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Management defines 2025 as ‘Year 1’ of a total transformation, unifying technology, organizational structure, and mission under the Perion One strategy.
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Performance was driven by double-digit growth in CTV, Digital Out-of-Home, and Retail Media, which significantly outpaced broader market trends.
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The company transitioned from a channel-specific sales approach to a holistic, AI-driven execution model focused on cross-channel performance outcomes.
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Outmax, the AI execution agent, is positioned as a layer above traditional DSPs to optimize spend across platforms like YouTube, Meta, and Disney+ based on real-time signals.
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Strategic partnerships with Amazon, Walmart, and Mastercard were launched to integrate unique audience data with Perion’s dynamic creative technology.
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Management attributes margin expansion to disciplined cost management and the decoupling of the expense base from revenue growth.
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The 2028 target plan projects a Perion One pro forma spend CAGR of at least 25% and a contribution ex-TAC CAGR of at least 20%.
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Management expects adjusted EBITDA margins to reach 28% of contribution ex-TAC by 2028 through internal AI automation and operational leverage.
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2026 guidance assumes a gradual decline in legacy search activities while Perion One scales to represent 85% to 90% of consolidated contribution ex-TAC.
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The company plans to strategically deploy capital into go-to-market initiatives and R&D to expedite the adoption of the AI execution infrastructure.
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Capital allocation priorities include organic AI investment, a $200 million share repurchase program, and targeted M&A aligned with the Perion One strategy.
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Web revenue declines (17% in Q4) were partially driven by the proactive shutdown of low-margin legacy activities in early 2025.
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Management noted a shift in human behavior toward ‘walled gardens,’ which informs their channel-agnostic strategy for Outmax.
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The company maintains a strong liquidity position with $313 million in cash, cash equivalents, short-term bank deposits, and marketable securities as of year-end 2025.
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Guidance for 2026 reflects limited visibility beyond six months as advertisers continue to plan for shorter budget cycles.
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Management clarified they are not seeking to replace DSPs but to act as an optimization layer above them.
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While DSPs optimize for their own inventory, Outmax optimizes for the advertiser’s specific outcome across all inventories and platforms.
