Revenue growth has stagnated to a marginal 1.2% in 2026Q1, while operating margins have deteriorated sharply to -16.9% due to rising fixed costs relative to gross profit.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 |
|---|
| Sales/Revenue | 440.96M | 439.93M | 498.29M | 743.15M | 640.26M | 478.5M | 328.06M | 261.45M | 252.84M | 273.99M | 312.79M | 220.95M | 388.73M | 87.15M | 60.22M | 35.47M | 29.5M | 27.2M | 21.91M | 18.68M | 10.85M | 7.4M | 6.21M | 5.16M | 4.06M |
| Revenue Growth % | 2.59% | -11.71% | -32.95% | 16.07% | 33.81% | 45.86% | 25.48% | 3.4% | -7.72% | -12.41% | 41.57% | -43.16% | 346.06% | 44.71% | 69.77% | 20.26% | 8.46% | 24.14% | 17.3% | 72.1% | 46.6% | 19.23% | 20.31% | 27.03% | - |
| Cost of Goods Sold | 294.25M | 305.96M | 332.83M | 470.8M | 403M | 313.21M | 220.1M | 161.41M | 152.11M | 155.54M | 156.72M | 107.41M | 202.39M | 43.74M | 27.29M | 2.84M | 1.61M | 1.58M | 1.79M | 1.74M | 858K | 570K | 473K | 362K | 176K |
| COGS % of Revenue | - | 69.55% | 66.8% | 63.35% | 62.94% | 65.46% | 67.09% | 61.74% | 60.16% | 56.77% | 50.1% | 48.61% | 52.06% | 50.19% | 45.32% | 8.01% | 5.44% | 5.81% | 8.19% | 9.32% | 7.91% | 7.7% | 7.62% | 7.02% | 4.33% |
| Gross Profit | 146.71M | 133.97M | 165.45M | 272.36M | 237.25M | 165.28M | 107.96M | 100.04M | 100.74M | 118.44M | 156.07M | 113.54M | 186.34M | 43.41M | 32.93M | 32.63M | 27.89M | 25.62M | 20.11M | 16.93M | 9.99M | 6.83M | 5.74M | 4.8M | 3.89M |
| Gross Margin % | 33.27% | 30.45% | 33.2% | 36.65% | 37.06% | 34.54% | 32.91% | 38.26% | 39.84% | 43.23% | 49.9% | 51.39% | 47.94% | 49.81% | 54.68% | 91.99% | 94.56% | 94.19% | 91.81% | 90.68% | 92.09% | 92.3% | 92.38% | 92.98% | 95.67% |
| Gross Profit Growth % | - | -19.03% | -39.25% | 14.8% | 43.54% | 53.1% | 7.92% | -0.69% | -14.95% | -24.11% | 37.46% | -39.07% | 329.27% | 31.81% | 0.92% | 17% | 8.88% | 27.37% | 18.75% | 69.47% | 46.27% | 19.13% | 19.53% | 23.47% | - |
| Operating Expenses | 163.85M | 147.55M | 168.49M | 158.07M | 128.09M | 119.39M | 95.71M | 82.03M | 83.97M | 108.43M | 143.99M | 86.17M | 107.12M | 39.53M | 26.75M | 28.09M | 16.59M | 14.13M | 18.74M | 14.66M | 2.26M | 3.89M | 3.17M | 2.61M | 2.56M |
| OpEx % of Revenue | - | 33.54% | 33.81% | 21.27% | 20.01% | 24.95% | 29.17% | 31.38% | 33.21% | 39.58% | 46.03% | 39% | 27.56% | 45.36% | 44.42% | 79.18% | 56.25% | 51.96% | 85.54% | 78.52% | 20.81% | 52.51% | 51.03% | 50.54% | 63.1% |
| Selling, General & Admin | 116.57M | 112.89M | 106.79M | 91.4M | 79.83M | 74.14M | 54.9M | 49.73M | 55.37M | 74.65M | 91.49M | 59.79M | 62.99M | 26.14M | 16.02M | 20.63M | 9.98M | 8.16M | 11.15M | 8.38M | 4.48M | 1.85M | 1.85M | 1.29M | 0 |
| SG&A % of Revenue | - | 25.66% | 21.43% | 12.3% | 12.47% | 15.49% | 16.74% | 19.02% | 21.9% | 27.25% | 29.25% | 27.06% | 16.2% | 29.99% | 26.59% | 58.17% | 33.85% | 30% | 50.89% | 44.85% | 41.32% | 24.95% | 29.75% | 24.98% | - |
| Research & Development | 33.15M | 34.65M | 36.83M | 33.88M | 34.42M | 35.35M | 30.88M | 22.59M | 18.88M | 17.19M | 26.53M | 26.38M | 44.13M | 13.39M | 10.73M | 7.45M | 6.61M | 5.97M | 7.59M | 6.13M | 3.25M | 2.04M | 1.32M | 1.32M | 1.16M |
| R&D % of Revenue | - | 7.88% | 7.39% | 4.56% | 5.38% | 7.39% | 9.41% | 8.64% | 7.47% | 6.27% | 8.48% | 11.94% | 11.35% | 15.37% | 17.83% | 21.01% | 22.4% | 21.96% | 34.64% | 32.8% | 29.96% | 27.56% | 21.28% | 25.56% | 28.58% |
| Other Operating Expenses | 3M | 0 | 24.87M | 32.79M | 13.84M | 9.9M | 9.92M | 9.71M | 1.58M | -3.79M | -1.35M | -175K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 163K | -5.48M | 0 | 0 | 0 | 1.4M |
| Operating Income | -17.14M | -13.58M | -3.04M | 114.29M | 109.16M | 45.9M | 12.25M | 18.01M | 14.69M | -75.66M | 11.35M | -66.02M | 55.3M | 3.88M | 6.18M | 4.55M | 11.3M | 11.49M | 220K | 2.27M | 7.74M | 2.94M | 2.57M | 2.19M | 1.32M |
| Operating Margin % | -3.89% | -3.09% | -0.61% | 15.38% | 17.05% | 9.59% | 3.74% | 6.89% | 5.81% | -27.61% | 3.63% | -29.88% | 14.22% | 4.45% | 10.26% | 12.82% | 38.31% | 42.24% | 1% | 12.17% | 71.28% | 39.79% | 41.35% | 42.44% | 32.57% |
| Operating Income Growth % | - | -347% | -102.66% | 4.7% | 137.85% | 274.57% | -31.96% | 22.58% | 119.42% | -766.71% | 117.19% | -219.4% | 1325.13% | -37.23% | 35.94% | -59.76% | -1.63% | 5120.91% | -90.32% | -70.63% | 162.65% | 14.73% | 17.21% | 65.53% | - |
| EBITDA | 1.97M | 4.1M | 13.4M | 128.38M | 123M | 55.79M | 22.18M | 27.72M | 24.41M | -59.07M | 37.33M | -54.05M | 76.71M | 14.6M | 9.75M | 5.93M | 12.04M | 12.2M | 1.27M | 2.49M | 7.98M | 3.01M | 2.61M | 2.3M | 1.52M |
| EBITDA Margin % | 0.45% | 0.93% | 2.69% | 17.28% | 19.21% | 11.66% | 6.76% | 10.6% | 9.65% | -21.56% | 11.93% | -24.46% | 19.73% | 16.75% | 16.19% | 16.73% | 40.81% | 44.86% | 5.8% | 13.32% | 73.54% | 40.72% | 42.03% | 44.59% | 37.49% |
| EBITDA Growth % | 121.33% | -69.42% | -89.57% | 4.38% | 120.46% | 151.59% | -20% | 13.56% | 141.33% | -258.25% | 169.06% | -170.46% | 425.58% | 49.65% | 64.33% | -50.7% | -1.34% | 860.71% | -48.95% | -68.82% | 164.76% | 15.52% | 13.39% | 51.08% | - |
| D&A (Non-Cash Add-back) | 19.11M | 17.68M | 16.43M | 14.09M | 13.84M | 9.9M | 9.92M | 9.71M | 9.72M | 16.59M | 25.98M | 11.97M | 21.41M | 10.71M | 3.57M | 1.39M | 739K | 715K | 1.05M | 216K | 245K | 69K | 42K | 111K | 200K |
| EBIT | -14.77M | -13.58M | 5.4M | 135.24M | 113.66M | 45.43M | 12.25M | 18.01M | 14.84M | -76.74M | 9.67M | -38.16M | 54.22M | 3.01M | 6.38M | 5.84M | 11.62M | 11.49M | 1.37M | 2.27M | 7.74M | 2.94M | 2.57M | 2.19M | 1.32M |
| Net Interest Income | 6.43M | 9.93M | 19.59M | 21.52M | 4.77M | -53K | -1.15M | -2.45M | -4.26M | -4.91M | -6.75M | -2.56M | -1.77M | 1.54M | -344K | 1.12M | 405K | 72K | 4.49M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 6.43M | 9.93M | 20.25M | 21.88M | 4.99M | 539K | 287K | 624K | 296K | 132K | 204K | 551K | 45K | 306K | 29K | 1.29M | 449K | 72K | 4.49M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 650K | 357K | 227K | 592K | 1.43M | 3.07M | 4.56M | 5.04M | 6.96M | 3.11M | 1.81M | 1.23M | 373K | 172K | 44K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 8.57M | 8.61M | 18.52M | 20.95M | 4.5M | -581K | -2.64M | -3.47M | -3.79M | -5.92M | -8.29M | -28.94M | -2.89M | -1.23M | -174K | 1.29M | 322K | 72K | 4.49M | -3.64M | -4.49M | -14K | 75K | 49K | -12K |
| Pretax Income | -8.56M | -4.97M | 15.48M | 135.24M | 113.66M | 45.31M | 9.62M | 14.54M | 10.9M | -81.58M | 3.06M | -67.96M | 52.41M | 2.65M | 6.01M | 5.84M | 11.62M | 11.56M | 4.71M | -1.37M | 3.24M | 2.93M | 2.64M | 2.24M | 1.31M |
| Pretax Margin % | -1.94% | -1.13% | 3.11% | 18.2% | 17.75% | 9.47% | 2.93% | 5.56% | 4.31% | -29.78% | 0.98% | -30.76% | 13.48% | 3.04% | 9.97% | 16.46% | 39.4% | 42.5% | 21.52% | -7.33% | 29.88% | 39.6% | 42.56% | 43.39% | 32.27% |
| Income Tax | 1.02M | 2.96M | 2.87M | 20.28M | 14.44M | 6.61M | -610K | 1.65M | 2.78M | -8.83M | 212K | 697K | 9.58M | 2.34M | 2.47M | 172K | 3.23M | 3.54M | 289K | 1.39M | 765K | 1.78M | -154K | -114K | 0 |
| Effective Tax Rate % | -11.94% | -59.49% | 18.52% | 14.99% | 12.7% | 14.58% | -6.34% | 11.32% | 25.47% | 10.82% | 6.93% | -1.03% | 18.28% | 88.29% | 41.17% | 2.95% | 27.81% | 30.67% | 6.13% | -101.75% | 23.6% | 60.8% | -5.83% | -5.09% | 0% |
| Net Income | -9.59M | -7.93M | 12.61M | 114.96M | 99.22M | 38.71M | 10.22M | 12.89M | 8.12M | -72.75M | 201K | -68.66M | 42.83M | 310K | 3.53M | 5.67M | 8.39M | 8.01M | 4.42M | -2.76M | 2.48M | 1.15M | 2.8M | 2.35M | 1.31M |
| Net Margin % | -2.17% | -1.8% | 2.53% | 15.47% | 15.5% | 8.09% | 3.12% | 4.93% | 3.21% | -26.55% | 0.06% | -31.07% | 11.02% | 0.36% | 5.87% | 15.98% | 28.44% | 29.47% | 20.2% | -14.79% | 22.83% | 15.52% | 45.04% | 45.6% | 32.27% |
| Net Income Growth % | -27.84% | -162.89% | -89.03% | 15.86% | 156.36% | 278.54% | -20.69% | 58.76% | 111.16% | -36296.02% | 100.29% | -260.32% | 13714.84% | -91.23% | -37.65% | -32.44% | 4.69% | 81.08% | 260.21% | -211.51% | 115.58% | -58.91% | 18.83% | 79.48% | - |
| Net Income (Continuing) | -9.59M | -7.93M | 12.61M | 114.96M | 99.22M | 38.71M | 10.22M | 12.89M | 8.12M | -72.75M | 2.85M | -41.66M | 49.31M | 62.41M | 3.53M | 5.67M | 8.39M | 8.01M | 4.42M | -2.76M | 2.48M | 1.15M | 2.8M | 2.35M | 1.31M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.25 | -0.19 | 0.25 | 2.34 | 2.06 | 1.02 | 0.36 | 0.49 | 0.31 | -2.81 | 0.11 | -2.89 | 2.01 | 0.02 | 17.73 | 1.71 | 2.55 | 2.52 | 1.38 | -0.17 | 0.81 | 0.48 | 1.17 | 0.99 | 0.54 |
| EPS Growth % | -51.89% | -176% | -89.32% | 13.59% | 101.96% | 183.33% | -26.53% | 58.06% | 111.03% | -2654.55% | 103.81% | -243.78% | 11723.53% | -99.9% | 936.84% | -32.94% | 1.19% | 82.61% | 911.76% | -120.99% | 68.75% | -58.97% | 18.18% | 83.33% | - |
| EPS (Basic) | - | -0.19 | 0.27 | 2.49 | 2.21 | 1.13 | 0.38 | 0.50 | 0.31 | -2.81 | 0.11 | -2.89 | 2.17 | 0.02 | 18.05 | 1.74 | 2.61 | 2.58 | 1.41 | -0.17 | 0.81 | 0.51 | 1.32 | 1.11 | 0.63 |
| Diluted Shares Outstanding | 39.1M | 42.1M | 49.56M | 50.07M | 48.07M | 37.83M | 28.8M | 26.36M | 25.86M | 25.85M | 25.89M | 23.77M | 24.49M | 18.28M | 17.75M | 16.67M | 16.39M | 15.94M | 15.86M | 15.87M | 15.29M | 11.97M | 11.95M | 11.88M | 12.14M |
| Basic Shares Outstanding | 39.1M | 42.1M | 50.46M | 47.13M | 44.87M | 34.4M | 26.69M | 25.97M | 25.85M | 25.85M | 25.56M | 23.77M | 23.44M | 18.25M | 17.75M | 16.33M | 16.04M | 15.58M | 15.71M | 15.87M | 15.29M | 11.26M | 10.59M | 10.6M | 10.4M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | 20970.65% | - | 68.54% | 101.05% | 106.03% | - | - | - | 373.8% | 39.34% | - | - |
Search partner dependency concentration
According to the latest quarterly income statement, Perion's revenue has faced significant headwinds, with the most recent period showing a year-over-year growth rate of only 1.2% following several quarters of double-digit declines, highlighting the volatility inherent in its search-dependent business model and broader market challenges.
The deceleration in revenue growth appears to reflect a fundamental shift in the search monetization landscape, likely exacerbated by changes in partner revenue-share dynamics. Investors should monitor whether the company can stabilize its top line through its Advertising Solutions segment, as the current trajectory suggests a reliance on legacy search volumes that are no longer providing reliable growth.
As reported in financial statements, Perion's gross margin has fluctuated significantly, settling at 30.3% in 2026Q1, which underscores the company's vulnerability to traffic acquisition cost volatility and the limited pricing power it maintains as an intermediary within the highly competitive digital advertising ecosystem.
The inability to maintain gross margins above the 35% threshold observed in previous periods suggests that the company is struggling to pass through costs to its publisher partners. This margin compression may indicate that the value-add of its proprietary technology is being eroded by the dominant search platforms it relies upon for traffic.
Based on the company's reported figures, operating income has deteriorated to a loss of $15.3 million in 2026Q1, representing an operating margin of -16.9%, which indicates that fixed operating expenses are currently scaling faster than the company's ability to generate gross profit from its core operations.
The shift to negative operating margins suggests that the company's cost structure, particularly its SG&A and R&D investments, is currently misaligned with its reduced revenue base. This lack of operating leverage warrants further investigation into whether management can effectively right-size the organization without compromising its long-term technological capabilities.
Data from recent filings reveals that stock-based compensation remains a consistent expense, reaching $8.0 million in 2026Q1, which significantly exacerbates the net loss of $10.0 million and raises questions regarding the quality of earnings when excluding these non-cash charges during periods of operational decline.
The persistent use of stock-based compensation during a period of negative net income suggests that shareholders are absorbing significant dilution while the core business struggles to achieve profitability. Analysts should scrutinize the impact of these non-cash items on the company's true cash-generative capacity and long-term value creation for equity holders.
While the company maintains a strong cash position, the income statement trends suggest that the current business model may be facing a structural decline, as evidenced by the transition from a $39.9 million operating profit in 2023Q4 to a $15.3 million operating loss in 2026Q1.
Short-sellers may focus on the potential for further margin erosion if the search monetization partnership terms continue to tighten. The reliance on a single major partner for the majority of search volume creates a binary risk profile that the current valuation may not fully reflect, despite the company's healthy balance sheet.
Quick answers to the most common questions about buying PERI stock.
For fiscal year 2025, Perion Network Ltd. (PERI) reported total revenue of $439.9M. This represents a 10730.3% increase compared to $4.1M in 2002.
Perion Network Ltd. (PERI) reported a net loss of $7.9M for the fiscal year ending 2025.
Perion Network Ltd. (PERI) reported an operating income of $-13.6M, resulting in an operating profit margin of -3.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Perion Network Ltd. (PERI) generated $134.0M in gross profit for the year, representing a gross profit margin of 30.5%. This demonstrates the company's core pricing power and production efficiency.