Perion One adoption accelerated with spend up 15% YoY,

driven by strong growth of CTV by 56%, DOOH by 45%, Retail Media by 60%, and Outmax AI Agent by 136%

Narrowing 2026 Guidance range

NEW YORK & TEL AVIV, Israel--(BUSINESS WIRE)--August 10, 2026-- 

Perion Network Ltd. (NASDAQ and TASE: PERI), an advanced technology leader solving for the complexities of digital advertising through AI-native execution infrastructure, today reported its financial results for the second quarter ended June 30, 2026.

"In the second quarter, we continued to strengthen the foundation for Perion's next phase of growth," said Tal Jacobson, Perion's CEO. "Our strategy has long been built around diversifying away from the Open Web. Over the past two years, we have accelerated that shift through both organic investment and M&A, responding to changing customer demand and market dynamics. This quarter's results reflect that progress, with strong momentum across CTV, DOOH, Retail Media, and Outmax, our AI Agent. Recent strategic wins, including Best Buy Canada's selection of Perion as its in-store Retail Media DOOH technology partner and the rollout of our Ask Perion AI application, further demonstrate that momentum. We remain focused on the expected second-half ramp, supported by continued investment in these growth engines, while the efficiency measures to optimize our cost base, which were completed this quarter, create additional capacity to support that growth."

Second Quarter 2026 Business and Financial Highlights

   --  Perion One's spend increased 15% YoY to $156.7 million 
 
   --  Growth engines performance: 
 
          --  CTV spend increased 56% YoY 
 
          --  DOOH spend increased 45% YoY 
 
          --  Retail Media vertical spend increased 60% YoY 
 
          --  Outmax AI agent adoption - spend increased by 136%1 YoY 
 
 
 
   --  Total revenue of $98.2 million 
 
   --  Total contribution ex-TAC of $42.3 million, with a 43% margin 
 
   --  Adjusted EBITDA of $2.8 million 
 
   --  Cash flow from operations of $2.5 million, adjusted free cash flow of 
      $4.8 million 
 
   --  Repurchased 2.7 million shares for a total of $24.5 million 
 
   --  Business highlights: 
 
          --  Accelerating Perion in-store retail media DOOH 
 
                 --  Best Buy Canada selected Perion as its end-to-end Retail 
                    DOOH technology partner 
 
                 --  GS Netvision, South Korea's leading retail network, 
                    selects Perion for its 3,300+ DOOH screens across grocery 
                    and convenience stores 
 
                 --  Lovitlocal UK selected Perion as the programmatic DOOH 
                    partner for its in-store media network across UK post 
                    offices. 
 
 
 
          --  Distribution Partnership Program continues to accelerate by 
             partnering with Acrossmedia241 to bring Outmax, Perion's AI agent, 
             to Greece and the CEE Region 
 
          --  New offering within Google DV360 as we added our DOOH 
             Programmatic Guaranteed deal into the Google Media platform 
 
          --  Launches Ask Perion, an agentic self-serve mobile app designed 
             to accelerate omnichannel execution and increase efficiency 
 
          --  New data partnership with Fetch to allow our advertisers access 
             to verified, SKU-level purchase data from over 13 million monthly 
             active users and 26,000-plus merchants 
 
 
 
________________________________ 
(1) On a pro forma basis 
(2) Contribution ex-TAC, non-GAAP Net Income, Adjusted EBITDA, Adjusted Free 
Cash Flow and non-GAAP Diluted EPS are non-GAAP measures. See below 
reconciliation of GAAP to non-GAAP measures. 
 

Second Quarter 2026 Financial Highlights(2)

 
 
  In millions, 
  except per share 
  data                  Three months ended        Six months ended 
                             June 30,                 June 30, 
                     ------------------------  ----------------------- 
                      2026     2025      %      2026     2025      % 
                     -------  -------  ------  -------  -------  ----- 
  Advertising 
   Solutions 
   Revenue           $  76.2  $  80.6    (5)%  $ 142.9  $ 150.3   (5)% 
  Search 
   Advertising 
   Revenue           $  22.1  $  22.4    (2)%  $  45.7  $  42.0     9% 
  Total Revenue      $  98.2  $ 103.0    (5)%  $ 188.6  $ 192.3   (2)% 
  Contribution 
   ex-TAC (Revenue 
   ex-TAC)           $  42.3  $  47.6   (11)%  $  82.0  $  87.3   (6)% 
  GAAP Net Loss      $ (6.8)  $ (3.5)   (95)%  $(16.8)  $(11.8)  (42)% 
  Non-GAAP Net 
   Income            $   3.9  $  12.0   (68)%  $   8.7  $  17.3  (50)% 
  Adjusted EBITDA    $   2.8  $   7.1   (61)%  $   3.2  $   8.9  (64)% 
  Adjusted EBITDA 
   to Contribution 
   ex-TAC                 7%      15%               4%      10% 
  Net Cash from 
   Operations        $   2.5  $  21.3   (88)%  $   9.1  $  14.2  (36)% 
  Adjusted Free 
   Cash Flow         $   4.8  $  20.7   (77)%  $  11.8  $  14.6  (19)% 
  GAAP Diluted EPS   $(0.18)  $(0.08)  (125)%  $(0.44)  $(0.27)  (63)% 
  Non-GAAP Diluted 
   EPS               $  0.09  $  0.26   (65)%  $  0.21  $  0.36  (42)% 
 
 

Financial Outlook for Full-Year 2026(3)

Based on current expectations, the Company is narrowing its full-year 2026 outlook ranges:

   --  Contribution ex-TAC2 of $215 to $225 million, from $215 to $235 
      previously 
 
   --  Adjusted EBITDA2 of $51 to $53 million, from $50 to $54 previously 

"We are narrowing our full-year outlook to reflect our first half performance and increased visibility into second-half trends," said Elad Tzubery, Perion's CFO. "Our comfort in delivering this updated outlook is supported by tangible catalysts. Our structural cost reductions have established a streamlined, highly optimized expense base. This positions us to capture significant operating leverage as recently signed strategic agreements begin contributing and momentum across Perion One accelerates. Together, these operational efficiencies and top-line drivers protect our profitability and support our second-half 2026 acceleration."

 
________________________________ 
 
(3) We have not provided an outlook for GAAP Income from operations or 
reconciliation of Adjusted EBITDA guidance to GAAP Income from operations, the 
closest corresponding GAAP measure, because we do not provide guidance for 
certain of the reconciling items on a consistent basis due to the variability 
and complexity of these items, including but not limited to the measures and 
effects of our stock-based compensation expenses directly impacted by 
unpredictable fluctuation in our share price and amortization in connection 
with future acquisitions. Hence, we are unable to quantify these amounts 
without unreasonable efforts. 
 

Share Repurchase Program

   --  During the second quarter of 2026, the Company repurchased a total of 
      approximately 2.7 million shares for a total amount of $24.5 million 
 
   --  As of June 30, 2026, under the authorized $200 million share repurchase 
      plan, the Company repurchased a total of 18.0 million shares for a total 
      amount of $166.8 million 

Financial Comparison for the Second Quarter of 2026

Revenue: Revenue decreased by 5% to $98.2 million in the second quarter of 2026 from $103.0 million in the second quarter of 2025. Advertising Solutions revenue decreased 5% year-over-year, accounting for 78% of revenue, primarily due to a decrease in our Web channel. Search Advertising revenue decreased by 2% year-over-year, accounting for 22% of revenue.

Traffic Acquisition Costs and Media Buy ("TAC"): TAC amounted to $55.9 million, or 57% of revenue, in the second quarter of 2026, compared with $55.4 million, or 54% of revenue, in the second quarter of 2025.

GAAP Net loss: GAAP net loss was $6.8 million in the second quarter of 2026, compared with $3.5 million in the second quarter of 2025. GAAP net loss in the second quarter of 2026 includes $2.5 million in restructuring costs and other charges, partially offset by $1.9 million in income related to change in fair value of contingent consideration.

Non-GAAP Net Income: Non-GAAP net income was $3.9 million, or 4% of revenue, in the second quarter of 2026, compared with $12.0 million, or 12% of revenue, in the second quarter of 2025. A reconciliation of GAAP to non-GAAP net income is included in this press release.

Adjusted EBITDA: Adjusted EBITDA was $2.8 million, or 3% of revenue and 7% of Contribution ex-TAC in the second quarter of 2026, compared with $7.1 million, or 7% of revenue and 15% of Contribution ex-TAC in the second quarter of 2025. A reconciliation of GAAP income from operations to Adjusted EBITDA is included in this press release.

Cash Flow from Operations: Net cash provided by operating activities in the second quarter of 2026 was $2.5 million, compared with net cash provided by operating activities of $21.3 million in the second quarter of 2025.

Net cash: As of June 30, 2026, cash and cash equivalents, short-term bank deposits and marketable securities, amounted to $267.8 million, compared with $312.9 million as of December 31, 2025.

Conference Call

Perion's management will host a conference call to discuss the results at 8:30 a.m. ET today:

Registration link: https://perion-q2-2026-earnings-call.open-exchange.net/

A replay of the call and a transcript will be available within approximately 24 hours of the live event on Perion's website.

About Perion Network Ltd.

Perion is an advanced technology leader redefining advertising through AI-native infrastructure, delivering real-time media execution across CTV, digital out-of-home, commerce and retail media, social and digital environments. Powered by Outmax, the company's proprietary AI engine, Perion helps brands, agencies, and retailers optimize spend and performance, driving measurable outcomes at scale.

For more information, visit www.perion.com

Non-GAAP Measures