Perion Network Ltd. Q3 Earnings Call Highlights

Perion Network Ltd ((PERI)) has held its Q3 earnings call. Read on for the main highlights of the call.

Perion Network Ltd. recently held its Q3 2025 earnings call, which highlighted a strong overall performance despite some challenges. The company reported notable revenue growth, increased EBITDA, and strategic advancements in products and partnerships. However, challenges were noted in the web revenue segment, and a GAAP net loss was reported. Despite these hurdles, the expansion of the share repurchase program and robust growth in key segments like CTV and digital out of home suggest a positive outlook for the company.

Strong Revenue Growth and Contribution

Perion Network Ltd. reported a revenue of $110.5 million, marking an 8% year-over-year growth. The contribution excluding traffic acquisition costs (ex TAC) was $51 million, up 7% from the previous year, with a healthy margin of 46%. This growth underscores the company’s ability to generate substantial revenue while maintaining efficient cost management.

Adjusted EBITDA Increase

The company’s adjusted EBITDA saw a significant increase of 63% year-over-year, reaching $12.1 million. This impressive growth reflects the early results of Perion’s efficiency initiatives, highlighting the company’s focus on improving operational efficiencies and profitability.

Robust Growth in Key Segments

Perion’s core growth engines, including Connected TV (CTV), retail media, and digital out of home, demonstrated remarkable growth rates of 75%, 40%, and 26% respectively. These figures outpaced overall market growth, showcasing Perion’s strong position and competitive advantage in these rapidly expanding sectors.

Expansion of Share Repurchase Program

In a move that reflects confidence in its long-term growth prospects, Perion expanded its share repurchase program by an additional $75 million, bringing the total program to $200 million. This strategic decision underscores the company’s commitment to enhancing shareholder value and its belief in the sustainability of its growth trajectory.

Launch of New Products and Strategic Partnerships

Perion introduced several strategic products, including Outmax, Soda, and the Digital Out of Home Player. Additionally, the company formed partnerships such as the one with Albertsons Media Collective, further expanding its market presence and enhancing its product offerings.

Decline in Web Revenue

The earnings call revealed a decline in web revenue by 11% year-over-year. This decrease is attributed to a continued trend of lower advertiser appetite for standard display and video formats, as well as the discontinuation of lower-margin activities. This segment remains a challenge for the company as it navigates changing market dynamics.

GAAP Net Loss

Perion reported a GAAP net loss of $4.1 million, or $0.10 per diluted share, for the third quarter. Despite this loss, the company remains optimistic about its strategic initiatives and growth potential in other areas.

Forward-Looking Guidance

During the earnings call, Perion provided robust forward-looking guidance, projecting revenues between $430 million and $450 million for the full year 2025. Adjusted EBITDA is expected to be between $44 million and $46 million. The company highlighted significant growth across various metrics, emphasizing its strategic transformation and focus on sustainable growth, innovation, and operational efficiency.

In conclusion, Perion Network Ltd.’s Q3 2025 earnings call presented a mixed yet optimistic picture. While challenges persist, particularly in the web revenue segment, the company’s strong performance in key growth areas and strategic initiatives suggest a positive outlook. The expansion of the share repurchase program and robust forward-looking guidance further reinforce confidence in Perion’s long-term growth potential.