Perion Reports First Quarter 2026 Results
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 first quarter ended March 31, 2026.
“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. We extended Outmax into a new social channel with its launch on TikTok, and formed an exclusive partnership in Africa, adding a new distribution channel in this high-growth digital advertising market,” said Tal Jacobson, Perion’s CEO.
Mr. Jacobson added, “Perion’s vision is centered on fully integrating AI across every facet of our business. We are leveraging AI not only as the core engine that drives higher ROI and measurable outcomes for our customers, but also internally to streamline our operations, optimize our cost structure, and drive greater efficiency across the company.”
First Quarter 2026 Business and Financial Highlights
- Growth engines performance:
- Outmax AI agent adoption – spend[1] increased by 316% YoY
- CTV spend increased 68% YoY
- DOOH spend increased 29% YoY
- Retail Media[2] vertical spend increased 27% YoY
- Perion One spend increased 6% YoY
- Total revenue of $90.4 million, increased 1% YoY
- Total contribution ex-TAC remained flat YoY at $39.7 million, with a 44% margin
- Adjusted EBITDA of $0.5 million
- Cash flow from operations of $6.7 million, adjusted free cash flow of $7.0 million
- Repurchased 2.5 million shares for a total of $24.1 million
- Expanded partnerships and integrations:
- Exclusive Outmax partnership in Africa with Mediamark and McSorely Media
- Outmax AI agent now available for TikTok
- Bouygues Telecom adopts Outmax
[1] On a proforma basis
[2] Retail Media revenue includes several media channels, such as CTV, DOOH and others
First Quarter 2026 Financial Highlights[3]
[3] 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. Numbers may not add up due to rounding.
Financial Outlook for Full-Year 2026[4]
Based on current expectations, the Company is reiterating its full-year 2026 outlook ranges:
[4] 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.
[5] Contribution ex-TAC, non-GAAP Net Income, Adjusted EBITDA and non-GAAP Diluted EPS are non-GAAP measures. See below reconciliation of GAAP to non-GAAP measures.
Share Repurchase Program
- During the first quarter of 2026, the Company repurchased a total of 2.5 million shares for a total amount of $24.1 million
- As of March 31, 2026, under the authorized $200 million share repurchase plan, the Company repurchased a total of 15.3 million shares for a total amount of $142.2 million
Financial Comparison for the First Quarter of 2026
Revenue: Revenue increased by 1% to $90.4 million in the first quarter of 2026 from $89.3 million in the first quarter of 2025. Advertising Solutions revenue decreased 4% year-over-year, accounting for 74% of revenue, primarily due to decline in our Web channel, partially offset by an increase in CTV and Digital Out of Home channels. Search Advertising revenue increased by 21% year-over-year, accounting for 26% of revenue.
Traffic Acquisition Costs and Media Buy (“TAC”): TAC amounted to $50.7 million, or 56% of revenue, in the first quarter of 2026, compared with $49.7 million, or 56% of revenue, in the first quarter of 2025.
GAAP Net Loss: GAAP net loss was $10.0 million in the first quarter of 2026, compared with $8.3 million in the first quarter of 2025.
Non-GAAP Net Income: Non-GAAP net income was $4.8 million, or 5% of revenue, in the first quarter of 2026, compared with $5.4 million, or 6% of revenue, in the first quarter of 2025. A reconciliation of GAAP to non-GAAP net income is included in this press release.
Adjusted EBITDA: Adjusted EBITDA was $0.5 million, or 1% of revenue and 1% of Contribution ex-TAC in the first quarter of 2026, compared with $1.8 million, or 2% of revenue and 5% of Contribution ex-TAC in the first 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 first quarter of 2026 was $6.7 million, compared with net cash used in operating activities of $7.1 million in the first quarter of 2025.
Net cash: As of March 31, 2026, cash and cash equivalents, short-term bank deposits and marketable securities, amounted to $293.0 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-q1-2026-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 helps brands, agencies, and retailers maximize the value of their advertising investments with advanced AI and creative technologies. Its unified platform, Perion One, bridges media, data, and performance across digital channels to deliver superior results in an increasingly complex advertising environment.
For more information, visit www.perion.com