Perion Network Ltd. reported fourth‑quarter 2025 revenue of $137.1 million, a 6% year‑over‑year increase from $129.6 million in Q4 2024. The figure fell short of the consensus estimate of roughly $139.6 million, indicating a modest revenue miss that reflects a decline in legacy web revenue offset by growth in higher‑margin segments.
Contribution ex‑TAC rose 19% to $65.2 million, while adjusted EBITDA surged 53% to $24.3 million, representing 18% of revenue and 37% of contribution. The jump in profitability is driven by a higher mix of high‑margin digital out‑of‑home and connected‑TV business and by tighter cost control across the organization.
Segment‑level data show digital out‑of‑home revenue at $35.8 million, up 28% YoY; connected‑TV revenue at $25.1 million, up 59% YoY; web revenue at $49.9 million, down 17% YoY; and search revenue at $26.2 million, up 3% YoY. The strong performance in CTV and DOOH offsets the decline in web revenue, supporting the company’s shift toward higher‑margin, AI‑enabled advertising solutions.
Non‑GAAP diluted earnings per share were $0.49, matching the consensus estimate of $0.49 and reflecting the company’s ability to maintain margins amid a revenue miss. Management reiterated confidence in the Perion One platform, noting that “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. 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.” The company also confirmed 2026 guidance of $215‑$235 million in contribution ex‑TAC and $50‑$54 million in adjusted EBITDA, signaling continued confidence in the platform’s scalability while acknowledging a gradual decline in legacy search activity.
Investors responded positively to the results, citing the company’s margin expansion and the successful execution of its AI‑driven strategy. The guidance suggests that Perion expects to sustain high‑margin growth in its core segments, even as it navigates headwinds from declining web revenue and legacy search demand.
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