Revenue of $110.5 million, Contribution ex-TAC of $51 million, 8% and 7% YoY growth, respectively

Strong results across all Growth Engines, with CTV at 75% YoY growth

Expanding Share Repurchase program to $200 million¹, reflecting confidence in long-term growth and cash generation

Perion Network Ltd. (NASDAQ and TASE: PERI), a leader in advanced technology solving for the complexities of modern advertising, today reported its financial results for the third quarter ended September 30, 2025.

Third Quarter 2025 Financial Highlights²

In millions, except per share data	Three months ended					Nine months ended
	September 30,					September 30,
	2025		2024		%	2025		2024		%
Advertising Solutions Revenue	$	87.7	$	81.3	8%	$	237.9	$	231.4	3%
Search Advertising Revenue	$	22.8	$	20.9	9%	$	64.8	$	137.3	(53%)
Total Revenue	$	110.5	$	102.2	8%	$	302.8	$	368.7	(18%)
Contribution ex-TAC (Revenue ex-TAC)	$	51.0	$	47.6	7%	$	138.2	$	157.6	(12%)
GAAP Net Income (loss)	$	(4.1)	$	2.1	NM	$	(15.9)	$	7.7	NM
Non-GAAP Net Income	$	12.5	$	11.9	6%	$	29.9	$	47.8	(38%)
Adjusted EBITDA	$	12.1	$	7.4	63%	$	20.9	$	35.4	(41%)
Adjusted EBITDA to Contribution ex-TAC		24%		16%			15%		22%
Net Cash from Operations	$	5.9	$	16.2	(64%)	$	20.1	$	2.6	674%
Adjusted Free Cash Flow	$	4.8	$	17.2	(72%)	$	18.1	$	12.3	48%
GAAP Diluted EPS	$	(0.10)	$	0.04	NM	$	(0.37)	$	0.15	NM
Non-GAAP Diluted EPS	$	0.28	$	0.23	22%	$	0.64	$	0.94	(32%)

______________________________

¹ To become effective subject to satisfaction of the requirements of the Companies law and regulations

² Contribution ex-TAC, non-GAAP Net Income, Adjusted EBITDA, Adjusted Free Cash Flow and non-GAAP Diluted EPS are non-GAAP measures. See below reconciliation of GAAP to non-GAAP measures.

Business & Financial Highlights

Adjusted EBITDA increased 63% YoY
Contribution ex-TAC increased 7% YoY
Advertising Solutions revenue increased 8%
Strong performance of growth engines
- CTV revenue increased 75% YoY to $16.6 million
- DOOH revenue increased 26% YoY to $24.1 million
- Retail Media³ vertical revenue increased 40% YoY to $29.4 million
Strategic Retail Media Partnership with Albertsons Media Collective
Introducing Perion Outmax – Greenbids' AI is now part of the unified optimization engine of Perion to maximize performance across social, CTV, and web, fueling global growth
Launch of the DOOH Player - Aiming to accelerate scalable, recurring and predictable, high-margin growth across DOOH and Retail Media ecosystems
Launch of SODA, Next-generation Supply Path Optimization Solution, enabling publishers to maximize revenue through Perion's AI algorithm
Expanding in China through strategic partnerships with GIMC, one of China's leading advertising groups
Expanding Global DOOH reach and growth through strategic partnerships: Novisign US, SkyRise EU, Airtango Media DACH, Presco Netmarketing Taiwan
Share repurchase: The Board of Directors principally approved to expand the program to $200 million, pending regulatory approval
Reiterating FY 2025 guidance

"This quarter marks an important inflection point for Perion," said Tal Jacobson, Perion's CEO. "We delivered year-over-year growth across all major metrics – revenue, contribution ex-TAC, and adjusted EBITDA – driven by the strong performance of our growth engines and disciplined operational execution, underpinned by efficiency measures that contributed to higher EBITDA margin. We continue to advance our Perion One strategy to become the operating system for marketers, and our third quarter results validate the strength of a unified platform that connects the dots across the media ecosystem."

"The launch of our AI-driven SODA and DOOH Player solutions is expected to create more predictable and recurring revenue streams. Combined with our new global partnerships, these initiatives are designed to enhance scalability, efficiency, and profitability, establishing a strong foundation for sustained growth into 2026 and beyond."

"Our confidence in Perion's long-term growth prospects is reflected in our decision to expand our current share repurchase program by an additional $75 million, bringing the total authorization to $200 million. This decision follows a comprehensive review of our capital allocation framework. Our disciplined capital allocation strategy balances returning capital to shareholders with continued investment in innovation and strategic opportunities to strengthen our core business and drive sustainable growth. As we advance our Perion One strategy and deepen our presence across high-growth verticals such as CTV, DOOH, and Retail Media, we remain focused on generating consistent value for our shareholders," concluded Mr. Jacobson.

______________________________

³ Retail Media revenue includes several media channels, such as CTV, DOOH, and others

Revenue and Trends by channel⁴

Channels	Q3 2025
Channels	Revenue ($M)	% of Revenue	YoY Change
DOOH	24.1	22%	26%
CTV	16.6	15%	75%
Web	46.6	42%	(11%)
Search	22.8	21%	9%
Other	0.4	0%	42%

______________________________

⁴ Numbers may not add up due to rounding

Financial Outlook for Full-Year 2025⁵

Based on current expectations, the Company is reiterating its full-year 2025 outlook ranges:

Revenue of $430 to $450 million
Adjusted EBITDA⁶ of $44 to $46 million
Adjusted EBITDA⁶ to contribution ex-TAC⁶ of 22% at the midpoint

______________________________

⁵ We have not provided an outlook for GAAP Income from operations or reconciliation of Adjusted EBITDA guidance to GAAP Income from operations, the closest corresponding GAAP measure, because we do not provide guidance for certain of the reconciling items on a consistent basis due to the variability and complexity of these items, including but not limited to the measures and effects of our stock-based compensation expenses directly impacted by unpredictable fluctuation in our share price and amortization in connection with future acquisitions. Hence, we are unable to quantify these amounts without unreasonable efforts.

⁶ Contribution ex-TAC, non-GAAP Net Income, Adjusted EBITDA and non-GAAP Diluted EPS are non-GAAP measures. See below reconciliation of GAAP to non-GAAP measures.

Share Repurchase Program

During the third quarter of 2025, the Company repurchased a total of 0.8 million shares for a total amount of $7.5 million
As of September 30, 2025, the Company repurchased a total of 10.4 million shares for a total amount of $94.2 million
In November 2025, Perion's Board of Directors principally approved a $75 million expansion of the previously authorized share repurchase program of $125 million of its outstanding shares, to a total of $200 million, to become effective subject to satisfaction of the requirements of the Companies law and regulations

Financial Comparison for the Third Quarter of 2025

Revenue: Revenue increased by 8% to $110.5 million in the third quarter of 2025 from $102.2 million in the third quarter of 2024. Advertising Solutions revenue increased 8% year-over-year, accounting for 79% of revenue, primarily due to a 75% increase in our CTV channel and a 26% increase in Digital Out of Home revenue, partially offset by 11% decline in Web revenue. Search Advertising revenue increased by 9% year-over-year, accounting for 21% of revenue.

Traffic Acquisition Costs and Media Buy ("TAC"): TAC amounted to $59.5 million, or 54% of revenue, in the third quarter of 2025, compared with $54.6 million, or 53% of revenue, in the third quarter of 2024.

GAAP Net Income (Loss): GAAP net loss decreased from a net income of $2.1 million in the third quarter of 2024 to a net loss of $4.1 million in the third quarter of 2025.

Non-GAAP Net Income: Non-GAAP net income was $12.5 million, or 11% of revenue, in the third quarter of 2025, compared with $11.9 million, or 12% of revenue, in the third quarter of 2024. A reconciliation of GAAP to non-GAAP net income is included in this press release.

Adjusted EBITDA: Adjusted EBITDA was $12.1 million, or 11% of revenue and 24% of Contribution ex-TAC in the third quarter of 2025, compared with $7.4 million, or 7% of revenue and 16% of Contribution ex-TAC in the third quarter of 2024. A reconciliation of GAAP income from operations to Adjusted EBITDA is included in this press release.

Cash Flow from Operations: Net cash provided by operating activities in the third quarter of 2025 was $5.9 million, compared with $16.2 million in the third quarter of 2024. The Operating cash flow in the third quarter of 2024 included an additional $17.6 million from Microsoft Bing collection that shifted from June 2024 to July 1st, 2024.

Net cash: As of September 30, 2025, cash and cash equivalents, short-term bank deposits and marketable securities, amounted to $315.6 million, compared with $373.3 million as of December 31, 2024.

Conference Call

Perion's management will host a conference call to discuss the results at 8:30 a.m. ET today:

Registration link: https://perion-q3-2025-earnings-call.open-exchange.net/

A replay of the call and a transcript will be available within approximately 24 hours of the live event on Perion's website.

About Perion Network Ltd.

Perion helps brands, agencies, and retailers maximize the value of their advertising investments with advanced AI and creative technologies. Its unified platform, Perion One, bridges media, data, and performance across digital channels to deliver superior results in an increasingly complex advertising environment.

For more information, visit www.perion.com

Non-GAAP Measures

Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude certain items. This press release includes certain non-GAAP measures, including Contribution ex-TAC and Adjusted EBITDA.

Contribution ex-TAC presents revenue reduced by traffic acquisition costs and media buy, reflecting a portion of our revenue that must be directly passed to publishers or advertisers and presents our revenue excluding such items. We believe Contribution ex-TAC is a useful measure in assessing the performance of the Company because it facilitates a consistent comparison against our core business without considering the impact of traffic acquisition costs and media buy related to revenue reported on a gross basis.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") is defined as income from operations excluding stock-based compensation expenses, restructuring costs, unusual legal costs, depreciation, amortization of acquired intangible assets, retention and other acquisition-related expenses, as well as gains and losses recognized with respect to changes in fair value of contingent consideration.

Adjusted free cash flow is defined as net cash provided by (or used in) operating activities less cash used for the purchase of property and equipment and capitalized software development costs, but excluding the purchase of property and equipment related to our new corporate headquarter office and the portion of the cash payment of contingent consideration in excess of the acquisition date fair value, as we do not view either of those expenses as reflective of our normal on-going expenses. It is important to note that these expenses are in fact cash expenditures.

Non-GAAP net income and non-GAAP diluted earnings per share are defined as net income (loss) and net earnings (loss) per share excluding stock-based compensation expenses, restructuring costs, unusual legal costs, retention and other acquisition-related expenses, amortization of acquired intangible assets and the related taxes thereon, foreign exchange gains and losses associated with ASC-842, revaluation of acquisition related contingent consideration as well as gains and losses recognized with respect to changes in fair value of contingent consideration.

The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage and evaluate our business and make operating decisions, and we believe that they are useful to investors as a consistent and comparable measure of the ongoing performance of our business. However, our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these projected measures, together with some of the excluded information not being ascertainable or accessible, we are unable to quantify certain amounts that would be required for such presentation without unreasonable effort. Consequently, no reconciliation of the forward-looking non-GAAP financial measures is included in this press release. A reconciliation between results on a GAAP and non-GAAP basis is provided in the last table of this press release.

Forward Looking Statements

This press release contains historical information and forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the safe- harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of Perion. The words "will," "believe," "expect," "intend," "plan," "should," "estimate" and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of Perion with respect to future events and are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Many factors could cause the actual results, performance or achievements of Perion to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, or financial information, including, but not limited to, political, economic and other developments (including the current war between Israel and Hamas and other armed groups in the region), the failure to realize the anticipated benefits of companies and businesses we acquired and may acquire in the future, risks entailed in integrating the companies and businesses we acquire, including employee retention and customer acceptance, the risk that such transactions will divert management and other resources from the ongoing operations of the business or otherwise disrupt the conduct of those businesses, and general risks associated with the business of Perion including, the transformation in our strategy, intended to unify our business units under the Perion brand (Perion One), intense and frequent changes in the markets in which the businesses operate and in general economic and business conditions (including the fluctuation of our share price), loss of key customers or of other partners that are material to our business, the outcome of any pending or future proceedings against Perion, data breaches, cyber-attacks and other similar incidents, unpredictable sales cycles, competitive pressures, market acceptance of new products and of the Perion One strategy, changes in applicable laws and regulations as well as industry self-regulation, negative or unexpected tax consequences, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, whether referenced or not referenced in this press release. We urge you to consider those factors, together with the other risks and uncertainties described in our most recent Annual Report on Form 20-F for the year ended December 31, 2024 as filed with the Securities and Exchange Commission (SEC) on March 25, 2025, and our other reports filed with the SEC, in evaluating our forward-looking statements and other risks and uncertainties that may affect Perion and its results of operations. Perion does not assume any obligation to update these forward-looking statements.

PERION NETWORK LTD. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands (except share and per share data)

		Three months ended				Nine months ended
		September 30,				September 30,
		2025		2024		2025		2024
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)

Revenue
	Advertising Solutions	$	87,672	$	81,289	$	237,948	$	231,449
	Search Advertising		22,789		20,909		64,836		137,260
Total Revenue			110,461		102,198		302,784		368,709

Costs and Expenses
	Cost of revenue		13,805		11,525		39,183		34,309
	Traffic acquisition costs and media buy		59,486		54,572		164,539		211,124
	Research and development		8,581		8,271		25,978		28,194
	Selling and marketing		19,776		17,861		57,030		51,995
	General and administrative		8,804		9,200		27,350		28,955
	Change in fair value of contingent consideration		-		-		-		1,541
	Depreciation and amortization		4,939		3,579		12,705		12,910
	Restructuring costs and other charges		-		-		1,322		6,895
Total Costs and Expenses			115,391		105,008		328,107		375,923

Loss from Operations			4,930		2,810		25,323		7,214
	Financial income, net		2,367		5,399		9,357		16,588
Income (loss) before Taxes on income			(2,563)		2,589		(15,966)		9,374
	Taxes on income (tax benefit)		1,516		475		(70)		1,701
Net Income (loss)		$	(4,079)	$	2,114	$	(15,896)	$	7,673

Net Earnings (loss) per Share
	Basic	$	(0.10)	$	0.05	$	(0.37)	$	0.16
	Diluted	$	(0.10)	$	0.04	$	(0.37)	$	0.15

Weighted average number of shares
	Basic		41,469,458		46,935,927		42,777,301		47,971,595
	Diluted		41,469,458		48,360,345		42,777,301		49,794,459

PERION NETWORK LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands
		September 30,		December 31,
		2025		2024
		(Unaudited)		(Audited)
ASSETS
Current Assets
	Cash and cash equivalents	$	124,387	$	156,228
	Restricted cash		1,166		1,134
	Short-term bank deposits		131,730		139,333
	Marketable securities		59,509		77,774
	Accounts receivable, net		175,245		164,358
	Prepaid expenses and other current assets		34,539		22,638
	Total Current Assets		526,576		561,465

Long-Term Assets
	Property and equipment, net		11,211		8,916
	Operating lease right-of-use assets		17,642		20,209
	Goodwill and intangible assets, net		359,547		316,003
	Deferred taxes		-		8,517
	Other assets		579		416
	Total Long-Term Assets		388,979		354,061
Total Assets		$	915,555	$	915,526

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
	Accounts payable	$	126,433	$	122,005
	Accrued expenses and other liabilities		33,135		32,848
	Short-term operating lease liability		2,566		3,648
	Deferred revenue		1,535		2,049
	Short-term payment obligation related to acquisitions		4,744		1,300
	Total Current Liabilities		168,413		161,850

Long-Term Liabilities
	Payment obligation related to acquisition		19,913		-
	Long-term operating lease liability		19,749		18,654
	Deferred taxes		8,451		-
	Other long-term liabilities		12,703		12,082
	Total Long-Term Liabilities		60,816		30,736
Total Liabilities			229,229		192,586

Shareholders' equity
	Ordinary shares		361		391
	Additional paid-in capital		505,225		527,149
	Treasury shares at cost		(1,002)		(1,002)
	Accumulated other comprehensive loss		1,021		(215)
	Retained earnings		180,721		196,617
Total Shareholders' Equity			686,326		722,940
Total Liabilities and Shareholders' Equity		$	915,555	$	915,526

PERION NETWORK LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
In thousands

		Three months ended				Nine months ended
		September 30,				September 30,
		2025		2024		2025		2024
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)

Cash flows from operating activities
Net Income (loss)		$	(4,079)	$	2,114	$	(15,896)	$	7,673
Adjustments required to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization		4,939		3,579		12,705		12,910
	Stock-based compensation expense		10,174		6,220		25,255		17,325
	Foreign currency translation		(10)		(36)		(78)		(7)
	Accrued interest, net		(812)		1,089		885		3,869
	Deferred taxes, net		3,349		134		8,796		(1,701)
	Accrued severance pay, net		(9)		108		(856)		(296)
	Restructuring costs		-		-		1,322		6,895
	Gain from sale of property and equipment		(3)		(29)		(39)		(37)
	Net changes in operating assets and liabilities		(7,664)		3,059		(11,968)		(44,031)
Net cash provided by operating activities		$	5,885	$	16,238	$	20,126	$	2,600

Cash flows from investing activities
	Purchases of property and equipment, net of sales		(654)		(4,336)		(3,425)		(5,467)
	Capitalized software development costs		(785)		-		(1,198)		-
	Investment in marketable securities, net of sales		358		(2,530)		18,851		(821)
	Short-term deposits, net		13,891		35,399		7,603		58,111
	Cash paid in connection with acquisitions, net of cash acquired		-		-		(26,566)		-
Net cash provided by (used in) investing activities		$	12,810	$	28,533	$	(4,735)	$	51,823

Cash flows from financing activities
	Proceeds from exercise of stock-based compensation		31		99		67		465
	Payments of contingent consideration		-		(22,838)		-		(54,540)
	Purchase of treasury stock		(7,519)		(13,479)		(47,277)		(33,531)
	Repayment of long-term loans		(452)		-		(452)		-
Net cash used in financing activities		$	(7,940)	$	(36,218)	$	(47,662)	$	(87,606)

Effect of exchange rate changes on cash and cash equivalents and restricted cash			-		202		462		89
Net increase (decrease) in cash and cash equivalents and restricted cash			10,755		8,755		(31,809)		(33,094)
Cash and cash equivalents and restricted cash at beginning of period			114,798		147,099		157,362		188,948
Cash and cash equivalents and restricted cash at end of period		$	125,553	$	155,854	$	125,553	$	155,854

PERION NETWORK LTD. AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

In thousands (except share and per share data)

Three months ended

Nine months ended

September 30,

2025

2024

2025

2024

(Unaudited)

Revenue

110,461

102,198

302,784

368,709

Traffic acquisition costs and media buy

59,486

54,572

164,539

211,124

Contribution ex-TAC

50,975

47,626

138,245

157,585

		Three months ended				Nine months ended
		September 30,				September 30,
		2025		2024		2025		2024
		(Unaudited)				(Unaudited)

GAAP Loss from Operations		$	(4,930)	$	(2,810)	$	(25,323)	$	(7,214)
	Stock-based compensation expenses		10,174		6,220		25,255		17,325
	Retention and other acquisition related expenses		1,872		427		6,203		3,936
	Unusual legal costs		21		-		775		-
	Change in fair value of contingent consideration		-		-		-		1,541
	Amortization of acquired intangible assets		4,311		3,009		10,941		11,354
	Restructuring costs		-		-		1,322		6,895
	Depreciation		628		570		1,764		1,556
Adjusted EBITDA		$	12,076	$	7,416	$	20,937	$	35,393

PERION NETWORK LTD. AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS
In thousands (except share and per share data)

		Three months ended				Nine months ended
		September 30,				September 30,
		2025		2024		2025		2024
		(Unaudited)				(Unaudited)

GAAP Net Income (loss)		$	(4,079)	$	2,114	$	(15,896)	$	7,673
	Stock-based compensation expenses		10,174		6,220		25,255		17,325
	Amortization of acquired intangible assets		4,311		3,009		10,941		11,354
	Retention and other acquisition related expenses		1,872		427		6,203		3,936
	Unusual legal costs		21		-		775		-
	Change in fair value of contingent consideration		-		-		-		1,541
	Restructuring costs		-		-		1,322		6,895
	Foreign exchange losses (gains) associated with ASC-842		367		255		1,958		90
	Revaluation of acquisition related contingent consideration		360		-		360		-
	Taxes on the above items		(502)		(168)		(1,058)		(969)
Non-GAAP Net Income		$	12,524	$	11,857	$	29,860	$	47,845

Non-GAAP diluted earnings per share		$	0.28	$	0.23	$	0.64	$	0.94

Shares used in computing non-GAAP diluted earnings per share			45,542,068		50,504,041		46,518,302		50,859,984

PERION NETWORK LTD. AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS
In thousands (except share and per share data)

		Three months ended				Nine months ended
		September 30,				September 30,
		2025		2024		2025		2024
		(Unaudited)				(Unaudited)

Net cash provided by operating activities		$	5,885	$	16,238	$	20,126	$	2,600
	Purchases of property and equipment, net of sales		(654)		(4,336)		(3,425)		(5,467)
	Capitalized software development costs		(785)		-		(1,198)		-
Free cash flow		$	4,446	$	11,902	$	15,503	$	(2,867)
	Purchase of property and equipment related to our new corporate headquarter office		346		4,142		2,625		4,323
	Portion of the cash payment of contingent consideration in excess of the acquisition date fair value		-		1,182		-		10,824
Adjusted free cash flow		$	4,792	$	17,226	$	18,128	$	12,280

View source version on businesswire.com: https://www.businesswire.com/news/home/20251112986945/en/

Perion Network Ltd.

Dudi Musler, VP of Investor Relations

+972 (54) 7876785

dudim@perion.com

Perion Reports Third Quarter 2025 Results