Perion Network Ltd (PERI)
NASDAQ:PERI
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Perion Network
(NASDAQ:PERI)
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Rating:57Neutral
Price Target:
$8.00
▼(-24.60% Downside)
Action:Reiterated
Date:05/21/26
The score is held back mainly by weakened profitability and a bearish technical trend (price below major moving averages, weak RSI). These are partially offset by financial resilience (low leverage, strong net cash, positive free cash flow) and an earnings-call outlook that reiterates full-year guidance with expected H2 improvement alongside strong product/spend momentum and ongoing share repurchases.
Positive Factors
Balance sheet strength
Perion’s very low leverage and ample equity provide durable financial flexibility. With a large cash position cited elsewhere (~$293M), the company can fund product investment, strategic partnerships, buybacks and M&A without pressing liquidity constraints, cushioning ad-cycle volatility over months.
Negative Factors
Profitability deterioration
Profitability has materially reversed from 2022–2023 levels to negative operating income and a slight net loss, reducing ROE and return metrics. If margin recovery delays beyond H2, persistent losses could erode reinvestment capacity and investor confidence over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Perion’s very low leverage and ample equity provide durable financial flexibility. With a large cash position cited elsewhere (~$293M), the company can fund product investment, strategic partnerships, buybacks and M&A without pressing liquidity constraints, cushioning ad-cycle volatility over months.
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
$331.16M
Dividend YieldN/A
Average Volume (3M)523.77K
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth2.59%
EPS Growth-49.59%
CountryUS
Employees528
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.24
Shares Outstanding39,330,320
10 Day Avg. Volume606,606
30 Day Avg. Volume523,775
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 Cap0.97
Enterprise Value/Revenue0.73
Enterprise Value/Gross Profit2.18
Enterprise Value/Ebitda30.36
Forecast
1Y Price Target
$13.00Price Target Upside22.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.21
Revenue Forecast (FY)$466.28M
Perion Network Business Overview & Revenue Model
Company Description
Perion Network Ltd. is a global provider of sophisticated digital advertising technology, delivering comprehensive solutions to brands, advertising agencies, and content publishers across North America, Europe, and various international markets. T...
How the Company Makes Money
Perion primarily makes money by generating revenue from digital advertising services and related technology that support campaign execution and media monetization. A core revenue stream comes from media buying and optimization for advertisers: Per...
Perion Network Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveys strong product and commercial momentum: Perion One spend growth (6% YoY), rapid Outmax adoption (300%+ growth), double- to triple-digit growth in key spend channels (CTV +68%, DOOH +29%, Retail +27%), robust cash balance ($293M) and active share repurchases. Those positives are balanced by near-term profitability pressure (adjusted EBITDA down to $0.5M, GAAP net loss widened), search margin compression (contribution ex-TAC down ~70%), seasonally weak Q1 and macro-led advertiser caution. Management reiterated full-year guidance and expects meaningful EBITDA inflection in H2 as strategic agreements onboard. Overall, product adoption and balance sheet strength outweigh the short-term margin and reporting shifts, but investors should watch H2 execution and margin recovery.Positive Updates
Revenue and Cash Position
Q1 revenue of $90.4M, up 1% year-over-year. Generated $6.7M cash from operations and $7.0M adjusted free cash flow. Ended the quarter with $293M in cash, equivalents and marketable securities, providing financial flexibility.
Negative Updates
Adjusted EBITDA Decline
Adjusted EBITDA decreased to $0.5M in Q1 2026 from $1.8M in Q1 2025. Management attributes the decline to higher go-to-market investments and acquisition-related incremental expenses; FX weakness reduced adjusted EBITDA by $1.4M (adjusted EBITDA excluding FX would be $1.9M).
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Cash Position
Q1 revenue of $90.4M, up 1% year-over-year. Generated $6.7M cash from operations and $7.0M adjusted free cash flow. Ended the quarter with $293M in cash, equivalents and marketable securities, providing financial flexibility.
Read all positive updates
Company Guidance
Perion reiterated its full‑year 2026 guidance, noting Q1 was seasonally low but showed buildable momentum: total revenue was $90.4M (+1% YoY), contribution ex‑TAC was $39.7M (flat YoY) at a 44% margin, and Perion One spend rose 6% YoY (Perion One contribution ex‑TAC +7% YoY) as CTV spend jumped 68% to $18M, digital‑out‑of‑home grew 29% to $60.6M and retail media rose 27% to $36.5M; Outmax spend more than tripled (300%+) and generated >$1M on TikTok with up to a 25% lift. Adjusted EBITDA was $0.5M (vs. $1.8M prior; would be $1.9M excluding a $1.4M FX headwind), operating cash flow $6.7M and adjusted free cash flow $7M, with $293M in net cash after repurchasing 2.5M shares for $24.1M (15.3M shares repurchased total for $142.2M at an average $9.27). Management expects Perion One to represent 85–90% of full‑year contribution ex‑TAC, forecasts a meaningful EBITDA inflection in H2 as several large strategic agreements ramp, and is maintaining the full‑year outlook despite near‑term macro caution.Perion Network Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 440.96M | 439.93M | 498.29M | 743.15M | 640.26M | 478.50M |
| Gross Profit | 146.71M | 133.97M | 165.45M | 272.36M | 237.25M | 165.28M |
| EBITDA | 10.54M | 12.70M | 21.83M | 149.33M | 127.50M | 55.33M |
| Net Income | -9.59M | -7.93M | 12.61M | 114.96M | 99.22M | 38.71M |
Balance Sheet | ||||||
| Total Assets | 866.19M | 913.76M | 915.53M | 1.08B | 871.01M | 713.23M |
| Cash, Cash Equivalents and Short-Term Investments | 292.97M | 314.08M | 373.33M | 472.68M | 430.92M | 321.65M |
| Total Debt | 21.41M | 42.39M | 22.30M | 7.65M | 11.48M | 13.39M |
| Total Liabilities | 216.63M | 237.75M | 192.59M | 359.12M | 287.88M | 246.27M |
| Stockholders Equity | 649.56M | 676.01M | 722.94M | 718.15M | 583.13M | 466.96M |
Cash Flow | ||||||
| Free Cash Flow | 52.34M | 38.17M | 67.00K | 154.65M | 121.06M | 70.48M |
| Operating Cash Flow | 57.26M | 41.93M | 6.94M | 155.46M | 122.12M | 71.11M |
| Investing Cash Flow | -67.86M | -37.40M | 62.60M | -133.35M | -46.82M | -243.47M |
| Financing Cash Flow | -90.75M | -71.05M | -100.91M | -10.82M | -3.26M | 229.05M |
Perion Network Technical Analysis
Negative
10.61
Price Trends
9.68
Negative
9.33
Negative
9.47
Negative
Market Momentum
-0.52
Negative
41.86
Neutral
65.21
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 10.61 is above the 20-day moving average (MA) of 8.68, above the 50-day MA of 9.68, and above the 200-day MA of 9.47, indicating a bearish trend. The MACD of -0.52 indicates Negative momentum. The RSI at 41.86 is Neutral, neither overbought nor oversold. The STOCH value of 65.21 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $1.63B | 14.34 | 11.76% | 5.47% | 24.83% | 73.88% | |
75 Outperform | $1.30B | 12.15 | 11.91% | ― | 9.62% | 880.15% | |
63 Neutral | $358.07M | 12.46 | 7.03% | ― | 5.94% | 56.89% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $331.16M | -34.34 | -1.42% | ― | 2.59% | -49.59% | |
55 Neutral | $524.99M | -24.46 | -3.62% | 7.14% | -1.77% | -152.61% | |
46 Neutral | $261.72M | -0.47 | -93.17% | ― | ― | ― |
* Communication Services Sector Average
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Perion Network Corporate Events
Perion’s AI Ad Platforms Drive Growth Engines as Q1 2026 Results Show Modest Revenue Rise and Strong Cash Flow
May 20, 2026
On May 20, 2026, Perion reported first-quarter 2026 results showing modest top-line growth, with revenue rising 1% year-on-year to $90.4 million and contribution ex-TAC steady at $39.7 million, even as GAAP net loss widened to $10 million and adju...
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...
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.