Perion Network (PERI) AI Stock Analysis

• Market Cap: $429.20M
• Dividend Yield: N/A
• Average Volume (3M): 276.01K
• Price to Earnings (P/E): 41.6
• Beta (1Y): 1.26
• Revenue Growth: -38.18%
• EPS Growth: -107.00%
• Country: US
• Employees: 528
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.26
• Shares Outstanding: 45,037,180
• 10 Day Avg. Volume: 252,112
• 30 Day Avg. Volume: 276,012
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.30
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 0.92
• Enterprise Value/Ebitda: -45.65
• 1Y Price Target: $14.00
• Price Target Upside: 48.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 53 Neutral
• Price Target: $9.50 ▲(0.74% Upside)

Perion Network's overall stock score reflects a challenging financial performance with declining revenue and profitability, despite a strong balance sheet. Technical analysis shows mixed signals, and valuation is weak due to a negative P/E ratio. The earnings call provides some optimism with growth in key areas, but challenges remain, particularly in CTV revenue and net losses.

Positive Factors

Strategic Partnership

This partnership enhances Perion's retail media capabilities, leveraging Albertsons' first-party data to improve advertising effectiveness, potentially driving long-term revenue growth.

AI-Powered Solutions

The introduction of AI-driven solutions like SODA can improve efficiency and monetization, strengthening Perion's competitive edge in digital advertising.

Cash Flow and Buyback Program

Strong cash flow generation and a share buyback program indicate robust financial health and shareholder value focus, supporting long-term stability.

Negative Factors

Declining Revenue

Declining revenue growth poses a risk to Perion's market position and financial performance, necessitating strategic adjustments to reverse the trend.

Net Loss on GAAP Basis

Consistent net losses on a GAAP basis highlight ongoing profitability challenges, which could impact investor confidence and long-term financial sustainability.

CTV Revenue Decline

The decline in CTV revenue suggests challenges in capturing growth in the streaming ad market, potentially affecting future revenue streams.

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. 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 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

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

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

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 Price: 9.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 9.43 is above the 20-day moving average (MA) of 9.38, below the 50-day MA of 9.82, and above the 200-day MA of 9.37, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 45.73 is Neutral, 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
TBLA	70 Outperform	1.06B	96.73	-0.36%	―	12.01%	―
ZH	63 Neutral	444.93M	22.49	-4.15%	―	-22.16%	―
MAX	56 Neutral	834.36M	-107.49	174.03%	―	116.58%	62.29%
TRVG	55 Neutral	241.15M	-8.91	-13.30%	―	8.29%	87.33%
PERI	53 Neutral	$429.20M	41.65	-0.67%	―	-38.18%	-107.00%
TEAD	49 Neutral	163.35M	-1.96	-11.77%	―	19.67%	-1183.48%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Perion Network Corporate Events

Perion Network Unveils AI-Powered SODA to Boost Publisher Revenue

On September 11, 2025, Perion Network Ltd. announced the launch of SODA, an AI-powered suite designed to enhance revenue for publishers and reduce waste for advertisers. This new technology, already adopted by Mediatransports, aims to redefine supply and demand interactions in digital advertising, offering improved efficiency and monetization opportunities for publishers.

Perion Network Unveils Performance CTV Solution to Tap into Booming Streaming Ad Market

On August 11, 2025, Perion Network Ltd. announced the launch of its Performance CTV Solution, an expansion of the Perion One platform, aimed at capturing a share of the rapidly growing Connected TV (CTV) advertising market, projected to exceed $36 billion in the U.S. by 2026. This new solution enables advertisers to run data-driven campaigns across major streaming platforms, bridging the gap between brand awareness and performance marketing, and positioning Perion to attract performance-driven advertisers seeking measurable outcomes.

Perion Network Reports Q2 2025 Results with Advertising Solutions Growth

On August 11, 2025, Perion Network Ltd. announced its financial results for the second quarter of 2025, highlighting a revenue of $103 million. The company reported an 8% year-over-year increase in advertising solutions revenue, marking the first growth since the third quarter of 2023. Despite a decline in total revenue by 5% compared to the previous year, Perion showcased strong cash flow from operations and adjusted free cash flow. The introduction of the Performance CTV solution on the Perion One platform signifies the company’s ongoing expansion and innovation in the advertising sector. This development is likely to impact Perion’s operational efficiency and industry positioning positively.

Perion Network Expands DOOH Presence in Korea with New Partnerships

On August 4, 2025, Perion Network Ltd. announced strategic partnerships with KT Corporation and NHN AD to expand its programmatic Digital Out-of-Home (DOOH) advertising footprint in South Korea. This collaboration marks Perion’s first direct programmatic supply integrations in Korea, aiming to capture a share of the rapidly growing APAC DOOH market, projected to reach $38.71 billion by 2030. The partnership allows KT to implement Perion’s Header Bidding technology, enhancing access to global advertisers, while NHN AD facilitates local activation, targeting high-income audiences through premium media channels.

Perion Network to Release Q2 2025 Results and Ends Shareholder Rights Plan

On July 10, 2025, Perion Network Ltd. announced its plan to release the second quarter 2025 financial results on August 11, 2025, followed by a conference call hosted by CEO Tal Jacobson and CFO Elad Tzubery. Additionally, the company’s Board of Directors terminated the shareholders’ rights plan, initially adopted to protect shareholder interests after a share price decline, reflecting confidence in Perion’s growth trajectory and commitment to long-term value creation.