CTV and DOOH Lead Revenue Growth as Perion Reiterates Bullish Outlook
Perion Network Ltd. (NASDAQ: PERI) delivered a robust third quarter, marked by double-digit growth in high-value channels and a strong affirmation of its capital allocation strategy. Investors looking for sector momentum may want to pay close attention to the surge in Connected TV (CTV) and Digital Out of Home (DOOH) revenues, alongside the board's confidence as shown in the expanded $200 million share repurchase authorization.
Growth Engines Fuel Top-Line Gains: CTV Up 75%, DOOH Up 26%
While overall third quarter revenue increased by 8% to $110.5 million, it’s the underlying growth channels that paint a compelling picture for Perion’s forward trajectory. CTV revenue soared 75% year-over-year to $16.6 million, and DOOH rose 26% to $24.1 million, together accounting for more than a third of total revenues. This performance more than offset the 11% year-over-year decline in Web channel revenues.
| Channel | Q3 2025 Revenue ($M) | % of Revenue | YoY Change |
|---|---|---|---|
| DOOH | 24.10 | 22% | 26% |
| CTV | 16.60 | 15% | 75% |
| Web | 46.60 | 42% | (11%) |
| Search | 22.80 | 21% | 9% |
| Other | 0.40 | 0% | 42% |
Margin Expansion Driven by Efficiency: Adjusted EBITDA Up 63% YoY
Efficiency measures have translated into stronger margins. Adjusted EBITDA grew to $12.1 million—up 63% year-over-year—and now represents 11% of revenue versus 7% a year ago. Notably, Adjusted EBITDA as a percent of Contribution ex-TAC improved to 24% (up from 16%). These margin gains come as Perion maintains disciplined operating costs while capitalizing on high-margin segments.
| Q3 2025 | Q3 2024 | % Change | |
|---|---|---|---|
| Adjusted EBITDA ($M) | 12.10 | 7.40 | 63% |
| Contribution ex-TAC ($M) | 51.00 | 47.60 | 7% |
| Adjusted EBITDA as % of Revenue | 11% | 7% | +4pp |
Strategic Initiatives and Share Buybacks Underscore Management Confidence
Backing these results, Perion’s board expanded its share repurchase program by $75 million, taking the total authorization to $200 million. As of the quarter's end, the company had already bought back $94.2 million worth of shares. This substantial capital commitment signals clear confidence in the company’s future and aims to return value to shareholders while maintaining flexibility for innovation and acquisitions.
Key product launches, such as the SODA supply path optimization platform and the DOOH Player, point to ongoing investment in next-generation adtech. The strategic partnership with Albertsons and expanded global presence—including new partners in China, the US, and Europe—position Perion to sustain high-margin, recurring growth across new markets and verticals.
Outlook: Full-Year Guidance Reaffirmed Amidst Cash Flow Discipline
Perion reaffirmed its full-year 2025 guidance, forecasting revenues of $430–$450 million and Adjusted EBITDA of $44–$46 million, targeting a midpoint margin of 22% of Contribution ex-TAC. Net cash from operations for the quarter was $5.9 million, with adjusted free cash flow at $4.8 million. The cash position at quarter’s end remained healthy at $315.6 million, giving Perion flexibility for further buybacks and growth investments.
| Guidance Range | Low End ($M) | High End ($M) |
|---|---|---|
| Revenue (FY25) | 430.00 | 450.00 |
| Adjusted EBITDA (FY25) | 44.00 | 46.00 |
Takeaway: Focus Shifts to Execution in High-Growth Verticals
The standout momentum in CTV and DOOH channels reflects Perion’s pivot toward segments with sustainable, high-margin opportunities. Investors should monitor whether recent efficiency gains and new tech rollouts, like Perion One and the AI-driven SODA, will translate to further profitability and market share. The enlarged share repurchase program is another tangible sign that management sees strong value ahead. With Q4 results and 2026 forecasts on the horizon, Perion’s execution in these strategic growth engines may set the tone for digital advertising trends going forward.
Contact Information:
If you have feedback or concerns about the content, please feel free to reach out to us via email at support@marketchameleon.com.
About the Publisher - Marketchameleon.com:
Marketchameleon is a comprehensive financial research and analysis website specializing in stock and options markets. We leverage extensive data, models, and analytics to provide valuable insights into these markets. Our primary goal is to assist traders in identifying potential market developments and assessing potential risks and rewards.
NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.
The information is provided for informational purposes only and should not be construed as investment advice. All stock price information is provided and transmitted as received from independent third-party data sources. The Information should only be used as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments and trading strategies. The Company does not guarantee the accuracy, completeness or timeliness of the Information.
Disclosure: This article was generated with the assistance of AI