Perion Network Ltd (NASDAQ:PERI) Reports Mixed Q2 2025 Results with Strong EPS Beat and Advertising Growth

Perion Network Ltd (NASDAQ:PERI) reported its second-quarter 2025 financial results, delivering mixed performance relative to analyst expectations. The company posted revenue of $103.0 million, slightly above the consensus estimate of $102.0 million, while non-GAAP diluted earnings per share (EPS) of $0.26 significantly outperformed the estimated loss of $0.08 per share.

Key Financial Highlights

• Revenue: $103.0 million (down 5% YoY but 1% above estimates).
• Non-GAAP EPS: $0.26 (vs. estimated -$0.08, flat YoY).
• Advertising Solutions Revenue: $80.6 million (up 8% YoY, first growth since Q3 2023).
• Search Advertising Revenue: $22.4 million (down 35% YoY, in line with expected declines due to Microsoft Bing changes).
• Adjusted EBITDA: $7.1 million (down 8% YoY).
• Operating Cash Flow: $21.3 million (a strong rebound from -$20.5 million in Q2 2024).

Market Reaction

The stock is up 6.66% in pre-market trading, reflecting investor optimism around the earnings beat, particularly the positive EPS surprise. This follows a challenging period where shares declined 7.35% over the past month, likely due to concerns over revenue contraction. The strong cash flow generation and progress in Advertising Solutions appear to be key drivers of the positive sentiment.

Business Highlights & Strategic Developments

• Advertising Solutions Growth: Digital Out-of-Home (DOOH) revenue surged 35% YoY to $17.6 million, while Web revenue grew 5%.
• Retail Media Expansion: Revenue in this vertical increased 27% YoY to $22.3 million.
• Greenbids Integration: The acquisition is yielding synergies, with over $1 million in new business secured from existing clients.
• New CTV Solution: The company launched a performance-driven Connected TV advertising product, targeting the $36B+ streaming ad market.
• Global Expansion: Partnerships in Korea (KT Corporation, NHN AD) and Europe aim to strengthen Perion’s presence in high-growth markets.

Outlook vs. Analyst Estimates

Perion reiterated its full-year 2025 guidance:

• Revenue: $430–450 million (vs. analyst estimate of $447.6 million).
• Adjusted EBITDA: $44–46 million.
  The midpoint of revenue guidance aligns closely with consensus, suggesting management expects stable performance despite macroeconomic uncertainties.

Conclusion

Perion’s Q2 results demonstrate resilience in its Advertising Solutions segment, offsetting declines in Search. The EPS beat and strong cash flow are likely to reassure investors, while strategic initiatives in CTV and retail media position the company for future growth.

For more detailed earnings estimates and historical performance, visit Perion’s earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making decisions.