More ... latest change: 2025-04-30

After conducting a forensic financial review of Perion Network, Ltd. (Nasdaq / TASE: PERI), we have │ concerns about the accuracy of its financial reporting, efficacy of its product suite, and the │ sustainability of its growth. We outline why we believe our evidence points to at best case sloppy │ and error-prone reporting, and at worst case manipulative accounting and reporting practices that │ make it difficult to track performance. Perion has a history of business model pivots that spark │ unsustainable improvements in performance and share price. We believe this time is no different and │ will end poorly for investors. After CEO Doron Gerstel took control in 2017, Perion appointed a │ controversial search executive, loosened its clawback provision, made operational changes, acquired │ three suspicious companies, and dramatically boosted expectations for its Microsoft partnership │ (now 35% of revenue). On the surface, its financial results put it in a rarefied category of elite │ technology companies with high revenue and cash flow generation and limited capex. PERI’s share │ price increased 5x since 2020. Nothing lasts forever, as abnormal growth and profits in ad- │ technology generally attract competition that reduces margins over time. Warning: Despite $436m of │ cash on hand and no debt, PERI is asking shareholders at its annual meeting next month to authorize │ an additional 20m of shares and cited, “in order to preserve and increase our market │ competitiveness and expand our business.”