Perion Network revenue nudges higher as Outmax AI adoption surges 316%

Perion Network (NASDAQ:PERI), a digital advertising technology provider specializing in AI-native execution infrastructure, disclosed its financial results for the first quarter ended March 31, 2026, highlighting a heavy structural transition toward automated marketing tools.

Total revenue for the quarter reached $90.4 million, up 1% from the $89.3 million recorded during the same period in 2025.

The company's underlying contribution ex-TAC (traffic acquisition costs) remained stable year-over-year at $39.7 million, maintaining a gross margin of 44%.

First-quarter adjusted EBITDA landed at $0.5 million.

The top-line stability was preserved by strong performance across Perion’s newly designated corporate growth engines.

Advertising spend routed through the company's proprietary Outmax AI agent scaled up significantly, rising 316% compared to the prior-year period.

Additional growth vectors included connected television (CTV) spend, which advanced 68% year-over-year, alongside digital out-of-home (DOOH) and retail media verticals, which increased by 29% and 27%, respectively.

Meanwhile, the core Perion One platform grew ad spend by 6%.

Elsewhere, the company adjusted its commercial footprint through several international partnership expansions during the three-month window.

Perion established exclusive Outmax partnerships in Africa alongside Mediamark and McSorely Media, introduced its AI agent architecture to TikTok pipelines, and finalized a service deployment agreement with European telecom provider Bouygues Telecom.

From a cash perspective, Perion generated $6.7 million in cash flow from operations, yielding an adjusted free cash flow of $7.0 million.

The company continued its capital allocation strategy by actively reducing its equity float, deploying $24.1 million to repurchase 2.5 million common shares on the open market during the quarter.