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]

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 Insights - Nexxen has launched a predictions report for the 2026 FIFA World Cup, utilizing proprietary data to analyze audience behavior and provide insights for advertisers [1][3] - The report indicates that while World Cup audiences are increasing, viewing habits are rapidly diversifying across streaming and linear platforms [1] Group 1: Audience Behavior and Trends - U.S. interest in soccer has risen by 48%, with North America hosting the tournament being a significant factor [6] - 43% of fans plan to watch via streaming/apps and virtual multichannel video programming distributors (vMVPDs), marking a 14% increase from 2022 [6] - If free streaming options become available, 87% of fans would opt to watch matches on a free ad-supported streaming (FAST) service [6] - There is widespread confusion regarding where to watch, with 90% of intended viewers incorrectly identifying at least one platform that will carry matches [6] Group 2: Advertising Insights and Solutions - Nexxen's unified platform, which includes a supply-side platform (SSP) and demand-side platform (DSP), allows advertisers to engage with fans across various screens [2] - The report combines data from Nexxen Discovery, a tool that tracks audience behavior, with historical viewing patterns and a consumer survey of over 1,000 U.S. adults intending to watch the tournament [3]

Core Insights - Nexxen has launched Nexxen Sports, a new suite of solutions aimed at enhancing sports advertising by combining premium live sports content with data-driven audience insights and dynamic creative [1][2][3] Group 1: Product Offering - Nexxen Sports allows advertisers to reach 48% of Americans who watch live sports, with 85% tuning in weekly or more, leveraging a unified data-led platform that includes both demand-side and supply-side capabilities [2][3] - The platform enables brands to uncover unexpected audience affinities and plan optimal cross-screen media mixes, maximizing engagement and performance [3][4] - Advertisers can create custom campaigns tailored to specific marketing goals, access pre-built packages for marquee events like FIFA's 2026 World Cup, and maintain audience reach year-round [7] Group 2: Market Engagement - The offering is designed to connect brands with highly engaged sports fans across devices, capitalizing on the fact that 75% of fans use a second device while watching sports [3] - Nexxen Sports aims to provide a powerful way for advertisers to connect with fans, enhancing the overall advertising experience through data-driven activation and premium inventory [4][5] - The partnership with FanDuel Sports Network has resulted in a 40% year-over-year lift in advertising effectiveness, highlighting the value of data-driven strategies [4]