Perion Network Holds 2026 Guidance Despite Q1 Revenue Miss, AI Spend Up 316%
Perion Network’s Q1 adjusted EPS of $0.11 missed the $0.13 estimate and revenue of $90.4 million fell short of the $92.9 million forecast. The company upheld 2026 targets for $215–235 million contribution ex‐TAC and $50–54 million adjusted EBITDA, citing 316% Outmax AI spend growth and 68% connected TV revenue expansion.
1. Q1 Performance
Perion reported adjusted EPS of $0.11 in Q1 2026, below the $0.13 consensus, and revenue of $90.4 million, missing the $92.9 million forecast despite a 1% year-over-year increase. Advertising solutions revenue declined 4% to $66.7 million, while search advertising rose 21% to $23.7 million.
2. Strategic Growth Drivers
The company highlighted strong adoption of its Outmax AI Agent, with related spending surging 316% year over year. Connected TV revenue grew 68%, digital out-of-home spend rose 29%, and the Perion One platform forged new global partnerships.
3. Financial Position and Capital Allocation
Perion generated $6.7 million in operating cash flow and $7.0 million in adjusted free cash flow during the quarter. Management repurchased 2.5 million shares for $24.1 million and closed Q1 with $293.0 million in cash, equivalents and marketable securities.
4. Full-year Outlook
Management reaffirmed full-year 2026 targets of $215–235 million contribution ex-TAC and $50–54 million adjusted EBITDA, and expects total revenue between $460 million and $490 million, reflecting confidence in ongoing growth initiatives.