Perion Network (PERI) AI Stock Analysis

Compare

1,398 Followers

Top Page

Perion Network

(NASDAQ:PERI)

Rating:55Neutral

Price Target:

$9.50

▲(3.37% Upside)

Perion Network's overall score reflects a mixed financial performance with strong balance sheet but recent profitability challenges. Technical indicators suggest bearish momentum, and valuation metrics are unattractive due to negative earnings. However, the positive sentiment from the earnings call and strategic growth initiatives offer some optimism.

Positive Factors

Financial Performance

PERI reported financial results that exceeded analyst estimates in several key areas.

Strategic Initiatives

The acquisition of Greenbids substantially widens PERI's total addressable market.

Negative Factors

Earnings Performance

Non-GAAP EPS was 5% below estimates.

Revenue Decline

The revenue from PERI's Search business declined significantly.

Perion Network (PERI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$413.89M

Dividend YieldN/A

Average Volume (3M)316.02K

Price to Earnings (P/E)41.6

Beta (1Y)1.21

Revenue Growth-38.18%

EPS Growth-107.00%

CountryUS

Employees528

SectorCommunication Services

Sector Strength85

IndustryInternet Content & Information

Share Statistics

EPS (TTM)0.26

Shares Outstanding45,037,180

10 Day Avg. Volume419,867

30 Day Avg. Volume316,017

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap0.31

Enterprise Value/Revenue0.30

Enterprise Value/Gross Profit0.93

Enterprise Value/Ebitda241.56

Forecast

1Y Price Target

$12.50

Price Target Upside36.02% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering6

Perion Network Business Overview & Revenue Model

Company DescriptionPerion Network Ltd. is a global technology company that specializes in digital advertising and online marketing solutions. The company operates in the digital media sector, providing services that enhance advertising effectiveness and user engagement through various platforms. Perion's core products include proprietary technologies for search, social media, and display advertising, as well as solutions that optimize content distribution and user acquisition across multiple channels.

How the Company Makes MoneyPerion Network generates revenue primarily through its digital advertising services. The company operates on a performance-based revenue model, earning income from advertising placements, which include search ads, display ads, and social media ads. Key revenue streams include programmatic advertising, where the company automates the buying and selling of ads, and partnerships with major technology platforms and publishers that enhance its distribution capabilities. Additionally, the company may engage in revenue-sharing arrangements with partners, further diversifying its income sources. The integration of its proprietary technology and data analytics also supports improved targeting and optimization, driving higher returns for advertisers and, consequently, increasing Perion's revenue.

Perion Network Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Analyzes revenue across different business units, highlighting which segments drive growth and profitability, and where strategic focus might be needed.

Chart InsightsPerion Network's Display Advertising revenue shows a recovery trend after a dip in early 2024, while Search Advertising has seen a sharp decline since mid-2024. The earnings call highlights strategic moves, such as the acquisition of Greenbids, expected to expand market opportunities and enhance profitability. Despite a decline in web revenue, the company's increased guidance and strong growth in digital out-of-home and CTV channels indicate a positive outlook. Investors should note the balanced sentiment, with promising growth tempered by financial challenges like a GAAP net loss and negative cash flow.

Data provided by:

Main Street Data

Perion Network Earnings Call Summary

Earnings Call Date:Aug 11, 2025

(Q2-2025)

% Change Since: -9.99%|

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong growth in digital out-of-home and retail media, successful integration of acquisitions, and robust cash flow. However, challenges were noted in the CTV segment with a revenue decline and increased cost of revenue impacting profitability. Despite these challenges, the company's strategic initiatives and cash flow generation provide a positive outlook.

Q2-2025 Updates

Positive Updates

Advertising Solutions Return to Growth

Advertising Solutions revenue increased by 8% year-over-year for the first time since Q3 2023, driven by digital out-of-home, retail media, and web.

Digital Out-of-Home Growth

Digital out-of-home recorded a 35% year-over-year growth and continued global expansion through strategic partnerships.

Retail Media Vertical Expansion

Retail Media generated $22.3 million in Q2, representing a 27% year-over-year increase.

Successful Integration of Greenbids

Greenbids integration is on track, contributing to new synergies and over $1 million in Perion Algo deals from existing customers.

Strong Cash Flow and Share Buyback

Operating cash flow was $21.3 million, and $33.4 million was used for share repurchase, indicating strong cash generation and shareholder return.

Negative Updates

CTV Revenue Decline

CTV revenue declined by 5% year-over-year, attributed to budget shifts to the second half of the year.

Increased Cost of Revenue

Cost of revenue increased by 15%, outpacing revenue growth, attributed to expansion in retail media and hosting services.

GAAP Net Loss

GAAP net loss was $3.5 million or $0.08 per diluted share, compared to a net loss of $6.2 million in the same quarter last year.

Company Guidance

During the Perion Network Q2 2025 earnings call, the company provided several key metrics and strategic insights. Revenue for the second quarter was reported at $103 million, with a year-over-year increase in advertising solutions revenue by 8%. The contribution excluding traffic acquisition cost (ex-TAC) margin remained stable at 46%. Adjusted EBITDA was reported at $7.1 million, resulting in a 7% adjusted EBITDA margin and a 15% ex-TAC margin. Non-GAAP net income was $12 million, leading to a non-GAAP diluted earnings per share of $0.26. The company generated $21.3 million in operating cash flow this quarter. Digital out-of-home revenue grew by 35% year-over-year, contributing to 17% of the total revenue, while retail media generated $22.3 million, marking a 27% year-over-year increase. Despite a 5% decline in CTV revenue, the company remains optimistic about annual growth in this channel. For the full year 2025, Perion reaffirmed its guidance, expecting revenue between $430 million to $450 million and adjusted EBITDA between $44 million to $46 million.

Perion Network Financial Statement Overview

Summary

Perion Network exhibits a mixed financial profile. While the balance sheet remains robust, recent income statement challenges and cash flow volatility highlight potential operational and market pressures. Continuous monitoring of profitability and cash generation is essential.

Income Statement

Neutral

Perion Network's income statement shows mixed performance. The TTM data reveals a decline in revenue compared to the previous year, leading to negative EBIT and net income margins. Despite past growth, recent profitability challenges indicate potential operational inefficiencies or industry headwinds.

Balance Sheet

Positive

The balance sheet remains strong, with a healthy equity ratio and low debt-to-equity ratio, indicating financial stability. However, the decline in stockholders' equity over time suggests some capital erosion, potentially due to recent losses.

Cash Flow

Neutral

Cash flow analysis shows volatility, with the TTM period reflecting negative free cash flow and operating cash flow. The ratio of free cash flow to net income has weakened, signaling cash generation challenges. Historical strong cash flow performance provides some buffer.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	498.29M	743.15M	640.26M	478.50M	328.06M
Gross Profit	165.45M	272.38M	237.25M	165.28M	107.96M
EBITDA	21.83M	152.00M	127.50M	55.80M	22.18M
Net Income	12.61M	117.41M	99.22M	38.71M	10.22M
Balance Sheet
Total Assets	916.45M	1.08B	870.22M	713.23M	358.68M
Cash, Cash Equivalents and Short-Term Investments	373.33M	472.68M	429.63M	321.65M	60.36M
Total Debt	22.30M	7.65M	11.48M	13.39M	30.55M
Total Liabilities	196.69M	359.12M	287.08M	246.27M	174.56M
Stockholders Equity	719.76M	718.15M	583.13M	466.96M	184.12M
Cash Flow
Free Cash Flow	67.00K	154.65M	121.07M	70.57M	21.54M
Operating Cash Flow	6.94M	155.46M	122.12M	71.11M	22.05M
Investing Cash Flow	62.60M	-133.35M	-46.82M	-243.47M	-8.81M
Financing Cash Flow	-100.91M	-10.82M	-3.26M	229.05M	-4.05M

Perion Network Technical Analysis

Technical Analysis Sentiment

Negative

Last Price9.19

Price Trends

50DMA

10.50

Negative

100DMA

9.80

Negative

200DMA

9.25

Negative

Market Momentum

MACD

-0.20

Positive

RSI

31.05

Neutral

STOCH

26.10

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PERI, the sentiment is Negative. The current price of 9.19 is below the 20-day moving average (MA) of 10.77, below the 50-day MA of 10.50, and below the 200-day MA of 9.25, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 31.05 is Neutral, neither overbought nor oversold. The STOCH value of 26.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PERI.

Perion Network Risk Analysis

Perion Network disclosed 67 risk factors in its most recent earnings report. Perion Network reported the most risks in the "Tech & Innovation" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Perion Network Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBLA	72 Outperform	$1.04B	89.37	1.40%	―	12.01%	―
Sector *	60 Neutral	$43.32B	5.10	-7.47%	4.18%	2.51%	-40.18%
TRVG	59 Neutral	$251.00M	―	-12.44%	―	8.29%	87.33%
TEAD	57 Neutral	$163.14M	―	-16.75%	―	19.67%	-1183.48%
PERI	55 Neutral	$413.89M	41.65	-0.67%	―	-38.18%	-107.00%
ZH	51 Neutral	$390.29M	―	-0.39%	―	-19.68%	99.02%
MAX	50 Neutral	$738.79M	35.76	-115.07%	―	116.58%	62.29%

* Communication Services Sector Average

Performance Comparison

PERI

Perion Network

9.19

0.75

8.89%

TRVG

trivago

3.45

1.35

64.29%

MAX

MediaAlpha

9.56

-6.50

-40.47%

TBLA

Taboola.com

3.17

-0.09

-2.76%

Zhihu

4.25

1.14

36.66%

TEAD

Teads Holding

1.70

-3.04

-64.14%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 12, 2025