Perion revenue fell 41% as 2025 profit turned to a loss

Perion Network Ltd reported revenue of US$43.99 crore in calendar year 2025, down 41% from US$74.32 crore in 2023, while profit after tax moved from a US$11.5 crore profit to a US$7.9 crore loss. The figures provide the operating backdrop to Affle’s proposed all-cash acquisition of Perion for about US$42 crore.

What happened to Perion’s revenue and profit?

Perion’s reported revenue declined in each of the three calendar years disclosed by Affle. Revenue was US$74.32 crore in 2023, fell to US$49.83 crore in 2024, and reached US$43.99 crore in 2025. The US$30.33 crore reduction between 2023 and 2025 represents a decline of about 41% over the two-year period.

Profit after tax, or PAT, declined more sharply than revenue in the same period. Perion reported PAT of US$11.5 crore in 2023 and US$1.26 crore in 2024, before recording a US$7.9 crore loss in 2025. The annual figures therefore show a change from profit to loss while turnover continued to decrease.

The filing does not state the causes of the revenue decline or the 2025 loss. It supplies the three-year revenue and PAT history in the background disclosure for Affle’s proposed transaction, rather than as a detailed earnings discussion. The numbers show the direction of performance, but do not support linking the change to a particular customer, product, market or expense item.

How did Perion’s decline develop over the three years?

Perion’s largest annual revenue reduction occurred in 2024. Revenue declined by US$24.49 crore, from US$74.32 crore in 2023 to US$49.83 crore in 2024, a reduction of about 33%. The 2025 reduction was US$5.84 crore from the 2024 level, or about 12%, making the second-year decrease smaller in both absolute and percentage terms.

PAT deteriorated on a different scale. From 2023 to 2024, PAT declined by US$10.24 crore, from US$11.5 crore to US$1.26 crore, leaving a small reported profit despite US$49.83 crore of revenue. In 2025, PAT decreased by a further US$2.05 crore and became a US$7.9 crore loss alongside revenue of US$43.99 crore.

Perion is described as an Israeli technology company headquartered in Tel Aviv, with a strong North American footprint and listings on Nasdaq and the Tel Aviv Stock Exchange. Its advertising-technology operations cover connected television, or CTV, digital out-of-home, commerce and retail media, social and digital environments, using artificial intelligence-native infrastructure for real-time media execution.

The filing says Perion completed three acquisitions in the previous three years and identifies retail media, digital out-of-home and CTV powered by Outmax AI as strategic segments. Affle says those acquisitions transformed Perion and unlocked profitable growth in those areas. However, Perion’s disclosed consolidated PAT for 2025 was a US$7.9 crore loss, so the statement about strategic segments is not a reported company-wide profit measure.

What is Affle proposing to acquire from Perion?

Affle proposes to acquire 100% of Perion’s outstanding shares and vested or granted equity awards in an all-cash transaction. The proposed price is US$11.70 per share, implying an equity value of about US$42 crore, including continuing equity awards granted as of the agreement date. The consideration excludes transaction costs and other related costs incurred by both parties.

Perion had no financial debt and approximately US$22.8 crore of cash as of September 30, 2026, according to the filing. These disclosures distinguish the stated US$42 crore equity value from an enterprise-value calculation: Affle labels the amount as equity value and separately identifies Perion’s debt-free position and cash balance.

The transaction was not a related-party transaction on the date the definitive merger agreement was signed, the filing says. It also says Affle’s promoter, promoter group and group companies had no interest in Perion. Because Perion is publicly held, Affle says transaction costs and related expenses would be recorded in its opening balance sheet.

The proposed acquisition remains conditional rather than complete. Conditions include approval by Perion stockholders, applicable regulatory and statutory approvals, compliance with regulatory and contractual requirements, and any required competition or antitrust clearances, including the expiration or termination of relevant waiting periods.

Why does Affle say Perion matters to its strategy?

Affle describes the investment as strategic for its consumer platform business and says it is intended to scale its cost-per-converted-user, or CPCU, business across developed markets. On completion, Affle says the combined platform would provide consumer-conversion use cases for thousands of advertisers in diversified verticals across more than 100 countries.

The stated rationale also includes Perion’s global footprint, technology capabilities and workforce of about 600 employees in developed markets. Affle says these elements would add developed-market growth to its existing presence in India and emerging markets. These are management’s objectives for the proposed combination, rather than reported revenue, profit or synergy forecasts.

Perion’s product coverage is relevant to that plan because it includes CTV, digital out-of-home, retail media, commerce, social and digital media execution. Affle’s filing does not provide revenue by product, segment-level operating profit, customer concentration, synergy estimates or an integration timetable for Perion’s roughly 600-person workforce.

The filing gives an indicative completion period of 180 days, subject to Perion’s go-shop process and shareholder approval. A go-shop process allows Perion to solicit alternative proposals, while the filing does not state whether a superior offer has emerged or whether the closing conditions have been met.

Conclusion

Perion enters Affle’s proposed acquisition after revenue declined from US$74.32 crore in 2023 to US$43.99 crore in 2025 and PAT changed from a US$11.5 crore profit to a US$7.9 crore loss. Against that three-year record, Affle has offered US$11.70 per share in cash, implying about US$42 crore of equity value for all outstanding shares and relevant equity awards.

The next disclosed milestones are the 180-day indicative completion period, Perion’s go-shop process, stockholder approval and required regulatory, competition and antitrust clearances. Affle’s stated plan is to use Perion’s advertising-technology capabilities, global footprint and workforce of about 600 employees to expand its CPCU business in developed markets, but the filing gives no financial target or synergy estimate for that plan.