Perion Network (PERI) AI Stock Analysis

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Perion Network

(NASDAQ:PERI)

Rating:53Neutral

Price Target:

$9.50

▲(2.37% Upside)

Perion Network's overall stock score reflects a challenging financial performance with declining revenue and profitability, offset by a strong balance sheet. Technical analysis indicates bearish momentum, while valuation metrics are unattractive due to a negative P/E ratio. The earnings call provides some optimism with strategic growth initiatives and a strong cash position, but challenges remain.

Positive Factors

Acquisition Impact

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

Financial Performance

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

Product Launch

The recently launched Perion One—a dashboard for advertisers optimizing spend across DOOH, CTV, open web, and walled gardens—has seen a positive response.

Negative Factors

Business Segment Decline

The revenue from PERI's Search business declined significantly.

Earnings Miss

Non-GAAP EPS was 5% below estimates.

Revenue Decline

Gross Revenues were reported down 43% year-over-year.

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

Market Cap

$415.69M

Dividend YieldN/A

Average Volume (3M)383.67K

Price to Earnings (P/E)41.6

Beta (1Y)1.20

Revenue Growth-38.18%

EPS Growth-107.00%

CountryUS

Employees528

SectorCommunication Services

Sector Strength95

IndustryInternet Content & Information

Share Statistics

EPS (TTM)0.26

Shares Outstanding45,037,180

10 Day Avg. Volume225,753

30 Day Avg. Volume383,672

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.31

Enterprise Value/Revenue0.31

Enterprise Value/Gross Profit0.92

Enterprise Value/Ebitda-45.65

Forecast

1Y Price Target

$14.00

Price Target Upside50.86% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering4

Perion Network Business Overview & Revenue Model

Company DescriptionPerion 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 monetization, search mediation, and app monetization; and cross-channel digital advertising software as a service platform. The company also offers supply management platform; demand management platform for campaign planning and design; analytics platform, which provides information and performance insights on the results of campaign investment and other campaign metrics; creative platform to create advertisements; and an AI platform that uses machine learning to bring intelligence to the various phases of campaigns. In addition, it provides an actionable performance monitoring platform to support the various phases of campaign management; an online video player and integrated ad server to upload, manage, and stream video content; content monetization system, which integrates ads within the content layouts at the page level. Further, the company offers a publisher management system that provides analytics and performance optimization tools, as well as reports; search-demand management systems; monetization products that integrate and onboards demand vendors; and AI Systems. Additionally, it provides Intelligent HUB (iHUB), a platform for pulling in signals across various advertising channels and optimizing traffic at scale, and yielding engagement metrics and KPIs; and strategic optimization of relevant traits (SORT), a provisional patent technology that eliminates the need for cookies. The company was formerly known as IncrediMail Ltd. and changed its name to Perion Network Ltd. in November 2011. Perion Network Ltd. was incorporated in 1999 and is headquartered in Holon, Israel.

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: |

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant growth in digital out-of-home and retail media verticals, along with successful integration of Greenbids and strong cash flow. However, the decline in CTV revenue and a GAAP net loss underscore challenges. Overall, the sentiment is balanced with notable achievements and ongoing challenges.

Q2-2025 Updates

Positive Updates

Advertising Solutions Revenue Growth

For the first time since Q3 2023, advertising solutions revenue is up year-over-year, showing an 8% increase.

Digital Out-of-Home Growth

Digital out-of-home revenue increased by 35% year-over-year, expanding global programmatic presence through strategic partnerships.

Retail Media Vertical Growth

Retail media revenue grew by 27% year-over-year, generating $22.3 million in Q2.

Acquisition Synergies with Greenbids

The acquisition of Greenbids is on track, generating more than $1 million in deals and positive market reactions.

Strong Cash Flow and Buyback Program

Generated $21.3 million in operating cash flow. Continued share buyback program with $33.4 million repurchased in Q2.

Launch of Performance CTV Solution

Launched a new performance CTV solution within Perion One, targeting real KPIs and return on ad spend.

Negative Updates

CTV Revenue Decline

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

Net Loss on GAAP Basis

Reported a net loss of $3.5 million on a GAAP basis, compared to a net loss of $6.2 million in the same quarter last year.

Web Revenue Growth Concerns

Web revenue increased by only 5% year-over-year amidst concerns about AI search impacts on publisher traffic.

Company Guidance

During the Perion Network Q2 2025 earnings call, strong financial metrics and strategic advancements were highlighted. The company reported a year-over-year non-search revenue growth for the first time since Q3 2023, driven by digital out-of-home, retail media, and web sectors. Despite a 5% decline in CTV revenue, the company remains optimistic about annual growth, bolstered by the launch of a new performance CTV solution. Perion's advertising solutions revenue increased by 8%, contributing to a total revenue of $103 million for the quarter. The contribution ex-TAC margin remained stable at 46%, while adjusted EBITDA was reported at $7.1 million, with an adjusted EBITDA margin of 7% and a 15% ex-TAC margin. The company generated $21.3 million in operating cash flow, maintaining a robust cash position with $318.5 million in cash and equivalents. Looking ahead, Perion reaffirmed its full-year 2025 guidance, anticipating revenue between $430 million to $450 million and adjusted EBITDA between $44 million to $46 million, driven by strategic growth initiatives such as Perion One and recent acquisitions like Greenbids to enhance AI-driven capabilities.

Perion Network Financial Statement Overview

Summary

Perion Network's financial performance is mixed. The income statement shows declining revenue and profitability challenges, while the balance sheet remains strong with low debt. Cash flow volatility is a concern, but historical performance provides some buffer.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	424.10M	498.29M	743.15M	640.26M	478.50M	328.06M
Gross Profit	140.17M	165.45M	272.38M	237.25M	165.28M	107.96M
EBITDA	-2.84M	21.83M	152.00M	127.50M	55.80M	22.18M
Net Income	-4.76M	12.61M	117.41M	99.22M	38.71M	10.22M
Balance Sheet
Total Assets	907.18M	916.45M	1.08B	870.22M	713.23M	358.68M
Cash, Cash Equivalents and Short-Term Investments	318.98M	373.33M	472.68M	429.63M	321.65M	60.36M
Total Debt	22.98M	22.30M	7.65M	11.48M	13.39M	30.55M
Total Liabilities	218.92M	196.69M	359.12M	287.08M	246.27M	174.56M
Stockholders Equity	688.26M	719.76M	718.15M	583.13M	466.96M	184.12M
Cash Flow
Free Cash Flow	25.89M	67.00K	154.65M	121.07M	70.57M	21.54M
Operating Cash Flow	34.82M	6.94M	155.46M	122.12M	71.11M	22.05M
Investing Cash Flow	21.77M	62.60M	-133.35M	-46.82M	-243.47M	-8.81M
Financing Cash Flow	-89.25M	-100.91M	-10.82M	-3.26M	229.05M	-4.05M

Perion Network Technical Analysis

Technical Analysis Sentiment

Negative

Last Price9.28

Price Trends

50DMA

10.23

Negative

100DMA

9.99

Negative

200DMA

9.31

Negative

Market Momentum

MACD

-0.30

Negative

RSI

42.81

Neutral

STOCH

48.70

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 9.28 is below the 20-day moving average (MA) of 9.34, below the 50-day MA of 10.23, and below the 200-day MA of 9.31, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 42.81 is Neutral, neither overbought nor oversold. The STOCH value of 48.70 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	70 Outperform	$991.04M	91.01	1.40%	―	12.01%	―
ZH	63 Neutral	$420.28M	20.65	3.27%	―	-22.16%	―
Sector *	60 Neutral	$43.83B	3.98	-12.77%	4.14%	1.86%	-42.71%
TEAD	54 Neutral	$166.20M	―	-16.75%	―	19.67%	-1183.48%
PERI	53 Neutral	$415.69M	41.65	-0.67%	―	-38.18%	-107.00%
TRVG	52 Neutral	$236.23M	―	-12.44%	―	8.29%	87.33%
MAX	49 Neutral	$718.17M	35.76	-115.07%	―	116.58%	62.29%

* Communication Services Sector Average

Performance Comparison

PERI

Perion Network

9.28

0.95

11.40%

TRVG

trivago

3.37

1.42

72.82%

MAX

MediaAlpha

10.87

-6.39

-37.02%

TBLA

Taboola.com

3.37

0.12

3.69%

Zhihu

4.84

1.41

41.11%

TEAD

Teads Holding

1.63

-3.32

-67.07%

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 20, 2025