Perion Network Ltd. (PERI): Business Model Canvas [Dec-2025 Updated]

Honestly, seeing a company like Perion Network Ltd. navigate a pivot this big-moving from search roots to a full-stack, AI-powered ad-tech platform-is fascinating to watch, especially when you see the numbers backing it up. We're talking about 2025 revenue guidance hitting between \$430 million and \$450 million, driven by massive growth in Connected TV (CTV) advertising, up 75% year-over-year in Q3, and Retail Media climbing 40% year-over-year. This isn't just shuffling deck chairs; it's a fundamental re-engineering of how they make money, balancing that legacy search revenue (still about 20% of 2025) against these high-growth channels. The entire strategy hinges on unifying everything under the Perion One AI platform. I've mapped out the full Business Model Canvas below so you can see exactly where the value is being built, where the costs are spiking from R&D, and what their key partnerships are for this new era. Dive in to see the blueprint for their next chapter.

Perion Network Ltd. (PERI) - Canvas Business Model: Key Partnerships

You're looking at the essential alliances that fuel Perion Network Ltd.'s growth engines as of late 2025. These aren't just handshake deals; they are concrete integrations driving specific revenue streams.

The Retail Media segment, a key focus area, shows clear financial traction from these types of partnerships. For the first quarter of 2025, Retail Media revenue hit $19.8 million, which was 22% of total revenue, a significant jump from just 9% the year prior. By the second quarter of 2025, that vertical revenue grew further to $22.3 million, marking a 27% year-over-year increase. The momentum continued into the third quarter, with Retail Media showing a 40% year-over-year growth rate.

The strategic partnership with Albertsons Media Collective is central to this retail media expansion in the US. This deal gives marketers access to Albertsons Companies' purchase-based audience data, which includes 37 million weekly shoppers and over 100 million addressable digital IDs across more than 2,200 store locations. This is how Perion Network Ltd. connects premium media with retail intelligence.

For programmatic Digital Out-of-Home (DOOH) expansion in Asia, the alliances with KT Corporation and NHN AD are critical. These partnerships, announced in August 2025, mark Perion Network Ltd.'s first direct programmatic supply integrations in Korea. These deals are specifically targeted to start contributing to revenue in Q4 2025. The APAC DOOH Market itself is estimated to be worth $21.64 billion in 2025. The specifics of the integration include:

• KT Corporation implementing Perion Network Ltd.'s Header Bidding technology.
• KT's integration covering 179 high-visibility subway screens.
• NHN AD facilitating PMP deals and offering access via 85 screens in premium fitness locations.

The adoption of Unified ID 2.0 (UID2), powered by The Trade Desk, announced in March 2025, solidifies the commitment to interoperability and privacy-compliant targeting. This move supports the broader Perion One platform strategy, ensuring future readiness in cookieless environments by converting first-party data into a hashed and salted identifier.

Perion Network Ltd. also engages with premium publishers, such as a360media, for publisher-focused retail media technology, which helps secure publisher-side technology access [cite: Not Found]. These technology integrations across the board are what allow Perion Network Ltd. to reiterate its full-year 2025 revenue guidance in the range of $430 to $450 million, with an Adjusted EBITDA guidance of $44 to $46 million.

Here's a quick look at the scale of these key relationships:

These technology partners, including those supporting UID 2.0 and the DOOH expansion, are crucial for driving the growth engines that saw CTV revenue increase 75% year-over-year in Q3 2025 and DOOH revenue increase 26% in the same period. Finance: draft 13-week cash view by Friday.

Perion Network Ltd. (PERI) - Canvas Business Model: Key Activities

You're looking at the core engine room of Perion Network Ltd. as they push through their transformation. The Key Activities section of the Business Model Canvas for Perion Network Ltd. in late 2025 is heavily weighted toward technology integration and capital management, reflecting the pivot to AI and platform unification.

Developing and unifying the Perion One AI-driven advertising platform

The central activity is the ongoing development and unification of the Perion One platform. This strategy aims to bring all technologies under one advanced, AI-powered system to simplify omnichannel advertising for brands, agencies, and retailers. The platform is designed to harness advanced AI algorithms to solve modern marketing challenges. The company is focused on scaling the Perion One platform in 2026, following a year of foundational work in 2025.

Research and development (R&D) of AI products like Soda and Outmax

Perion Network Ltd. is actively investing R&D into new AI-enabled solutions to enhance both the demand and supply sides of advertising. This includes the introduction of specific products:

• Outmax: Unifies all performance-driven AI algorithms for media outcomes across CTV, social, and open web, incorporating the Greenbids technology.
• Soda (Supply Optimization & Demand Amplification): Launched on September 11, 2025, this is a next-generation AI algorithm for Supply Path Optimization (SPO) for publishers, designed to maximize monetization.

The company anticipates continued investment in sales, marketing, and R&D to drive future growth.

Executing the share repurchase program, expanded to $200 million in 2025

A significant activity is the execution of the capital return program, signaling management's confidence in the balance sheet and business prospects. The Board authorized an expansion in March 2025, increasing the total authorization to $125 million. This was further amplified by an additional $75 million expansion, bringing the total authorized share repurchase program to $200 million in 2025. Here are the execution numbers:

Managing and optimizing high-growth advertising channels (CTV, DOOH, Retail Media)

Perion Network Ltd. is actively managing and optimizing its Advertising Solutions segment, which returned to year-over-year growth in Q2 2025 for the first time since Q3 2023. This segment revenue was $80.6 million in Q2 2025, an 8% increase year-over-year, representing 78% of total revenue for that quarter. The performance across the key growth engines varied:

• Retail Media: Demonstrated sustained strength, increasing 27% year-over-year to $22.3 million in Q2 2025. In Q1 2025, Retail Media revenue was $19.8 million, a 33% YoY increase.
• Digital Out of Home (DOOH): A standout performer, growing 35% YoY to $6 million in Q2 2025. In Q1 2025, DOOH saw an 80% YoY growth. In Q3 2025, DOOH climbed 26% to $24.1 million.
• Connected TV (CTV): Experienced a 5% year-over-year decrease to $9.7 million in Q2 2025, though it grew 31% YoY to $10.7 million in Q1 2025. In Q3 2025, CTV revenue jumped 75% YoY to $16.6 million.

Strategic acquisitions and integration of AI capabilities, such as Greenbids

The acquisition of Greenbids, an advanced AI company, on May 13, 2025, is a core activity for integrating custom algorithmic capabilities into the Perion One platform. The transaction terms were structured as follows:

Greenbids brought a client base of over 80 brands, including Spotify and Ford. The integration is expected to be immediately accretive to adjusted EBITDA and margins, with synergies already unlocking over one million dollars in booked business within the first 3 months post-acquisition. The Greenbids technology is now part of the unified Outmax offering.

Perion Network Ltd. (PERI) - Canvas Business Model: Key Resources

You're looking at the core assets that Perion Network Ltd. relies on to execute its strategy as of late 2025. These aren't just line items; they are the engines driving their transformation toward the unified Perion One platform.

Proprietary AI technology and algorithms are now significantly bolstered by the integration of Greenbids, acquired in May 2025. This technology focuses on custom algorithms for campaign optimization, especially within walled gardens like YouTube and Facebook, and leading DSPs like Google DV360 and The Trade Desk. The acquisition itself was valued up to $65 million, with $27.5 million in cash paid upon closing. Early results show the impact; a debut generative AI chatbot experience with Visit Savannah achieved a 14% increase in user engagement. The Greenbids platform previously served over 80 brands, including major names like Spotify and Ford.

The unified Perion One platform is the central operating system where these technologies converge. This full-stack approach aims to simplify and optimize omnichannel advertising by integrating proprietary AI, real-time insights, and dynamic creative tools across channels. The platform is designed to orchestrate media, data, and creativity for measurable results.

The financial foundation remains a critical resource. As of June 30, 2025, Perion Network Ltd. reported $318.5 million in cash and cash equivalents, short-term bank deposits, and marketable securities. This strong balance sheet supports ongoing disciplined investments and strategic M&A activity, such as the Greenbids purchase.

The company's reach is supported by its global network. Perion Network Ltd. operates in over 30 countries outside the U.S. and has been actively advancing strategic partnerships across retail media and digital out-of-home (DOOH) channels, extending its reach throughout the U.S., Europe, and Asia. This includes new expansion into Korea via partnerships with KT Corporation and NHN AD.

The human capital, comprising experienced R&D and sales teams, is central to executing the AI-enabled strategy. As of November 2025 announcements, the total employee count is reported as +650 people, focused on advancing the Perion One platform and capturing growth in high-margin verticals.

Here's a quick look at the financial and acquisition data supporting these resources:

The Perion One platform is also seeing channel-specific growth that validates the technology investment. For example, in Q2 2025, Digital Out of Home (DOOH) revenue increased 35% year-over-year, reaching $17.6 million for the quarter.

• Proprietary AI: Greenbids integration for custom bidding algorithms.
• Platform: Perion One, unifying omnichannel advertising.
• Financial Strength: $318.5 million in cash and equivalents (Q2 2025).
• Global Reach: Operations in over 30 countries.
• Team Size: Personnel count of +650 employees.

Perion Network Ltd. (PERI) - Canvas Business Model: Value Propositions

You're looking at the core reasons why clients choose Perion Network Ltd. as the market shifts. It's about delivering measurable results across channels, which is what the Perion One platform is designed to do.

Unified, outcomes-driven advertising via the Perion One platform.

The Perion One strategy aims to be the operating system for marketers, connecting various media channels under one system. This unification is showing up in the financial results, suggesting better client retention and scale. For the third quarter of 2025, total revenue reached $110.5 million, an 8% year-over-year increase. The company reaffirmed its full-year 2025 revenue guidance to be between $430 million and $450 million.

Superior performance and reduced wasted ad spend using AI-driven optimization.

The focus on efficiency, partly driven by AI capabilities like those bolstered by the Greenbids acquisition, is translating directly to the bottom line. Adjusted EBITDA for the third quarter of 2025 soared by 63% year-over-year to $12.1 million. More importantly, the profitability metric of Adjusted EBITDA as a percent of Contribution ex-TAC improved significantly to 24% in Q3 2025, up from 16% in Q3 2024. This margin expansion suggests that the optimization efforts are successfully reducing wasted spend relative to the revenue generated net of traffic acquisition costs.

Access to high-growth, premium inventory like Connected TV (CTV) and Digital Out-of-Home (DOOH).

This is where the growth is clearly concentrated. CTV revenue in Q3 2025 was $16.6 million, marking a massive 75% year-over-year jump. Digital Out-of-Home (DOOH) revenue followed with $24.1 million, a 26% year-over-year increase. These two high-growth channels, along with Retail Media revenue of $29.4 million (up 40% YoY in Q3 2025), together accounted for more than a third of the total Q3 2025 revenue.

The channel performance for Q3 2025 was:

Bridging the divide between CMOs and CFOs with measurable financial outcomes.

For the Chief Marketing Officer, the value is in the growth channels like CTV at 75% YoY growth. For the Chief Financial Officer, the value is in the efficiency gains. The reaffirmed full-year 2025 Adjusted EBITDA guidance is $44 million to $46 million, targeting a midpoint margin of 22% of Contribution ex-TAC. Management's confidence in this financial discipline is further underscored by the expanded share repurchase authorization, now totaling $200 million.

Full-stack supply-side technology for media owners to manage programmatic and direct campaigns.

The Perion One platform is positioned to manage campaigns across various media types, which benefits media owners by providing a unified technology layer. The platform is designed to connect media, data, and creative. The company is actively expanding its global reach, including new strategic partnerships in Korea with KT Corporation and NHN AD to unlock access to the APAC DOOH market.

• The platform integrates solutions across digital channels.
• It is designed to adapt in real time, connecting data, creative, and channels.
• The company is scaling its DOOH presence in EMEA through new European partnerships.

Finance: review Q4 2025 cash flow projections against the $315.6 million cash position as of September 30, 2025, by next Tuesday.

Perion Network Ltd. (PERI) - Canvas Business Model: Customer Relationships

You're looking at how Perion Network Ltd. manages its connections with the entities that pay for its services-the brands, agencies, and publishers. This block is heavily influenced by the company's transformation under the Perion One strategy, aiming for deeper, stickier relationships.

Perion Network Ltd. positions itself as the trusted partner for some of the most well-known consumer brands and advertising agencies in the world. The focus on high-touch engagement is evident in the specialized sales structure.

• Dedicated global sales team targeting large brands and agencies.
• Consultative approach for adopting the unified Perion One platform.
• Driving longer duration contracts via the integrated offering.
• Providing automated, self-service tools for publisher monetization.

The push toward a unified platform is directly tied to relationship longevity. Management believes the Perion One platform will generate significant opportunities for greater customer retention and longer duration contracts. This strategy is supported by growth in key relationship verticals; for instance, Retail Media revenue grew 33% year-over-year to $19.8 million in Q1 2025, representing 22% of total revenue, up from 9% the prior year. Digital Out-of-Home (DOOH) revenue also saw a 35% year-over-year increase to $17.6 million in Q2 2025.

The consultative aspect is being enhanced through strategic technology integration. The acquisition of Greenbids in May 2025, which brings custom algorithmic capabilities, is being embedded into the Perion One platform to deliver custom, performance-based advertising at scale. Greenbids already served a robust client base of over 80 brands, including Spotify and Ford. This move is already showing results, as Greenbids synergies unlocked over one million dollars in booked business from Perion's existing (non-Greenbids) customers within the first 3 months post-acquisition. This consultative, AI-driven approach helps secure budgets in lower-funnel advertising spaces.

For the publisher side of the relationship, Perion Network Ltd. launched SODA (Supply Optimization & Demand Amplification) in September 2025, an AI-powered suite designed to maximize publisher revenue through Supply Path Optimization (SPO) 2.0. This tool offers publishers transparency into SSP performance and access to Perion's high-impact demand, which drives higher CPMs and is intended to foster long-term publisher stickiness.

The overall financial health supports continued investment in these relationship-building strategies. As of June 30, 2025, Perion Network Ltd. maintained cash, cash equivalents, short-term bank deposits, and marketable securities totaling $318.5 million. The company reiterated its full-year 2025 revenue guidance range of $430 million to $450 million.

Here's a look at the revenue contribution from the key relationship growth engines as of Q2 2025:

The focus on the unified platform and AI capabilities is designed to increase recurring revenue per customer. The company's Q2 2025 results showed Advertising Solutions revenue grew 8% year-over-year, marking the first increase since Q3 2023.

The company is actively managing its relationships with shareholders through capital returns, having executed $33.4 million in share repurchases during Q2 2025, acquiring 3.6 million shares.

Perion Network Ltd. (PERI) - Canvas Business Model: Channels

You're looking at how Perion Network Ltd. gets its value proposition-advanced AI and creative tech for modern advertising-into the hands of customers. This is all about the pathways they use to connect with advertisers and media owners, especially as they push the Perion One platform.

The core of the revenue generation is clearly shifting toward Advertising Solutions, which accounted for 78% of the $103.0 million total revenue in Q2 2025, showing progress away from the Search Advertising channel, which was only 22% of revenue in that quarter. By Q3 2025, total revenue hit $110.5 million, an 8% year-over-year increase, driven by these non-Search channels.

The direct sales force targets global brands and advertising agencies, evidenced by the focus on securing custom algorithmic deals post-Greenbids acquisition, unlocking over one million dollars in booked business within the first 3 months of Q2 2025. The company is focused on driving adoption of the Perion One platform to secure longer-duration contracts and larger-scale customers among these groups.

The growth engines are clearly defined by channel performance, which you can see laid out here based on the latest reported Q3 2025 figures:

The combined CTV and DOOH channels represented 37% of total revenue in Q3 2025, up from 28% in the same quarter last year. Perion Network Ltd. reiterated its full-year 2025 revenue guidance to be between $430 million and $450 million.

For media owners and publishers, the Supply-Side Platform (SSP) integrations are being bolstered by new technology. Perion Network Ltd. launched its Digital Out-of-Home (DOOH) Player on November 4, 2025, which completes its full-stack marketing operating system for DOOH and Retail Media. This player is designed to integrate seamlessly with its Ad Server, Header Bidder, and SSP, allowing media owners to maximize both direct and programmatic revenue.

The push into programmatic advertising exchanges, both Open Exchange and Private Marketplace, is supported by this new DOOH Player, which is intended to create new recurring and predictable revenue opportunities for Perion Network Ltd. through embedded deployments.

Direct integration with retail media networks is a key focus, highlighted by the strategic partnership with Albertsons Media Collective, announced in September 2025. This channel saw revenue growth of 40% year-over-year in Q3 2025, reaching $29.4 million. The partnership gives advertisers access to Albertsons Companies' purchase-based audience data, including over 100 million addressable digital IDs and 37 million weekly shoppers, activating this data across Perion Network Ltd.'s display and DOOH formats.

The DOOH player is a direct channel for media owners and digital signage partners. The DOOH segment revenue grew 26% year-over-year in Q3 2025 to reach $24.1 million, making up 22% of total revenue. This growth is happening alongside the expansion into new markets, such as Korea through partnerships with KT Corporation and NHN AD, aiming to unlock access to the APAC DOOH market.

You should track the continued adoption of the Perion One platform across these channels, as the company is focused on scaling this unified, AI-powered system in 2026.

• Advertising Solutions revenue accounted for 78% of Q2 2025 total revenue of $103.0 million.
• CTV revenue saw a 75% year-over-year increase in Q3 2025, reaching $16.6 million.
• The company expanded its share repurchase program by an additional $75 million in Q3 2025, bringing the total authorization to $200 million.

Finance: draft 13-week cash view by Friday.

Perion Network Ltd. (PERI) - Canvas Business Model: Customer Segments

You're looking at who Perion Network Ltd. is selling to right now, late in 2025, based on where their growth is coming from. The company is clearly shifting focus to high-growth areas, which tells you exactly who their most valuable customers are becoming.

Global brands and large advertisers seeking omnichannel performance.

These clients are driving the growth in Perion Network Ltd.'s strategic advertising solutions, demanding unified performance across channels. The company's focus on AI-driven solutions, partly through the acquisition of Greenbids for $27.5 million cash plus earn-outs, is aimed directly at securing budgets from these top-tier brands.

The success in this segment is reflected in the overall growth of the core advertising business:

• Connected TV (CTV) revenue surged 75% year-over-year in Q3 2025.
• Digital Out of Home (DOOH) revenue increased 26% year-over-year in Q3 2025.
• The company is reiterating full-year 2025 revenue guidance between $430 million and $450 million.

Advertising agencies managing campaigns across digital channels.

Advertising agencies are key intermediaries utilizing the unified Perion One platform to simplify complex omnichannel campaigns for their own clients. The platform integrates CTV, DOOH, retail media, and social advertising, which helps agencies manage budgets more efficiently across disparate media.

The overall performance of the Advertising Solutions segment, which agencies utilize, shows a clear trend:

The company believes its revenue contribution excluding traffic acquisition costs (ex-TAC) better represents top-line performance, which grew 7% year-over-year to $51 million in Q3 2025.

Retailers and retail media networks (e.g., Albertsons) for on-site and off-site ads.

This segment is a major focus, with the company highlighting a strategic partnership with Albertsons Media Collective, one of the largest grocery retailers in the U.S. This move positions Perion Network Ltd. to capture a share of the U.S. retail media market, estimated to be a $60 billion opportunity.

The financial results confirm the rapid adoption in this vertical:

• Retail Media revenue climbed 40% year-over-year in Q3 2025.
• In Q1 2025, Retail Media revenue was $19.8 million, representing 22% of total revenue, up from 9% the prior year.
• In Q2 2025, Retail Media revenue increased 27% year-over-year to $22.3 million.

Premium publishers and media owners monetizing their digital inventory.

Premium publishers are customers who use Perion Network Ltd.'s technology to monetize their digital ad inventory, particularly across the high-growth CTV and DOOH channels. The growth in these areas suggests strong uptake from media owners looking to maximize yield.

The company's success in monetizing inventory is evident in the growth rates of the channels that publishers control:

• CTV revenue growth was 31% year-over-year in Q1 2025.
• DOOH revenue growth was 80% year-over-year in Q1 2025.

The company is also expanding its publisher reach through new international partnerships, such as those with KT Corporation and NHN AD in Korea, targeting the APAC DOOH market.

Perion Network Ltd. (PERI) - Canvas Business Model: Cost Structure

You're looking at the core expenditures that fuel Perion Network Ltd.'s operations as they push the Perion One platform. The cost structure is dominated by direct media spend, but significant capital is also being allocated to future-proofing the technology stack.

High Traffic Acquisition Costs (TAC), a major component of revenue ex-TAC.

Traffic Acquisition Costs and Media Buy, or TAC, remains the single largest variable cost. For the third quarter of 2025, TAC amounted to $59.5 million, which represented 54% of the total revenue for that period. This is a slight improvement in margin compared to Q1 2025, where TAC was 56% of revenue, or $49.7 million. The goal, as management noted, is to continue optimizing this mix, especially as growth shifts toward higher-margin channels like CTV and Retail Media.

Significant investment in R&D for AI and platform development.

The transformation under the Perion One strategy requires heavy, ongoing investment in the technology backbone. Management has stated plans to increase resources around Research and Development to expedite the roadmap for AI-enabled solutions like Outmax and SODA. This focus on proprietary technology is a necessary, fixed-cost element of the strategy to drive future high-margin, recurring revenue streams.

Sales and marketing expenses to drive adoption of high-growth channels.

To capture the growth in Connected TV (CTV) and Digital Out of Home (DOOH), Perion Network Ltd. is committed to increasing investment in its sales and marketing functions globally. This expense category is crucial for onboarding new partners, such as the strategic retail media partnership with Albertsons Media Collective, and expanding reach in markets like China.

Restructuring costs of $1.3 million in Q1 2025 for the Perion One unification.

The strategic move to unify business units under the Perion One brand was not without one-time costs. Specifically, the first quarter of 2025 GAAP net loss included $1.3 million in restructuring costs directly tied to this unification effort. This is a non-recurring item that impacted the initial profitability metrics for the year.

General and administrative costs for global operations.

General and Administrative (G&A) costs cover the overhead for Perion Network Ltd.'s global operations, including executive leadership, finance, and compliance functions necessary to support the expanding international footprint. While the company is focused on optimizing its cost structure overall, these costs are essential for maintaining the infrastructure supporting the growth engines.

Here's a quick look at the scale of the major cost components based on the Trailing Twelve Months (TTM) data ending June 30, 2025, which gives you a sense of the relative size of these expenditures:

The table above shows the magnitude of the direct media spend (TAC) compared to the investments in the operational and development teams. The company is defintely prioritizing platform development, as seen by the R&D spend.

You should track the quarterly trend for Sales and Marketing and R&D as the year progresses to see if the stated intent to increase investment translates into higher reported figures in Q4 2025.

Perion Network Ltd. (PERI) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers driving Perion Network Ltd.'s revenue engine as of late 2025. The core of the business remains firmly rooted in performance advertising, but the mix is shifting rapidly toward higher-growth, data-driven channels.

Advertising Solutions revenue was the dominant stream in the third quarter of 2025, accounting for 79% of total revenue for that period. This segment, which includes CTV, DOOH, and Web, saw an 8% year-over-year increase in Q3 2025, reaching $87.7 million in that quarter.

The real story in Q3 2025 was the acceleration in specific growth engines within that segment. Connected TV (CTV) advertising was a standout performer, growing 75% year-over-year in Q3 2025, contributing $16.6 million in revenue. Also showing significant momentum was the Retail Media vertical, which grew 40% year-over-year in Q3 2025, bringing in $29.4 million. To be fair, the traditional Web channel within Advertising Solutions saw an 11% decline in Q3 2025.

The other major component is Search Advertising revenue. While this stream is expected to contribute approximately 20% of full-year 2025 revenue, the latest reported figure for Q3 2025 showed it accounted for 21% of that quarter's revenue, amounting to $22.8 million, which was a 9% increase year-over-year. The company is clearly managing a transition away from heavy reliance on any single channel, which is smart given the volatility in search partnerships.

Looking at the full picture, Perion Network Ltd. is reiterating its full-year 2025 revenue guidance to be between $430 million and $450 million. Here's the quick math on the Q3 2025 revenue composition:

The growth story is clearly concentrated in the newer, high-potential areas. You can see the focus on these channels when you break down the Advertising Solutions revenue further:

• Connected TV (CTV) revenue: $16.6 million, up 75% YoY.
• Retail Media vertical revenue: $29.4 million, up 40% YoY.
• Digital Out of Home (DOOH) revenue: $24.1 million, up 26% YoY.
• Web revenue: Declined 11% YoY.

This mix shows a deliberate pivot; the company is successfully scaling the newer platforms while absorbing the expected headwinds in the legacy Web channel. Finance: draft 13-week cash view by Friday.