Perion Network Ltd. (PERI) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, PERI scores 44 out of 100, a letter grade of D, labeled "Roarable Sell — Underperform / Distribution Warning." The five pillars are:

• Fundamental Cash Engine: 11 / 20. Per the RQD rating, ROIC is -2% and FCF yield is 10.97%. For an investor, the high FCF yield is the main supportive datapoint, but it sits alongside negative returns on invested capital, meaning the cash generated is not yet translating into value creation on the capital base.
• Whale 13F Flow: 7 / 20. The RQD rating summarizes this pillar as institutional accumulation and options positioning. The underlying 13F holdings detail is not provided in source data, so the weakness of this score cannot be traced to specific holders.
• Insider Conviction: 9 / 20. Per the RQD rating, this reflects SEC Form 4 and Congressional PTR cluster flow. Among the news items, a MarketBeat headline references a director selling 2,916 shares, which the pillar score appears to weigh negatively.
• Macro Regime Fit: 8 / 20. Per the RQD rating, beta is 1.0 and the score reflects sector sensitivity. A beta of 1.0 implies market-level sensitivity to broad moves; the sector-specific sensitivity inputs are not itemized in source data.
• Forensic Balance Sheet: 9 / 20. Per the RQD rating, Altman Z is 2.03, Piotroski F is 4/9, and Debt/Equity is 0.5. These readings sit in a middling range: the Altman figure is not in a clearly distressed zone, but the Piotroski score signals weak fundamental quality on the scoring checklist.

Taken together, the pillar scores indicate that the rating's weakest areas are institutional flow and insider conviction, with the balance sheet and macro fit only modestly better. For a prospective investor, the upside case rests on the 10.97% FCF yield and a 1.0 beta that does not signal elevated market-relative volatility. The valuation tradeoff is that negative ROIC and negative operating and net margins make it difficult to justify the current price on earnings-based measures, and several standard valuation multiples are unavailable in source data.

Per the SEC financials, revenue declined from $743.2M in FY 2023 to $498.3M in FY 2024 and $439.9M in FY 2025, while operating income moved from $114.3M to $-3.0M and then $-14.9M. Per the market data, operating margin is -3.4%, net margin is -1.8%, and gross margin is 0%, with ROIC at -2%. Per the RQD rating, the Altman Z-Score is 2.03 and the Piotroski F-Score is 4/9. Debt/Equity is 0.5 per the RQD rating; reported debt figures are N/A in the financials.

Per the recent news and catalysts feed, six items reference PERI, all tagged YELLOW with a MARKET WIRE impact label:

• An earnings-preview headline from Seeking Alpha indicates the upcoming earnings report carries additional significance.
• A Benzinga headline references a sharp Monday price move.
• A MarketBeat headline reports a director sale of 2,916 shares of company stock.
• A TradingView item covers analyst estimates for the company.
• A Simply Wall St and a Yahoo Finance UK item provide general stock analysis and quote history.

The feed contains no quantified catalyst values beyond these headlines. Per the Butterfly Supply-Chain Graph, no proprietary signals are present (see next section).

• What are PERI's products, customers, and revenue drivers, given the source data provides only sector and industry classification?
• Why did revenue fall from $743.2M in FY 2023 to $439.9M in FY 2025, and what drove the swing from operating income of $114.3M to a loss?
• What are the reported EPS, debt, and cash-flow definitions behind the N/A and blank fields in the FY 2024 and FY 2025 financials?
• What are the forward earnings and valuation multiples, given P/E, forward P/E, and EV/EBITDA are all unavailable?
• Which institutional holders and insiders are driving the whale-flow and insider-conviction pillar scores, given no holder data is provided?