Q3 2025 Perion Network Ltd Earnings Call

Everybody and welcome to the Peregrine network third quarter 'twenty 25 earnings Conference call. Today's call is being recorded and an archive of the webcast will be posted on the company website.

The press release detailing the financial results is available on the company's website at Www <unk> com before we begin I'd like to read the following safe Harbor statement.

Today's discussion includes forward looking statements. These statements reflect the company's current views with respect to future events.

These forward looking statements involve known and unknown risks uncertainties and other factors, including those discussed under the heading risk factors and elsewhere in the company's annual report on form F. 'twenty.

Actual results performance or achievements to be material materially different and any future results performance or achievements anticipated or implied by these forward looking statements.

The company does not undertake to update any forward looking statements to reflect future events or circumstances as in prior quarters. The results reported today will be analyzed both on a GAAP and a non-GAAP basis.

Mentoring beta will be referring to adjusted EBITDA.

We have provided a detailed reconciliation of non-GAAP measures to their comparable GAAP measures on our earnings release, which is available on our website and have also been filed on form 6K.

Hosting the call today I'll tell Jacobson parents, Chief Executive Officer, and allowed Sebree parents, Chief Financial Officer, I would now like to turn the call over the top Jacobson. Please go ahead.

Yeah.

Good morning, and thank you for joining us at the Penguins, earning call for the third quarter of 2025. This quarter, we continued to strengthen our foundation and execute our long term strategy.

Our focus remains clear and disciplined.

And the results were sharing today reflect a solid progress across all parts of our business. We are building for sustainable growth for this year and for years ahead. This quarter, we demonstrated progress across all aspects of our business, we delivered strong financial results announced new products.

Initiated new partnerships to support our global expansion.

In one industry awards.

Our key growth engine CTV digital out of home and retail media continued to expand and present healthy growth.

We're also expanding our share repurchase program to $200 million, adding $75 million to the current program. This is pending regulatory approvals.

This decision was made after a deep analysis of our future capital needs that will support our growth and it reflects our confidence in periods long term value for investors and our ability to continue to generate the cash.

On the innovation front, we introduced three strategic products, although the Purion one vision.

<unk>, which unifies all our performance driven AI algorithms for media outcomes across CTV, social and open web.

This includes the green beads algorithms and our new performance CTV capabilities.

By unifying all our AI algorithms for media outcomes under one product, we enable our global sales team to accelerate growth with a simple yet powerful holistic solution.

Soda our AI for publisher is our new next generation supply path optimization for smarter monetization that strengthen our supply side technology.

And our new digital out of home player, which completes the full stack marketing operation system for digital out of home and retail media.

It is designed to drive tremendous value for these travel partners in our high margin and recurring revenue for Purion.

Speaker #1: 2025 earnings conference . call conference call is Today's being recorded and an archive of the webcast will be posted on the company website .

We also advanced strategic partnerships across retail media and digital out of home extending our reach throughout the U S. Europe and Asia, we continue to gain recognition in our industry with multiple awards.

Operator: Hello everybody, and welcome to the Perion Network Q3 2025 earnings conference call. Today's conference call is being recorded, and an archive of the webcast will be posted on the company website. The press release detailing the financial results is available on the company's website at www.perion.com. Before we begin, I'd like to read the following Safe Harbor statement. Today's discussion includes forward-looking statements. These statements reflect the company's current views with respect to future events. These forward-looking statements involve known and unknown risks, uncertainties, and other factors, including those discussed under the heading risk factors and elsewhere in the company's annual reports on Form F-20, that may cause actual results, performance, or achievements to be materially different, and any future results, performance, or achievements anticipated or implied by these forward-looking statements. The company does not undertake to update any forward-looking statements to reflect future events or circumstances.

Speaker #1: The press release detailing the financial results is available on the company's website at Before we begin , I'd like to read the safe following Harbor statement .

Further validating our technology leadership and impact in performance driven advertising.

Speaker #1: Today's discussion includes forward . looking statements . These statements reflect the company's current views with respect to future . These forward events looking statements involve known and unknown risks , uncertainties and other factors , including those discussed under the heading Risk Factors and elsewhere in the annual reports on company's form F20 .

These achievements highlight how paragon executed by focusing on today, while building a strong foundation for sustainable profitable growth in the future. All this progress aligns with one clear direction.

Our vision of becoming the platform of choice for modern Cmo's and their teams.

Speaker #1: That may cause actual results , performance or achievements to be materially , materially different and any future results , performance or achievements anticipated or implied by these forward looking statements .

While CLO rely on Salesforce and CTO is on DRAM Cmos T lack a unified platform that connects media data and outcomes.

Speaker #1: The company does not undertake to update any forward looking statements to reflect future events or circumstances . As in quarters , the results reported today will be analyzed both on a GAAP and a non-GAAP basis .

Our Purion one strategy is the answer for this gap our multichannel AI powered platform that brings together creative data and media to deliver measurable business outcomes are marketing operating system for more than market. This.

Operator: As in prior quarters, the results reported today will be analyzed both on a GAAP and a non-GAAP basis. While mentioning EBITDA, we'll be referring to adjusted EBITDA. We have provided a detailed reconciliation of the non-GAAP measures to their comparable GAAP measures on our earnings release, which is available on our website and has also been filed on Form 6K. Hosting the call today are Tal Jacobson, Perion's Chief Executive Officer, and Elad Tzubery, Perion's Chief Financial Officer. I would now like to turn the call over to Tal Jacobson. Please go ahead.

Speaker #1: mentoring While EBITDA will be referring to adjusted EBITDA . We provided a have reconciliation detailed of non-GAAP measures prior to their on our earnings release , which is available on our website and has been filed on 8-K .

Every product we develop in every partnership reform brings us closer to making parian won the central system for marketing performance.

As we continue our journey towards this vision, we wanted to better understand how do you see them most view the challenges they face today.

Speaker #1: Hosting the form today are Tal Jacobson call Chief Executive Officer and Elad Tzubery Financial officer . I would now like to turn the chief over to Tal Jacobson .

So in partnership with Advertiser perceptions, we surveyed gmos across North America, and the findings were revealing research results prove that there is a strong need to solve the fragmentation between marketing and finance highlighting the growing needs for the unified solution billion won.

Speaker #1: ahead call Please go also

Speaker #2: Good morning , and

Speaker #2: for joining us at the thank you earnings call for the third . of 2025 . This quarter , we continue to strengthen our foundation and long term strategy .

Tal Jacobson: Good morning, and thank you for joining us at Perion's earnings call for Q3 2025. This quarter, we continue to strengthen our foundation and execute our long-term strategy. Our focus remains clear and disciplined, and the results we're sharing today reflect solid progress across all parts of our business. We're building for sustainable growth for this year and for years ahead. This quarter, we demonstrated progress across all aspects of our business. We delivered strong financial results, announced new products, initiated new partnerships to support our global expansion, and won industry awards. Our key growth engines, CTV, digital out-of-home, and retail media, continue to expand and present healthy growth. We're also expanding our share repurchase program to $200 million, adding $75 million to the current program. This is pending regulatory approvals.

Speaker #2: Our focus clear and remains disciplined , and the results we're sharing today reflects a solid execute our progress across all parts of our business .

Revise this validates why our emission matters, helping marketers connect creativity and data to measurable outcomes and bridging the divide between CMO and CFO.

Speaker #2: We're for building sustainable growth for this year and for years ahead . This quarter , we demonstrated progress across all aspects of our business .

Welcome to view the food Research report on Purion Dotcom website, one of our new strategic partnerships is with Albertsons media collected a leading retail media network in the U S.

Speaker #2: We delivered financial strong results , announced new products , initiated partnerships to support our global expansion , and won industry awards new key growth engine , CTV digital , Out of home and retail media to .

According to E marketer retail media in the U S is a $60 billion opportunity growing at double digit annual rates. This partnership gives stereo and a strong foothold with one of the largest grocery retailers in the U S.

Speaker #2: growth . We are also expanding our share repurchase program $200 million , to adding $75 million to the program . This is pending regulatory approvals .

By combining Albertsons first party data with our retail media technology, we deliver commerce connect measurable campaigns that aligns perfectly with where the market is moving.

Speaker #2: decision was made after continued of our analysis future capital needs that current will growth and support our it reflects our confidence in long term value for investors and our ability to continue to generate Our This cash on the innovation front , we introduced products under the three strategic One Vision Out Max , which unifies all our performance driven algorithms for media AI outcomes across CTV social and Open Web .

Tal Jacobson: This decision was made after a deep analysis of our future capital needs that will support our growth, and it reflects our confidence in Perion's long-term value for investors and our ability to continue to generate cash. On the innovation front, we introduced three strategic products under the Perion One Vision: Outmax, which unifies all our performance-driven AI algorithms for media outcomes across CTV, social, and open web. This includes the GreenBeat algorithms, and our new performance CTV capabilities. By unifying all our AI algorithms for media outcomes under one product, we enable our global sales team to accelerate growth with a simple, yet powerful, holistic solution. Soda, our AI for publisher, is our new next-generation supply path optimization for smarter monetization that strengthens our supply-side technology. Our new Digital Out-of-Home Player completes the full-stack marketing operation system for digital out-of-home and retail media.

A great example is primo water a brand that wanted to drive product sales among the albertsons shoppers want to go there.

The campaign delivered over $5 5 million impressions and achieved a five 5% sales lift.

This demonstrates how purion technology directly connects Ed exposure to measurable business outcomes that.

Take a look.

Speaker #2: This includes the green bits , algorithms and our CTV performance . capabilities new . By unifying all our AI algorithms media outcomes under one product , enable our global sales team to accelerate growth with a simple yet powerful holistic solution .

Yeah.

Yes.

Okay.

Campaigns like Primo water demonstrates how our creative data and technology excellence translate into real business performance Outmatch takes that principal further unit.

Speaker #2: Soda we , our for publisher AI is our new next generation supply path optimization smarter monetization that strengthen our supply side technology and our new out-of-home digital completes the full stack marketing operation system for digital , out-of-home and retail media .

All our outcome driven AI algorithms under one solution a solution designed to maximize outcomes by connecting creative intelligence with real time optimization Outback is built to power resorts across every media environment. It represents the next step evolution transformed.

Speaker #2: It is designed to player , which drive tremendous value for our digital partners in a high margin and recurring revenue . For Pelion , we advanced strategic partnerships retail , media and across digital out-of-home , extending reach throughout our US , Europe and We continue to gain recognition in our industry with multiple awards .

Tal Jacobson: It is designed to drive tremendous value for our digital out-of-home partners, and a high margin and recurring revenue for Perion. We also advance strategic partnerships across retail media and digital out-of-home, extending our reach throughout the US, Europe, and Asia. We continue to gain recognition in our industry with multiple awards, further validating our technology leadership and impact in performance-driven advertising. These achievements highlight how Perion executes by focusing on today, while building a strong foundation for sustainable, profitable growth in the future. All this progress aligns with one clear direction: our vision of becoming the platform of choice for modern CMOs and their teams. While CROs rely on Salesforce, and CTOs on Jira, CMOs still lack a unified platform that connects media, data, and outcomes.

<unk> AI, driven algorithm and insights into measurable scalable growth.

<unk> unifies optimization across CTV, social and open web.

It also includes the green, but it's technology that we acquired earlier this year.

Speaker #2: Further also , leadership and impact in performance driven advertising . These achievements highlight how Pelion , executed by focusing on today while building a strong foundation for sustainable , profitable .

What sets out Max apart from all other solutions.

<unk> continuously learns where the performance truly happens.

The algorithm analyzes multiple signals such as device time and context to identify the most effective audience and inventory combination in real time. He then reallocate budgets towards those high performing segments driving stronger L y and more efficient media investment.

Speaker #2: All these future progress aligns with one clear . Our vision direction of becoming the platform of for choice modern CMOs and their teams CIOs .

Speaker #2: On Salesforce and while CTOs on Jira, CMOs still operate on a unified platform that connects media, data, and outcomes. Our strategy is to answer the lack of a solution for this gap.

By connecting insights across CTV, social and open web outmatched creates one continuous optimization improving results for advertisers, while enhancing pay on scalability and growth potential.

Speaker #2: A , AI powered platform that brings together data creative and media to measurable business deliver outcomes . A marketing operating system for modern marketers .

Tal Jacobson: Our Perion One strategy is the answer for this gap: a multi-channel AI-powered platform that brings together creative, data, and media to deliver measurable business outcomes, a marketing operating system for modern marketers. Every product we develop and every partnership we form brings us closer to making Perion One the central system for marketing performance. As we continue our journey towards this vision, we wanted to better understand how CMOs view the challenges they face today. In partnership with Advertiser Perceptions, we surveyed CMOs across North America, and the findings were revealing. Research results prove that there is a strong need to solve the fragmentation between marketing and finance, highlighting the growing needs for the unified solution Perion One provides. This validates why our mission matters, helping marketers connect creativity and data to measurable outcomes, and bridging the divide between CMOs and CFOs.

We've already seen strong validation through recent case studies.

<unk> optimized Youtube campaigns for Ford using carbon awards bidding improving view ability by 12 points lowering cpm's by 22% and cutting carbon intensity by 33% demonstrating how the outmatched algorithm delivers better results through advanced AI.

Speaker #2: Every product we multi-channel develop and every partnership we form brings us closer to making Pelion one the central system for marketing performance continue our journey towards this vision , we wanted to better understand how do CMOs view the challenges they face today ?

Speaker #2: So in partnership advertiser . with perceptions , we surveyed CMOs As we North across and America defining were revealing research results proved there is a strong need solve the to between marketing and finance fragmentation , highlighting the growing needs for unified that solution .

We're continuing to strengthen our supply side technology with the launch of soda, our AI monetization engine for publishers soda combines billions multi format bidder technology with an AI real time algorithm that optimizes every impression path.

Speaker #2: the Pelion one provides this why our mission matters , helping validates connect creativity and data to measurable outcomes , and bridging the divide between CFOs .

This drives higher yield reduce ways and provides better AD delivery, both for the publisher and for advertisers.

What's most exciting is that soda makes billion an embedded technology partner within the publisher stack I'm confident that this will expand our recurring high margin revenue base.

Speaker #2: You are welcome to view the research full on Pain.com website . One of our new strategic partnerships is with Albertson's Media Collective , a retail media network in the US .

Tal Jacobson: You are welcome to view the full research report on the perion.com website. One of our new strategic partnerships is with Albertsons Media Collective, a leading retail media network in the US. According to eMarketer, retail media in the US is a $60 billion opportunity, growing at double-digit annual rates. This partnership gives Perion a strong foothold with one of the largest grocery retailers in the US. By combining Albertsons' first-party data with our retail media technology, we deliver Commerce-Connect, measurable campaigns that align perfectly with where the market is moving. A great example is Splimo Water, a brand that wanted to drive product sales among Albertsons' shoppers on the go. The campaign delivered over 5.5 million impressions and achieved a 5.5% sales lift. This demonstrates how Perion's technology directly connects ad exposure to measurable business outcomes. Let's take a look.

It is a clear example of how we're executing and translating innovation directly into growth and operating leverage.

Speaker #2: According to eMarketer , retail media in the US is a CMOs and , growing at $60 billion opportunity double digit annual rates . This partnership gives Pelion a foothold with one of the largest grocery retailers in the US strong .

Another major milestone is the launch of the Purion digital out of home player.

This completes the full stack marketing operating system for digital out of home and retail media.

The digital out of home player extends our full stack supply site technology, given media owners and digital signage partners a C.

Speaker #2: By combining Albertson's first party data with our retail media technology , we deliver commerce Connect measurable campaigns that align perfectly with where the market is moving .

<unk> platform to manage both direct and programmatic campaigns. It replaces fragmented legacy systems with a dynamic hardware agnostic solution, improving efficiency transparency and control across global signage networks.

Speaker #2: A great example is Primo Water , a brand that wanted to drive product sales among Albertson's the go . The campaign shoppers on delivered over 5.5 million impressions and achieved a 5.5% sales lift .

The new Purion digital out of home player is designed to drive tremendous value for digital out of home partners.

In our high margin recurring revenue for Purion.

Speaker #2: demonstrates This how prions directly connects AD exposure to measurable outcomes . business Let's take a look .

This new product broadens, our total addressable market by integrating with the digital out of home media owners and retailers.

Speaker #3: At .

He has the potential to generate high margin and recurring software income.

Through embedded deployments over time.

It also strengthen our role as a technology partner of choice within the digital out of home and retail media ecosystem. Another.

Speaker #2: Campaigns Primo Water demonstrate how our creative like data technology excellence translate into real business and . Outmatched performance takes that principle further all our , unifying outcome driven AI algorithms under solution , a one solution designed to maximize outcomes by connecting creative intelligence real time with optimization out built is power to across every results media environment .

Another important step in connecting the supply side had a failure on one platform.

Tal Jacobson: Campaigns like Splimo Water demonstrate how our creative data and technology excellence translate into real business performance. Outmax takes that principle further, unifying all our outcome-driven AI algorithms under one solution, a solution designed to maximize outcomes by connecting creative intelligence with real-time optimization. Outmax is built to power results across every media environment. It represents the next step in Perion's evolution, transforming AI-driven algorithms and insights into measurable, scalable growth. Outmax unifies optimization across CTV, social, and open web. It also includes the GreenBeat technology that we acquired earlier this year. What sets Outmax apart from all other solutions? Outmax continuously learns where the performance truly happens. The algorithm analyzes multiple signals, such as device, time, and context, to identify the most effective audience and inventory combination in real time. It then reallocates budgets toward those high-performing segments, driving stronger ROI and more efficient media investment.

As we look ahead. It is important to remember that everything we're delivering today is part of a broader long term transformation.

After lay the foundation in 2024, we've spent this year activating the Purion, one vision unifying our technologies and brands under one platform.

Streamlining our operations for improved efficiency and scalable growth.

Speaker #2: It represents the next step in evolution , driven AI transforming algorithms and into insights scalable growth . Outmatch unifies across CTV optimization , social and open Web .

The next phase beginning in 2026 is about scaling the platform, we're expanding purion one across more channels deepening adoption with global brands and increasing recurring high margin revenue streams powered by AI automation and self service capabilities.

Speaker #2: also It includes the green bits technology that we acquired earlier this year . What sets out Max from all other apart measurable , solutions out Max continuously learns where the performance truly happens .

Each step brings us closer to our vision.

Single intelligent platform that delivers better performance faster decisions and long term value for marketers and shareholders.

Speaker #2: The analyzes algorithm signals , such as device time and context to the identify most effective audience in inventory combination time . It then reallocates budgets toward those high performing segments driving and more efficient media ROI By investment .

To conclude our message to investors is clear.

Varian is executing on its strategy and building for long term value. We operate in high growth areas supported by proven track record of profitability and positive cash flow, we have a global team with deep high growth experience focus on building technology and accelerating <unk>.

Speaker #2: connecting insights across social CTV , and open web , out Max creates one continuous optimization loop , improving for advertisers while enhancing scalability and results potential .

Tal Jacobson: By connecting insights across CTV, social, and open web, Outmax creates one continuous optimization loop, improving results for advertisers while enhancing Perion's scalability and growth potential. We've already seen strong validation through recent case studies. Outmax optimized YouTube campaigns for Ford using carbon-aware bidding, improving viewability by 12 points, lowering CPMs by 22%, and cutting carbon intensity by 33%, demonstrating how the Outmax algorithm delivers better results through advanced AI. We're continuing to strengthen our supply-side technology with the launch of Soda, our AI monetization engine for publishers. Soda combines Perion's multi-format bidder technology with an AI real-time algorithm that optimizes every impression path. This drives higher yield, reduced waste, and provides better ad delivery both for the publisher and for advertisers. What's most exciting is that Soda makes Perion an embedded technology partner within the publisher stack. I'm confident that this will expand our recurring, high-margin revenue base.

Global go to market strategy for the AI first ore in advertising with that I'll now turn it over to allowed to Barry Our CFO, who will walk you through the financial results for the third quarter.

Speaker #2: We've already seen strong validation through recent case studies out max optimized YouTube campaigns for Ford using aware bidding , improving by carbon lowering CPMs viewability by 22% , and cutting 12 points , carbon intensity by 33% , demonstrating the out max algorithm delivers better results through advanced .

Thank you Ted.

And thank you all for joining us on the call today.

Our third quarter results Mark another strong step forward in Paragon strategic transformation.

We are now seeing the tangible impact of the structural operational and technological foundation, we've built over the past 20 months.

During this quarter, we achieved our first year over year revenue and contribution ex Tac growth since the first quarter of 2024. This is a milestone that reflects our disciplined execution and it's the ricky's off of our enhanced organizational structure. Our continued adoption of unified Purion one platform.

And a strong go to market strategy.

Fortunately, our adjusted EBITDA increased 63% year over year to $12.1 million.

This reflects the early results of our efficiency initiatives that are expected to fully materialize in 2026, our core growth engines CTV retail media and digital out of home are also among the strongest growing channels and market verticals in Arctic.

Tal Jacobson: It's a clear example of how we're executing and translating innovation directly into growth and operating leverage. Another major milestone is the launch of the Perion Digital Out-of-Home Player. This completes the full-stack marketing operating system for digital out-of-home and retail media. The Digital Out-of-Home Player extends our full-stack supply-side technology, giving media owners and digital signage partners a single platform to manage both direct and programmatic campaigns. It replaces fragmented legacy systems with a dynamic, hardware-agnostic solution, improving efficiency, transparency, and control across global signage networks. The new Perion Digital Out-of-Home Player is designed to drive tremendous value for our digital out-of-home partners, and a high margin and recurring revenue for Perion. This new product broadens our total addressable market by integrating with the digital out-of-home media owners and retailers. It has the potential to generate high margin and recurring software income through embedded deployments over time.

Of them continue their momentum and delivered strong performances with a year over year growth of 75%, 40% and 26% respectively.

We also continued to execute our capital allocation plan with discipline during.

During the quarter, we repurchased 800000 shares for $7 $5 million due to our confidence in <unk> long term growth and the strength of our cash generation. We have proved in principal and expansion of our share repurchase authorization by an additional $75 million to a total amount of.

$200 million.

It reflects the balance between returning capital to shareholders and continued investment in innovation and in strategic opportunities to strengthen our core businesses and drive sustainable growth.

Looking ahead, we are firmly establishing the infrastructure for sustained growth in 2026 and beyond.

Tal Jacobson: It also strengthens our role as a technology partner of choice within the digital out-of-home and retail media ecosystem, another important step in connecting the supply-side under the Perion One platform. As we look ahead, it's important to remember that everything we're delivering today is part of a broader, long-term transformation. After laying the foundation in 2024, we've spent this year activating the Perion One vision, unifying our technologies and brands under one platform, and streamlining our operations for improved efficiency and scalable growth. The next phase, beginning in 2026, is about scaling the platform. We're expanding Perion One across more channels, deepening adoption with global brands, and increasing recurring, high-margin revenue streams powered by AI, automation, and self-service capabilities. Each step brings us closer to our vision: a single intelligent platform that delivers better performance, faster decisions, and long-term value for marketers and shareholders.

This is supported by operational efficiency scalable technology and disciplined capital allocation.

Moving on to our key financial metrics for the third quarter.

Revenue accounted for $110 $5 million representing.

<unk>, 8% year over year growth contribution ex Tac came in at $51 million up 7% year over year, maintaining a healthy 46% margin.

Notably this marks the first time since the first quarter of 2024 that we've achieved year over year growth in both revenue and contribution ex Tac.

This is a testament to <unk> growing ability to deliver measurable outcomes for our customers as well as the strong performance of our core growth engines, and our disciplined operational execution.

We believe our revenue contribution excluding tuck represents a more accurate measure of our topline performance than the revenue alone adjust.

Adjusted EBITDA. This quarter was $12 1 million. This represents a 63% year over year increase our ex Tac margin was 24% signifying an encouraging margin expansion non-GAAP net income was $12 $5 million, resulting in a non-GAAP diluted earnings per share.

Tal Jacobson: To conclude, our message to investors is clear: Perion is executing on its strategy and building for long-term value. We operate in high-growth areas, supported by a proven track record of profitability and positive cash flow. We have a global team with deep high-growth experience, focused on building technology and accelerating our global go-to-market strategy for the AI-first era in advertising. With that, I'll now turn it over to Elad Tzubery, our CFO, who will walk you through the financial results for the third quarter. Thank you, Tal, and thank you all for joining us on the call today. Our third-quarter results mark another strong step forward in Perion's strategic transformation. We are now seeing the tangible impact of the structural, operational, and technological foundation we've built over the past 20 months. During this quarter, we achieved our first year-over-year revenue and contribution ex-tax growth since the first quarter of 2024.

Share of 28 cents.

Cash flow from operations was $5 $9 million, bringing our year to date total to $21 million.

This further demonstrates the strength of our underlying business model and our consistent ability to generate cash.

Our growth engines continue to be the cornerstone of Purion <unk> future growth.

Both CTV and digital out of home channels are growing at a fast rate. They are continuously outpacing the overall market growth on an annual basis is projected by E marketer.

This position Purion as a high growth player in two of the most dynamic segments in digital advertising CTV continues its strong growth trajectory with revenue up 75% year over year, driven by sustained demand for our advanced formats.

Looking ahead, we expect CTV revenue to continue outpacing the market supported by the ongoing shift from linear to connected TV and growing customer adoption of our performance CTV solutions.

Tal Jacobson: This is a milestone that reflects our disciplined execution, and it's a direct result of our enhanced organizational structure, our continued adoption of the unified Perion One platform, and a strong go-to-market strategy. Importantly, our adjusted EBITDA increased 63% year-over-year to $12.1 million. This reflects the early results of our efficiency initiatives that are expected to fully materialize in 2026. Our core growth engines, CTV, retail media, and digital out-of-home, are also among the strongest growing channels and market verticals in ATEC. All of them continued their momentum and delivered strong performances with a year-over-year growth of 75%, 40%, and 26%, respectively. We also continue to execute our capital allocation plan with discipline. During the quarter, we repurchased 800,000 shares for $7.5 million.

Our digital out of home channel remains a highly strategic entry point into new markets. We continue to leverage its differentiated capabilities to position <unk> for sustainable profitable growth through cross selling and product synergies. We recently launched our digital out of home player and advanced solution that completes.

During this quarter, we achieved our first year-over-year revenue and contribution extra growth. Since the first quarter of 2024, this is a milestone that reflects our disciplined execution and it's a direct result of our enhanced organizational structure, our continued adoption of unified Parian, 1 platform and a strong go-to Market strategy importantly, our adjusted iida increased 63% year-over-year to 12.1 million

Our full stack marketing operating system for digital out of home and retail media the digital out of home player strengthens our customer stickiness and recurring revenue streams, making our business model more predictable and scalable across this fast growing channel.

This reflects the early results of our efficiency initiatives that are expected to fully materialize in 2026. Our core growth engines. CTV, retail media and digital out of home are also among the strongest growing channels and Market verticals in attic.

Our retail media market vertical continued to demonstrate strong momentum with revenue up 40% year over year retail media remains one of the fastest growing vertical in advertising projected to expand at a 14, 7% CAGR through 2029, as new and existing customers.

All of them, continue their momentum and delivered strong performance with a year-over-year growth of 75%, 40% and 26% respectively.

Tal Jacobson: Due to our confidence in Perion's long-term growth and the strength of our cash generation, we approved in principle an expansion of our share repurchase authorization by an additional $75 million to a total amount of $200 million. It reflects the balance between returning capital to shareholders, and continued investment in innovation and in strategic opportunities to strengthen our core businesses and drive sustainable growth. Looking ahead, we are firmly establishing the infrastructure for sustained growth in 2026 and beyond. This is supported by operational efficiency, scalable technology, and disciplined capital allocation. Moving on to our key financial metrics for the third quarter, revenue accounted for $110.5 million, representing 8% year-over-year growth. Contribution ex-tax came in at $51 million, up 7% year-over-year, maintaining a healthy 46% margin. Notably, this marks the first time since the first quarter of 2024 that we've achieved year-over-year growth in both revenue and contribution ex-tax.

To adopt our retail focused solutions, we are well positioned to capture market share and outpace market growth.

Our third quarter channel mix demonstrates the growing portion of CTV and digital out of home.

During the quarter, we repurchased 800,000 shares for 7.5 million due to our confidence in peron's long-term growth and the strength of our cash generation, we approved in principle and expansion of our share repurchase authorization by an additional 75 million to a total amount of dollars.

These two channels combined represent 37% of revenue versus 28% in the same quarter last year.

Digital out of home increased by 26% year over year, reaching 22% of revenue up from 19% last year.

It reflects the balance between returning Capital to shareholders and continued investment in Innovation, and in strategic opportunities to strengthen our core businesses and drive sustainable growth.

This reflects the continued global momentum with new partnerships across APAC, the U S and EMEA.

Looking ahead, we are firmly establishing the infrastructure for sustained growth in 2026 and beyond.

CTV increased by 75% year over year, representing 15% of revenue compared to 9% last year.

This is supported by operational, efficiency, scalable technology, and disciplined Capital allocation.

Moving on to our key financial metrics for the third quarter.

This significant growth is a testament of increasing customer adoption of our full funnel solution offering.

Web revenue declined by 11% year over year due to a continued trend of lower advertiser appetite for standard display and video formats.

Is important to note that the comparison to the third quarter of 'twenty 'twenty four is skewed due to the discontinuation of lower margin activities in late 'twenty 'twenty four as previously announced this year.

Notably this marks the first time since the first quarter of 2024 that we've achieved year-over-year growth, in both revenue and contribution x stock.

Search increased by 9% year over year, representing 21% of revenue and continues the search business stabilization while in this quarter, we enjoyed strong growth across each of our core growth engines.

Tal Jacobson: This is a testament to Perion's growing ability to deliver measurable outcomes for our customers, as well as the strong performance of our core growth engines, and our disciplined operational execution. We believe our revenue contribution, excluding tax, represents a more accurate measure of our top-line performance than the revenue alone. Adjusted EBITDA this quarter was $12.1 million. This represents a 63% year-over-year increase. Our ex-tax margin was 24%, signifying an encouraging margin expansion. Non-GAAP net income was $12.5 million, resulting in a non-GAAP diluted earning per share of $0.28. Cash flow from operations was $5.9 million, bringing our year-to-date total to $20.1 million. This further demonstrates the strength of our underlying business model, and our consistent ability to generate cash. Our growth engines continue to be the cornerstone of Perion's future growth. Both CTV and digital out-of-home channels are growing at a fast rate.

This is a testament to peron's Growing ability to deliver, measurable outcomes for our customers, as well as the strong performance of our core growth engines and our disciplined operational execution.

<unk> platform is built to be channel agnostic this structure enable us to seamlessly adapt as advertising expense naturally shift across channels.

We believe our Revenue contribution. Excluding tax represents a more accurate measure of our Topline performance than the revenue alone.

This flexibility allows us to capture growth wherever demand emerges and helps to increase advertising spend and retention.

Contribution ex Tac in the third quarter grew by 7% year over year to $51 million, representing a stable margin of 46% as we move forward with our unified platform, we expect to grow our revenue contribution excluding tuck at a faster pace compared to total revenue.

Adjusted EBITDA for this quarter was $12.1 million, representing a 63% year-over-year increase. Our XStack margin was 24%, signifying encouraging margin expansion (non-GAAP). Net income was $12.5 million, resulting in a non-GAAP diluted earnings per share of $0.28.

This measure better represents our topline performance than revenue alone adjusted EBITDA for the third quarter grew 63% year over year to $12.1 million, representing 24% of contribution ex tuck in 11% of total revenue. This significant margin expansion reflects our improved opt.

Cash flow from operations, was 5.9 million, bringing our year-to-date total to 20.1 million. This further demonstrates the strength of our underlying business model and our consistent ability to generate cash.

Our growth engines, continue to be the Cornerstone of peron's future growth.

Tal Jacobson: They are continuously outpacing the overall market growth on an annual basis, as projected by eMarketer. This positions Perion as a high-growth player in two of the most dynamic segments in digital advertising. CTV continues its strong growth trajectory, with revenue up 75% year-over-year, driven by sustained demand for our advanced formats. Looking ahead, we expect CTV revenue to continue outpacing the market, supported by the ongoing shift from linear to connected TV, and growing customer adoption of our performance CTV solutions. Our digital out-of-home channel remains a highly strategic entry point into new markets. We continue to leverage its differentiated capabilities to position Perion for sustainable, profitable growth through cross-selling and product synergy. We recently launched our digital out-of-home player, an advanced solution that completes our full-stack marketing operating system for digital out-of-home and retail media.

Both CTV and digital out of home channels are growing at a fast rate. They are continuously outpacing the overall market growth on an annual basis as projected by e-marketer.

A rational leverage the efficiency initiatives. We've implemented this year continue to bear fruit and drive improved profitability. We continue to further optimize our cost structure to align with our unified operating model, we expect to benefit from these improvements throughout the remainder of 2025 and into 2026.

This position period as a high growth player in 2 of the most dynamic segments in digital advertising.

CTV continues its strong growth, trajectory with Revenue up, 75% year-over-year driven by sustained demand for our Advanced formats.

As these efforts gain momentum.

On a GAAP basis, our third quarter net loss was $4 1 million or 10 cents per diluted share.

On a non-GAAP basis, net income improved year over year to $12.5 million compared to $11 9 million in the third quarter of 2024.

Looking ahead. We expect CTV Revenue to continue outpacing the market supported by the ongoing shift from linear to Connected TV and growing customer adoption of our performance CTV Solutions.

This represents a non-GAAP diluted earnings per share of 28 cents this quarter compared with 23 cents per diluted share last year, representing a 22% year over year increase.

In the third quarter of 2025.

Cash generated from operating activities was $5 $9 million and our adjusted free cash flow was $4 $8 million.

Tal Jacobson: The Digital Out-of-Home Player strengthens our customer stickiness and recurring revenue streams, making our business model more predictable and scalable across this fast-growing channel. Our retail media market vertical continues to demonstrate strong momentum, with revenue up 40% year-over-year. Retail media remains one of the fastest-growing verticals in advertising, projected to expand at a 14.7% CAGR through 2029. As new and existing customers continue to adopt our retail-focused solutions, we are well-positioned to capture market share and outpace market growth. Our third-quarter channel mix demonstrates the growing portion of CTV and Digital Out-of-Home. These two channels combined represent 37% of revenue versus 28% in the same quarter last year. Digital Out-of-Home increased by 26% year-over-year, reaching 22% of revenue, up from 19% last year. This reflects the continued global momentum with new partnerships across APAC, the US, and EMEA.

Looking ahead, we are confident that we will maintain a strong cash flow conversion rate of over 70% in 2025.

Our digital out of home, Channel Remains the highly strategic entry point into new markets. We continue to leverage, its differentiated capabilities to position period for sustainable profitable growth through cross-selling and product Synergy. We recently launched our digital out of home player and advanced solution that completes our full stack, marketing, operating system for digital out of home and Retail media. The digital out of home player, strengthens our customers, stickiness and recurring revenue streams making our business model more predictable and scalable across this fast growing Channel.

As of September 30th.

Our balance sheet includes $315 million in cash cash equivalents short term bank deposits and marketable securities.

Our strong cash position gives us the financial flexibility to support the broader capital allocation framework pursuing over there first if I'd growth strategy, while continuing to return capital to shareholders.

Our retail medium Market vertical continue to demonstrate strong momentum with Revenue up. 40% year-over-year. Retail media remains 1 of the fastest growing verticals in advertising projected to expand at a 14.7% kegger through 2029 as new and existing customers, continue to adopt our retail focused Solutions. We are well positioned to capture market, share and outpace market growth.

During the quarter, we continued to execute our share buyback program Dutra.

Due to regulatory volume restrictions our repurchase activity was limited leading to the repurchase of 800000 shares for a total amount of $7 5 billion.

Our third quarter Channel, makes demonstrates the growing portion of CTV and digital out of home. These 2 channels combined represent 37% of Revenue versus 28% in the same quarter last year.

As of September 30th 2025, we have repurchased accumulative total of $10 4 million shares for $94 $2 million disc.

Digital out of home. Increased by 26% year-over-year reaching 22% of Revenue up from 19% last year.

This continued buyback commitment underscored our confidence in <unk> long term value proposition.

This reflects the continued Global momentum with new Partnerships across APAC. The US and the mayor.

As of today during the fourth quarter, we already purchased an additional 1 million shares and we expect to complete the current plan by the end of this year.

Tal Jacobson: CTV increased by 75% year-over-year, representing 15% of revenue compared to 9% last year. This significant growth is a testament to increasing customer adoption of our full-funnel solutions offering. Web revenue declined by 11% year-over-year due to a continued trend of lower advertiser appetite for standard display and video formats. It is important to note that the comparison to the third quarter of 2024 is skewed due to the discontinuation of lower margin activities in late 2024, as previously announced this year. Search increased by 9% year-over-year, representing 21% of revenue, and continues the search business stabilization. While in this quarter we enjoyed strong growth across each of our core growth engines, Perion's platform is built to be channel-agnostic. This structure enables us to seamlessly adapt as advertiser spend naturally shifts across channels.

We are pleased to announce the principal approval of expansion of our previously authorized share repurchase program.

Percent year-over-year representing 15% of Revenue, compared to 9% last year. The significant growth is a testament of increasing customer adoption of our full funnel Solutions offering

Our confidence in <unk> future and allows us to expand the program by an additional $75 million.

This increase the total program from $125 million to $200 million.

The overall program represents an estimated shareholders' implied return of nearly 50% since initiation.

Web revenue declined by 11% year-over-year due to a continued trend of lower advertiser appetite for standard display and video formats. It is important to note that the comparison to the third quarter of 2024 is skewed due to the discontinuation of lower-margin activities in late 2024, as previously announced this year.

We believe our current share price is not reflective of the value and opportunities we have experienced.

The share buyback program alongside disciplined investments in organic growth and M&A opportunities at the best use it present for our excess cash.

Search increased by 9% year-over-year, representing 21% of revenue, and continues the search business stabilization. While in this quarter, we enjoyed strong growth across each of our core growth engines.

Turning to our financial outlook, we are reiterating our full year 2025 guidance with revenue at $430 million to $450 million and adjusted EBITDA at $44 million to $46 million.

Parents platform is built to be Channel agnostic. This structure. Enable us to seamlessly adapt. As advertisers spends naturally shifts across channels,

Tal Jacobson: This flexibility allows us to capture growth wherever demand emerges and helps to increase advertiser spend and retention. Contribution ex-tax in the third quarter grew by 7% year-over-year to $51 million, representing a stable margin of 46%. As we move forward with our unified platform, we expect to grow our revenue contribution, excluding tax, at a faster pace compared to total revenue. This measure better represents our top-line performance than revenue alone. Adjusted EBITDA for the third quarter grew 63% year-over-year to $12.1 million, representing 24% of contribution ex-tax, and 11% of total revenue. This significant margin expansion reflects our improved operational leverage. The efficiency initiative we've implemented this year continues to bear fruit and drive improved profitability. We continue to further optimize our cost structure to align with our unified operating model.

This flexibility allows us to capture growth, wherever demand emerges and helps to increase advertisers spend and retention.

The progress we made in Q3 from returning to year over year growth to expanding profitability.

Underscores the strength of our transformation and the resilience of our model.

As we continue consolidating our operations into the Permian one platform. We are confident that we have established a strong foundation for sustainable growth and profitability heading into 2026.

Contribution X stuck in the third quarter grew by 7% year-over-year to 51 million representing a stable margin of 46% as we move forward with our unified platform. We expect to grow our Revenue contribution excluding tax at a faster Pace compared to total revenue.

This measure better represents our topline performance than revenue alone.

With that I'll now turn it back to the operator to open the line for questions. Thank you.

If you wish to ask a question we ask that you. Please hand function at the Boston Hilton screen.

Starting farmer owned.

We will take our first question from Andrew Mok with Raymond James Please limit your line and ask a question.

Hi, Thanks for taking my questions, maybe one for Tau and one for a lot.

Carl if you could dive into some of the <unk> strength drivers we saw in <unk> with the 75% growth I know you had mentioned some spend shifts or budget shifts last quarter out of <unk> into the second half, but any more.

Tal Jacobson: We expect to benefit from these improvements throughout the remainder of 2025 and into 2026 as these efforts gain momentum. On a GAAP basis, our third-quarter net loss was $4.1 million, or $0.10 per diluted share. On a non-GAAP basis, net income improved year-over-year to $12.5 million, compared to $11.9 million in the third quarter of 2024. This represents a non-GAAP diluted earning per share of $0.28 this quarter, compared to $0.23 per diluted share last year, representing a 22% year-over-year increase. In the third quarter of 2025, cash generated from operating activities was $5.9 million, and our adjusted free cash flow was $4.8 million. Looking ahead, we are confident that we will maintain a strong cash flow conversion rate of over 70% in 2025. As of 30 September, our balance sheet includes $315 million in cash, cash equivalents, short-term bank deposits, and marketable securities.

Adjusted evida for the third quarter, grew 63% year-over-year to 12.1 million representing 24% of contribution, x stock and 11% of total revenue. This significant margin expansion, reflects our improved operational, leverage the efficiency initiative. We've implemented this year continue to bear fruit and drive improved profitability. We continue to further optimize our cost structure to align with our unified operating model. We expect to benefit from this improvements throughout the remainder of 2025 and into 2026 as these efforts gain momentum.

On a gap basis. Our third quarter, net loss was 4.1 million or 10 cents per diluted, share on a non Gap basis.

Specificity, there would be appreciated and then maybe on the guidance range given that you're reiterating the guidance range. It does seem like a fairly wide range for for Q I guess, what should we be inferring from that in terms of what you're seeing to date in either October or expectations for the holiday season. Thank you.

Net income. Improved the year-over-year to 12.5 million compared to 1 1. 9 3 4.

This represents a non-gaap diluted earning per share of 28 cents this quarter compared to 23 cents per diluted. Share last year. Representing a 22% year-over-year increase.

Yeah. Thanks for taking the question.

Therapy on CCD, I think what we see that our performance CTV together with a new algorithm green bids, which we now call out mix.

In the third quarter of 2025 cash generated from operating activities was 5.9 million and our adjusted free cash flow was 4.8 million.

Are really performing well.

We're seeing healthy pipeline and deals from our customers and that was that's what drove that.

Looking ahead. We are confident that we will maintain a strong cash flow. Conversion rate of over 70% in 2025.

Our significant growth that we're seeing.

Do you want to answer the guidance yes.

As of September 30th, our balance sheet includes 315 million in cash, cash equivalents short-term Bank, deposits, and marketable securities.

In terms of the guidance.

The corner right now.

Tal Jacobson: Our strong cash position gives us the financial flexibility to support the broader capital allocation framework, pursuing our diversified growth strategy while continuing to return capital to shareholders. During the quarter, we continued to execute our share buyback program. Due to regulatory volume restrictions, our repurchase activity was limited, leading to the repurchase of 800,000 shares for a total amount of $7.5 million. As of 30 September 2025, we have repurchased a cumulative total of 10.4 million shares for $94.2 million. This continued buyback commitment underscored our confidence in Perion's long-term value proposition. As of today, during the fourth quarter, we already purchased an additional 1 million shares, and we expect to complete the current plan by the end of this year. We are pleased to announce the principal approval of expansion of our previously authorized share repurchase program.

It's generally in line with our expectations.

And so far.

During two an important holiday season.

Our strong cash position gives us the financial flexibility to support the broader Capital allocation framework pursuing our Diversified growth strategy while continuing to return Capital to shareholders.

We feel very good with our ability to deliver within this within this range of guidance.

During the quarter, we continue to execute our share buyback program.

And we were already increased the guidance at the beginning of the year in May and June.

Due to regulatory volume restrictions, our repurchase activity was limited leading to the repurchase of 800,000 shares for a total amount of 7.5 million.

Important for us.

Of course too.

To make sure that we are delivering on everything that we're seeing in maintaining the guidance as it is of course.

As of September 30th 2025, we have repurchased, accumulative total of 10.4 million shares for 94.2 million

But we do feel very confident in our ability to.

This continued by the commitment, underscored our confidence in peron's long-term value proposition.

To meet this oh.

To me those are those numbers as we see.

Overall, we do not see right now any any slowdown all things spend.

As of today during the fourth quarter, we already purchased an additional 1 million shares and we expect to complete the current plan by the end of this year.

The advertisers just.

And just a change of how.

We are pleased to announce the principal approval of expansion of our previously. Authorized share repurchase program.

In terms of timelines are for the the budgets are getting.

Tal Jacobson: Our confidence in Perion's future allows us to expand the program by an additional $75 million. This increased the total program from $125 million to $200 million. The overall program represents an estimated shareholders' implied return of nearly 50% since initiation. We believe our current share price is not reflective of the value and opportunities we have at Perion. The share buyback program, alongside disciplined investments in organic growth, and in M&A opportunities, is the best use at present for our excess cash. Turning to our financial outlook, we are reiterating our full year 2025 guidance, with revenue at $430 to $450 million, and adjusted EBITDA at $44 to $46 million. The progress we made in Q3, from returning to year-over-year growth to expanding profitability, underscores the strength of our transformation and the resilience of our model.

Our confidence in parents future allows us to expand the program by an additional 75 million.

Getting all spending within the month.

So it does it does add to that that as Ive said, we did raise our guidance within the year and we ever since then we've continued to build strong momentum.

This increase the total program from 125 million to 200 million.

And as I've said in the quarter is aligned with our expectation, but we're waiting for the shopping season.

To see how that's enabled.

we believe our current share price is not reflective of the value and opportunities we have at Parian

Understood. Thank you.

Thank you.

We'll take our next question from Aaron Martin Easy from Lake Street.

I'm asking a question.

Turning to our financial Outlook.

Yes, it kind of wanted to revisit the Q4 growth just based on the projections here that growth rate would be down versus the growth you had in Q3.

We are reiterating our full year 2025 guidance which Revenue at 430 to 450 million and adjusted ibida at 44 to 46 million.

I realize we're early in the holiday spending season is it just conservatism that that sequential growth rate would be down.

Yes, Eric Thank you.

The progress we made in Q3 from returning to year-over-year. Growth to expanding profitability, underscores, the strengths of our transformation and the resilience of our model,

Okay.

It's a bit conservative as well.

Tal Jacobson: As we continue consolidating our operations into the Perion One platform, we are confident that we have established a strong foundation for sustainable growth and profitability heading into 2026. With that, I'll now turn it back to the operator to open the line for questions. Thank you. If you wish to ask a question, we ask that you please use the raise hand function at the bottom of your Zoom screen, or if you've dialed in, please press star nine. We'll take our first question from Andrew Marok with Raymond James. Please unmute your line and ask your question. Hi, thanks for taking my questions. Maybe one for Tal and one for Elad. Tal, if you could dive into some of the CTV strength drivers we saw in Q3 with the 75% growth.

As we mentioned we are.

Q4 is obviously the the pig.

The peak of the.

Advertising budget and a little bit.

For the holiday season, it was important for us.

As we continue consolidating our operations into the parent, 1 platform. We are confident that we have established strong foundation for sustainable growth and profitability heading into 2026 with that. I'll now turn it back to the operator, to open the line for questions. Thank you.

To be cautious.

Okay and then.

I know you haven't you're not addressing 'twenty 'twenty six but right now there is an expectation for double digit growth. There is I think the street consensus is at 11% growth in 2026 should there be coming down based on what Youre seeing for Q4.

If you wish to ask a question, we ask that, you please use the right hand function at the bottom of your Zoom screen, or if you've dialed in, please press star 9

We'll take our first question from Andrew Marik with Raymond Jones. Please unmute your line and ask your question.

No no no no.

We havent provided in the outlook for 2026.

We are providing it as usual at the end of the year I can do what I can tell you by the way that we are.

Tal Jacobson: I know you had mentioned some spend shifts or budget shifts last quarter out of Q2 into the second half, but any more specificity there would be appreciated. Maybe on the guidance range, given that you're reiterating the guidance range, it does seem like a fairly wide range for Q4. I guess, what should we be inferring from that in terms of what you're seeing to date in either October or expectations for the holiday season? Thank you. Yeah, thanks for the question. Absolutely. On CTV, I think what we see is that our performance CTV, together with our new algorithm, Grand Bid, which we now call Outmax, are really performing well. We're seeing healthy pipeline and deals from our customers, and that's what drove a significant growth that we're seeing. Elad, you want to answer the guidance? Yeah, sure.

Aiming for next year to capture much much more market share.

Hi, thanks for taking my questions. Um, maybe 1 for tell and 1 for elad. Um, tell if you could dive into some of the CTV strength drivers, we saw in 3Q with the 75% growth, I know you had mentioned, some spend shifts or budget, shifts last quarter um out of 2, queue into the second half but any more specific uh specificity there would be appreciated.

Sure.

And we actually believe that we will be able to compete.

Q as well.

The street expectation and.

Our growth engines will continue.

To outperform the market and I will leave it and it will drive.

And then maybe, um, on the guidance range given that you're reiterating the guidance range. It does seem like a fairly wide range for 4 q. I guess, what should we be inferring from that in terms of what you're seeing to date in either October or expectations for the holiday season? Thank you.

Our growth going forward and we are as much as we are focusing on the efficiency in certain cities in terms of the number starting already from the scheme. We're also investing in our corn business to allow us to scale and to grow.

Zero for next year.

Understand and congratulation to them a return to growth here in Q3.

Thank you.

Our next question comes from Joseph <unk> with Oppenheimer came from me along and ask your question.

Yeah, uh, thanks. Thanks for the question. So, absolutely on, on CTV. I think, what we see is that our performance CTV together, with our new, algorithm Grand bids, which we now call out Max, uh, are really performing. Well, you know, we're we're seeing healthy, uh, Pipeline and deals from our customers. And that was, that's what drove, uh, a significant growth that we're seeing.

Thanks, everybody. So I guess kind of following on to what you just said.

Tal Jacobson: In terms of the guidance, the quarter right now is trending in line with our expectations. We are entering an important holiday season. We feel very good with our ability to deliver within this range of guidance. We already increased the guidance at the beginning of the year in May, and it was important for us, of course, to make sure that we are delivering on everything that we are saying and maintaining the guidance as is, of course. We do feel very confident in our ability to meet those numbers as we see. Overall, we do not see right now any slowdown on, say, the spend of the advertiser. It's just a change of how, in terms of timelines of how the budgets are getting or spending within the month.

It sounds like you're having more success now selling the package of services across the different disciplines.

You want to answer the the guidance? Yeah, sure. Um, in terms of the guidance, the the quarter right now, uh, is generally in line with our expectations, um, so far, uh, as we are entering to an important holiday season,

There's been a pretty significant investment in sales and marketing to get here. Just how are you thinking about the investment needed, particularly as we go into next year on sales and marketing is it still like another heavy lift or kind of can we then you harvest and then obviously the implied kind of web business I think.

Um, we feel very good with our uh, ability to deliver within this uh within this range of guidance.

Something like 11% year over year give or take our math in the quarter.

And we we already uh increased the guidance of the at the beginning of the year in May and it was, uh, important for us. Um, of course to um, to make sure that we are delivering on everything that we are saying and maintaining the guidance is, is, of course.

But it's still roughly half of revenues so obviously.

uh, but we do feel very confident in in our ability to

<unk> did a lot of home some of the other areas are going to grow so meaningfully faster than that just how are you thinking about like.

Now as you know.

And the puts and takes there right web declining everything else or display really declining and everything else really growing as we're just thinking out over the next two years. Thank you.

Um, to meet this uh uh to meet those uh, those numbers to, as we see. Um, overall, we do not see right now, any, any slowdown or say, spend of the of the advertiser is just

Yeah, absolutely. Thanks for thanks for the question.

Um it just a change of how uh that in terms of timelines of how the the budget are uh uh getting or standing within the month.

So I'll I'll divide it into a few parts, one we think that web and search.

Tal Jacobson: Yeah, I'll just add to that, as Elad said, we did raise our guidance within the year, and ever since then, we continued to build strong momentum. As Elad said, the quarter is in line with our expectation, but we're waiting for the shopping season to see how that's going to evolve. Understood. Thank you. Thank you. We'll take our next question from Eric Martinuzzi from Lake Street. Please unmute your line and ask your question. Yeah, I kind of wanted to revisit the Q4 growth. Just based on the projections here, that growth rate would be down versus the growth you had in Q3. I realize we're early in the holiday spending season. Is it just conservatism that that sequential growth rate would be down? Yes, Eric, thank you. I would say it's a bit conservative as well.

It's going to be totally aligned with human behavior is AI AI agent, So AI chatbot by rolling in or less and less web search is going to is going to happen and when this whole trend of zero clicks in Google I think less traffic is going to go on the web but adds that only means that a lot of the budgets.

Yeah. So I'll just I'll just add to that. That Assad said, you know, we did raise our guidance within the year and we and ever since then we continue to build strong momentum. Uh, and as a lot said, you know, the quarter is aligned with our expectation, but we're waiting for the shopping season uh, to see how that's enabled.

Understood, thank you.

Thank you.

I'm going to shift to work towards close guidance, great meta ticked a Google Youtube.

We'll take our next question from Eric Martinez from Lake Street. Please unmute your line and ask a question.

Out of home in CTV.

Which is exactly why we bought Greenberg that's exactly why we bought high stack and this is exactly why we're investing in those areas.

Just because we think.

This trend will continue but we do think.

Our algorithm Outmatch, our CTV and out of home is going to outpace the growth of the market going forward so that that should.

Yeah, I kind of wanted to revisit the Q4 growth just based on the the projections here that growth rate would be down versus the growth you had in Q3. Um you know I I I realize we're early in the holiday spending season. Is it just conservatism that that sequential growth rate would be down?

So good growth in the next year or the year after that.

In terms of sales of marketing.

Yes. There we go. Thank you. It's, I would say the it it's a bit conservative as well. Um, as we mentioned, we are

Tal Jacobson: As we mentioned, Q4 is obviously the peak of the year in terms of advertising budgets. Just before the holiday season, it was important for us to be cautious. Okay. For I know you're not addressing 2026, but right now there's an expectation for double-digit growth there. I think the street consensus is at 11% growth in 2026. Should that be coming down based on what you're seeing for Q4? No, not at all. We haven't provided yet the outlook for 2026. We are providing it as usual at the end of the year. What I can tell you, by the way, is that we are aiming for next year to capture much, much more market share. We actually believe that we will be able to beat next year as well the street expectation.

Before I was going to.

A bit on the numbers, but sales and marketing is now so much easier and since we have been and what we're seeing more and more and increasingly.

Q4, it's obviously, the, the, the P, uh, the peak of the, the year, in terms of advertising budget, and we are just before the holiday season and it was important for us uh, to be cautious.

Okay. And then for

The big number is increasing by the day of customers that are using more than one of our products. So we do have algorithm with CTV customer.

Customers, we have CTV with out of home customers.

Were seeing synergies even faster than what we could have imagined.

Discussing 2026. But right now there's an expectation for double digit growth there. I think the street consensus is at 11:00 in 2026. Should that be coming down based on this? What you're seeing for Q4?

Is this at this time of stage within the transformation.

No, no, no, I don't. Um,

We haven't provided you the outlook for 206.

Also helps us with marketing since we're spending marketing very focus on to drive new customers to the platform.

Um,

We're seeing great success, there so how do you want to add.

I would add Bob the sales desk and investments we are planning to do over the next year.

Uh, providing it as usual. Uh, at the end of the year, I can do what I can tell you, by the way, is that we are, uh, aiming for next year to capture much, much more market share, and we are, um,

To increase our ability to tap into more and more customers into the platform.

First of all.

Of course, we will going to increase with our our marketing budget as well as we're going through the market wanted to get a spread.

Tal Jacobson: Our growth engines will continue to outperform the market. I believe that it will drive our growth going forward. As much as we are focusing on the efficiency and we start to see this in terms of the numbers starting already for this Q, we are also investing in our current business to allow us to scale and to grow much faster also for next year. Understand. Congratulations on the return to growth here in Q3. Thank you. Thank you. Our next question comes from Jason Helfstein with Oppenheimer. Please unmute your line and ask your question. Thanks, everybody. I guess kind of following on to what you just said, it sounds like you're having more success now selling the package of services across the different disciplines. There's been a pretty significant investment in sales and marketing to kind of get here.

Possible.

And we're going into in 2026, it's Tom.

Mentioned 26 and 27 years.

Turning to scale.

As much as possible globally.

We started the transfer me as part of our.

And we actually believe that we will be able to beat next year as well. Um, the street expectation and, um, our growth engines will continue, uh, to outperform the market. And I believe that it will drive, uh, uh, our growth going forward. And we are as much as we are focusing on on the efficiency. And we start to see in terms of the numbers, starting all already for this skill, we are also investing in our current business to allow us to scale and to grow much faster also for, for next year.

The changes or somebody else doing we're increasing also the beat the sales team just to get more and more reach points.

understand congratulations on the return to growth here in Q3

We want more customers into be able.

Thank you. Thank you.

To showcase the boon one capabilities into more customers.

Our next question comes from Jason Hudson with open Hymer. Please unmute your line and ask your question.

So definitely this is an area that we are going to to increase our investments next year and also around let's say our R&D as well. This is something that we are.

Planning.

To increase also some of our resources around.

We are investing in both.

Uh huh.

R&D in order to make sure that we are expediting our roadmap.

Tal Jacobson: Just how are you thinking about the investment needed, particularly as we go into next year on sales and marketing? Is it still another heavy lift, or can you harvest? Obviously, the implied kind of web business, I think, is down something like 11% year-over-year, give or take our math in the quarter. It's still roughly half of revenue. Obviously, CTV, digital out of home, and some of the other areas are going to grow still meaningfully faster than that. Just how are you thinking about those, again, the puts and takes there, right? Web declining, everything else, or display, really, declining, and everything else really growing as we're just thinking out over the next two years? Thank you. Yeah, absolutely. Thanks for the question. I'll divide it into a few parts.

Coming to the streets.

And our customers with more and more.

Solutions and an ability.

To spend more within this platform.

Yeah.

Next question comes from Jeff Martin with Roth, Tiffany I'm asked the question.

Great. Thank you.

Was curious you mentioned that there was a clouded comparison on web versus last year due to some low margin business that was.

Exited could you give us an apples to apples comparison, and then pair that with how web trended relative to your expectation I know the last two quarters, you've talked about a bottoming out of that a little earlier than expected. So I'm just curious how that trended in the quarter relative to your internal expectations.

Thanks um everybody. So I guess kind of following on to what you just said. Um, you know, it sounds like, you know, you're having more success. Now, selling the package of Services of the different disciplines. Um, there's been a pretty significant investment in sales and marketing to kind of get here. Just, how are you thinking about the investment needed? Particularly as we go into next year, on sales and marketing, is it still like another heavy lift or kind of? Can you can you harvest and then um obviously the implied you know kind of web business I think is down to something like 11% year-over-year give or take our math and the quarter um but it's still you know, roughly half of Revenue. So obviously you know CTV digital, a lot of home. Um, some of the other areas are going to grow still meaningfully faster than that. Just how are you thinking about like, you know, those, you know, again the puts and takes their right web declined.

Everything else uh or display really declining. Um, and everything else really growing is we're just thinking out over the next like 2 years. Thank you.

Yeah, absolutely. Thanks for, thanks for the question. Um, uh, so I'll divide it into a few parts 1. We think that web and search,

Tal Jacobson: One, we think that web and search is going to be totally aligned with human behavior. As AI agents or AI chatbots are growing, less and less web search is going to happen. With this whole trend of zero clicks on Google, I think less traffic is going to go on web. That only means that a lot of the budgets are going to shift towards closed gardens, right? Meta, TikTok, Google, YouTube, out of home, and CTV, which is exactly why we bought Grand Bid. That's exactly why we bought High Stack, and this is exactly why we're investing at those areas, just because we think this trend is going to continue. We do think our algorithm, Outmax, our CTV, and out of home is going to outpace the growth of the market going forward.

Yes.

Thanks for the posting of actually web App.

<unk> exactly.

I would say, even a bit better than our original.

And he said and if you'll remember on February call, we announced that we are.

Closing some.

Some of our.

Previous technology that we needed to wear but they were older.

Very very low margin and.

And they will be focused on our strategy and we will when we are comparing Q3 to Q3.

Major part of the decrease you see in the world is because of this.

Uh, is going to be totally aligned with human behavior as as ai ai agents or AI chatbots are growing, you know less and less web. Search is going to is going to happen. And with this whole trend of zero clicks on Google, I think less traffic is going to go on web but that that only means that a lot of the budgets are going to shift toward towards closed Gardens right meta Tik Tok Google uh YouTube uh out of home and CTV uh which is exactly why we bought greenbits it does exactly why we bought High stack and this is exactly why we're investing as those areas.

Don.

Business lines are excited we are.

Um, just because we think uh, this trend is going to continue, but we do think.

Shutting down.

In.

When comparing to our expectation is actually did better if you're removing those.

Those.

Tal Jacobson: That should show good growth in the next year and the year after that. In terms of sales of marketing, before Elad is going to go a bit on the numbers, sales of marketing is now so much easier since we have Perion One. We're seeing more and more, and increasingly big number, and it's increasing by the day of customers that are using more than one of our products. We do have algorithm with CTV customers. We have CTV with out-of-home customers. We're seeing synergies even faster than what we could have imagined at this time of stage within the transformation. It also helps us with marketing since we're spending marketing very focused on to drive new customers to the platform. We're seeing great success there. Elad, do you want to add to that?

Terminated business.

Great and then just one more if I could.

You've talked in the past about.

Expanding the Tam.

Dramatically just curious if you could give us an update on.

Our algorithm out Max our CTV and out of home is going to outpace the the growth of the market going forward. So that that that should uh show good growth in the next year. And the year after that uh in terms of of sales of marketing you know before it all is going to go uh a bit on the numbers. But certain marketing is now so much easier. Since we have billion 1 we're seeing more

The timing of that and how it's trended.

So far this year thanks.

Yes sure.

So when we when we bought green bids, we got into Youtube and metal.

Which is something that we never had the capability to do so now.

Every advertiser that spend money on Youtube, Google AD and metal.

Can actually work with us and the traders.

Now a.

We're in process of integrating this into more social platforms and more and more DSP is.

So that will that will continue to increase our Tam.

Tal Jacobson: Yeah, I would add about the sales, that's an investment that we are planning to do also for next year to increase our ability to tap into more and more customers into the platform. First, of course, we will go to increase, of course, our marketing budget as well as we are going to the market. We want to get as spread as possible when we are going into 2026. As Tal mentioned, 2026 and 2027 are years that we are aiming to scale Perion One as much as possible globally. As part of the transformation, as part of the changes also we are doing, we are increasing also a bit the sales team just to get more and more reach points towards more customers and to be able to showcase the Perion One capabilities into more customers.

And youre going to see more and more.

More and more growth out of that plant out of new channels, hopefully hopefully next year youre going to see more channels, and just where the CTV and out of.

More and increasingly uh, big number. And it's increasing by, by the day of customers that are using more than 1 of our products. So we do have algorithm with CTV. We uh customers we have uh CTV without a phone customers. So we're seeing synergies uh even faster than what we could have imagined uh this at this time of stage uh within the transformation. But it also helps us with marketing. Since we're spending marketing. Very focused on, on to drive new customers to the platform, you were in a worse. We're seeing great success there. So, I just want to add. Yeah, I I would add about the sales last name Investments. We are planning to do, also for next year, um, to increase our. Our ability to step into more and more customers into the platform.

Thank you.

Our next question comes from Laura Martin with Needham. Please on mute your line and ask a question.

Hi, guys.

I need to ask the question, so I'm really interested in how youre using AI internally.

Because it sounds like you're still hiring people and it's our thesis that if you're a tech company or using AI and not people said can you talk about internally, how youre using new tools with AI to replace people.

And then secondly, I wanted to drill down a follow up on top of my competitors questions on web.

Tal Jacobson: This is definitely an area that we're going to increase our investments next year. Also, I would say, R&D as well. This is something that we are planning to increase, also some of our resources around investing about R&D, in order to make sure that we are expediting our roadmap, coming to the streets, to our customers with more and more solutions, and ability to spend more within this platform. Our next question comes from Jeff Martin with Roth. Please unmute your line and ask your question. Great. Thank you. I was curious. You mentioned that there was a clouded comparison on web versus last year due to some low-margin business that was exited. Could you give us an apples-to-apples comparison, and then pair that with how web trended relative to your expectation?

How are you think sort of let's say open web is going to lose share to and that's why you've got an additional add polymer CTD, but.

It's possible. Um, when we are going into into 2026, 20 mentioned, 26 and 27 are years that we are able to scale. Carry on 1 as much as possible, uh, globally. Um, as part of the transformation as part of, uh, the changes also, they are doing, we are increasing also the a bit to self team, just to get more and more reach points, uh, towards more customers. And to, to be able, uh, to showcase the period 1, uh, capabilities into more customers. Uh, so definitely, this is an area that we're going to to increase our investments next year. And also around, let's say, uh, R&D as well. This is something that we are planning.

And.

I, just said that a lot of the 11% decline in the quarter was attributable to actions you took in February.

And therefore, the declines would have been much less which implies to me tell that by February.

We anniversary those let's call it self harm that you decided to do and that we could maybe return to growth in the open web it sounds like so could you talk to me about how much of this web decline you think is structural because it sounds like it's a lot less than the 11% decline that you reported in the <unk>.

To to increase. Also, some of our resources around, uh, investing about um, uh, about, uh, R&D in order to make sure that we are Expediting our road map, coming to the streets, uh, to our customers, with more and more, uh, Solutions and, uh, and ability, uh, to spend more within this platform. So,

Our next question comes from Jeff. Martin with Ross, please unmute your line, and ask for a question.

Web business in a quarter. Thank you.

Yeah, Thanks, a lot.

Great. Thank you. Um, was was curious, you mentioned that there was a clouded comparison on web versus last year due to some low margin business. That was

So two things.

So.

As you said I think youre, absolutely right with time and automation.

Exited, could you give us an Apples to Apples comparison and then pair that with how web trended relative to your expectation? I know the last 2 quarters you've

The amount of people we would hire.

Tal Jacobson: I know the last two quarters you've talked about a bottoming out of that a little earlier than expected. Just curious how that trended in the quarter relative to your internal expectations. Thanks. Yes. Thanks for the question, Jeff. Actually, web acted exactly as we expected. I would say even a bit better than our original plans. As I said, and if you remember on February's call, we announced that we are closing some of our previous technologies that related to web that were very, very low margins, and they were defocused for our Perion One strategy. When we are comparing Q3 to Q3, a major part of the decrease that you see in the web is because of those business lines that we decided we are shutting down. Web, comparing to our expectations, actually did better if we are removing those terminated business. Great.

Is going to be lower.

But as we as we build this company for scale.

There are two parts, where we do hire people one R&D to continue to build AI.

Talked about a, uh, bottoming out of that a little earlier than expected. So, you know, just curious how that, uh, trended in the quarter relative to your internal expectations. Thanks.

Yes, so thanks for the question. Jeff actually. Web acted.

David products, because AI is everything and we're becoming more and more about logic company than anything else.

Exactly. As we as we expected.

And on the other part <unk> cells <unk> cells should bring.

Our our our new platform into more clients. So those are the areas, where we look to hire more people.

But anything else, we hired a new CFO.

Six months ago, just for that to transform all our internal operation to be AI, driven and more efficient so less and less manual work more and more.

Automation to AI, that's on the internal apart now within when we built we're building an Italian one also within that everything is AI driven even all.

I would say even a bit better than our original plans as they said. And if you remember on February school, we announced that we are, uh, closing, uh, some of our, uh, uh, previous technologies that we did to web that they were all very, very, very low margin. Uh, and they will be focused current 1, uh, strategy. And when we, when we are comparing Q3 to Q3, um, major part of the decrease that you see in the web, is because of this, uh, of those um um, business lives, we started where, uh, shutting down

Web comparing to our expectation is actually did better. If you are removing those, uh, uh, those uh, terminated business.

Everything that we build within R&D is now supported with AI. So we can actually say 100% of our.

Tal Jacobson: Just one more if I could. You've talked in the past about expanding the TAM dramatically. Just curious if you could give us an update on timing of that and how it's trended so far this year. Thanks. Yeah, sure. When we bought Grand Bid, we got into YouTube and Meta, which is something that we never had the capability to do. Now every advertiser that spends money on YouTube, Google Ads, and Meta can actually work with us and betray us. Now we're in the process of integrating this into more social platforms and more and more DSPs. That will continue to increase our TAM. You're going to see more and more growth out of that part, out of new channels. Hopefully, next year, you're going to see more channels than just web, CTV, and out of home. Thank you.

Our R&D work is imported now with AI.

So that's on the AI part.

On the web part I'll, just say generally in.

Great and just 1 more. If I could, um, you you've talked in the past about uh expanding The Tam, uh, dramatically. Just curious. If you could give us an update on, you know, timing of that and how it's trended. Um, so far this year, thanks.

The answer is part, but I'll just say.

Yeah, sure. Um

As far as human behavior, I do not think editorial websites.

I'm going to see a huge growth in the future and that's where what we call web having said that we did a few things within in house like releasing soda and other products for web.

So when we bought Greenbits, you know, we got into YouTube and Meta.

which which is something that we never had the capability to do so now if we every every Advertiser that spends money on YouTube, Google ads and meta,

And since we're such a small part of web globally, even though it's it can grow within us it doesn't necessarily mean that humans are going to use more and more into all websites.

Can actually work with us and, and the trade desk.

Now, uh, we're in the process of integrating this into more social platforms and more and more uh, DSPs.

As a general trend.

So that will that will continue to increase our town.

I don't think thats going to be the future.

uh,

Anything you want to add to that I can just add is to make sure that I was clear.

and, and you're going to see more and more

The expectation that we had been shutting down those businesses.

The web will continue to decline more.

Um more and more growth out of that. Part out of the new channels. Hopefully, hopefully next year you're going to see more channels than just uh web and CTV and other phone.

Keep in mind, we are channel agnostic.

Thank you.

In a way.

And.

Our pets.

Thats right as did our growth engines are these a lot of room in CTG of course, but it also allow us in a way to tap on the opportunity. That's related also to I am not expecting but when going to the future. They will see increase in web.

Our next question comes from Laura Martin with needing. Please unmute your line, and ask a question.

Tal Jacobson: Our next question comes from Laura Martin with Needham. Please unmute your line and ask your question. Hi, guys. I need to ask the AI question. I am merely interested in how you're using AI internally because it sounds like you're still hiring people, and it's our thesis that if you're a tech company, you're using AI and not people. Can you talk about internally how you're using new tools with AI to replace people? Secondly, I wanted to drill down, follow up on some of my competitors' questions on web. I know, Tal, you think sort of that the open web is going to lose share too, and that's why you've gone into digital out of home and CTV.

Dramatically, but on a year over year comparison, as we will continue to increase the overall spend that will come through the system I believe that.

Also the web recapture some of those oh spend yet.

And was that into entering question.

So I think a lot of it would help me is I think 11% decline you said that most of that was this decision you've made in February.

Hi guys. Um, I need to ask the AI questions so um, I'm merely interested in how you're using AI internally, um, because it sounds like you're still hiring people and it's our thesis that if you're a tech company you're using Ai and not people. So can you talk about internally how your help using new tools with AI to replace people? Um, and then secondly I wanted to drill down uh follow up on some of my competitors questions on web. I know T you think sort of the the open web is going to lose share to and that's why you've gone into digital at home and ctd. But

The 8% to 11% like you would have only been down 3% and whether if you hadn't taken the actions yourself in February how much of the 11% decline with your actions in February.

Tal Jacobson: Elad just said that a lot of the 11% decline in the quarter was attributable to actions you took in February, and therefore the declines would have been much less, which implies to me, Tal, that by February, we anniversary those, let's call it self-harm that you decided to do, and that we could maybe return to growth in the open web, it sounds like. Could you talk to me about how much of this web decline you think is structural? Because it sounds like it's a lot less than the 11% decline that you reported in the web business in the quarter. Thank you. Yeah. Thanks, Laura. Two things. As you said, I think you're absolutely right. With time and automation, the amount of people we would hire is going to be lower.

No mentally more closely towards <unk>.

13% was related to our exiting so overall, otherwise I wouldn't see the world.

Roughly 2%.

Okay, well that answer I like a lot. So thank you that's perfect.

Thank you. Thank you.

Our last question comes from Austin, <unk> with Craig Hallum Capital Group.

% decline in the quarter was attributable to actions you took in February and therefore the declines would have been much less which implies to me. Tal that by February we anniversary those let's call it self harm that you decided to do and that we could maybe return to growth in the open web, it sounds like so. Could you um, talk to me about how much to this web decline you think is structural because it sounds like it's a lot less than the 11% decline that you reported um in the web business in the quarter. Thank you.

Close on the airline and ask your question.

Great. Thank you guys just one from me so you'd highlighted how soda in the out of home buyer create more predictable revenue stream. Just wondering if you can just size up those opportunities and give a little more detail on how you monetize those solutions.

Yeah. Alright thanks Laura. Uh so 2 things. Um so as you said I think you're absolutely right with time and automation uh the amount of people we would hire the is going to be lower.

Well, thank you Jason.

First of all welcome we're very happy to have you with us.

but as we, as we build this company for scale,

Tal Jacobson: As we build this company for scale, there are two parts where we do hire people. One, R&D to continue to build AI-driven products because AI is everything, and we're becoming more and more of a technology company than anything else. On the other part is sales. With sales, we should bring our new platform into more clients. Those are the areas where we look to hire more people. Everything else, we hired a new COO six months ago just for that, to transform all our internal operation to be AI-driven and more efficient. Less and less manual work, more and more automation to AI. That's on the internal part. Now, when we're building Perion One, also within that, everything is AI-driven. Everything that we built within R&D is now supported with AI.

So in terms of soda and the phone player.

The thing is we're trying to be the operating system the market the operating system within the tech stack of the inventory part right.

You know, there are two parts where we do hire people: 1, R&D to continue to build AI products because AI is everything in the world, becoming more and more about technology companies than anything else.

Opinion, one is operating system for marketers.

And that is our whole player is the operating system for the inventory and we want to be is implemented as possible within their tech stack. So soda for out of home and web publisher. Then obviously these are the compare and get a bigger chunk of all the spend is going.

And on the other part, it sells. So, which sells should bring, you know, or or or new platform into more clients. So those are the areas where we look to hire more people, um, but everything else, you know, we hired a new coo.

The screen what it means is a lot of the time when they stopped the homes screw.

Screen owners.

The budget that we are saying to them is the programmatic part when.

When we implement the <unk> home player, we can actually benefit from all the budgets that are going through that and that.

6 months ago, just for that to transform all our internal operations to be AI driven and more efficient. So less and less manual work more and more uh, automation to AI. That's on the internal part. Now, within when we built we're building, Italian 1 also within that. Everything is AI driven even all.

That means direct and programmatic that actually increases our Tam quite.

Quite dramatically and it does once that's going to be deployed in big scale that will provide us better visibility and predictability into our revenue streams.

Tal Jacobson: We can actually say that 100% of our R&D work is supported now with AI. That's on the AI part. On the web part, I'll just say generally, and then I'll let Elad answer his part. I'll just say, as far as human behavior, I do not think editorial websites are going to see a huge growth in the future. That's what we call web. Having said that, we did a few things within in-house, like releasing Soda and other products for web. Since we're such a small part of web globally, even though it can grow within us, it doesn't necessarily mean that humans are going to use more and more editorial websites as a general trend. I don't think that's going to be the future. Elad, anything you want to add to that?

Everything that we built within R&D is Now supported with AI. So we can actually say that 100% of our R&D work is supported. Now with AI

Uh, so that's on the I part.

And then answer your question.

Yes, that's perfect. Thank you.

Okay.

Uh, on the web part. I'll just say, uh, generally and then I'll, I'll answer his part, but I'll just say, you know, in ter, as far as human behavior. I do not think editorial websites.

That concludes the question and answer session I'll now hand back to Paul Jacobson for closing remarks.

Thank you everyone for joining us at the Q3 earnings call.

We're happy to show that we're making good progress on our <unk> vision and I hope to see everyone at our next earnings call. Thank you.

This concludes today's call. Thank you everyone for joining you may now disconnect.

Are going to see a huge uh growth in the future. And that's where what we call Webb have been said that we did a few things within in-house like releasing soda and other products for web. And since we're such a small part of web globally, you know, even though it's it can't grow within us. It doesn't necessarily mean that humans are going to use more and more in the total websites. As as as a general Trend. I I I don't think that going to be the future.

Tal Jacobson: I can just add, just to make sure that that was clear, the expectation that we had when shutting down those businesses was that the web will continue to decline more. Keep in mind, Laura, we are channel agnostic in a way. Our growth engine, our digital out of home and CTV, of course, but it also allows us, in a way, to tap on the opportunity that's related also to web. I'm not expecting, by the way, going to the future, that I will see increase in web dramatically. On a year-over-year comparison, as we will continue to increase the overall spend that will come through the system, I believe that also the web will capture some of those spend yet. Was that answering your question?

Is that anything you want to add to that? I I can just add, is to make sure that that I was clear. The expectation that we had, when shutting down those businesses, that we will that the web continues to decline more, um, keep in mind, Lord, we are channel agnostics in in a way. Um, and um, our let's try to that that our our growth engines are digital out of home and CTV, of course, but it also in a way to tap on the opportunity, that's that's created. Also to uh, to I'm not expecting by the way, going to the Future that I will see increase in in web that that uh, um, automatically. But on a year-over-year comparison is we will continue to increase the overall spend, that will come through the system. I believe that, uh, um also uh, the web will capture some of those, uh, uh, spend yet.

Tal Jacobson: Well, I think a lot of what would help me is, of the 11% decline, you said that most of it was this decision you'd made in February. Was it 8% of the 11%? You would have only been down 3% in web if you hadn't taken the actions yourself in February. How much of the 11% decline was your actions in February? No, actually, more closely towards 13% was related to our action. So overall, otherwise, I would say the web is increasing at roughly 2%. Okay. Well, that answer I like a lot. So thank you. That's perfect. Thank you. Thank you. Our last question comes from Jason Grayer with Gray Cullum Capital Group. Please unmute your line and ask your question. Great. Thank you, guys. Just one for me. You'd highlighted how Soda and the Digital Out-of-Home Player create more predictable revenue streams.

Was that answering question. Well, so I think a lot of what would help me is of the 11% decline. You said that, most of it was this decision you'd made in February, was it 8% of the 11%? Like, you would have only, been down, 3% in web. If you hadn't taken the actions yourself in February, how much of the 11% decline was your actions in February?

No. Actually more closely towards uh a 13% was related to our action. So overall otherwise I would say the the web is increasing its roughly 2%.

Okay, well that answer. I like a lot.

Thank you.

Our last question comes from Jason crayer with Craig Callum Capital group. Please unmute your line and ask your question.

Tal Jacobson: Wondering if you can just size up those opportunities and give a little more detail on how you monetize those solutions. Thanks. Thank you, Jason. First of all, welcome. We're very happy to have you with us. In terms of Soda and the Digital Out-of-Home Player, the thing is we're trying to be the marketing operating system within the tech stack of the inventory part, right? While Perion One is the operating system for marketers, Soda and the Digital Out-of-Home Player is the operating system for the inventory part. We want to be as implemented as possible within their tech stack. Soda for out-of-home and web publishers, and obviously, the Digital Out-of-Home Player can get a bigger chunk of all the spend that's going through the screens.

Good. Thank you, guys. Just one question from me: you highlighted how soda and the out-of-home player create more predictable revenue streams. I was wondering if you can size up those opportunities and give a little more detail on how you monetize those solutions. Thanks.

First of all, welcome. We're very happy to have you with us.

Um, so in terms of a soda and the digital phone player,

The thing is we're trying to be the operating system. The marketing operating system within the tech stack of the inventory part, right? So what period 1 is operating system for marketers.

Tal Jacobson: What it means is a lot of the time when digital out-of-home screen owners, the budget that we're seeing through them is the programmatic part. When we implement the Digital Out-of-Home Player, we can actually benefit from all the budgets that are going through that. That means direct and programmatic. That actually increases our TAM quite dramatically. Once that's going to be deployed in big scale, that will provide us better visibility and predictability into our revenue streams. Does that answer your question? Yep. That's perfect. Thank you. Thank you. This now concludes the question and answer session. I'll now hand back to Tal Jacobson for closing remarks. Thank you, everyone, for joining us at the Q3 earnings call. We're happy to show that we're making good progress on our Perion One vision, and I hope to see you everyone at our next earnings call. Thank you.

Soda and the digital home player is the operating system for the inventory part. And we want to be as implemented as possible within the tech step. So, soda for out of home and and web Publishers. And obviously, these are compared can get a bigger chunk of all the spent that's going, uh, through the the, the screens what it means is a lot of the time when digital have homes, uh, screen owners

The the budget that we're seeing to them is that the programmatic part, but when we implement the digital of Home player, we can actually benefit from all the budgets that are going through that. And that means direct and programmatic, that actually increases our time, uh, quite dramatically and it does. Once that's going to be deployed in in big scale that will provide us better visibility and predictability into our revenue streams.

That answer your question.

Yep, that's perfect. Thank you.

Thank you.

You're welcome, please. The question and answer session. I'll now hand back to tell Jacobson for closing remarks.

Thank you, everyone, for joining us at the Q3 earnings call. We're happy to show that we're making good progress on our $1 billion vision, and I hope to see everyone either on the next call or any call. Thank you.

This concludes today's call, thank you very much for joining you may now. Disconnect

Tal Jacobson: This concludes today's call. Thank you, everyone, for joining. You may now disconnect.