Nexxen International (NASDAQ:NEXN) executives told investors they met updated full-year 2025 guidance and are seeing “strong momentum” early in 2026, citing record January and February results and improving trends in programmatic revenue and contribution ex-TAC.
On the company’s fourth-quarter earnings call, CEO Ofer Druker said contribution ad stack and programmatic revenue in the first quarter to date are tracking ahead of initial expectations following “the strongest January and February in our history.” He attributed the early 2026 performance to infrastructure investments made in 2025, new and expanded partnerships with demand-side platforms (DSPs), and differentiated connected TV (CTV) media assets and data. Druker also pointed to 2026 advertising catalysts including the Winter Olympics, the FIFA World Cup, and the U.S. midterm elections.
Infrastructure expansion and enterprise focus
The CEO also emphasized a push toward enterprise offerings built around the company’s combined DSP and data capabilities, including deeper AI integration. Druker said Nexxen added go-to-market and product talent in 2025 and shifted internal sales resources toward enterprise solutions, resulting in the enterprise customer base more than doubling during the year. He described enterprise growth as a long-term effort but said the company believes the timing is right to invest.
CTV “on-screen” programmatic product and V partnership
A major strategic theme was Nexxen’s effort to expand into formats the company believes are less exposed to AI-driven disruption, including Smart TV home screen advertising and mobile in-app inventory. Druker said Nexxen launched what it believes is the industry’s first programmatic Smart TV on-screen advertising solution in the second half of 2025, enabling programmatic access to home screen inventory on CTV original equipment manufacturers (OEMs).
He described the Smart TV home screen as a highly visible surface where, according to Nielsen research he cited, viewers spend about 10 minutes per day deciding what to watch. Historically, he said, advertising on that page has been sold via direct deals and ad servers; Nexxen’s product is intended to make it accessible through a programmatic workflow.
Druker said VIDAA (rebranded as “V”), a CTV operating system for Hisense and other OEMs, is Nexxen’s first operating system partner to adopt the technology, and that the integration is live across V-powered devices globally. He also said Nexxen is working with The Trade Desk as its first strategic DSP partner for the on-screen solution following an agreement among V, The Trade Desk, and Xandr to bring V’s inventory into The Trade Desk’s Ventura ecosystem.
Management framed the partnership as a step toward industry standardization, DSP capability adjustments, and broader awareness of the Smart TV on-screen category. Druker said Nexxen expects additional partners to follow based on inbound interest and active discussions.
Data licensing growth and mobile in-app partnerships
Druker and CFO Sagi Niri both highlighted data as a differentiator, especially TV data licensing. Druker said Nexxen’s V partnership has continued to drive “data licensing momentum” and that in the fourth quarter the company entered a licensing agreement with Yahoo DSP, expanding a TV data partnership roster that already included The Trade Desk and StackAdapt.
In response to an analyst question about the company’s data revenue run rate, Druker did not provide a specific figure, but said the data business is high margin and should be viewed both as direct licensing revenue and as a driver of increased media spend through deeper integration with DSP partners. He said data is used in more than 80% of Nexxen campaigns.
On mobile, management said the company partnered with “leading mobile in-app ecosystem players” in 2025 and early 2026 as part of a diversification effort. Druker cited eMarketer data indicating that more than 80% of mobile ad spend occurred in apps in 2025, and said Nexxen built infrastructure to scale in-app media. He said mobile in-app will remain a focus in 2026 as the company pursues new and expanded partnerships.
Q4 results, cash position, and 2026 outlook
Niri said fourth-quarter results were affected by multiple factors, including reduced spending from one DSP customer tied to an initiative at that customer, softness in non-programmatic lines, more competitive CPMs, tariff-driven reductions from certain partners, and the absence of political advertising spend compared with the prior-year quarter. While he said non-programmatic weakness persisted and some customers remained cautious due to tariffs and seasonality, he added that contribution ex-TAC and programmatic revenue trends in Q1 to date are ahead of initial expectations and that the DSP customer impact appears isolated to Q4.
- Q4 contribution ex-TAC: $97.8 million, down 7% year over year (down 1% excluding political).
- Q4 programmatic revenue: $94.3 million, down 4% year over year (up 2% excluding political).
- CTV revenue: $30.1 million, down 19% year over year (down 12% excluding political), with management attributing the decline partly to the DSP customer.
- Desktop video revenue: up 21% year over year; mobile video down 9% year over year.
- Data products contribution ex-TAC: up 51% year over year.
- Adjusted EBITDA: $33.9 million, a 35% margin as a percentage of contribution ex-TAC.
- Cash and liquidity: $133.3 million in cash and cash equivalents as of Dec. 31, no long-term debt, and $50 million available under an undrawn revolving credit facility.
- Non-IFRS diluted EPS: $0.33 vs. $0.48 in Q4 2024.
For the full year 2025, Niri said contribution ex-TAC retention declined to 92% from 102% in 2024, which he attributed primarily to the company’s decision to discontinue smaller customer relationships that were not generating meaningful contribution ex-TAC. Contribution ex-TAC per active customer rose about 7% year over year to approximately $563,000.
On capital allocation, Niri said the company repurchased 1.44 million shares in Q4 for about $10.8 million, and from March 2022 through year-end 2025 repurchased about 38.5% of outstanding shares for roughly $258.2 million. He said about $2 million remained under the current authorization as of Feb. 28, and that a new $40 million repurchase program was approved to begin after the current program concludes.
Niri also discussed Nexxen’s investment in V, saying the company will invest another $50 million in Q3 2026 following an additional $20 million investment in Q3 2025. He said that once deployed, Nexxen expects to hold an approximately 6% (or $60 million) equity stake, making it V’s largest shareholder outside of Hisense. He said V plans to use the investment to expand retailer relationships and grow its North American CTV footprint, which Nexxen believes can enhance the long-term value of its data and ad monetization exclusivity and its equity stake.
Looking ahead, Nexxen guided for 2026 contribution ex-TAC of $375 million to $390 million and programmatic revenue of $367 million to $381 million, which management said would represent more than 8% year-over-year growth at the midpoint for contribution ex-TAC and about 10% year-over-year growth at the midpoint for programmatic revenue. The company also forecast 2026 adjusted EBITDA of $122 million to $132 million, or roughly a 33% margin at the midpoint.
Executives said they expect growth across enterprise self-service, data products, and CTV in 2026, supported by sales execution, the expanded V partnership, and adoption of the programmatic Smart TV home screen product. They also said the company is evaluating strategic options for non-programmatic lines as it shifts toward “higher growth, higher quality” revenue.
In Q&A, management described political advertising as an expected tailwind later in 2026 but said it was still early in the year. The company also said it remains open to acquisitions but did not cite specific targets.
About Nexxen International (NASDAQ:NEXN)
Tremor International Ltd provides end-to-end software platform that enables advertisers to reach relevant audiences and publishers. The company's demand side platform (DSP) offers full-service and self-managed marketplace access to advertisers and agencies to execute their digital marketing campaigns in real time across various ad formats. Its sell supply side platform (SSP) provides access to data and a comprehensive product suite to drive inventory management and revenue optimization. The company also offers data management platform solution, which integrates DSP and SSP solutions enabling advertisers and publishers to use data from various sources in order to optimize results of their advertising campaigns.
