Summary of Perion Network Q2 2026 Earnings Call

1Key Financial Results and Metrics

Total Revenue: $98.2 million, down 5% year-over-year.

Contribution Ex-TAC: $42.3 million, down 11% year-over-year; Perion One contribution ex-TAC was $34.9 million, representing 83% of total contribution.

Total Spend: Increased 9% year-over-year to $194.7 million; Perion One spend grew 15% year-over-year to $156.7 million, accounting for 80% of total spend.

Adjusted EBITDA: $2.8 million, 7% margin on contribution ex-TAC; excluding foreign exchange impacts, adjusted EBITDA would have been $4.4 million.

Net Loss: GAAP net loss of $6.8 million or $0.18 per diluted share; non-GAAP net income of $3.9 million or $0.09 per diluted share.

Cash Position: $268 million in cash, cash equivalents, and marketable securities with no debt.

2Strategic Updates and Business Highlights

Continued focus on diversifying away from open web advertising, with strong growth in Connected TV (CTV), Retail Media, and Digital Out of Home (DOOH).

Best Buy Canada selected Perion as its end-to-end in-store Retail Media Technology partner, enhancing capabilities in programmatic retail media.

Launched the "Ask Perion" mobile application, enhancing accessibility to Perion One for advertisers.

Outmax, the proprietary AI agent, saw a 136% year-over-year increase in spend, indicating strong adoption.

New partnerships expanded geographical reach, including a distribution agreement to bring Outmax to Greece and Central Eastern Europe.

3Forward Guidance and Outlook

Narrowed full-year 2026 guidance for contribution ex-TAC to $215 million - $225 million and adjusted EBITDA to $51 million - $53 million, implying a 24% adjusted EBITDA margin at the midpoint.

Anticipated growth driven by onboarding of large strategic agreements and continued scaling of Perion One.

Expected improvement in operational efficiency and take rates in the second half of the year.

4Bad News, Challenges, or Points of Concern

Revenue decline attributed to softness in open web advertising and promotional terms impacting take rates.

Search revenue declined 2% year-over-year, with search contribution ex-TAC down 30%.

GAAP net loss increased due to foreign exchange impacts and lower interest income.

The onboarding of strategic accounts took longer than expected, contributing to a more conservative outlook.

5Notable Q&A Insights

Management acknowledged the synergy between Outmax and Ask Perion, emphasizing how these tools simplify complex workflows for advertisers.

The promotional activity impacting Perion One's take rates is expected to normalize as strategic agreements are finalized.

A 10% reduction in the cost base was implemented to improve operational efficiency.

Cash reserves will be allocated for share buybacks, technology investment, and potential M&A opportunities, with a disciplined approach to capital allocation. Overall, Perion Network demonstrated strong growth in targeted segments while facing challenges in traditional advertising areas. The company remains optimistic about future growth driven by strategic partnerships and technological advancements.