Perion Network (PERI) investor relations material

Executive summary

• Q1 2026 revenue reached $90.4 million, up 1% year-over-year, with Perion One spend up 6% and strong momentum in CTV (+68%), DOOH (+29%), and Retail Media (+27%).

• Outmax AI Agent spend surged 316% year-over-year, expanded to TikTok, and entered Africa via exclusive partnerships, broadening TAM and recurring revenue streams.

• Strategic focus shifted to building Perion One as an AI-native, channel-agnostic execution infrastructure, unifying fragmented advertising ecosystems.

• Sales leadership restructuring and AI-driven sales processes aim to accelerate pipeline conversion and operational efficiency.

• 2.5 million shares were repurchased in Q1 2026 for $24.1 million, demonstrating disciplined capital allocation.

Financial highlights

• Q1 2026 revenue was $90.4 million, up 1% year-over-year; advertising solutions revenue was $66.7 million, search revenue $23.7 million.

• Contribution ex-TAC was $39.7 million, flat year-over-year, with a stable 44% margin.

• Adjusted EBITDA was $0.5 million, down from $1.8 million in Q1 2025, mainly due to higher go-to-market investments and FX headwinds.

• Net loss (GAAP) was $10 million ($0.26/share); non-GAAP net income was $4.8 million ($0.11/share).

• Cash flow from operations was $6.7 million; adjusted free cash flow was $7 million; net cash position at quarter-end was $293 million.

Outlook and guidance

• Full-year 2026 guidance reiterated: Contribution ex-TAC of $215–$235 million and Adjusted EBITDA of $50–$54 million, with margin improvement to 23% at midpoint.

• Double-digit growth in Perion One Contribution ex-TAC expected in H2, aiming for 20% growth by Q4 2026.

• 2028 target plan remains on track.