Perion Network (PERI) Q2 2026 earnings summary

Executive summary

• Strategic focus on diversifying away from the open web, emphasizing CTV, Retail Media, and Digital Out-of-Home through organic investment, M&A, and geographic expansion, including new partnerships and technology integrations.

• Perion One spend rose 15% year-over-year, driven by strong adoption and significant traction in CTV (+56%), DOOH (+45%), Retail Media (+60%), and Outmax AI Agent (+136%), outpacing market growth.

• Launch of Ask Perion, a self-serve mobile application, and integration of Outmax AI agent for campaign optimization.

• Cost optimization measures and operational efficiency initiatives completed, supporting future growth and operating leverage.

• Strategic wins included Best Buy Canada, GS Netvision, and expansion into Greece and CEE via Acrossmedia241.

Financial highlights

• Q2 2026 revenue was $98.2 million, down 5% year-over-year; contribution ex-TAC was $42.3 million (43% margin), down 11% year-over-year.

• Adjusted EBITDA was $2.8 million (7% margin), impacted by $1.6 million FX headwind; adjusted free cash flow was $4.8 million.

• GAAP net loss was $6.8 million ($0.18 per diluted share); non-GAAP net income was $3.9 million ($0.09 per diluted share).

• Cash and equivalents at quarter-end: $267.8 million; zero debt.

• 2.7 million shares repurchased for $24.5 million in Q2 2026; cumulative buybacks of 18 million shares for $166.8 million.

Outlook and guidance

• Full-year 2026 guidance narrowed: contribution ex-TAC expected at $215–$225 million, adjusted EBITDA at $51–$53 million (24% margin at midpoint).

• Material financial contribution from new strategic agreements expected to begin late Q3 and accelerate into Q4 and 2027.

• Operational efficiency initiatives and cost optimization expected to improve margins in H2 and support long-term growth targets.

• 2028 targets remain on track, with a 25%+ 3-year spend CAGR and 20%+ 3-year Contribution ex-TAC CAGR.

• Guidance reflects first-half performance and increased visibility into second-half trends.