Perion Network Ltd ( PERI ) shares rose Wednesday after the company announced its third-quarter results.

The company reported adjusted earnings of 28 cents per share, topping analysts’ estimates for a 1-cent loss, up from earnings of 23 cents per share a year earlier.

Revenue for the quarter totaled $110.46 million, representing an 8% increase from the same period last year and exceeding the consensus estimate of $107.78 million.

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Traffic Acquisition Costs (TAC) totaled $59.5 million, or 54% of revenue, in the third quarter of 2025, compared with $54.6 million in the same period last year. Contribution ex-TAC (revenue excluding traffic acquisition costs) increased 7% to $51.0 million.

Adjusted EBITDA rose to $12.08 million, up 63% YoY. The contribution ex-TAC improved to 24% in the third quarter of 2025, compared with 16% in the same period last year.

As of September 30, 2025, cash and cash equivalents, short-term bank deposits and marketable securities, amounted to $315.6 million, compared with $373.3 million as of December 31, 2024.

Segment Performance

In the third quarter of 2025, Perion Network’s Advertising Solutions revenue rose 8% year over year to $87.7 million, while Search Advertising revenue increased 9% to $22.8 million.

Within Advertising Solutions, CTV revenue surged 75% to $16.6 million, DOOH (Digital Out-of-Home) revenue grew 26% to $24.1 million, and Web channel revenue declined 11% to $46.6 million.

Share Repurchase

During the third quarter of 2025, Perion Network ( PERI ) repurchased 0.8 million shares for $7.5 million, bringing total buybacks to 10.4 million shares worth $94.2 million as of September 30.

In November, the board approved a $75 million increase to the existing $125 million share repurchase program, raising the total authorization to $200 million, pending regulatory approval.

Outlook

Perion reaffirmed its full-year 2025 outlook, maintaining its revenue guidance at $430 million to $450 million, in line with analysts’ estimates of $439.6 million.

The company also reiterated expectations for adjusted EBITDA in the range of $44 million to $46 million, and an adjusted EBITDA-to-contribution ex-TAC of 22% at the midpoint.

CEO Commentary

Tal Jacobson, Perion’s CEO, stated,  “We delivered year-over-year growth across all major metrics – revenue, contribution ex-TAC, and adjusted EBITDA – driven by the strong performance of our growth engines and disciplined operational execution, underpinned by efficiency measures that contributed to higher EBITDA margin. We continue to advance our Perion One strategy to become the operating system for marketers, and our third quarter results validate the strength of a unified platform that connects the dots across the media ecosystem.”

“The launch of our AI-driven SODA and DOOH Player solutions is expected to create more predictable and recurring revenue streams. Combined with our new global partnerships, these initiatives are designed to enhance scalability, efficiency, and profitability, establishing a strong foundation for sustained growth into 2026 and beyond.”

Price Action: PERI shares were trading higher by 15.21% to $10.95 at last check Wednesday.

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