Perion Network Ltd.

Q2 2026 revenue was $98.2 million, down 5% year over year. Contribution ex-TAC was $42.3 million, down 11% year over year, and Perion One contribution ex-TAC was $34.9 million, down 4% year over year. Adjusted EBITDA was $2.8 million, equal to 7% of contribution ex-TAC; management said it would have been $4.4 million excluding a $1.6 million FX headwind. On a GAAP basis, net loss was $6.8 million, or $0.18 per diluted share; non-GAAP net income was $3.9 million, or $0.09 per diluted share. Total spend increased 9% to $194.7 million, while Perion One spend increased 15% to $156.7 million. For 2026, the company now expects contribution ex-TAC of $215 million to $225 million and adjusted EBITDA of $51 million to $53 million, implying a 24% margin at the midpoint.

Tal Jacobson framed the quarter as proof that Perion’s strategy to move away from the open web is working, saying the company has been doubling down on CTV, Retail Media, Digital Out of Home, and AI-driven execution. He highlighted Perion One, Outmax, and Ask Perion as the core of an AI-native advertising infrastructure that is gaining adoption across channels. His tone was optimistic and confident, especially around the new strategic relationships, the land-and-expand model, and the idea that the company is building a repeatable, infrastructure-level business.

Elad Tzubery emphasized that the quarter was shaped by strong spend growth but also lower take rates from promotional terms and softer open-web advertising. He cited Perion One spend of $156.7 million, revenue of $98.2 million, contribution ex-TAC of $42.3 million, adjusted EBITDA of $2.8 million, and adjusted free cash flow of $4.8 million. He also noted $268 million in cash and short-term investments, no debt, and $24.5 million of buybacks in the quarter, including 2.7 million shares repurchased at an average price of $9.12. He said the company reduced roughly 10% of the cost base, expects take rates to modestly improve in the second half, and plans to complete the remaining $33.2 million of the current buyback plan by year-end.

Analysts focused on the gap between strong spend growth and weak revenue/contribution growth, asking for Perion One revenue detail, why management still prefers spend disclosure, and whether segment reporting should shift to revenue ex-TAC. Management said Perion One revenue was $74.2 million, explained that much of the business is recognized net, and argued spend better reflects customer adoption. Questions also covered promotional activity and low early take rates; management said H1 included test campaigns and onboarding at low margins, with normalization expected in H2. Analysts pressed on the slower ramp of two strategic accounts and the use of cash; management said onboarding took longer than expected, the contracts should contribute more materially toward the end of Q3 and in 2027, and cash will be balanced among buybacks, M&A, and investment in the business.