Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on PERI

The recent performance of Perion Network Ltd. has been negatively impacted by a "Hold" rating from five analysts, with one sell rating and three buy ratings, resulting in an average price target of $14.38. This lukewarm sentiment from the analyst community may temper investor enthusiasm. Additionally, the company's upcoming earnings release on February 18, 2026, may bring attention to any potential shortfalls in its fourth-quarter and fiscal year 2025 financial results.

1.c. Company Highlights

2. Perion's Strong Q4 2025 Earnings: A New Era of Growth

Perion's Q4 2025 financial performance was robust, with revenue growing 6% year-over-year to $137.1 million, and contribution, a key metric, reaching $65.2 million, up 19% year-over-year. Adjusted EBITDA, a measure of profitability, was not directly disclosed, but the company's net income and earnings per share (EPS) were reported at $0.49, in line with expectations. The company's cash position remains strong, with $313 million in cash and cash equivalents, providing a solid foundation for future growth. With a P/E Ratio of -45.21 and an EV/EBITDA of 49.8, the market seems to be pricing in significant growth expectations.

Publication Date: Mar -09

📋 Highlights
  • Revenue and Profit Growth:: 2025 revenue rose 6% YoY to $137.1M; adjusted EBITDA surged 53% to $24.3M, driven by 19% YoY contribution ex-TAC growth to $65.2M.
  • Growth Engine Momentum:: CTV revenue grew 42% YoY (59% in Q4), Retail Media increased 36% YoY (42% in Q4), and Digital Out-of-Home scaled 28% YoY.
  • Perion One Performance:: Outmax achieved a $50k YouTube budget scaling to $20M and a digital out-of-home publisher scaling from EUR 200 to EUR 0.5M/month in 90 days.
  • Balance Sheet Strength:: Ended 2025 with $313M in net cash, $21.8M operating cash flow, and expanded share repurchase program to $200M (56% of market cap).
  • 2028 Target Plan:: Aims for 28% adjusted EBITDA margin, 25% CAGR in Perion One spend, and 85–90% contribution ex-TAC from Perion One by 2028.

Growth Engines Firing on All Cylinders

The company's growth engines, particularly CTV, Digital Out-of-Home, and Retail Media, demonstrated clear momentum. CTV revenue grew 59% in Q4 and 42% for the full year, while Retail Media revenue increased 42% in Q4 and 36% for the full year. As Tal Jacobson, Perion's CEO, highlighted, "Perion One's AI-powered execution infrastructure, Outmax, drives results for customers." This is evident in the $50,000 YouTube budget test that grew to $20 million in 2025, showcasing the power of Outmax.

Guidance and Outlook

For 2026, Perion expects contribution ex-TAC of $215 million to $235 million and adjusted EBITDA of $50 million to $54 million. The company's confidence in its 2028 target plan is supported by three key catalysts: the ongoing strength of its growth engines, the broader market shift to performance advertising, and its value proposition attracting new customers. With a Free Cash Flow Yield of 10.6%, the company's cash generation capabilities are attractive.

Valuation and Return to Shareholders

Perion's balance sheet remains strong, and the company is committed to returning value to shareholders. The Board has authorized an expansion of the share repurchase program from $125 million to $200 million, representing a 56% return on the company's market cap. The company's P/B Ratio of 0.53 suggests that the stock may be undervalued relative to its book value.

Future Prospects

The company's Perion One platform is expected to drive growth, with a CAGR of at least 25% through 2028. The legacy parts of Perion are expected to remain relatively stable, and the company is confident in its ability to deliver on its 2028 target plan. As the company continues to execute on its strategy, investors will be watching to see if Perion can maintain its growth momentum and deliver on its promises.

3. NewsRoom

Card image cap

Perion Q4: Positioning Itself As The AI Decision Layer In Ad Buying

Feb -21

Source: seekingalpha.com

Card image cap

Perion Network Ltd. (PERI) Q4 2025 Earnings Call Transcript

Feb -18

Source: seekingalpha.com

Card image cap

Perion Network (PERI) Meets Q4 Earnings Estimates

Feb -18

Source: zacks.com

Card image cap

Perion Reports Fourth Quarter Results

Feb -18

Source: businesswire.com

Card image cap

Perion to Announce Its Fourth Quarter and Fiscal Year 2025 Financial Results on February 18, 2026

Jan -27

Source: businesswire.com

Card image cap

Perion Network Ltd (NASDAQ:PERI) Receives $14.38 Average Price Target from Analysts

Jan -22

Source: defenseworld.net

Card image cap

Perion to Participate in the 28th Annual Needham Growth Conference on January 14th, 2026

Jan -05

Source: businesswire.com

Card image cap

Perion Network (NASDAQ:PERI) vs. Tuniu (NASDAQ:TOUR) Head-To-Head Comparison

Dec -28

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.60%)

6. Segments

Display Advertising

Expected Growth: 11.2%

Perion Network Ltd.'s 11.2% growth in Display Advertising is driven by increasing demand for digital marketing, expansion into new geographic markets, and strategic partnerships. Additionally, the company's focus on mobile and video advertising, as well as its proprietary ad-serving technology, have contributed to its growth.

Search Advertising

Expected Growth: 9.9%

Perion Network Ltd.'s 9.9% growth in Search Advertising is driven by increasing online consumer activity, rising demand for targeted advertising, and the company's strategic partnerships with leading search engines. Additionally, advancements in AI-powered ad optimization and the growing importance of digital marketing in the post-pandemic era contribute to this growth.

7. Detailed Products

Undertone

A digital advertising company that provides high-impact, interactive ad formats and a suite of creative services

CodeFuel

A platform that provides a suite of monetization tools and services for publishers and developers

IncrediMail

A consumer-focused email client that provides a range of features and functionalities

Smilebox

A digital media company that provides a range of digital greeting cards and personalized gifts

8. Perion Network Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Perion Network Ltd. operates in a niche market, providing digital advertising solutions, which reduces the threat of substitutes. However, the company faces competition from larger players in the digital advertising space.

Bargaining Power Of Customers

Perion Network Ltd.'s customers are primarily small to medium-sized businesses, which reduces their bargaining power. The company's diversified customer base also mitigates the risk of customer concentration.

Bargaining Power Of Suppliers

Perion Network Ltd. relies on a few key suppliers for its technology and infrastructure, which gives them some bargaining power. However, the company's diversified supplier base and long-term contracts mitigate this risk.

Threat Of New Entrants

The digital advertising space is highly competitive, and new entrants can easily disrupt the market. Perion Network Ltd. needs to continuously innovate and improve its offerings to stay ahead of new competitors.

Intensity Of Rivalry

The digital advertising space is highly competitive, with many established players and new entrants vying for market share. Perion Network Ltd. faces intense competition from larger players, which puts pressure on its pricing and market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.05%
Debt Cost 3.95%
Equity Weight 98.95%
Equity Cost 10.77%
WACC 10.70%
Leverage 1.06%

11. Quality Control: Perion Network Ltd. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Moneysupermarket

A-Score: 6.8/10

Value: 5.4

Growth: 4.9

Quality: 8.7

Yield: 9.4

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Baltic Classifieds Group

A-Score: 4.5/10

Value: 2.5

Growth: 8.6

Quality: 9.4

Yield: 1.9

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
New Work

A-Score: 4.4/10

Value: 6.7

Growth: 5.0

Quality: 7.2

Yield: 2.5

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Perion Network

A-Score: 3.2/10

Value: 7.9

Growth: 1.1

Quality: 2.6

Yield: 0.0

Momentum: 5.5

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
Fiverr

A-Score: 3.0/10

Value: 3.8

Growth: 8.4

Quality: 3.8

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
Similarweb

A-Score: 2.4/10

Value: 5.0

Growth: 5.1

Quality: 3.0

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.67$

Current Price

8.67$

Potential

-0.00%

Expected Cash-Flows