(PERI) Perion Network - Overview
Sector: Communication Services | Industry: Internet Content & Information | Exchange: NASDAQ (USA) | Market Cap: 371m USD | Total Return: -21.4% in 12m
Avg Turnover: 3.52M
EPS Trend: -72.8%
Qual. Beats: 0
Rev. Trend: -90.4%
Qual. Beats: -1
Warnings
Interest Coverage Ratio -22.1 is critical
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
Perion Network Ltd. (PERI) is a global technology company providing digital advertising solutions through a diversified platform that connects advertisers with publishers. Its ecosystem, Perion One, integrates supply and demand side services, utilizing artificial intelligence for campaign optimization, high-impact creative automation, and search monetization. The company’s business model relies on multi-channel revenue streams, including search advertising, social media, and video, reducing dependence on any single digital format.
The digital advertising sector is currently transitioning toward agentic AI, where automated systems manage real-time bidding and creative adjustments without manual intervention. As privacy regulations phase out third-party cookies, companies like Perion are increasingly prioritizing first-party data and context-based targeting to maintain ad relevance. Investors may find it useful to evaluate these shifting industry dynamics on ValueRay.
Headquartered in Israel, Perion has evolved from its origins as IncrediMail into a comprehensive ad-tech provider. Its suite of tools includes the Outmax AI Agent and SODA (Supply Optimization & Demand Amplification), which are designed to maximize publisher inventory value and improve advertiser ROI through data-driven automation.
- Microsoft Bing search contract renewal terms impact long-term revenue stability
- Retail media expansion drives high-margin growth in programmatic advertising segments
- AI-driven search monetization efficiency determines quarterly earnings performance levels
- Global digital ad spending fluctuations influence demand for creative automation tools
- Competitive pressure in the open web ecosystem affects publisher supply margins
| Net Income: -9.59m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 7.77 > 1.0 |
| NWC/Revenue: 68.65% < 20% (prev 92.35%; Δ -23.70% < -1%) |
| CFO/TA 0.07 > 3% & CFO 57.3m > Net Income -9.59m |
| Net Debt (-271.6m) to EBITDA (4.33m): -62.66 < 3 |
| Current Ratio: 2.81 > 1.5 & < 3 |
| Outstanding Shares: last quarter (39.1m) vs 12m ago -12.85% < -2% |
| Gross Margin: 33.27% > 18% (prev 0.34%; Δ 3.29k% > 0.5%) |
| Asset Turnover: 50.56% > 50% (prev 48.94%; Δ 1.62% > 0%) |
| Interest Coverage Ratio: -22.08 > 6 (EBITDA TTM 4.33m / Interest Expense TTM 669k) |
| A: 0.35 (Total Current Assets 470.4m - Total Current Liabilities 167.6m) / Total Assets 866.2m |
| B: 0.21 (Retained Earnings 178.7m / Total Assets 866.2m) |
| C: -0.02 (EBIT TTM -14.8m / Avg Total Assets 872.2m) |
| D: 0.83 (Book Value of Equity 178.9m / Total Liabilities 216.6m) |
| Altman-Z'' = 3.72 = AA |
| DSRI: 0.97 (Receivables 150.8m/151.5m, Revenue 441.0m/429.8m) |
| GMI: 1.01 (GM 33.27% / 33.57%) |
| AQI: 1.16 (AQ_t 0.42 / AQ_t-1 0.36) |
| SGI: 1.03 (Revenue 441.0m / 429.8m) |
| TATA: -0.08 (NI -9.59m - CFO 57.3m) / TA 866.2m) |
| Beneish M = -3.01 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 8.49 with a total of 479,279 shares traded.
Over the past week, the price has changed by -3.96%,
over one month by -17.33%,
over three months by -0.70% and
over the past year by -21.39%.
Perion Network has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold PERI.
- StrongBuy: 1
- Buy: 1
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 13 | 53.1% |
P/E Forward = 128.2051
P/S = 0.8431
P/B = 0.5449
P/EG = 1.0369
Revenue TTM = 441.0m USD
EBIT TTM = -14.8m USD
EBITDA TTM = 4.33m USD
Long Term Debt = 19.7m USD (estimated: total debt 21.4m - short term 1.66m)
Short Term Debt = 1.66m USD (from shortTermDebt, last quarter)
Debt = 21.4m USD (from shortLongTermDebtTotal, last quarter) (leases 21.4m already included)
Net Debt = -271.6m USD (calculated: Debt 21.4m - CCE 293.0m)
Enterprise Value = 99.3m USD (370.9m + Debt 21.4m - CCE 293.0m)
Interest Coverage Ratio = -22.08 (Ebit TTM -14.8m / Interest Expense TTM 669k)
EV/FCF = 1.90x (Enterprise Value 99.3m / FCF TTM 52.3m)
FCF Yield = 52.69% (FCF TTM 52.3m / Enterprise Value 99.3m)
FCF Margin = 11.87% (FCF TTM 52.3m / Revenue TTM 441.0m)
Net Margin = -2.17% (Net Income TTM -9.59m / Revenue TTM 441.0m)
Gross Margin = 33.27% ((Revenue TTM 441.0m - Cost of Revenue TTM 294.2m) / Revenue TTM)
Gross Margin QoQ = 30.28% (prev 34.71%)
Tobins Q-Ratio = 0.11 (Enterprise Value 99.3m / Total Assets 866.2m)
Interest Expense / Debt = 3.13% (Interest Expense 669k / Debt 21.4m)
Taxrate = 21.0% (US default 21%)
NOPAT = -11.7m (EBIT -14.8m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 2.81 (Total Current Assets 470.4m / Total Current Liabilities 167.6m)
Debt / Equity = 0.03 (Debt 21.4m / totalStockholderEquity, last quarter 649.6m)
Debt / EBITDA = -62.66 (Net Debt -271.6m / EBITDA 4.33m)
Debt / FCF = -5.19 (Net Debt -271.6m / FCF TTM 52.3m)
Total Stockholder Equity = 675.0m (last 4 quarters mean from totalStockholderEquity)
RoA = -1.10% (Net Income -9.59m / Total Assets 866.2m)
RoE = -1.42% (Net Income TTM -9.59m / Total Stockholder Equity 675.0m)
RoCE = -2.13% (EBIT -14.8m / Capital Employed (Equity 675.0m + L.T.Debt 19.7m))
RoIC = -2.87% (negative operating profit) (NOPAT -11.7m / Invested Capital 407.2m)
WACC = 8.38% (E(370.9m)/V(392.3m) * Re(8.72%) + D(21.4m)/V(392.3m) * Rd(3.13%) * (1-Tc(0.21)))
Discount Rate = 8.72% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -10.82%
[DCF] Terminal Value 75.34% ; FCFF base≈52.3m ; Y1≈52.6m ; Y5≈55.7m
[DCF] Fair Price = 28.81 (EV 861.7m - Net Debt -271.6m = Equity 1.13b / Shares 39.3m; r=8.38% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: -72.85 | EPS CAGR: -35.81% | SUE: -0.21 | # QB: 0
Revenue Correlation: -90.39 | Revenue CAGR: -21.87% | SUE: -1.12 | # QB: -1
EPS current Quarter (2026-06-30): EPS=0.06 | Chg30d=-69.57% | Revisions=-25% | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.32 | Chg30d=-13.09% | Revisions=+50% | Analysts=3
EPS current Year (2026-12-31): EPS=1.13 | Chg30d=-6.65% | Revisions=-11% | GrowthEPS=+0.3% | GrowthRev=+6.0%
EPS next Year (2027-12-31): EPS=1.38 | Chg30d=-4.47% | Revisions=+20% | GrowthEPS=+21.5% | GrowthRev=+10.6%
[Analyst] Revisions Ratio: +50%