Contribution ex-TAC Grew by 19%, Adjusted EBITDA up 53% YoY
Provides 2026 Guidance and Unveils 2028 Targets:
P erion One Platform 20% Organic Contribution ex-TAC 3-Year CAGR and Consolidated Adjusted EBITDA margin of 28%
NEW YORK & TEL AVIV, Israel--(BUSINESS WIRE)--February 18, 2026--
Perion Network Ltd. (NASDAQ and TASE: PERI), an advanced technology leader solving for the complexities of digital advertising through AI-native execution infrastructure, today reported its financial results for the fourth quarter and full year ended December 31, 2025.
"Our fourth-quarter performance, highlighted by a 19% year-over-year increase in Contribution ex-TAC and a 53% surge in Adjusted EBITDA, demonstrates that Perion One is winning," said Tal Jacobson, CEO of Perion. "In 2025, we shifted our strategy to become the centralized platform for advertisers, integrating our technologies, establishing strategic partnerships, and crossing the inflection point in the company's growth trajectory."
"AI is our structural advantage. By transforming the Perion One Platform into an AI-native execution infrastructure, we will allow marketers to harness the power of AI Agents to control and optimize their marketing activities," Mr. Jacobson continued. "Outmax, our proprietary AI execution agent, drives systematic expansion of spend within existing customers across channels, geographies, and verticals. We believe that transforming Perion into the infrastructure where Agents can interact with Agents and work on their own to optimize for their brands is the future, and Perion is the backbone of this future."
"Our execution-led growth gives us confidence in the Perion 2028 target plan" Mr. Jacobson concluded. "It defines a clear path to durable, organic growth, where Perion One represents the vast majority of our business, with legacy activities remaining stable but no longer defining our future."
Fourth Quarter Highlights
-- Contribution ex-TAC grew 19% YoY to $65.2 million, significantly
outpacing revenue growth
-- Adjusted EBITDA increased 53% YoY to $24.3 million, reflecting improved
operating leverage and disciplined cost management
-- Operating cash flow of $21.8 million, up 403% YoY
-- Adjusted Free Cash Flow to Adjusted EBITDA ratio of 85%
-- Strong performance of growth engines
-- CTV revenue increased 59% YoY
-- DOOH revenue increased 28% YoY
-- Retail Media1 vertical revenue increased 42% YoY
-- Repurchased 2.5 million shares for a total of $23.9 million
-- Expanded partnerships and integrations:
-- Amazon DSP
-- Walmart Connect
-- Mastercard
FY 2025 Highlights
-- Contribution ex-TAC of $203.4 million
-- Adjusted EBITDA of $45.2 million
-- Operating cash flow of $41.9 million
-- Adjusted Free Cash Flow to Adjusted EBITDA ratio of 89%
-- Strong performance of growth engines
-- CTV revenue increased 42% YoY
-- DOOH revenue increased 36% YoY
-- Retail Media1 vertical revenue increased 36% YoY
-- Successfully unified Perion's solutions under the Perion One platform
-- Launched new solutions, including Outmax, Performance CTV, SODA for
publishers, and DOOH Player
-- Acquired Greenbids to strengthen Perion's AI algorithm capabilities and
offering
-- Expanded global partnerships and integrations in Retail and DOOH
-- During 2025, the company repurchased 7.7 million shares for a total of
$71.2 million
-- Ended 2025 with a strong balance sheet and $312.9 million in net cash
Fourth Quarter 2025 Financial Highlights(2)
In millions,
except per share
data Three months ended Year ended
December 31, December 31,
-------------------- ----------------------
2025 2024 % 2025 2024 %
------ ------ ---- ------- ------ -----
Advertising
Solutions
Revenue $111.0 $104.1 7% $ 348.9 $335.6 4%
Search
Advertising
Revenue $ 26.2 $ 25.5 3% $ 91.0 $162.7 (44%)
Total Revenue $137.1 $129.6 6% $ 439.9 $498.3 (12%)
Contribution
ex-TAC (Revenue
ex-TAC) $ 65.2 $ 54.7 19% $ 203.4 $212.3 (4%)
GAAP Net Income
(loss) $ 8.0 $ 4.9 61% $ (7.9) $ 12.6 NM
Non-GAAP Net
Income $ 21.4 $ 16.5 30% $ 51.3 $ 64.4 (20%)
Adjusted EBITDA $ 24.3 $ 15.8 53% $ 45.2 $ 51.2 (12%)
Adjusted EBITDA
to Contribution
ex-TAC 37% 29% 22% 24%
Net Cash from
Operations $ 21.8 $ 4.3 403% $ 41.9 $ 6.9 504%
Adjusted Free
Cash Flow $ 20.7 $ 4.3 380% $ 40.2 $ 16.6 142%
GAAP Diluted EPS $ 0.19 $ 0.11 73% $(0.19) $ 0.25 NM
Non-GAAP Diluted
EPS $ 0.49 $ 0.33 48% $ 1.13 $ 1.27 (11%)
______________________________
(1) Retail Media revenue includes several media channels, such as CTV, DOOH
and others
(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. Numbers may not add up due to
rounding.
Financial Outlook(3)
Full Year 2026 Guidance reflects planned acceleration of Perion One adoption and increased investment in innovation and go-to-market.
-- Contribution ex-TAC: $215 million to $235 million -- Adjusted EBITDA: $50 million to $54 million
Perion 2028 Target Plan
Introducing long-term targets aiming to provide visibility into the Company's transformed profile. These targets assume organic growth and exclude a potential impact from future M&A:
-- Perion One Platform Growth Targets
-- Spend: at least 25% 3-year CAGR
-- Contribution ex-TAC2: at least 20% 3-year CAGR
-- Perion Consolidated Profitability
-- Targeting the Company's consolidated Adjusted EBITDA2 to
Contribution ex-TAC2 margin of 28% by 2028.
______________________________
(3) A reconciliation between results on a GAAP and non-GAAP basis for
Contribution ex.-TAC is provided in the last table of this press release. 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.
Share Repurchase
The Company maintains its existing share repurchase program with a total authorization of $200 million.
-- During the fourth quarter, Perion repurchased 2.5 million shares for
$23.9 million.
-- As of December 31, 2025, the Company repurchased a total of 12.9
million shares for a total amount of $118.1 million.
Revenue and Trends by channel(4)
Channels Q4 2025
--------- --------------------------------------
Revenue ($M) % of Revenue YoY Change
--------- ------------ ------------ ----------
DOOH 35.8 26% 28%
--------- ------------ ------------ ----------
CTV 25.1 18% 59%
--------- ------------ ------------ ----------
Web 49.9 36% (17%)
--------- ------------ ------------ ----------
Search 26.2 19% 3%
--------- ------------ ------------ ----------
Other 0.2 0% (64%)
--------- ------------ ------------ ----------
______________________________
(4) Numbers may not add up due to rounding
Financial Comparison for the Fourth Quarter of 2025
Revenue: Revenue increased by 6% to $137.1 million in the fourth quarter of 2025 from $129.6 million in the fourth quarter of 2024. Advertising Solutions revenue increased 7% year-over-year, accounting for 81% of revenue, primarily due to a 59% increase in our CTV channel and a 28% increase in Digital Out of Home revenue, partially offset by 17% decline in Web revenue. Search Advertising revenue increased by 3% year-over-year, accounting for 19% of revenue.
Traffic Acquisition Costs and Media Buy ("TAC"): TAC amounted to $71.9 million, or 52% of revenue, in the fourth quarter of 2025, compared with $74.8 million, or 58% of revenue, in the fourth quarter of 2024.
GAAP Net Income: GAAP net income increased by 61% to $8.0 million in the fourth quarter of 2025, compared with $4.9 million in the fourth quarter of 2024.
Non-GAAP Net Income: Non-GAAP net income was $21.4 million, or 16% of revenue, in the fourth quarter of 2025, compared with $16.5 million, or 13% of revenue, in the fourth quarter of 2024. A reconciliation of GAAP to non-GAAP net income is included in this press release.
Adjusted EBITDA: Adjusted EBITDA was $24.3 million, or 18% of revenue and 37% of Contribution ex-TAC in the fourth quarter of 2025, compared with $15.8 million, or 12% of revenue and 29% of Contribution ex-TAC in the fourth 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 fourth quarter of 2025 was $21.8 million, compared with $4.3 million in the fourth quarter of 2024.
Net cash: As of December 31, 2025, cash and cash equivalents, short-term bank deposits and marketable securities, amounted to $312.9 million, compared with $373.3 million as of December 31, 2024.
Financial Comparison for the Full Year of 2025
Revenue: Revenue decreased by 12% to $439.9 million in 2025 from $498.3 million in 2024. Advertising Solutions revenue increased 4% year-over-year, accounting for 79% of revenue, primarily due to a 42% increase in our CTV channel and a 36% increase in Digital Out of Home revenue, partially offset by a 13% decline in Web revenue. Search Advertising revenue decreased by 44% year-over-year, accounting for 21% of revenue, following the previously announced changes implemented by Microsoft Bing in 2024.
Traffic Acquisition Costs and Media Buy ("TAC"): TAC amounted to $236.5 million, or 54% of revenue, in 2025, compared with $286.0 million, or 57% of revenue, in 2024.
GAAP Net Income (Loss): GAAP net loss was $7.9 million in 2025, compared with GAAP net income of $12.6 million in 2024.
Non-GAAP Net Income: Non-GAAP net income was $51.3 million, or 12% of revenue, in 2025, compared with $64.4 million, or 13% of revenue, in 2024. A reconciliation of GAAP to non-GAAP net income is included in this press release.
Adjusted EBITDA: Adjusted EBITDA was $45.2 million, or 10% of revenue and 22% of Contribution ex-TAC in 2025, compared with $51.2 million, or 10% of revenue and 24% of Contribution ex-TAC in 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 2025 was $41.9 million, compared with $6.9 million in 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-q4-and-fy-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 is an advanced technology leader redefining advertising through AI-native infrastructure, delivering real-time media execution across CTV, digital out-of-home, commerce and retail media, social and digital environments. Powered by Outmax, the company's proprietary AI engine, Perion helps brands, agencies, and retailers optimize spend and performance, driving measurable outcomes at scale.
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, Adjusted EBITDA and Adjusted free cash flow.
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 (loss) from operations excluding stock-based compensation expenses, restructuring costs and other charges, 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, net of sales and capitalized software development costs, but excluding the purchase of property and equipment related to our new corporate headquarter office, the portion of the cash payment of contingent consideration in excess of the acquisition date fair value and retention payment related to acquisitions, 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 and other charges, 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, 2025 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 Year ended
December 31, December 31,
------------------------ ------------------------
2025 2024 2025 2024
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Audited)
----------- ----------- ----------- -----------
Revenue
Advertising
Solutions $ 110,982 $ 104,101 $ 348,930 $ 335,550
Search
Advertising 26,161 25,476 90,997 162,736
---------- ---------- ---------- ----------
Total Revenue 137,143 129,577 439,927 498,286
---------- ---------- ---------- ----------
Costs and Expenses
Cost of revenue 12,617 12,334 51,800 46,643
Traffic
acquisition
costs and
media buy 71,945 74,838 236,484 285,962
Research and
development 8,675 8,461 34,653 36,655
Selling and
marketing 19,461 16,502 76,491 68,497
General and
administrative 9,052 9,742 36,402 38,697
Change in fair
value of
contingent
consideration - - - 1,541
Depreciation
and
amortization 4,972 3,524 17,677 16,434
Restructuring
costs and
other charges - - 1,322 6,895
---------- ---------- ---------- ----------
Total Costs and
Expenses 126,722 125,401 454,829 501,324
---------- ---------- ---------- ----------
Income (loss) from
Operations 10,421 4,176 (14,902) (3,038)
---------- ---------- ---------- ----------
Financial
income, net 571 1,932 9,928 18,520
Income (loss)
before Taxes on
income 10,992 6,108 (4,974) 15,482
Taxes on income 3,029 1,167 2,959 2,868
---------- ---------- ---------- ----------
Net Income (loss) $ 7,963 $ 4,941 $ (7,933) $ 12,614
========== ========== ========== ==========
Net Earnings (loss)
per Share
---------- ---------- ---------- ----------
Basic $ 0.20 $ 0.11 $ (0.19) $ 0.27
========== ========== ========== ==========
Diluted $ 0.19 $ 0.11 $ (0.19) $ 0.25
========== ========== ========== ==========
Weighted average
number of shares
Basic 40,072,876 45,215,999 42,098,471 47,281,588
========== ========== ========== ==========
Diluted 41,632,828 46,325,857 42,098,471 49,555,777
========== ========== ========== ==========
PERION NETWORK LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
----------------------------------------------------------------------------
In thousands
December 31, December 31,
2025 2024
-------------- --------------
(Unaudited) (Audited)
-------------- --------------
ASSETS
Current Assets
Cash and cash equivalents $ 89,997 $ 156,228
Restricted cash 1,176 1,134
Short-term bank deposits 151,030 139,333
Marketable securities 71,877 77,774
Accounts receivable, net 187,871 164,358
Prepaid expenses and other current
assets 17,830 22,638
---------- ----------
Total Current Assets 519,781 561,465
Long-Term Assets
Property and equipment, net 11,685 8,916
Operating lease right-of-use assets 17,171 20,209
Goodwill and intangible assets, net 355,235 316,003
Deferred taxes 9,266 8,517
Other assets 620 416
---------- ----------
Total Long-Term Assets 393,977 354,061
---------- ----------
Total Assets $ 913,758 $ 915,526
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 129,882 $ 122,005
Accrued expenses and other liabilities 37,821 32,848
Short-term operating lease liability 2,324 3,648
Deferred revenue 1,206 2,049
Short-term payment obligation related to
acquisitions 17,348 1,300
---------- ----------
Total Current Liabilities 188,581 161,850
Long-Term Liabilities
Payment obligation related to
acquisition 10,383 -
Long-term operating lease liability 20,034 18,654
Deferred taxes 7,397 -
Other long-term liabilities 11,357 12,082
---------- ----------
Total Long-Term Liabilities 49,171 30,736
---------- ----------
Total Liabilities 237,752 192,586
---------- ----------
Shareholders' equity
Ordinary shares 341 391
Additional paid-in capital 487,716 527,149
Treasury shares at cost (1,002) (1,002)
Accumulated other comprehensive gain
(loss) 267 (215)
Retained earnings 188,684 196,617
---------- ----------
Total Shareholders' Equity 676,006 722,940
---------- ----------
Total Liabilities and Shareholders' Equity $ 913,758 $ 915,526
========== ==========
PERION NETWORK LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
---------------------------------------------------------------------------
In thousands
Three months ended Year ended
December 31, December 31,
---------------------------- -------------------------
2025 2024 2025 2024
------------- ------------- ------------- ----------
(Unaudited) (Unaudited) (Unaudited) (Audited)
------------- ------------- ------------- ----------
Cash flows from
operating
activities
------------------
Net Income (loss) $ 7,963 $ 4,941 $ (7,933) $ 12,614
Adjustments
required to
reconcile net
income to net
cash provided by
operating
activities:
Depreciation
and
amortization 4,972 3,524 17,677 16,434
Stock-based
compensation
expense 5,862 9,886 31,117 27,211
Foreign
currency
translation (402) 58 (481) 53
Accrued
interest,
net 1,235 (514) 2,121 3,355
Deferred
taxes, net (10,323) (408) (1,527) (2,109)
Accrued
severance
pay, net (177) 591 (1,033) 295
Restructuring
costs and
other
charges - - 1,322 6,895
Gain from sale
of property
and
equipment (3) (9) (42) (46)
Net changes in
operating
assets and
liabilities 12,674 (13,731) 706 (57,763)
--------- --------- --------- ---------
Net cash provided
by operating
activities $ 21,801 $ 4,338 $ 41,927 $ 6,939
--------- --------- --------- ---------
Cash flows from
investing
activities
------------------
Purchases of
property and
equipment,
net of sales (333) (1,359) (3,758) (6,826)
Capitalized
software
development
costs (744) - (1,942) -
Investment in
marketable
securities,
net of sales (12,285) 2,132 6,566 1,311
Short-term
deposits,
net (19,300) 10,006 (11,697) 68,117
Cash paid in
connection
with
acquisitions,
net of cash
acquired - - (26,566) -
--------- --------- --------- ---------
Net cash provided
by (used in)
investing
activities $ (32,662) $ 10,779 $ (37,397) $ 62,602
--------- --------- --------- ---------
Cash flows from
financing
activities
------------------
Proceeds from
exercise of
stock-based
compensation 545 82 612 547
Payments of
contingent
consideration - - - (54,540)
Repurchase of
shares for
retirement (23,935) (13,389) (71,212) (46,920)
Repayment of
long-term
loans - - (452) -
--------- --------- --------- ---------
Net cash used in
financing
activities $ (23,390) $ (13,307) $ (71,052) $(100,913)
--------- --------- --------- ---------
Effect of exchange
rate changes on
cash and cash
equivalents and
restricted cash (129) (302) 333 (214)
--------- --------- --------- ---------
Net increase
(decrease) in
cash and cash
equivalents and
restricted cash (34,380) 1,508 (66,189) (31,586)
Cash and cash
equivalents and
restricted cash
at beginning of
period 125,553 155,854 157,362 188,948
--------- --------- --------- ---------
Cash and cash
equivalents and
restricted cash
at end of period $ 91,173 $ 157,362 $ 91,173 $ 157,362
========= ========= ========= =========
PERION NETWORK LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
------------------------------------------------------------------
In thousands
Three months ended Year ended
December 31, December 31,
---------------------- -------------------
2025 2024 2025 2024
------------ -------- --------- --------
(Unaudited) (Unaudited)
---------------------- -------------------
Revenue $ 137,143 $129,577 $ 439,927 $498,286
Traffic
acquisition
costs and media
buy 71,945 74,838 236,484 285,962
-------- ------- -------- -------
Contribution ex-TAC $ 65,198 $ 54,739 $ 203,443 $212,324
======== ======= ======== =======
Three months ended Year ended
December 31, December 31,
---------------------- -------------------
2025 2024 2025 2024
------------ -------- --------- --------
(Unaudited) (Unaudited)
---------------------- -------------------
GAAP Income (loss)
from Operations $ 10,421 $ 4,176 $(14,902) $(3,038)
Stock-based
compensation
expenses 5,862 9,886 31,117 27,211
Retention and
other
acquisition
related
expenses 2,908 (1,896) 9,110 2,040
Unusual legal
costs 107 140 882 140
Change in fair
value of
contingent
consideration - - - 1,541
Amortization of
acquired
intangible
assets 4,311 3,010 15,252 14,364
Restructuring
costs and other
charges - - 1,322 6,895
Depreciation 661 514 2,425 2,070
-------- ------- -------- -------
Adjusted EBITDA $ 24,270 $ 15,830 $ 45,206 $ 51,223
======== ======= ======== =======
PERION NETWORK LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
----------------------------------------------------------------------
In thousands (except share and per share data)
Three months ended Year ended
December 31, December 31,
------------------------ ------------------------
2025 2024 2025 2024
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
------------------------ ------------------------
GAAP Net Income
(loss) $ 7,963 $ 4,941 $ (7,933) $ 12,614
Stock-based
compensation
expenses 5,862 9,886 31,117 27,211
Amortization
of acquired
intangible
assets 4,311 3,010 15,252 14,364
Retention and
other
acquisition
related
expenses 2,908 (1,896) 9,110 2,040
Unusual legal
costs 107 140 882 140
Change in fair
value of
contingent
consideration - - - 1,541
Restructuring
costs and
other
charges - - 1,322 6,895
Foreign
exchange
losses
associated
with ASC-842 693 316 2,651 405
Revaluation of
acquisition
related
contingent
consideration 227 - 587 -
Taxes on the
above items (645) 112 (1,703) (857)
---------- ---------- ---------- ----------
Non-GAAP Net
Income $ 21,426 $ 16,509 $ 51,285 $ 64,353
========== ========== ========== ==========
Non-GAAP diluted
earnings per
share $ 0.49 $ 0.33 $ 1.13 $ 1.27
Shares used in
computing
non-GAAP diluted
earnings per
share 43,994,112 49,458,861 45,252,181 50,576,619
PERION NETWORK LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
------------------------------------------------------------------
In thousands
Three months ended Year ended
December 31, December 31,
---------------------- --------------------
2025 2024 2025 2024
----------- --------- ---------- --------
(Unaudited) (Unaudited)
---------------------- --------------------
Net cash provided by
operating
activities $ 21,801 $ 4,338 $ 41,927 $ 6,939
Purchases of
property and
equipment, net
of sales (333) (1,359) (3,758) (6,826)
Capitalized
software
development
costs (744) - (1,942) -
Free cash flow $ 20,724 $ 2,979 $ 36,227 $ 113
Purchase of
property and
equipment
related to our
new corporate
headquarter
office - 1,342 2,625 5,665
Portion of the
cash payment of
contingent
consideration
in excess of
the acquisition
date fair
value - - - 10,824
Retention
payment related
to
acquisitions - - 1,300 (5) -
------- -------- --------- -------
Adjusted free cash
flow $ 20,724 $ 4,321 $ 40,152 $ 16,602
======= ======== ========= =======
______________________________
(5) An acquisition-related retention payment in the amount of $1.3M was made
in Q1 2025. We have added this item back in our calculation of free cash flow,
as we do not consider it indicative of ongoing operating performance absent
acquisition activity.
PERION NETWORK LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FULL YEAR 2026 GUIDANCE
-----------------------------------------------------------------
In thousands
Low High
--------- --------
Revenue $ 460,000 $490,000
Traffic acquisition costs and media buy 245,000 255,000
-------- -------
Contribution ex-TAC $215 ,000 $235,000
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View source version on businesswire.com: https://www.businesswire.com/news/home/20260218645597/en/
CONTACT: Contact Information:
Perion Network Ltd.
Dudi Musler, VP of Investor Relations
+972 (54) 7876785
dudim@perion.com
(END) Dow Jones Newswires
February 18, 2026 07:00 ET (12:00 GMT)