Nexxen Reports Third Quarter 2025 Financial Results

Core Insights - Nexxen International Ltd. reported financial results for Q3 and the first nine months of 2025, highlighting strong performance driven by omnichannel growth and increased demand for data solutions [1][3] - The company renewed and expanded its strategic partnership with VIDAA, which is expected to enhance its CTV capabilities and drive future growth [3][11] - Nexxen lowered its full-year 2025 financial guidance due to lower-than-expected activity from certain third-party DSP partners [6][11] Financial Performance - Q3 2025 Contribution ex-TAC reached $92.6 million, an 8% increase year-over-year, while programmatic revenue was $89.6 million, up 10% year-over-year [5][12] - Adjusted EBITDA for Q3 2025 was $28.2 million, down 11% year-over-year, representing a 30% margin [5][12] - The company reported a total comprehensive income of $3.8 million for Q3 2025, a 77% decrease compared to the same period in 2024 [12][23] Operational Highlights - Nexxen launched the industry's first solution for programmatic Smart TV home screen activation, enhancing its advertising capabilities [3][11] - The company repurchased 1,796,215 Ordinary Shares during Q3 2025, completing a $50 million share repurchase program and initiating a new $20 million program [9][11] - Nexxen's cash and cash equivalents stood at $116.7 million as of September 30, 2025, with no long-term debt [5][12] Strategic Initiatives - The renewed partnership with VIDAA secures exclusive rights for video and display ad monetization in North America and extends access to ACR data through at least 2029 [11][11] - Management is shifting resources towards its DSP and data platform to enhance enterprise adoption and reduce reliance on third-party partners [11][11] - The company is exploring strategic opportunities to accelerate programmatic revenue growth and expand its data and CTV capabilities [11][11]