Nexxen Reports Fourth Quarter and Full Year 2025 Financial Results

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].