 million in the quarter. Total revenue declined 5% year-over-year to $98.2 million, and contribution ex-TAC decreased 11% to $42.3 million. PerionOne contribution ex-TAC declined 4% year-over-year due to the use of promotional terms to acquire new accounts, which temporarily impacted take rates. The company narrowed its full-year 2026 contribution ex-TAC guidance to $215-$225 million, reflecting a softer first half and slower-than-expected ramping of strategic accounts. Adjusted EBITDA was only $2.8 million in the quarter, impacted by a $1.6 million foreign exchange headwind. The company executed targeted efficiency initiatives, including a roughly 10% reduction in its cost base, to optimize operations and support profitability in the second half of the year. Q: Can you unpack the commentary about the promotional activity on Perion One? It seems like there's maybe some take rate concessions upfront that'll moderate over time. How do you migrate take rates to normalized levels and why is there more of an outsized impact in the near term?A: Tal Jacobson (CEO) explained that during H1, the company ran many test campaigns, which naturally come with very low margins. Now that two strategic agreements have been closed, those rates are expected to normalize. He emphasized that testing budgets are a great tool to showcase technology and gain market share, but once agreements are closed, take rates will return to normal. Elad Tzubery (CFO) added that starting in the second half of the year, they expect to see take rates slightly increasing. Q: You had impressive growth across CTV, out-of-home, and retail media. Can you reconcile that to the contribution ex-TAC growth that declined in the quarter? When do you think consolidated growth rates more closely align with these segments as opposed to the legacy segments which are in decline?A: Elad Tzubery (CFO) stated that the open web is driving the decline, as budgets shift away from it towards CTV, out-of-home, and retail media. He noted that Perion One is channel-agnostic, and the best structural way to measure adoption is through spend levels. He expects the mix to continue leaning towards CTV and out-of-home, with contribution ex-TAC expected to grow at a rate relatively higher than the 20% seen currently, with a moderate increase expected in H2. Q: Can you talk about the synergy possibilities between Ask Perion and Outmax? How are these agentic tools helping make complex workflows more accessible for advertisers?A: Tal Jacobson (CEO) confirmed that the agentic solutions, including Ask Perion, are fully integrated with Outmax. Outmax provides many of the answers within Ask Perion, including suggestions on how to reallocate budgets between platforms after a campaign completes. He described Outmax as becoming an even more integrated solution within the entire agentic platform, driving a lot of the AI technologies within Perion One. Q: Can you talk about the trajectories for your medium-term goals given the 2026 performance so far? Are those still accessible for you?A: Elad Tzubery (CFO) responded that the company is focused on H2 2026, with strategic agreements recently signed and currently in the onboarding phase. He noted that all growth engines continue to generate a healthy pipeline for Q3 and Q4. Given the efficiency measures taken in Q1, the company has the right visibility towards the second half of the year and remains on track to achieve its 2028 growth and efficiency targets. Q: Can you give us some help on the revenue breakdown? How big was Perion One revenue in the quarter, and what was the non-Perion One revenue year-over-year decline? Would you consider changing segment disclosure to revenue ex-TAC? Also, can you provide details on the headcount reduction and whether the $268 million cash balance should be assumed to go entirely to buybacks?A: Elad Tzubery (CFO) disclosed that Perion One revenue for Q2 was $74.2 million, showing a slight year-over-year decline due to the net revenue recognition method for new customers. He defended the focus on spend metrics, as Perion One is channel-agnostic. Regarding the restructuring, he confirmed it reduced roughly 10% of the cost base, designed to support FX fluctuations and provide room to invest in 2027. On capital allocation, he stated the company expects to complete the current buyback plan by year-end but is constantly evaluating M&A opportunities with a disciplined approach to maximize shareholder value. Q: You mentioned recently signed agreements actively in the onboarding phase with contributions starting towards the end of Q3. Can you talk about the factors that go into the pacing of those contributions and what could cause variance relative to expectations?A: Elad Tzubery (CFO) explained that these are volume plays with very large agencies. The entire H1 was focused on showcasing Perion One's capabilities and completing testing phases. Now that agreements are signed, onboarding will take more time, with materialization expected towards the end of Q3 and into Q4 and 2027. He noted there could be upside if the agencies decide to give volume faster, but it's not under the company's control. Tal Jacobson (CEO) added that the high barrier to entry for these agreements gives confidence in the technology's value and makes it difficult for competitors to replicate. Q: For the repeat customers that are using Outmax, are you seeing larger spend on subsequent campaigns?A: Tal Jacobson (CEO) confirmed that Outmax is a great product for the land-and-expand model. The majority of clients using it started with small budgets and are now growing quarter over quarter within the same account. Since Outmax is outcome-driven and can show actual business results, it creates a very natural land-and-expand model for the majority of clients. Q: You lowered the midpoint for the contribution ex-TAC guidance for 2026. Was this a result of slower than expected ramping of the two large strategic accounts?A: Elad Tzubery (CFO) confirmed that the initial expectation was for these agreements to be signed earlier in the year, allowing for more growth. However, factoring in the macro headwinds seen in H1, the company narrowed the contribution ex-TAC guidance to the lower end due to those two main factors. He reiterated that the adjusted EBITDA midpoint was maintained. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Perion Network Ltd? Here are five stocks we like better. Growth shifted toward newer advertising channels: Perion One spend rose 15% year over year to $156.7 million, while CTV, digital out-of-home and retail media spend grew 56%, 45% and 60%, respectively. Outmax AI spending increased 136% on a pro forma basis. Overall financial performance remained pressured: Revenue fell 5% to $98.2 million and contribution ex-TAC declined 11% to $42.3 million, largely because of open-web weakness and promotional pricing for customer acquisition. The company posted a $6.8 million GAAP net loss but held $268 million in cash and had no debt. Perion narrowed its 2026 outlook: Management now expects contribution ex-TAC of $215 million to $225 million and adjusted EBITDA of $51 million to $53 million. Cost reductions, improving customer take rates and delayed agency agreements are expected to support stronger second-half results, while the company plans to complete its remaining $33.2 million share-buyback authorization by year-end. Three AI Trades That Could Double This Year Perion Network (NASDAQ:PERI) reported second-quarter results marked by growth in its Perion One platform and newer advertising channels, while overall revenue and contribution ex-TAC declined amid continued softness in open-web advertising and promotional pricing for customer acquisition. Chief Executive Officer Tal Jacobson said the company’s strategy has centered on diversifying away from the open web and building its capabilities in connected TV, retail media and digital out-of-home advertising. He said those channels outpaced the broader market during the quarter, while the company’s Outmax AI agent recorded triple-digit year-over-year spend growth. → MarketBeat Week in Review – 08/03 - 08/07 Perion Network Is Monetizing The Internet And Delivering Value Total spend increased 9% year over year to $194.7 million in the second quarter. Spend on Perion One, the company’s unified advertising platform, rose 15% to $156.7 million and represented 80% of total spend, compared with 76% a year earlier. Chief Financial Officer Elad Tzubery said CTV spend grew 56% year over year to $17.7 million, while digital out-of-home spend increased 45% to $87.7 million. Retail media spend rose 60% to $59.4 million. Outmax spend increased 136% year over year on a pro forma basis, according to the company. → Quantum Earnings Week: Winners and Losers Are Finally Emerging Perion Network Stock is a Digital Monetization Play Those gains were partly offset by ongoing weakness in open-web advertising. Revenue fell 5% year over year to $98.2 million, while total contribution ex-TAC declined 11% to $42.3 million. Perion One contribution ex-TAC was $34.9 million, down 4% from the prior-year period, but accounted for 83% of total contribution ex-TAC, up from 76% a year earlier. Tzubery attributed the decline in Perion One contribution ex-TAC primarily to promotional terms used to win new accounts and increase spending from existing customers. During the question-and-answer session, Jacobson said the company conducted a number of test campaigns during the first half that carried low margins. Management expects take rates to normalize over time and modestly improve in the second half of 2026. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Search revenue declined 2% year over year, while search contribution ex-TAC fell 30%. Tzubery said Perion continues to manage the search business to maximize cash flow for reinvestment in Perion One and shareholder returns. Adjusted EBITDA was $2.8 million, representing 7% of contribution ex-TAC. The result included a $1.6 million foreign-exchange headwind; excluding that impact, adjusted EBITDA would have been $4.4 million, Tzubery said. On a GAAP basis, Perion posted a net loss of $6.8 million, or $0.18 per diluted share. On a non-GAAP basis, the company reported net income of $3.9 million, or $0.09 per diluted share. Tzubery said the increase in the GAAP net loss was driven primarily by foreign-exchange effects in non-operating finance income and lower interest income from the company’s cash balance. Net cash from operating activities totaled $2.5 million during the quarter, while adjusted free cash flow was $4.8 million. As of June 30, Perion had $268 million in cash equivalents, short-term bank deposits and marketable securities, with no debt. The company repurchased 2.7 million shares for $24.5 million during the quarter, at an average price of $9.12 per share. Since launching the buyback program nine quarters ago, Perion has repurchased 18 million shares for $166.8 million. Management said it plans to complete the remaining $33.2 million under the current authorization by year-end. Perion highlighted several commercial and technology initiatives during the quarter. Best Buy Canada selected the company as its end-to-end in-store retail media technology partner for its digital signage network. Perion said its ad server, supply-side platform and header-bidding technologies will support a shift from fixed-loop signage to programmatic retail media buying. The company also added programmatic guaranteed digital out-of-home deal execution within Google’s DV360 media platform. Perion said the capability covers more than 1.6 million screens in over 40 countries and is intended to allow buyers to access its digital out-of-home inventory through their existing workflow. In addition, Perion partnered with Acrossmedia241 to bring Outmax to Greece and Central and Eastern Europe. Jacobson said the partner-led distribution model is designed to extend the company’s reach with low incremental costs. The company also added access to Fetch purchase-intelligence data through LiveRamp, providing advertisers with verified SKU-level purchase data sourced from more than 13 million monthly active users and over 26,000 merchants. Perion introduced “Ask Perion,” a conversational self-service application within Perion One. Jacobson said the tool is integrated with Outmax and can provide recommendations on budget allocations across advertising platforms and channels. Perion narrowed its full-year 2026 outlook, projecting contribution ex-TAC of $215 million to $225 million and adjusted EBITDA of $51 million to $53 million. The adjusted EBITDA range implies a 24% margin at the midpoint. Tzubery said the contribution ex-TAC outlook reflects a softer first half, including slower-than-expected timing for the signing and onboarding of two large strategic agency agreements. Management expects the agreements to begin making a more material contribution toward the end of the third quarter and accelerate in the fourth quarter and beyond. The company also said targeted efficiency initiatives implemented at the end of the second quarter are expected to support an improvement in adjusted EBITDA margin during the second half. Tzubery said Perion reduced roughly 10% of its cost base as part of its restructuring and efficiency measures. Jacobson said the company remains focused on expanding Perion One adoption, investing in its growth engines and selectively evaluating merger-and-acquisition opportunities alongside share repurchases and internal investment. Perion Network Ltd. (NASDAQ: PERI) is a digital advertising technology company that offers a suite of solutions designed for both brand marketers and performance-driven advertisers. The firm's platform integrates search monetization, programmatic display, video and connected TV (CTV) advertising to help clients reach and engage audiences across desktop, mobile and television environments. Through proprietary algorithms and AI-driven tools, Perion's technology optimizes ad placements in real time, aiming to boost campaign efficiency and return on investment for publishers and advertisers alike. Key offerings include search engine marketing services that cover major platforms such as Google and Bing, native and display advertising solutions under its Undertone brand, as well as social and video ad formats. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Perion Network Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Perion Network (PERI) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +350.00%. A quarter ago, it was expected that this digital media company would post earnings of $0.06 per share when it actually produced earnings of $0.11, delivering a surprise of +83.33%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Perion Network, which belongs to the Zacks Internet - Content industry, posted revenues of $98.24 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.76%. This compares to year-ago revenues of $102.98 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Perion Network shares have added about 2.4% since the beginning of the year versus the S&P 500's gain of 13.3%. While Perion Network has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Perion Network was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.31 on $120.15 million in revenues for the coming quarter and $1.02 on $464.24 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Content is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Similarweb (SMWB), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This digital intelligence company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +200%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Similarweb's revenues are expected to be $75.5 million, up 6.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Perion Network Ltd (PERI) : Free Stock Analysis Report Similarweb Ltd. (SMWB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Angi (ANGI) came out with quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.2 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -45.00%. A quarter ago, it was expected that this provider of a digital marketplace for home services would post a loss of $0.41 per share when it actually produced a loss of $0.22, delivering a surprise of +46.34%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Angi, which belongs to the Zacks Internet - Content industry, posted revenues of $248 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 5.02%. This compares to year-ago revenues of $278.22 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Angi shares have lost about 54.1% since the beginning of the year versus the S&P 500's gain of 11%. While Angi has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Angi was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.17 on $246 million in revenues for the coming quarter and $0.16 on $967.7 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Content is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Perion Network (PERI), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This digital media company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -92.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Perion Network's revenues are expected to be $97.5 million, down 5.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Angi Inc. (ANGI) : Free Stock Analysis Report Perion Network Ltd (PERI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NEW YORK & TEL AVIV, Israel, July 20, 2026--(BUSINESS WIRE)--Perion Network Ltd. (NASDAQ & TASE: PERI), an advanced technology leader solving for the complexities of digital advertising through AI-native execution infrastructure, announced today it plans to release its financial results for the second quarter 2026 prior to the opening of the financial markets on Monday, August 10, 2026. Tal Jacobson, CEO, and Elad Tzubery, CFO, will host a conference call to discuss the results on that day at 8:30 a.m. ET. Earning call registration link:https://perion-q2-2026-earnings-call.open-exchange.net/ A replay of the call and a transcript will be available within approximately 24 hours of the live event on Perion’s website at www.perion.com/investors. About Perion Perion is an advanced technology leader redefining advertising through AI-native infrastructure, delivering real-time media execution across CTV, digital out-of-home, commerce and retail media, social and digital environments. Powered by Outmax, the company's proprietary AI engine, Perion helps brands, agencies, and retailers optimize spend and performance, driving measurable outcomes at scale. For more information, visit Perion's website at www.perion.com. Forward-Looking Statements This press release contains historical information and forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the safe- harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of Perion. The words "will," "believe," "expect," "intend," "plan," "should," "estimate" and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of Perion with respect to future events and are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Many factors could cause the actual results, performance or achievements of Perion to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, or financial information, including, but not limited to, political, economic and other developments (including the current war between Israel and Hamas and other armed groups in the region), the failure to realize the anticipated benefits of companies and businesses we acquired and may acquire in the future, risks entailed in integrating the companies and businesses we acquire, including employee retention and customer acceptance, the risk that such transactions will divert management and other resources from the ongoing operations of the business or otherwise disrupt the conduct of those businesses, and general risks associated with the business of Perion including, loss of, or reduction in our business with, key customers or other partners that are material to our business, the impact of the rapid development and broad adoption of generative AI on our business, the transformation in our strategy, intended to unify our business units under the Perion brand (Perion One), intense and frequent changes in the markets in which the businesses operate and in general economic and business conditions (including the fluctuation of our share price), armed conflicts with Iran and other parties, the outcome of any pending or future proceedings against Perion, data breaches, cyber-attacks and other similar incidents, unpredictable sales cycles, competitive pressures, market acceptance of new products and of the Perion One strategy, changes in applicable laws and regulations as well as industry self-regulation, negative or unexpected tax consequences, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, whether referenced or not referenced in this press release. We urge you to consider those factors, together with the other risks and uncertainties described in our most recent Annual Report on Form 20-F for the year ended December 31, 2025 as filed with the Securities and Exchange Commission (SEC) on March 16, 2026, and our other reports filed with the SEC, in evaluating our forward-looking statements and other risks and uncertainties that may affect Perion and its results of operations. Perion does not assume any obligation to update these forward-looking statements. View source version on businesswire.com: https://www.businesswire.com/news/home/20260720585461/en/ Contacts Perion Network Ltd.Dudi Musler, VP of Investor Relations+972 (54) [email protected]

It's been a mediocre week for Perion Network Ltd. (NASDAQ:PERI) shareholders, with the stock dropping 15% to US$8.84 in the week since its latest first-quarter results. The statutory results were mixed overall, with revenues of US$90m in line with analyst forecasts, but losses of US$0.26 per share, some 6.4% larger than the analysts were predicting. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. After the latest results, the six analysts covering Perion Network are now predicting revenues of US$466.3m in 2026. If met, this would reflect a credible 5.7% improvement in revenue compared to the last 12 months. Statutory losses are forecast to balloon 95% to US$0.012 per share. In the lead-up to this report, the analysts had been modelling revenues of US$473.5m and earnings per share (EPS) of US$0.014 in 2026. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results. Check out our latest analysis for Perion Network With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 8.0% to US$13.00, with the analysts signalling that growing losses would be a definite concern. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Perion Network at US$14.00 per share, while the most bearish prices it at US$12.00. This is a very narrow spread of estimates, implying either that Perion Network is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Perion Network's past performance and to peers in the same industry. The analysts are definitely expecting Perion Network's growth to accelerate, with the forecast 7.7% annualised growth to the end of 2026 ranking favourably alongside historical growth of 0.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Perion Network to grow faster than the wider industry. The most important thing to take away is that the analysts are expecting Perion Network to become unprofitable next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Perion Network's future valuation. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Perion Network going out to 2028, and you can see them free on our platform here.. Even so, be aware that Perion Network is showing 1 warning sign in our investment analysis , you should know about... Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

This article first appeared on GuruFocus. Release Date: May 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Perion Network Ltd (NASDAQ:PERI) reported a 6% year-over-year increase in PerionOne spend, indicating strong platform adoption. Outmax, the AI agent technology, showed significant growth, with a 300% increase in spend year-over-year. The company entered into an exclusive partnership with McSurly Media and MediaMark to expand its footprint in Africa, unlocking a programmatic market forecasted to reach $6.5 billion by 2029. Perion Network Ltd (NASDAQ:PERI) reported a 68% year-over-year growth in CTV spend, highlighting strong demand for its performance-driven capabilities. The company maintains a strong liquidity position with $293 million in cash equivalents, providing financial flexibility for future investments and shareholder returns. Revenue for the first quarter was $90.4 million, only a 1% increase year-over-year, indicating slower growth compared to industry benchmarks. Adjusted EBITDA decreased to $0.5 million from $1.8 million in the first quarter of 2025, primarily due to higher go-to-market investments. The company experienced macroeconomic headwinds, including inflation in oil prices and tensions in the Middle East, impacting budget spends, especially in the CPG sector. Search revenue increased by 21% year-over-year, but the related contribution ex-TAC decreased by 70% due to the transition away from the Microsoft agreement. The advertising solutions revenue decreased due to product mix changes, with more revenue recognized on a net basis, impacting overall revenue growth. Warning! GuruFocus has detected 3 Warning Signs with PERI. Is PERI fairly valued? Test your thesis with our free DCF calculator. Q: How is Perion Network differentiating its Outmax AI agent in the increasingly crowded agentic space, and what has contributed to its significant growth? A: Tal Jacobson, CEO, explained that Outmax has grown by over 300% due to its unique capability to operate across CTV, web, and social platforms, including closed gardens. This comprehensive reach is a significant advantage, allowing it to be the only AI agent technology that can run across all these channels and platforms. Q: Can you provide more details on the macroeconomic conditions affecting advertising spend and how Perion is navigating these challenges? A: Elad Zuberi, CFO, noted that inflation, oil prices, and Middle East tensions have created uncertainty, particularly affecting CPG budgets. Advertisers are also planning budgets in shorter cycles. Despite these challenges, Perion sees growing momentum in its pipeline, especially with the adoption of Outmax, which is factored into their guidance for the year. Q: What changes are being made to the sales leadership team to better convert pipeline into realized revenue? A: Tal Jacobson, CEO, mentioned that the organization is being streamlined by flattening the structure and introducing new AI capabilities for the sales team. This includes an AI SDR for faster lead qualification, aiming to accelerate sales and improve efficiency. Q: How is Perion planning to expand Outmax in African markets, and what are the expected investments? A: Tal Jacobson, CEO, stated that Perion has launched partnerships with resellers in Africa and plans to expand further without significant additional costs. Outmax is seen as an ideal product for resellers due to its ease of setup and broad applicability across major platforms like Meta, YouTube, and TikTok. Q: How does Perion plan to address the gap in growth rates compared to the broader ad tech industry, and what role does AI play in this strategy? A: Elad Zuberi, CFO, explained that the focus is on contribution ex-TAC and spend as key indicators of growth, rather than revenue alone. Tal Jacobson, CEO, added that AI is integral to both internal efficiencies and product development, with new AI-driven products and features being launched to enhance growth and operational efficiency. For the complete transcript of the earnings call, please refer to the full earnings call transcript.