Perion Network Ltd (NASDAQ: PERI) reported a 5% year-over-year decline in second-quarter revenue to $98.2 million, despite a 9% increase in total advertising spend to $194.7 million. The divergence highlights the company’s strategic pivot toward its unified Perion One platform, which now commands 80% of total spend, up from 76% in the prior year.

The company generated an adjusted EBITDA of $2.8 million, representing a 7% margin on contribution ex-TAC. This figure included a $1.6 million foreign exchange headwind; excluding this impact, adjusted EBITDA would have been $4.4 million. Management attributed the top-line pressure to promotional terms used to acquire new accounts and broader industry softness in open web advertising.

Platform Adoption and Spend Growth

Total spend on the Perion One platform grew 15% year-over-year to $156.7 million. This growth was driven by strong momentum in emerging channels:

• CTV spend rose 56% to $17.7 million.
• Digital out-of-home (DOOH) spend increased 45% to $87.7 million.
• Retail media spend accelerated 60% to $59.4 million.

In contrast, search revenue declined 2% year-over-year, with search contribution ex-TAC falling 30%. The company continues to manage the legacy search business to maximize cash flow for reinvestment into Perion One and shareholder returns.

What the Numbers Show

The financial data reveals a significant structural shift in Perion’s revenue composition. While overall revenue fell, the Perion One platform’s contribution ex-TAC accounted for 83% of the total $42.3 million contribution ex-TAC, up from 76% last year. This indicates that while the legacy business is contracting, the new platform is not yet fully offsetting the decline in absolute revenue terms, largely due to lower take rates from promotional pricing. The gap between rising total spend ($194.7 million) and falling revenue ($98.2 million) underscores the aggressive discounting strategy employed to gain market share in high-growth verticals like retail media and CTV.

Strategic Initiatives and Efficiency

Perion secured a strategic partnership with Best Buy Canada, deploying its end-to-end in-store retail media technology. Additionally, the AI agent Outmax saw spend grow 136% year-over-year on a pro forma basis.

Operational efficiency remains a priority. The company executed targeted cost-base optimizations, reducing the cost base by approximately 10%. These measures are expected to drive adjusted EBITDA margin improvement in the second half of the year.

Shareholder Returns and Balance Sheet

As of June 30, 2026, Perion held $268 million in cash and equivalents with zero debt. During the quarter, the company repurchased 2.7 million shares for $24.5 million at an average price of $9.12 per share. Since initiating the buyback program nine quarters ago, it has repurchased a cumulative 8.18 million shares for $166.8 million.

Outlook for FY26

Perion narrowed its full-year 2026 guidance ranges:

• Contribution ex-TAC: $215 million to $225 million.
• Adjusted EBITDA: $51 million to $53 million, implying a 24% margin at the midpoint.

Management cited increased visibility into the second half, driven by the onboarding of large-scale strategic agreements expected to contribute materially towards the end of the third quarter.

Perion Network Ltd, an advanced technology leader in digital advertising, announced its participation in three investor conferences taking place in August and September 2026. The company's management will engage with investors through one-on-one and small group meetings to discuss its AI-native execution infrastructure and business strategies.

The first event is Canaccord Genuity's 46th Annual Growth Conference, scheduled for August 11 in Boston. This in-person conference will feature a fireside chat with Perion's CEO, Tal Jacobson, at 2:30pm ET. Investors can register to watch the live webcast via the event's dedicated portal.

Following this, Perion will attend Oppenheimer's 29th Annual Technology, Internet & Communications Conference on August 12. This event will be held virtually, where management will conduct one-on-one and small group meetings with investors.

The final conference on the agenda is the Lake Street 10th Annual Best Ideas Growth Conference on September 10 in New York. This in-person gathering will also provide opportunities for investors to meet with Perion's management team.

Investors interested in scheduling meetings at any of these conferences are advised to contact their representatives at Canaccord Genuity, Oppenheimer, or Lake Street. Perion continues to leverage its proprietary AI engine, Outmax, to optimize advertising performance across various media channels.