Perion reports Q2 2025 revenue increases as advertising solutions business returns to growth

Perion Network Ltd. announced its second quarter 2025 financial results on August 11, demonstrating significant momentum in its advertising solutions business with the first year-over-year growth since the third quarter of 2023. The global advertising technology company reported revenue of $103 million for the quarter ended June 30, 2025.

According to the financial statements, advertising solutions revenue increased 8.3% year-over-year to $80.6 million, representing 78% of total revenue for the quarter. This marks a notable turnaround for the company's core business unit following six consecutive quarters of decline. The growth comes as Perion's strategic transformation continues to gain traction with its unified Perion One platform approach.

Digital out-of-home (DOOH) advertising emerged as a standout performer, recording 35% year-over-year growth to reach $17.6 million in quarterly revenue. This growth rate significantly exceeds industry projections, with eMarketer data indicating 8.1% compound annual growth for DOOH ad spending through 2028 in the United States. The segment now represents 17% of Perion's total revenue, compared to 12% in the same quarter of 2024.

"Our second quarter financial performance reflects our progress and early validation of our Perion One strategy, marked by first quarter of year-over-year growth in Advertising Solutions revenue since the third quarter of 2023, signaling that we are beginning to reap the fruits of our transformation," according to Chief Executive Officer Tal Jacobson in the August 11 earnings call.

Retail media demonstrated continued strength with revenue increasing 27% year-over-year to $22.3 million. According to eMarketer projections, omnichannel retail media ad spending is expected to grow at a 16.2% compound annual growth rate from 2023 to 2028 in the United States. Web advertising revenue increased 5% year-over-year to $53.1 million, representing 52% of total quarterly revenue.

Connected TV (CTV) revenue decreased 5% year-over-year to $9.7 million, accounting for 9% of total revenue. Perion's management attributed this decline to budget shifts toward the second half of 2025 rather than fundamental market issues. "CTV budgets moving to H2," Jacobson explained during the earnings call, emphasizing the company's channel-neutral approach focused on customer outcomes rather than specific advertising mediums.

The company launched its Performance CTV solution during the quarter, designed to capture share in what Perion characterizes as a $36 billion streaming advertising market. "Our Performance CTV transforms CTV ads into a full-funnel, ROI-focused channel activation. By focusing campaigns on real KPIs and return on ad spend, we're turning what was traditionally an awareness medium into a measurable performance engine," Jacobson stated during the earnings presentation.

This development aligns with broader industry trends showing 72% of marketers planning to increase programmatic advertising investment in 2025, with Connected TV's share of media budgets projected to double from 14% in 2023 to 28% in 2025.

Search advertising revenue declined 35% year-over-year to $22.4 million, representing 22% of total revenue. This decline follows previously announced changes implemented by Microsoft Bing in 2024, which have continued to impact Perion's search business throughout the current fiscal year.

Perion's acquisition of Greenbids, an artificial intelligence-first optimization company, has progressed according to plan since completion in March 2025. Chief Financial Officer Elad Tzubery reported that the integration "is fully on track" with tangible synergies already generating new business wins. "As of today, we already booked more than one million dollars of Perion Algo deals from existing Perion customers," Tzubery confirmed during the earnings call.

The company's contribution ex-TAC margin remained stable at 46% year-over-year. Adjusted EBITDA totaled $7.1 million, resulting in a 7% adjusted EBITDA margin and 15% ex-TAC margin. Non-GAAP net income reached $12.0 million, translating to non-GAAP diluted earnings per share of $0.26.

Cash flow from operations generated $21.3 million during the quarter, with adjusted free cash flow reaching $20.7 million. The company maintained $318.5 million in cash, cash equivalents, short-term bank deposits, and marketable securities as of June 30, 2025.

Perion executed $33.4 million in share repurchases during the quarter, acquiring 3.6 million shares. The company has accumulated $86.7 million in total share repurchases year-to-date under its current $125 million authorization program.

Geographic expansion initiatives advanced during the quarter with strategic partnerships in Korea through KT Corporation and NHN AD, providing access to the $21 billion Asia-Pacific DOOH market. Additional partnerships in Germany and Italy expanded the company's European DOOH reach.

The growth in DOOH advertising reflects broader market dynamics as publishers adapt to new advertising formats and programmatic capabilities across digital out-of-home environments. Publishers have until May 1, 2025, to comply with enhanced standards for CTV and DOOH ad monetization as announced by Google in March 2025.

Leadership changes included the appointment of Anat Paran as Chief Operating Officer, bringing operational and organizational expertise to streamline global operations. The appointment follows Perion's broader organizational restructuring under its Perion One strategy implementation.

For the full year 2025, Perion reiterated its guidance range of $430 million to $450 million in revenue and $44 million to $46 million in adjusted EBITDA. This guidance reflects management's confidence in the company's strategic transformation and market positioning across high-growth advertising segments.

The company's quarterly performance demonstrates progress in its transition from traditional search-dependent revenue streams toward diversified advertising solutions spanning connected TV, digital out-of-home, retail media, and algorithmic optimization services. This transformation positions Perion to capitalize on marketing budget shifts toward performance-driven, measurable advertising channels.

Timeline

• August 11, 2025: Perion announces Q2 2025 results with 8.3% advertising solutions revenue growth
• March 2025: Greenbids acquisition completed, adding AI-first optimization capabilities
• February 2025: Perion One platform strategy announced, consolidating all technologies under unified brand
• December 2023: Hivestack acquisition completed, establishing DOOH market presence
• May 2024: Previous quarter showed mixed results with CTV and retail media growth offsetting search declines
• August 2024: Q2 2024 results revealed 39% revenue decline due to Microsoft Bing changes

PPC Land explains

Revenue - The fundamental financial metric measuring Perion's total income from its advertising technology services. During Q2 2025, revenue reached $103 million, representing the company's ability to generate income across multiple advertising channels. Revenue composition shifted significantly toward advertising solutions, which now represents 78% of total revenue, demonstrating the company's successful diversification away from search-dependent income streams. This metric serves as the primary indicator of business health and growth trajectory.

Advertising Solutions - Perion's core business segment encompassing digital out-of-home, connected TV, web advertising, and retail media services. This division achieved 8.3% year-over-year growth to $80.6 million in Q2 2025, marking the first positive growth since Q3 2023. The segment represents Perion's strategic focus on high-growth advertising channels that offer better margins and growth prospects compared to traditional search advertising. It demonstrates the company's evolution toward comprehensive advertising technology solutions.

DOOH (Digital Out-of-Home) - Digital advertising displayed on screens in public spaces such as billboards, transit systems, and retail environments. DOOH emerged as Perion's strongest growth driver, increasing 35% year-over-year to $17.6 million in Q2 2025. This channel benefits from programmatic capabilities and real-time optimization, representing a significant opportunity in the $21 billion Asia-Pacific market. The segment's growth significantly outpaces industry projections and reflects increasing advertiser demand for location-based targeting.

Connected TV (CTV) - Streaming television content delivered through internet-connected devices, representing a rapidly growing advertising channel. Despite a 5% year-over-year decline to $9.7 million in Q2 2025, Perion launched its Performance CTV solution to capture share in the $36 billion streaming market. CTV advertising allows for precise audience targeting and measurement capabilities similar to digital advertising, making it attractive to performance-focused marketers seeking alternatives to traditional television advertising.

Perion One - The company's unified technology platform consolidating all advertising solutions under a single brand and infrastructure. Announced in February 2025, this strategic initiative aims to provide Chief Marketing Officers with comprehensive, integrated advertising capabilities across multiple channels. The platform leverages artificial intelligence and data integration to optimize campaign performance and measurement. Perion One represents the company's vision of becoming the centralized platform for marketing executives, similar to how Salesforce serves sales teams.

Year-over-year - A financial comparison method measuring performance against the same period in the previous year, eliminating seasonal variations. This metric proved crucial for Perion's Q2 2025 results, showing the first positive advertising solutions growth since Q3 2023. Year-over-year comparisons provide investors and analysts with clear trend indicators, particularly important for Perion as it transitions from declining search revenue to growing advertising solutions. The metric demonstrates sustainable business momentum beyond temporary fluctuations.

Growth - The expansion of business metrics including revenue, market share, and operational scale. Perion's Q2 2025 performance showed varied growth patterns: 35% in DOOH, 27% in retail media, and 5% in web advertising. Growth measurement encompasses both financial performance and strategic positioning in high-potential markets. The company's growth strategy focuses on channels with superior long-term prospects, reflecting management's commitment to building sustainable competitive advantages in emerging advertising technologies.

Quarter - A three-month financial reporting period used to measure business performance and communicate results to stakeholders. Q2 2025 (April-June) marked a significant milestone for Perion with the return to advertising solutions growth. Quarterly reporting provides regular insight into business trajectory and enables timely strategic adjustments. For Perion, the quarter represented validation of its transformation strategy and positioning for continued momentum through the remainder of fiscal year 2025.

Million - The monetary unit used throughout Perion's financial reporting, reflecting the company's substantial scale in the advertising technology market. Key figures include $103 million in total revenue, $21.3 million in operating cash flow, and $318.5 million in cash reserves. The consistent use of millions demonstrates Perion's position as a significant player in the global advertising ecosystem, with sufficient financial resources to execute strategic initiatives and weather market volatility while investing in growth opportunities.

Search - Traditional search engine advertising representing Perion's legacy business segment, primarily affected by Microsoft Bing marketplace changes. Search revenue declined 35% year-over-year to $22.4 million, now representing 22% of total revenue compared to higher historical percentages. While declining, search revenue continues providing cash flow to fund investments in higher-growth segments. The search business demonstrates Perion's successful transition from dependence on a single channel toward diversified revenue streams with better long-term prospects.

Summary

Who: Perion Network Ltd., a global advertising technology company led by CEO Tal Jacobson and CFO Elad Tzubery, serving brands, agencies, and retailers across digital advertising channels.

What: Second quarter 2025 financial results showing first year-over-year growth in advertising solutions revenue since Q3 2023, driven by 35% DOOH growth and 27% retail media expansion, alongside launch of Performance CTV solution.

When: Results announced August 11, 2025, covering the quarter ended June 30, 2025, with continued momentum expected through the second half of fiscal year 2025.

Where: Global operations spanning North America, Europe, Asia-Pacific, and Latin America, with recent expansion into Korea and strengthened European partnerships in Germany and Italy.

Why: Strategic transformation under Perion One platform vision aims to provide unified advertising technology solutions addressing modern marketing complexities, positioning the company to capture growth in high-value segments like CTV, DOOH, and retail media while reducing dependence on declining search revenue streams.