Perion Network Ltd (PERI)
NASDAQ:PERI
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Perion Network
(NASDAQ:PERI)
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Rating:55Neutral
Price Target:
$10.50
▼(-1.04% Downside)
Action:Reiterated
Date:02/19/26
The score is held back mainly by weakened financial performance (profitability deterioration and revenue volatility) and bearish technicals. Offsetting factors are a strong balance sheet with low leverage, improving cash flow generation, and an earnings call that emphasized a credible margin/cash-flow turnaround with actionable 2026 guidance and longer-term targets, though near-term visibility and legacy declines remain key risks.
Positive Factors
Conservative balance sheet
Low leverage and a substantial equity base provide long-term financial flexibility and downside protection. A net cash position and conservative financing support investment in product development, M&A optionality, and the ability to sustain buybacks or weather广告 cyclical advertising downturns without forcing dilutive financing.
Negative Factors
Revenue volatility
Large year-to-year swings in revenue undermine predictability of top-line and margin recovery. For an ad-tech operator whose fees scale with spend, persistent variability complicates capacity planning, long-term client contracts and the ability to consistently invest in R&D or sales while maintaining margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and a substantial equity base provide long-term financial flexibility and downside protection. A net cash position and conservative financing support investment in product development, M&A optionality, and the ability to sustain buybacks or weather广告 cyclical advertising downturns without forcing dilutive financing.
Read all positive factors
Perion Network Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue across different business units, highlighting which segments drive growth and profitability, and where strategic focus might be needed.
Analyzes revenue across different business units, highlighting which segments drive growth and profitability, and where strategic focus might be needed.
Data provided by:
The Fly
The FlyPerion Network (PERI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$405.50M
Dividend YieldN/A
Average Volume (3M)420.79K
Price to Earnings (P/E)12.1
Beta (1Y)0.78
Revenue Growth-11.71%
EPS Growth-162.11%
CountryUS
Employees528
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.17
Shares Outstanding39,330,320
10 Day Avg. Volume224,123
30 Day Avg. Volume420,787
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)0.60
Price to Sales (P/S)0.92
P/FCF Ratio10.57
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit2.78
Enterprise Value/Ebitda63.12
Forecast
1Y Price Target
$14.53Price Target Upside36.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)1.21
Revenue Forecast (FY)$473.54M
Perion Network Business Overview & Revenue Model
Company Description
Perion Network Ltd. provides digital advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally. It provides Wildfire, a content monetization platform; search monetization solutions, including website m...
How the Company Makes Money
Perion primarily makes money by generating advertising revenue tied to the delivery and performance of digital ad campaigns executed on or through its platforms. Key revenue streams typically include: (1) Media and campaign revenue: fees and/or ma...
Perion Network Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial turnaround driven by the Perion One strategy: significant margin expansion, substantial cash generation, high-growth performance in CTV, DOOH and Retail Media, and promising AI execution (Outmax) case studies and partnerships. Key risks include a continued decline in lower-margin web/search legacy activities, modest headline revenue growth, and near-term demand visibility that produced a wide 2026 guidance range. Overall, the positives—improving unit economics, large cash balance, demonstrable product-led scaling and ambitious but substantiated 2028 targets—outweigh the near-term challenges and execution risks.Positive Updates
Strong Q4 profitability and margin expansion
Adjusted EBITDA for Q4 grew 53% year-over-year to $24.3M, representing 37% of contribution ex-TAC (up from 29% prior year) and 18% of total revenue. Contribution ex-TAC margin expanded to 48% in Q4 (from 42% prior year).
Negative Updates
Web revenue decline and legacy shutdown impact
Web revenue declined 17% year-over-year in Q4 and 13% for the full year. On a pro forma basis (neutralizing discontinued low-margin activities), web declined 12% in Q4 and was flat for the full year, signaling structural shift away from lower-margin web inventory after legacy exits.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 profitability and margin expansion
Adjusted EBITDA for Q4 grew 53% year-over-year to $24.3M, representing 37% of contribution ex-TAC (up from 29% prior year) and 18% of total revenue. Contribution ex-TAC margin expanded to 48% in Q4 (from 42% prior year).
Read all positive updates
Company Guidance
Perion guided 2026 contribution ex‑TAC of $215–$235 million and adjusted EBITDA of $50–$54 million, expecting Perion One to represent 85–90% of consolidated contribution ex‑TAC starting in 2026; longer‑term (to 2028) targets include Perion One pro forma spend CAGR of at least 25%, contribution ex‑TAC CAGR of at least 20%, and an adjusted EBITDA to contribution ex‑TAC margin of 28% by 2028 (building on Perion One’s 2022–2025 pro forma spend CAGR of 34% and contribution ex‑TAC CAGR of 19%), with management also expecting continued positive free cash flow and high conversion (2025 conversion was ~89%) while investing in go‑to‑market and R&D and allowing legacy search to remain stable or decline slightly.Perion Network Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
78
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 439.93M | 498.29M | 743.15M | 640.26M | 478.50M |
| Gross Profit | 133.97M | 165.45M | 272.36M | 237.25M | 165.28M |
| EBITDA | 4.10M | 21.83M | 149.33M | 127.50M | 55.33M |
| Net Income | -7.93M | 12.61M | 114.96M | 99.22M | 38.71M |
Balance Sheet | |||||
| Total Assets | 913.76M | 915.53M | 1.08B | 871.01M | 713.23M |
| Cash, Cash Equivalents and Short-Term Investments | 314.08M | 373.33M | 472.68M | 430.92M | 321.65M |
| Total Debt | 42.39M | 22.30M | 7.65M | 11.48M | 13.39M |
| Total Liabilities | 237.75M | 192.59M | 359.12M | 287.88M | 246.27M |
| Stockholders Equity | 676.01M | 722.94M | 718.15M | 583.13M | 466.96M |
Cash Flow | |||||
| Free Cash Flow | 38.17M | 67.00K | 154.65M | 121.06M | 70.48M |
| Operating Cash Flow | 41.93M | 6.94M | 155.46M | 122.12M | 71.11M |
| Investing Cash Flow | -37.40M | 62.60M | -133.35M | -46.82M | -243.47M |
| Financing Cash Flow | -71.05M | -100.91M | -10.82M | -3.26M | 229.05M |
Perion Network Technical Analysis
Positive
10.61
Price Trends
9.20
Positive
9.40
Positive
9.61
Positive
Market Momentum
0.29
Negative
71.60
Negative
95.74
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PERI, the sentiment is Positive. The current price of 10.61 is above the 20-day moving average (MA) of 9.97, above the 50-day MA of 9.20, and above the 200-day MA of 9.61, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 71.60 is Negative, neither overbought nor oversold. The STOCH value of 95.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $1.62B | 13.01 | 11.76% | 5.47% | 24.83% | 73.88% | |
79 Outperform | $1.41B | 3.70 | 11.91% | ― | 9.62% | 880.15% | |
63 Neutral | $392.22M | 10.52 | 7.03% | ― | 5.94% | 56.89% | |
61 Neutral | $590.01M | -3.10 | -3.62% | 7.14% | -1.77% | -152.61% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $405.50M | 12.05 | -1.15% | ― | -11.71% | -162.11% | |
52 Neutral | $362.94M | -0.99 | -93.17% | ― | ― | ― |
* Communication Services Sector Average
PERI
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Perion Network Corporate Events
Perion’s Outmax AI Cuts Bouygues Telecom Acquisition Costs by 34% in May 2026 Deployment
May 13, 2026
On May 13, 2026, Perion Network announced that French operator Bouygues Telecom has deployed Perion’s Outmax AI agent across always-on marketing campaigns, initially focusing on a Fiber-to-the-Home acquisition effort. The deployment delivere...
Perion Network Strikes Exclusive AI Advertising Deal to Drive Expansion Across Africa
Apr 23, 2026
On April 23, 2026, Perion Network announced an exclusive partnership with McSorely Media and its joint-venture partner Mediamark to deploy its Outmax AI advertising agent across African markets, marking a significant expansion of Perion’s co...
Perion Files 2025 Form 20-F Annual Report With U.S. SEC
Mar 16, 2026
Perion Network Ltd., a Tel Aviv- and New York-based AI-driven ad-tech provider, has filed its annual report on Form 20-F for the fiscal year ended December 31, 2025, with the U.S. Securities and Exchange Commission on March 16, 2026. The filing in...
Perion Rolls Out Outmax AI Agent on TikTok, Boosting Early Ad Performance by Up to 25%
Mar 10, 2026
On March 10, 2026, Perion Network launched its proprietary Outmax AI agent for TikTok, integrating the tool directly into one of the world’s fastest-growing social advertising platforms. TikTok, which has nearly 1.6 billion users and ad reve...
Perion Network Posts Strong Q4 2025, Doubles Down on AI-Driven Perion One Platform
Feb 18, 2026
Perion Network on Feb. 18, 2026 reported strong fourth-quarter 2025 results, with Contribution ex-TAC up 19% year over year to $65.2 million and adjusted EBITDA jumping 53% to $24.3 million, supported by rapid growth in CTV, DOOH and retail media ...
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.