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1. Company Snapshot

1.a. Company Description

Perion Network Ltd.provides digital advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally.It provides Wildfire, a content monetization platform; search monetization solutions, including website monetization, search mediation, and app monetization; and cross-channel digital advertising software as a service platform.


The company also offers supply management platform; demand management platform for campaign planning and design; analytics platform, which provides information and performance insights on the results of campaign investment and other campaign metrics; creative platform to create advertisements; and an AI platform that uses machine learning to bring intelligence to the various phases of campaigns.In addition, it provides an actionable performance monitoring platform to support the various phases of campaign management; an online video player and integrated ad server to upload, manage, and stream video content; content monetization system, which integrates ads within the content layouts at the page level.Further, the company offers a publisher management system that provides analytics and performance optimization tools, as well as reports; search-demand management systems; monetization products that integrate and onboards demand vendors; and AI Systems.


Additionally, it provides Intelligent HUB (iHUB), a platform for pulling in signals across various advertising channels and optimizing traffic at scale, and yielding engagement metrics and KPIs; and strategic optimization of relevant traits (SORT), a provisional patent technology that eliminates the need for cookies.The company was formerly known as IncrediMail Ltd.and changed its name to Perion Network Ltd.


in November 2011.Perion Network Ltd.was incorporated in 1999 and is headquartered in Holon, Israel.

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1.b. Last Insights on PERI

Perion Network's recent performance was driven by better-than-expected Q2 earnings, with a return to growth in display advertising and strong cash flow. The company's debt-free status and $318.5 million in cash and liquid investments further bolster its position. New product launches, such as Performance CTV Solution and SODA, aim to capitalize on high-growth markets and increase revenue for publishers. Strategic partnerships, including those with KT Corporation and NHN AD, expand Perion's programmatic Digital Out-of-Home footprint. According to a recent note from an analyst, the company remains a buy despite a Q2 CTV disappointment.

1.c. Company Highlights

2. Perion's Q3 2025 Earnings: A Strong Step Forward

Perion's financial performance in Q3 2025 was marked by an 8% year-over-year revenue growth, reaching $110.5 million. The company's contribution ex TAC came in at $51 million, up 7% year over year, maintaining a healthy 46% margin. Adjusted EBITDA increased 63% year over year to $12.1 million, representing 24% of contribution TAC and 11% of total revenue. The company's actual EPS was $0.28, beating estimates of $0.26. As noted by Elad Tzubery, Perion's CFO, "the quarter is generally in line with expectations, and we feel very good about delivering within the guidance range."

Publication Date: Nov -26

📋 Highlights

Growth Engines Performance

Perion's core growth engines, CTV, retail media, and digital out of home, showed strong growth, with revenue up 75%, 40%, and 26% respectively. The company's CTV growth was driven by its performance CTV and new algorithm GreenBits, now called OutMAX, which are performing well. The growth in these areas is a testament to the company's diversified growth strategy and its ability to capture growth across various channels.

Valuation and Outlook

With a P/S Ratio of 1.05 and an EV/EBITDA of -124.61, the market seems to be pricing in a mixed outlook for Perion. The company's strong cash position and financial flexibility to support its growth strategy are positives. Analysts estimate next year's revenue growth at 8.5%, which is slightly higher than the current year's growth rate. Perion is confident that it will maintain a strong cash flow conversion rate of over 70% in 2025, and its adjusted free cash flow was $4.8 million in the first nine months of the year.

Strategic Progress and Future Plans

Perion made significant strategic progress in Q3 2025, introducing three new products under its Perion One vision: Outmax, Soda, and the digital out of home player. The company also advanced strategic partnerships across retail media and digital out of home, extending its reach throughout the U.S., Europe, and Asia. Perion plans to increase its investments in sales and marketing for next year to tap into more customers and showcase PerionOne capabilities. The company is also planning to increase R&D resources to expedite its roadmap.

Share Repurchase and Capital Allocation

Perion continued to execute its capital allocation plan with discipline, repurchasing 800,000 shares for $7.5 million in Q3 2025. The company approved the expansion of its share repurchase authorization by an additional $75 million, totaling $200 million. Perion repurchased an additional 1 million shares in the fourth quarter and expects to complete its current plan by the end of the year.

3. NewsRoom

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Private Capital's Strategic Moves: Spotlight on Matthews International Corp

Nov -14

Source: gurufocus.com

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Perion Network: Solid Quarter, Constructive Outlook - Buy

Nov -13

Source: seekingalpha.com

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Why Perion Network Rallied Today

Nov -12

Source: fool.com

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Perion Network Ltd. (PERI) Q3 2025 Earnings Call Transcript

Nov -12

Source: seekingalpha.com

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Perion Network (PERI) Tops Q3 Earnings and Revenue Estimates

Nov -12

Source: zacks.com

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Perion Announces Participation in Leading Investor Conferences in November and December 2025

Nov -03

Source: businesswire.com

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Comparing Yelp (NYSE:YELP) & Perion Network (NASDAQ:PERI)

Oct -22

Source: defenseworld.net

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9 Under-the-Radar AI Stocks to Buy Now

Sep -19

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.60%)

6. Segments

Display Advertising

Expected Growth: 11.2%

Perion Network Ltd.'s 11.2% growth in Display Advertising is driven by increasing demand for digital marketing, expansion into new geographic markets, and strategic partnerships. Additionally, the company's focus on mobile and video advertising, as well as its proprietary ad-serving technology, have contributed to its growth.

Search Advertising

Expected Growth: 9.9%

Perion Network Ltd.'s 9.9% growth in Search Advertising is driven by increasing online consumer activity, rising demand for targeted advertising, and the company's strategic partnerships with leading search engines. Additionally, advancements in AI-powered ad optimization and the growing importance of digital marketing in the post-pandemic era contribute to this growth.

7. Detailed Products

Undertone

A digital advertising company that provides high-impact, interactive ad formats and a suite of creative services

CodeFuel

A platform that provides a suite of monetization tools and services for publishers and developers

IncrediMail

A consumer-focused email client that provides a range of features and functionalities

Smilebox

A digital media company that provides a range of digital greeting cards and personalized gifts

8. Perion Network Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Perion Network Ltd. operates in a niche market, providing digital advertising solutions, which reduces the threat of substitutes. However, the company faces competition from larger players in the digital advertising space.

Bargaining Power Of Customers

Perion Network Ltd.'s customers are primarily small to medium-sized businesses, which reduces their bargaining power. The company's diversified customer base also mitigates the risk of customer concentration.

Bargaining Power Of Suppliers

Perion Network Ltd. relies on a few key suppliers for its technology and infrastructure, which gives them some bargaining power. However, the company's diversified supplier base and long-term contracts mitigate this risk.

Threat Of New Entrants

The digital advertising space is highly competitive, and new entrants can easily disrupt the market. Perion Network Ltd. needs to continuously innovate and improve its offerings to stay ahead of new competitors.

Intensity Of Rivalry

The digital advertising space is highly competitive, with many established players and new entrants vying for market share. Perion Network Ltd. faces intense competition from larger players, which puts pressure on its pricing and market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.05%
Debt Cost 3.95%
Equity Weight 98.95%
Equity Cost 10.77%
WACC 10.70%
Leverage 1.06%

11. Quality Control: Perion Network Ltd. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Moneysupermarket

A-Score: 6.5/10

Value: 5.1

Growth: 4.9

Quality: 8.7

Yield: 8.8

Momentum: 3.0

Volatility: 8.7

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A-Score: 4.9/10

Value: 0.9

Growth: 8.6

Quality: 9.4

Yield: 1.2

Momentum: 4.0

Volatility: 5.3

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New Work

A-Score: 4.4/10

Value: 6.8

Growth: 5.0

Quality: 7.1

Yield: 2.5

Momentum: 4.0

Volatility: 1.0

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Fiverr

A-Score: 3.7/10

Value: 3.4

Growth: 8.4

Quality: 3.8

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

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Perion Network

A-Score: 3.4/10

Value: 7.8

Growth: 1.0

Quality: 2.6

Yield: 0.0

Momentum: 7.0

Volatility: 2.0

1-Year Total Return ->

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Similarweb

A-Score: 3.1/10

Value: 4.8

Growth: 5.2

Quality: 2.9

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.98$

Current Price

9.98$

Potential

-0.00%

Expected Cash-Flows