Key insights
- Perion Network's stock saw a modest rise despite missing Q1 revenue and EPS estimates. The company reiterated its full-year 2026 guidance, signaling management confidence. While overall advertising solutions revenue declined, key growth areas like AI agent spend, CTV, and DOOH showed significant year-over-year increases. The company also continued share repurchases and maintained a strong cash position. The market reaction suggests that the reiterated guidance and growth in specific segments outweighed the near-term revenue miss.
NEW YORK & TEL AVIV, Israel -On Wednesday, Perion Network Ltd. (NASDAQ:PERI) reported first quarter results that fell short of analyst expectations.
The company’s shares rose 4.50% in pre-market trading following the release, as full-year 2026 guidance was reiterated.
The digital advertising technology company posted adjusted earnings per share of $0.11, missing the analyst consensus of $0.13 by $0.02. Revenue reached $90.4 million, below the $92.92 million estimate, though up 1% YoY from $89.3 million in the first quarter of 2025.
The company maintained its full-year 2026 guidance of $215 million to $235 million in contribution ex-TAC and $50 million to $54 million in adjusted EBITDA. The midpoint of the contribution ex-TAC guidance of $225 million suggests management remains confident despite the softer quarter.
"During the quarter, we continued to advance the Perion One platform and our Outmax AI Agent technology, with encouraging adoption from customers and new global partnerships," said Tal Jacobson, CEO.
The company reported strong growth in key areas, with Outmax AI agent spend surging 316% YoY, CTV spend increasing 68% YoY, and DOOH spend growing 29% YoY.
However, advertising solutions revenue declined 4% YoY to $66.7 million, primarily due to weakness in the web channel, partially offset by gains in CTV and digital out-of-home channels. Search advertising revenue rose 21% YoY to $23.7 million.
Contribution ex-TAC remained flat at $39.7 million, maintaining a 44% margin. Adjusted EBITDA totaled $0.5 million, down from $1.8 million in the prior-year quarter. The company generated $6.7 million in operating cash flow and $7.0 million in adjusted free cash flow.
Perion repurchased 2.5 million shares for $24.1 million during the quarter. As of March 31, 2026, the company held $293.0 million in cash, cash equivalents, short-term deposits and marketable securities.
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