Perion Network (PERI) AI Stock Analysis

• Market Cap: $337.57M
• Dividend Yield: N/A
• Average Volume (3M): 342.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -28.29%
• EPS Growth: -126.12%
• Country: US
• Employees: 528
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.49
• Shares Outstanding: 40,427,760
• 10 Day Avg. Volume: 454,311
• 30 Day Avg. Volume: 342,694
• PEG Ratio: 0.30
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 10.57
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 2.08
• Enterprise Value/Ebitda: 47.24
• 1Y Price Target: $14.38
• Price Target Upside: 70.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.22
• Revenue Forecast (FY): $473.52M

• Rating: 55 Neutral
• Price Target: $8.50 ▲(0.71% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 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

Strong balance sheet and capital returns

A large net-cash position and active buyback program provide durable financial flexibility: supports R&D and GTM investment, cushions downside during ad cycles, and enables shareholder returns without needing external financing, improving long-term strategic optionality.

Improving and high cash conversion

Sustained high cash conversion and the 2025 cash rebound strengthen self-funded growth prospects: reliable cashflow supports reinvestment in Perion One, funds buybacks, and reduces refinancing risk, making operational improvements more durable over multi-year horizons.

Perion One platform and strategic partnerships driving higher‑margin growth

A platform-led shift with AI execution (Outmax) and enterprise partnerships scales higher‑margin channels (CTV, DOOH, Retail Media). This structurally improves unit economics and diversification versus legacy search, supporting sustainable margin expansion if adoption continues.

Negative Factors

Volatile revenue and weakened profitability

Material top-line volatility and swings in profitability indicate underlying demand sensitivity and business mix shifts. Persistent inconsistency in revenue and GAAP earnings complicates planning and raises execution risk for multi-year margin targets, requiring sustained execution to stabilize results.

GAAP loss despite non‑GAAP strength

Ongoing GAAP-level losses reflect charges and adjustments that can mask underlying cash profitability but also signal potential recurring costs or restructuring. If GAAP losses persist, they could erode equity cushions and impair investor confidence over the medium term.

Legacy web/search decline and execution dependency on Perion One

A steady decline in lower‑margin legacy channels increases reliance on Perion One scaling. The company must successfully migrate spend and scale new products; failure or slower adoption would pressure growth and margins, making long-term targets contingent on execution risk.

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 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 Money

Perion Network generates revenue primarily through its digital advertising services, which include performance-based advertising, programmatic advertising, and search monetization. The company's key revenue streams come from advertisers who pay for ad placements, performance-based campaigns, and data-driven insights that improve targeting and effectiveness. Additionally, Perion partners with various publishers and platforms to expand its reach and enhance its service offerings. Strategic collaborations with technology partners and integration of advanced analytics further contribute to optimizing ad spend, thus increasing earnings. The combination of these factors allows Perion to monetize its technology and expertise effectively.

Perion Network Financial Statement Overview

Summary

Mixed fundamentals: a strong, low-leverage balance sheet (debt ~3% of equity) supports flexibility, but operating performance has deteriorated with volatile revenue, compressed margins, and a return to GAAP net losses. Cash flow is improving again in 2025 with strong free-cash-flow conversion, but year-to-year consistency remains a key concern.

Income Statement

Revenue has been volatile, with a sharp decline in 2024 (down ~33%) and only a modest rebound in 2025 (up ~2%). Profitability has weakened materially: the company was solidly profitable in 2021–2023 (net margin ~8% to ~15%), but 2024 profits compressed to low-single digits and 2025 turned to a net loss with negative operating profit. A positive is that gross profit dollars remain meaningful, but the recent cost structure and operating leverage have deteriorated.

Balance Sheet

The balance sheet looks conservatively financed with very low leverage: debt remains a small fraction of equity (about ~3% in 2024; also low in prior years). Equity is substantial relative to assets, which provides financial flexibility and downside protection despite the recent earnings slump. The key weakness is declining profitability, which is already showing up in returns on equity (strong in 2022–2023, much lower in 2024) and could pressure the capital base if losses persist.

Cash Flow

Cash generation has been choppy. 2022–2023 produced very strong operating and free cash flow with free cash flow closely matching earnings, but 2024 saw a sharp drop in operating cash flow and free cash flow, indicating weaker cash conversion during that year. 2025 shows a notable rebound in operating and free cash flow (and strong free cash flow growth), which is a positive signal—though the inconsistency across years and the 2025 net loss add uncertainty around sustainability.

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

• Technical Analysis Sentiment: Negative
• Last Price: 8.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 8.44 is below the 20-day moving average (MA) of 8.64, below the 50-day MA of 9.17, and below the 200-day MA of 9.77, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 42.08 is Neutral, neither overbought nor oversold. The STOCH value of 13.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PERI.

Perion Network Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	67 Neutral	$1.11B	13.56	8.73%	5.47%	30.00%	-9.72%
SSTK	65 Neutral	$561.28M	12.59	8.28%	7.14%	13.06%	66.19%
FVRR	64 Neutral	$407.72M	19.61	5.42%	―	12.68%	133.00%
TBLA	61 Neutral	$905.02M	40.58	4.32%	―	10.96%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TTGT	57 Neutral	$257.96M	―	―	―	―	―
PERI	55 Neutral	$337.57M	-46.16	-1.13%	―	-28.29%	-126.12%

Perion Network Corporate Events

Perion Network Posts Strong Q4 2025, Doubles Down on AI-Driven Perion One Platform

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 revenues. The company unified its offerings under the AI-native Perion One platform, launched tools such as the Outmax AI execution agent, completed the Greenbids acquisition to deepen its algorithmic capabilities, expanded partnerships with Amazon DSP, Walmart Connect and Mastercard, executed sizable share buybacks, and issued multiyear guidance and 2028 margin and growth targets that signal a strategic pivot toward higher-margin, platform-led growth and reduced reliance on legacy search advertising.

The most recent analyst rating on (PERI) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Perion Network stock, see the PERI Stock Forecast page.

Perion Network Shareholders Back Board Proposals at December 18 Annual Meeting

On December 18, 2025, Perion Network Ltd. reported the results of its annual general meeting of shareholders held earlier that day, where approximately 64% of the company’s issued and outstanding ordinary shares were present or represented by proxy. Shareholders approved five board-backed proposals (numbered 1 to 5) and rejected proposal 6, which the board had recommended voting against, thereby aligning the meeting’s outcomes with the board’s guidance and reinforcing the company’s existing governance and strategic direction; the resolutions are also incorporated by reference into several of Perion’s effective Form S-8 registration statements in the United States.

The most recent analyst rating on (PERI) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Perion Network stock, see the PERI Stock Forecast page.

Perion Network Enhances Advertising Reach with Amazon DSP Integration

On December 8, 2025, Perion Network Ltd. announced the integration of its Perion One Platform with Amazon DSP, enhancing its advertising capabilities. This collaboration allows advertisers to leverage Amazon’s first-party insights with Perion’s AI-powered creative solutions, improving performance metrics like attention and conversions. This strategic move strengthens Perion’s market position by expanding its reach in commerce-centric and retail brand categories, aligning with its long-term growth strategy.

The most recent analyst rating on (PERI) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Perion Network stock, see the PERI Stock Forecast page.