Perion Network Ltd. 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Perion Network reported second quarter 2026 revenue of $98.2 million, down 5% year over year.
- Perion One platform spend increased 15% year over year to $156.7 million, accounting for 80% of total spend, up from 76% last year.
- CTV spend grew 56% year over year to $17.7 million, digital out-of-home spend grew 45% year over year to $87.7 million, and retail media spend grew 60% year over year to $59.4 million.
- Contribution for the quarter was $42.3 million, down 11% year over year, with Perion One contribution at $34.9 million, down 4% year over year.
- Adjusted EBITDA was $2.8 million with a 7% margin of contribution, including a $1.6 million foreign exchange headwind; excluding this impact, adjusted EBITDA would have been $4.4 million.
- GAAP net loss was $6.8 million or $0.18 per diluted share; non-GAAP net income was $3.9 million or $0.09 per diluted share.
- Perion repurchased 2.7 million shares for $24.5 million during the quarter, totaling 18 million shares repurchased since the buyback program began.
- As of June 30, 2026, Perion held $268 million in cash and equivalents with zero debt.
- Best Buy Canada selected Perion as its end-to-end retail media technology partner for its digital signage network, moving to a programmatic retail media model.
- Perion expanded its digital out-of-home infrastructure into Google DV360 and launched a self-serve mobile app called Ask Pelion.
- Perion added a new distribution partner to bring OutMax to Greece and Central and Eastern Europe, and a data partnership with Fetch for SKU-level purchase data.
- OutMax AI agent spend grew 136% year over year on a pro forma basis, scaling rapidly across walled gardens.
- Promotional terms used to acquire new accounts temporarily impacted take rates, expected to normalize and modestly improve in the second half of the year.
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Transcript
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Hello, everybody. Welcome to the Perion Network second quarter 2026 earnings conference call. Today's conference call is being recorded. An archive of the webcast will be posted on the company's website. The press release detailing the financial results is available on the company's website at www.perion.com. Before we begin, I'd like to read the following safe harbor statement. Today's discussion includes forward-looking statements. These statements reflect the company's current views with respect to future events. These forward-looking statements involve known and unknown risks, uncertainties and other factors, including those discussed under the headings Risk Factors and elsewhere in the company's annual report on Form 20-F, that may cause actual results, performances or achievements to be materially different and any future results, performance or achievements anticipated or implied by these forward-looking statements. The company does not undertake to update any forward-looking statements to reflect future events or circumstances.
As in prior quarters, the results reported today will be analyzed both on a GAAP and a non-GAAP basis. While mentioning EBITDA, we will be referring to adjusted EBITDA. We have provided a detailed reconciliation of non-GAAP measures and their comparable GAAP measures in our earnings release, which is available on our website and has also been filed on Form 6-K. Hosting the call today are Tal Jacobson, Perion's Chief Executive Officer, and Elad Tzubery, Perion's Chief Financial Officer. I would now like to turn the call over to Tal Jacobson. Please go ahead. Good morning.
Thank you for joining us on Perion's earnings call for the second quarter of 2026. Nearly two years ago, we made a deliberate decision to diversify Perion away from the open web. We quickly adapt to the demands of the marketplace ahead of the budget shift the industry is experiencing today. This diversification was driven by both our organic investment in CTV and retail media, and our M&A strategy, from Hivestack and digital out-of-home, to Green Bids and the Outmax AI agent. Ever since, we've been doubling down on that strategy. This quarter results reflect that conviction, with strong traction across all our key growth engines. In the second quarter of 2026, we saw a massive adoption of the Perion One platform and its product lines. This reflects a growing advertising trust and accelerating adoption of our solution across our client base.
CTV, retail media, and digital out-of-home all outpaced the market. Our advanced AI technology, Outmax, continued to scale rapidly with a triple-digit year-over-year spend growth. We also continued to expand our reach this quarter, both geographically and in the depth of our platform capabilities. In retail media, Best Buy Canada selected Perion as its end-to-end in-store retail media technology partner, which is now available to our retail and digital out-of-home advertisers. As part of our strategy to double down on retail media and digital out-of-home, especially with in-store inventory, we expect those new partnership to unlock new budget from high growth verticals, the same verticals that are targeting consumers at the moment of purchase decisions. This quarter, we also added a new distribution partner to bring Outmax to Greece and to the Central and Eastern Europe.
This partnership extended our reach into new regions through the partner-led model. On the technology side, we extended our full-stack digital out-of-home infrastructure into Google DV360, giving buyers the ability to activate our programmatic guaranteed inventory through Google's media platform. We also launched an agentic self-serve mobile application within Perion1, which we call Ask Perion. This upgrade transform our execution capability to be more accessible to advertisers and agencies. New distribution channels, new retail media and digital out-of-home partnership, and advancing our technologies are exactly what's driving the sustainable momentum we're seeing across our growth engines. Marketers navigate a universe of channels, screens, platform, formats, data sets, and buying environments, all while consistently chasing higher performance. Budget, signals, and optimization remain siloed by channels. This fragmentation is exactly what breaks efficiency and performance. Perion1 is designed to close that gap with advanced technology-driven solutions.
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