Integrated suite of solutions helps advertisers reduce manual heavy lifting on campaigns and gain a clearer view of true performanceNEW YORK, March 24, 2026 (GLOBE NEWSWIRE) -- Nexxen, the advertising technology platform powered by unique data and media, today highlighted the full-funnel performance capabilities available within its demand-side platform (“DSP”), Nexxen DSP. The capabilities span a set of integrated and AI-led optimization, measurement and reporting tools, enabling advertisers and media buye ...

Nexxen International Ltd. Sponsored ADR (NEXN) closed the last trading session at $6.81, gaining 13.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $10.28 indicates a 51% upside potential.The mean estimate comprises nine short-term price targets with a standard deviation of $2.61. While the lowest estimate of $7.50 indicates a 10.1% increase from the current price level, the mos ...

Core Insights - Nexxen is focusing on enterprise offerings that leverage its combined demand-side platform (DSP) and data capabilities, with a significant increase in its enterprise customer base in 2025 [1] - The company has upgraded its infrastructure and doubled its supply-side platform (SSP) capacity to enhance publisher monetization and support programmatic trading growth [2] - Early 2026 performance is exceeding expectations due to infrastructure investments and new partnerships, with significant advertising events anticipated to drive revenue [3][4] Financial Performance - For Q4, Nexxen reported mixed results with programmatic revenue down modestly, but a 51% increase in data products contribution ex-TAC [5] - The company ended 2025 with $133.3 million in cash, no long-term debt, and plans for a $50 million investment in V to achieve approximately 6% ownership [5][17] - Q4 contribution ex-TAC was $97.8 million, down 7% year-over-year, while programmatic revenue was $94.3 million, down 4% year-over-year [17] Growth Projections - Nexxen has guided for 2026 contribution ex-TAC of $375 million to $390 million and programmatic revenue of $367 million to $381 million, indicating over 8% and 10% year-over-year growth, respectively [19] - The company expects growth in enterprise self-service, data products, and CTV, supported by sales execution and the expanded V partnership [20] Strategic Initiatives - Nexxen launched the industry's first programmatic Smart TV on-screen advertising solution, aiming to monetize home-screen inventory programmatically [8][9] - The partnership with V and other DSPs is expected to enhance data licensing momentum and expand the company's market reach [11][12] - Management is evaluating strategic options for non-programmatic lines to focus on higher growth and quality revenue [20]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported Contribution ex-TAC of $97.8 million, reflecting a 7% year-over-year decrease or a 1% decrease excluding political revenue [19] - Programmatic revenue was $94.3 million, down 4% year-over-year but up 2% excluding political revenue [19] - Adjusted EBITDA for Q4 was $33.9 million, representing a 35% margin as a percentage of Contribution ex-TAC [22] - Non-IFRS diluted earnings per share was $0.33 in Q4 compared to $0.48 in Q4 2024 [23] - For the full year 2026, the company expects Contribution ex-TAC in the range of $375 million-$390 million, representing over 8% year-over-year growth at the midpoint [26] Business Line Data and Key Metrics Changes - Contribution ex-TAC from the non-programmatic business line declined by approximately $3 million year-over-year [20] - CTV revenue declined 19% year-over-year in Q4 to $30.1 million, but the company expects CTV to represent a core long-term growth engine [21] - Desktop video revenue increased 21% year-over-year, while mobile video revenue declined 9% [20] - Contribution ex-TAC from data products increased 51% year-over-year [20] Market Data and Key Metrics Changes - The company noted that over 80% of mobile ad spend occurred in apps in 2025, with mobile expected to account for over two-thirds of total digital ad spend by 2027 [11] - The company is focusing on expanding its partnerships in the mobile in-app ecosystem to support long-term growth and revenue durability [11] Company Strategy and Development Direction - The company plans to continue investing in enterprise solutions and has doubled its enterprise customer base in 2025 [7] - The launch of a programmatic Smart TV on-screen advertising solution is expected to create a new growth channel for advertisers [8] - The company is focusing on building relationships with leading DSPs and enhancing its data capabilities to drive enterprise adoption [11] - The company aims to capitalize on major advertising events in 2026, including the FIFA World Cup and US midterm elections [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to expand margins over time through Contribution ex-TAC growth and disciplined cost management [22] - The company is optimistic about the early momentum in 2026, driven by strong January and February results [5][27] - Management highlighted the importance of AI integration and infrastructure investments made in 2025 to support long-term growth [14][28] Other Important Information - The company repurchased 1.44 million shares in Q4, investing approximately $10.8 million [23] - The company plans to invest an additional $50 million in its partnership with V in Q3 2026, expecting to hold a 6% equity stake [24][25] Q&A Session Summary Question: Can you provide more details on how AI is reshaping the open internet and its impact on 2025 results? - Management noted that browsing is decreasing as users turn to AI for answers, prompting a shift towards CTV and in-app mobile, which are less affected by AI [34][35] Question: What is the current revenue stream for data and how does it contribute to growth? - Management indicated that data is integrated into over 80% of campaigns, enhancing media spend and generating high-margin revenue [52] Question: What portion of growth is expected from political advertising in 2026? - Management stated that political advertising is not a major focus for growth projections but has seen success in previous cycles due to strong segmentation tools [93]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported Contribution ex-TAC of $97.8 million, reflecting a 7% year-over-year decrease or a 1% decrease excluding political revenue [19] - Programmatic revenue was $94.3 million, down 4% year-over-year but up 2% excluding political revenue [19] - Adjusted EBITDA for Q4 was $33.9 million, representing a 35% margin as a percentage of Contribution ex-TAC [22] - Non-IFRS diluted earnings per share was $0.33 in Q4 compared to $0.48 in Q4 2024 [23] - For the full year 2026, the company expects Contribution ex-TAC in the range of $375 million-$390 million, representing over 8% year-over-year growth at the midpoint [26] Business Line Data and Key Metrics Changes - Contribution ex-TAC from the non-programmatic business line declined by approximately $3 million year-over-year [20] - CTV revenue declined 19% year-over-year in Q4 to $30.1 million, but the company expects growth in 2026 [21] - Desktop video revenue increased 21% year-over-year, while mobile video revenue declined 9% [20] - Contribution ex-TAC from data products increased 51% year-over-year [20] Market Data and Key Metrics Changes - The company noted that over 80% of mobile ad spend occurred in apps in 2025, with mobile expected to account for over two-thirds of total digital ad spend by 2027 [11] - The company is focusing on expanding its presence in the CTV market, which is expected to be a core long-term growth engine [21] Company Strategy and Development Direction - The company plans to continue investing in enterprise solutions and has doubled its enterprise customer base in 2025 [7] - The launch of a programmatic Smart TV on-screen advertising solution is expected to create a new growth channel for advertisers [9] - The company is focusing on building partnerships with leading DSPs to enhance its programmatic advertising capabilities [10] - The company aims to capitalize on major advertising events in 2026, including the FIFA World Cup and U.S. midterm elections [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to expand margins over time through disciplined cost management and anticipated benefits from AI initiatives [22] - The company is seeing strong momentum in early 2026, with contribution ad stack and programmatic revenue trending ahead of initial expectations [6] - Management highlighted the importance of infrastructure investments made in 2025 to support long-term programmatic trading growth [6] Other Important Information - The company repurchased 1.44 million shares in Q4, investing approximately $10.8 million [23] - The company plans to invest an additional $50 million in its partnership with V in Q3 2026, expecting to hold a 6% equity stake [24] Q&A Session Summary Question: Can you provide more details on the impact of AI on 2025 results and CTV growth in 2026? - Management noted that AI is reshaping user engagement, leading to a decline in traditional browsing, which has prompted a shift towards CTV and in-app mobile solutions that are less affected by AI [34][35][38] Question: What is the current revenue stream for data and how does it contribute to growth? - Management indicated that ACR data is becoming increasingly valuable for DSPs, with data integration being a significant part of their campaigns, enhancing overall media spend [50][52] Question: What portion of growth is expected from political advertising in 2026? - Management stated that while political advertising is not a major focus, they have built dedicated teams to leverage their segmentation tools for political campaigns, expecting positive contributions [93]

Financial Data and Key Metrics Changes - In Q4 2025, Contribution ex-TAC was $97.8 million, reflecting a 7% year-over-year decrease or a 1% decrease excluding political advertising [19] - Programmatic revenue was $94.3 million, down 4% year-over-year but up 2% excluding political [19] - Adjusted EBITDA for Q4 was $33.9 million, representing a 35% margin as a percentage of Contribution ex-TAC [21] - Non-IFRS diluted earnings per share was $0.33 in Q4 compared to $0.48 in Q4 2024 [22] - For full year 2025, Contribution ex-TAC retention rate declined to 92% from 102% in 2024 [21] Business Line Data and Key Metrics Changes - Contribution ex-TAC from data products increased 51% year-over-year [20] - CTV revenue declined 19% year-over-year in Q4 to $30.1 million [20] - Desktop video revenue increased 21% year-over-year [20] - Mobile video revenue declined 9% [20] Market Data and Key Metrics Changes - According to eMarketer, over 80% of mobile ad spend occurred in apps in 2025, with mobile expected to account for over two-thirds of total digital ad spend by 2027 [11] - Nielsen reports that viewers spend an average of about 10 minutes per day on Smart TV home screens, making it a valuable advertising surface [8] Company Strategy and Development Direction - The company plans to expand its enterprise solutions and has doubled its enterprise customer base in 2025 [6][7] - Investments in AI and infrastructure are aimed at enhancing programmatic trading growth and supporting long-term revenue durability [5][12] - The launch of a programmatic Smart TV on-screen advertising solution is expected to create a new growth channel for advertisers [9][10] - The company is focusing on building partnerships with leading DSPs to enhance its market position [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to expand margins over time through disciplined cost management and anticipated benefits from AI initiatives [22] - The company expects contribution ex-TAC in the range of $375 million-$390 million for 2026, representing over 8% year-over-year growth at the midpoint [25] - Early 2026 performance is trending ahead of expectations, driven by strong January and February results [26] Other Important Information - The company repurchased 1.44 million shares in Q4, investing approximately $10.8 million [22] - A new program of up to $40 million for share repurchase has been approved to begin after the current program concludes [23] - The company plans to invest an additional $50 million in its partnership with V in Q3 2026 [23] Q&A Session Summary Question: Impact of AI on 2025 results and CTV growth in 2026 - Management noted that AI is reshaping user engagement, leading to a decline in traditional browsing, which has prompted a shift towards CTV and in-app mobile solutions [31][32] Question: Update on data revenue and growth guidance for 2026 - Management highlighted that ACR data is becoming increasingly valuable for DSPs, and they expect to see growth in data-related revenues as partnerships expand [43][50] Question: Contribution of political advertising to growth and acquisition interest - Management indicated that while political advertising is not a major focus yet, they anticipate strong interest and engagement as the political season progresses [89][92]

March 4, 2026 © 2026 Nexxen International. All rights reserved. Confidential information of Nexxen. © 2026 Nexxen International. All rights reserved. Confidential information of Nexxen. Introduction to Speakers and Safe Harbor Statement This presentation has been prepared by Nexxen International Ltd. (the "Company" or "Nexxen"). This presentation and the accompanying oral presentation contain forward-looking statements. These statements may relate to, but are not limited to: statements regarding anticipated ...

Revenue Concentration and Customer Dependence - For the year ended December 31, 2025, two buyers represented 12.1% and 11.3% of revenue, indicating a reliance on a limited number of large advertising customers[55] - As of December 31, 2025, two buyers accounted for 22.6% and 10.7% of trade receivables, highlighting potential risks in revenue concentration[55] - The company must continually add new advertisers and publishers to its platform to sustain revenue growth, as existing contracts do not guarantee long-term commitments[52] - The business relies on access to valuable publisher inventory, with a small number of publishers historically accounting for a significant portion of revenue[60] Competition and Market Dynamics - The company faces intense competition and must continuously innovate its platform, including investments in machine learning and generative artificial intelligence[62] - The advertising technology market is highly dynamic, and strategic decisions regarding product development and market positioning carry significant risks[76] - The advertising technology market is experiencing significant consolidation, increasing pricing pressure on the company as larger competitors can offer bundled solutions and negotiate better terms[78] - Increased competition from large integrated players may create barriers to entry or expansion, limiting the company's ability to invest in product innovation[80] - The company faces intense competition in the advertising industry, which may hinder its ability to increase revenue and market share[108] Regulatory and Compliance Risks - Regulatory challenges, such as GDPR and CCPA, may impose restrictions on data collection, which is critical for delivering effective advertising solutions[66] - Privacy laws and regulations, such as GDPR and CCPA, require user consent and may limit the use of tracking data, impacting advertising effectiveness[85] - The company may face increased compliance costs and operational challenges due to evolving laws and regulations on political advertising and data protection[150][152] - The company has implemented control mechanisms to prevent unauthorized dealings with sanctioned countries, but cannot guarantee future compliance[175] - The company has policies and controls in place to promote compliance with anti-corruption laws, but non-compliance could lead to significant penalties and reputational harm[176] Operational and Growth Challenges - The company must manage rapid growth effectively to avoid operational strains and maintain shareholder value[76] - The company must scale its platform infrastructure to support anticipated growth and transaction volume; failure to do so may limit inventory processing and result in lost revenue[87] - Challenges in recruiting and retaining skilled employees could adversely affect the company's growth and operational efficiency[116] - Long sales cycles for acquiring new advertisers and publishers can lead to significant upfront costs without guaranteed revenue generation[138] - The company is exposed to credit risks due to contracts with advertising agencies that may not pay, leading to potential write-offs for bad debt[139] Economic and Geopolitical Factors - The company's revenue and operations are highly dependent on advertising demand, which is influenced by macroeconomic factors such as inflation, interest rates, and geopolitical issues[99] - Economic downturns and uncertainties have led many advertisers to reduce their advertising budgets, negatively impacting the company's revenue and financial condition[103] - The company operates in 180 countries, exposing it to various risks including political unrest, natural disasters, and regulatory changes that could disrupt operations and affect financial results[101] - The ongoing geopolitical tensions, particularly in Israel, could materially impact the company's business operations and employee safety[118] - The economic implications of military actions and geopolitical instability may lead to a downgrade in Israel's credit rating, adversely impacting the company's operations[124] Financial Performance and Shareholder Considerations - Total comprehensive income for the year ended December 31, 2025, decreased to $27.9 million from $35.4 million in 2024, representing a decline of 21.3%[223] - Adjusted EBITDA for the year ended December 31, 2025, increased to $115.1 million, reflecting a year-over-year increase of 0.5%[223] - The company may not pay cash dividends in the future, making capital appreciation the sole source of gains for shareholders[203] - The company has made several acquisitions, including RhythmOne in 2019 and Amobee in 2022, which complicate the evaluation of its financial performance over time[135] - The company entered into a $90 million senior secured term loan facility and a $90 million senior secured revolving credit facility in September 2022, with a total repayment of $100 million by April 9, 2024[145] Technology and Innovation - The proprietary Nexxen Data Platform integrates robust datasets and employs AI to optimize media costs and improve targeting precision[245] - The AI suite branded as "nexAI" provides comprehensive solutions across the digital advertising technology supply chain, enhancing competitive advantage[242] - The company continues to invest in and innovate Video-focused solutions to capture growth opportunities in the evolving digital advertising landscape[241] - The integration of first-party data with third-party partnerships allows for the identification and expansion of curated audiences, benefiting both advertisers and publishers[245] Market Trends and Opportunities - The global digital advertising market is approximately $792 billion and is expected to grow at a CAGR of approximately 10% through 2029[216] - The company focuses on fast-growing segments such as Connected TV (CTV) and Video, leveraging its data and AI capabilities to enhance market share[215] - U.S. programmatic digital video ad spending is expected to increase from approximately $118 billion in 2025 to roughly $159 billion in 2027, at a CAGR of approximately 16%[227] - U.S. CTV ad spend is projected to grow at a CAGR of approximately 12% from 2025 to 2029, reaching roughly $53 billion[233] - The advertising environment in 2025 remained generally positive, but growth was constrained by cautious consumer spending and macroeconomic uncertainty[220]

Core Insights - Nexxen International Ltd. reported financial results for Q4 and full year 2025, highlighting a strong start in 2026 with revenue growth exceeding initial expectations [1][4]. Financial Highlights - Q4 2025 Contribution ex-TAC was $97.8 million, down 7% year-over-year, while programmatic revenue was $94.3 million, down 4% year-over-year [6][11]. - Full year 2025 Contribution ex-TAC reached a record $353.1 million, up 3% year-over-year, and programmatic revenue was $340.6 million, up 5% year-over-year [6][11]. - Adjusted EBITDA for Q4 2025 was $33.9 million, down 23% year-over-year, with a margin of 35% on a Contribution ex-TAC basis [6][11]. - The company had $133.3 million in cash and cash equivalents as of December 31, 2025, with no long-term debt [6][11]. Operational Highlights - Nexxen launched an expanded partnership with V, enhancing its competitive advantages and long-term revenue opportunities in CTV and data [1][5]. - The company introduced Nexxen Sports, a solution suite targeting live sports advertising, and Curated Marketplace for premium data-driven deals [12]. - Nexxen's programmatic Smart TV home screen ad activation solution has been adopted by strategic partners, including V and The Trade Desk, generating positive early results [5][9]. Financial Guidance - For full year 2026, Nexxen projects Contribution ex-TAC in the range of $375 - $390 million, representing approximately 8% year-over-year growth at the midpoint [9]. - Programmatic revenue is expected to be in the range of $367 - $381 million, indicating approximately 10% year-over-year growth at the midpoint [9]. - Adjusted EBITDA is forecasted to be between $122 - $132 million, reflecting approximately 10% year-over-year growth [9]. Strategic Initiatives - The company plans to shift resources towards its enterprise DSP and data platform, increasing investments in nexAI to drive deeper enterprise adoption [9]. - Nexxen aims to enhance its programmatic Smart TV home screen solution and pursue new mobile in-app partnerships to strengthen resilience against AI disruption [9]. - The company is evaluating strategic options for its non-core business lines following recent performance weaknesses [9].

Core Viewpoint - Nexxen International Ltd. has announced a share repurchase of 496,981 shares at an average price of $6.02, with a remaining authorization of approximately $2.0 million under its current program [1][2]. Group 1: Share Repurchase Program - The company repurchased 496,981 shares in February 2026 at an average price of $6.02 [1]. - As of February 28, 2026, Nexxen had 55,720,779 ordinary shares outstanding, excluding treasury shares [1]. - Nexxen has received authorization for a new share repurchase program of up to $40 million, which will begin after the current program concludes [2]. Group 2: Program Details - The new share repurchase program does not obligate the company to repurchase a specific number of shares and can be suspended or modified at any time [2]. - Shares repurchased under the new program will be classified as dormant shares under Israeli Companies Law and held in treasury without rights [2]. Group 3: Company Overview - Nexxen is a global advertising technology platform specializing in data and advanced TV, offering a flexible technology stack that includes a demand-side platform and a supply-side platform [4]. - The company is headquartered in Israel and has offices in the United States, Canada, Europe, and Asia-Pacific, and is traded on Nasdaq under the ticker NEXN [5].