Generated record Q3 Contribution ex-TAC and programmatic revenue
Renewed and expanded strategic ACR data and ad monetization partnership with VIDAA; announced additional $35 million investment
Completed $50 million Ordinary Share repurchase program and launched a new $20 million program
NEW YORK, Nov. 13, 2025 (GLOBE NEWSWIRE) -- Nexxen International Ltd. (NASDAQ: NEXN) ("Nexxen" or the "Company"), a global, flexible advertising technology platform with deep expertise in data and advanced TV, announced today its financial results for the three and nine months ended September 30, 2025.
Q3 2025 Financial Highlights
- Record Q3 Contribution ex-TAC of $92.6 million, up 8% year-over-year (+14% excluding political)
- Record Q3 programmatic revenue of $89.6 million, up 10% year-over-year (+15% excluding political)
- Q3 CTV revenue of $24.5 million, down 17% year-over-year (-13% excluding political)
- CTV revenue reflected 27% of programmatic revenue, compared to 36% in Q3 2024
- Programmatic revenue increased to 94% of revenue, up from 90% in Q3 2024
- Adjusted EBITDA of $28.2 million, down 11% year-over-year, representing a 30% Adjusted EBITDA Margin on both a Contribution ex-TAC and revenue basis, compared to 37% on a Contribution ex-TAC basis and 35% on a revenue basis in Q3 2024
- Video revenue represented 70% of programmatic revenue, compared to 71% in Q3 2024
- $116.7 million in cash and cash equivalents as of September 30, 2025, alongside no long-term debt and $50 million undrawn on the Company's revolving credit facility
"We are pleased to have met our expectations for both Q3 and the first nine months of 2025, with performance driven by omnichannel growth, rising enterprise DSP adoption and growing demand for our data solutions," said Ofer Druker, Chief Executive Officer of Nexxen. "The renewal and expansion of our VIDAA partnership further differentiates Nexxen through exclusive CTV media and data and has enabled the launch of the industry's first solution for programmatic Smart TV home screen activation - unlocking a powerful, high-attention medium for advertisers through scaled OEM media previously inaccessible programmatically. This marks a major advancement for Nexxen and the CTV industry and is already generating strong interest. While we are disappointed with our reduced guidance, we are confident the initiatives underway to enhance our enterprise technology value proposition, strengthen resilience against disruptive trends and leverage our exclusive assets to capitalize on partnership opportunities will help mitigate extended impacts from headwinds affecting the business in Q4. Our conviction in our strategy and long-term growth prospects remains strong, and we believe Nexxen will emerge as a more resilient, strategic platform that industry leaders increasingly rely on in 2026 and beyond."
Financial Guidance
- Despite meeting its expectations for the nine months ended September 30, 2025, Nexxen lowers its full year 2025 financial guidance and now expects:
- Full year 2025 Contribution ex-TAC in the range of $350 - $360 million (reflecting full year 2025 Contribution ex-TAC growth of approximately 3% at the mid-point, or 6% excluding political)
- Programmatic revenue to represent approximately 95% of full year 2025 revenue (reflecting full year 2025 programmatic revenue growth of approximately 6% at the mid-point, or 9% excluding political)
- Full year 2025 Adjusted EBITDA in the range of $113 - $117 million
- Full year 2025 Contribution ex-TAC in the range of $350 - $360 million (reflecting full year 2025 Contribution ex-TAC growth of approximately 3% at the mid-point, or 6% excluding political)
- The updated guidance reflects several factors impacting the business in Q4 2025. The Company has observed lower-than-expected activity from certain third-party DSP partners within its open marketplace ("OMP") and private marketplace ("PMP") channels which has impacted Contribution ex-TAC within the Nexxen SSP to this point in Q4 2025. However, demand generated from the Nexxen DSP to the Nexxen SSP has remained in-line with expectations.
- Softness within the Company's OMP channel has been largely attributable to changes in spending behavior from one DSP customer. While the customer remains active on Nexxen's platform, its activity is expected to decrease significantly year-over-year in Q4 2025 after a sizable increase in spending during Q4 2024. Nexxen expects Contribution ex-TAC impact related to this customer's spending reduction to be isolated to Q4 2025 and not to materially affect its full year 2026 performance.
- Nexxen has also observed lower-than-expected spending from certain customers, and within certain verticals, to this point in Q4 2025.
- Additionally, the Company has experienced continued weakness in its non-core, non-programmatic business lines to this point in Q4 2025 and, as a result, management is actively evaluating all available options.
- Management is taking several actions it believes can effectively address the headwinds affecting the Company in Q4 2025, strengthen resilience against disruptive industry trends and enhance Nexxen's long-term growth potential. The Company is shifting sales, product and commercial resources toward its DSP and data platform to drive deeper enterprise adoption, expand end-to-end revenue opportunities and reduce reliance on third-party DSP partners. In parallel, management intends to enhance the Company's CTV capabilities through continued investment and innovation and pursue new scaled mobile-in app partnerships. Management is also increasing efforts to drive new and expanded strategic commercial relationships, leveraging Nexxen's exclusive data, media and programmatic Smart TV capabilities.
Q3 2025 Operational Highlights and Recent Developments
- Renewed and expanded VIDAA partnership, securing exclusive third-party video and display ad monetization rights on VIDAA's North American media, and extending Nexxen's exclusive global access to VIDAA's automatic content recognition ("ACR") data through at least 2029. Benefits related to the updated partnership are expected to commence in 2026.
- Announced additional $35 million investment in VIDAA, which is expected to expand VIDAA's North American CTV reach and enhance the value of Nexxen's exclusive rights and investment over time.
- Launched first-to-market solution for programmatic Smart TV home screen activation through the Nexxen DSP, which will provide direct access to scaled native Smart TV inventory across Hisense and other CTV original equipment manufacturer ("OEM") brands powered by VIDAA's operating system via the Nexxen SSP.
- Nexxen Discovery, the Company's proprietary audience insights and research tool, won best cookieless identification technology at the 2025 Digiday Technology Awards.
- Entered data licensing agreement in Q4 2025 through which Nexxen's ACR audience segments became available for targeting within the Yahoo DSP in the U.S., U.K. and Germany.
Share Repurchase Program and Capital Allocation Updates
- Nexxen repurchased 1,796,215 Ordinary Shares during Q3 2025 at an average price of $10.05, investing approximately $18.1 million. The Company completed its $50 million Ordinary Share repurchase program and launched a new and ongoing $20 million program during Q3 2025.
- As of October 31, 2025, the Company had approximately $13.9 million remaining on its Ordinary Share repurchase program authorization, and its ongoing program is expected to continue until the earlier of March 19, 2026, or completion.
- From March 1, 2022, when the Company launched a series of share repurchase programs, through September 30, 2025, Nexxen repurchased 28,354,967 Ordinary Shares, or 36.6% of shares outstanding, investing approximately $247.4 million.
- Nexxen's Board of Directors intends to continue to evaluate implementing a new share repurchase program following completion of the ongoing program, subject to then current market conditions, necessary approvals and the Company's valuation.
- The Company invested $20 million in VIDAA during Q3 2025 with an additional $15 million expected to be invested in Q3 2026.
- Nexxen is exploring strategic opportunities, expected to be smaller in size than Amobee, focused on accelerating programmatic revenue growth and enhancing and expanding its data, CTV and mobile in-app capabilities.
Financial Highlights for the Three and Nine Months Ended September 30, 2025 ($ in millions, except per share amounts)
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
| 2025 | 2024 | % | 2025 | 2024 | % | ||||||||||
| IFRS Highlights | |||||||||||||||
| Revenue | 94.8 | 90.2 | 5% | 264.1 | 253.2 | 4% | |||||||||
| Programmatic revenue | 89.6 | 81.6 | 10% | 246.3 | 225.7 | 9% | |||||||||
| Operating profit | 7.3 | 16.3 | (55%) | 19.4 | 16.1 | 21% | |||||||||
| Net income margin on a gross profit basis | 6% | 23% | 8% | 6% | |||||||||||
| Total comprehensive income | 3.8 | 16.5 | (77%) | 17.5 | 12.1 | 44% | |||||||||
| Diluted earnings per share | 59.5 | 70.2 | 62.3 | 71.2 | |||||||||||
| Non-IFRS diluted earnings per share (in USD) Prior period results have been retroactively adjusted to reflect the Company's two-for-one reverse share split and the changes in par value from NIS 0.01 to NIS 0.02 effected on February 14, 2025. See also Note 1a of the Company's annual financial statements included in its Annual Report on Form 20-F, filed on March 5, 2025, with the Securities and Exchange Commission, for details. | |||||||||||||||
| CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (Unaudited) | ||||
| September 30 | December 31 | |||
| 2025 | 2024 | |||
| USD thousands | ||||
| Assets | ||||
| ASSETS: | ||||
| Cash and cash equivalents | 116,728 | 187,068 | ||
| Trade receivables, net | 193,613 | 217,960 | ||
| Other receivables | 6,330 | 4,579 | ||
| Current tax assets | 5,593 | 3,373 | ||
| TOTAL CURRENT ASSETS | 322,264 | 412,980 | ||
| Fixed assets, net | 16,890 | 15,727 | ||
| Right-of-use assets | 26,885 | 31,500 | ||
| Intangible assets, net | 323,613 | 336,768 | ||
| Deferred tax assets | 12,393 | 17,800 | ||
| Investment in shares | 45,000 | 25,000 | ||
| Other long-term assets | 689 | 738 | ||
| TOTAL NON-CURRENT ASSETS | 425,470 | 427,533 | ||
| TOTAL ASSETS | 747,734 | 840,513 | ||
| Liabilities and shareholders' equity | ||||
| LIABILITIES: | ||||
| Current maturities of lease liabilities | 13,092 | 14,340 | ||
| Trade payables | 201,614 | 228,514 | ||
| Other payables | 42,423 | 38,526 | ||
| Current tax liabilities | 205 | 4,677 | ||
| TOTAL CURRENT LIABILITIES | 257,334 | 286,057 | ||
| Employee benefits | 286 | 300 | ||
| Long-term lease liabilities | 18,751 | 22,857 | ||
| Deferred tax liabilities | 441 | 445 | ||
| TOTAL NON-CURRENT LIABILITIES | 19,478 | 23,602 | ||
| TOTAL LIABILITIES | 276,812 | 309,659 | ||
| SHAREHOLDERS' EQUITY: | ||||
| Share capital | 332 | 377 | ||
| Share premium | 285,164 | 362,507 | ||
| Other comprehensive income (loss) | 473 | (2,476) | ||
| Retained earnings | 184,953 | 170,446 | ||
| TOTAL SHAREHOLDERS' EQUITY | 470,922 | 530,854 | ||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 747,734 | 840,513 | ||
| CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATION AND OTHER COMPREHENSIVE INCOME (LOSS) (Unaudited) | |||||||
| For the nine months ended September 30 | For the three months ended September 30 | ||||||
| 2025 | 2024 | 2025 | 2024 | ||||
| USD thousands | USD thousands | ||||||
| Revenue | 264,069 | 253,193 | 94,791 | 90,184 | |||
| Cost of revenue (Exclusive of depreciation and amortization shown separately below) | 39,518 | 43,952 | 16,262 | 13,857 | |||
| Research and development expenses | 42,494 | 36,605 | 14,765 | 11,693 | |||
| Selling and marketing expenses | 90,530 | 84,507 | 30,369 | 27,793 | |||
| General and administrative expenses | 25,233 | 26,521 | 10,042 | 7,821 | |||
| Depreciation and amortization | 46,868 | 44,055 | 16,080 | 12,758 | |||
| Other expenses, net | - | 1,488 | - | - | |||
| Total operating costs | 205,125 | 193,176 | 71,256 | 60,065 | |||
| Operating profit | 19,426 | 16,065 | 7,273 | 16,262 | |||
| Financing income | (5,685) | (5,988) | (1,944) | (1,720) | |||
| Financing expenses | 1,836 | 7,842 | 554 | 1,938 | |||
| Financing expenses (income), net | (3,849) | 1,854 | (1,390) | 218 | |||
| Profit before taxes on income | 23,275 | 14,211 | 8,663 | 16,044 | |||
| Tax expenses | 8,768 | 3,628 | 4,455 | 1,503 | |||
| Profit for the period | 14,507 | 10,583 | 4,208 | 14,541 | |||
| Other comprehensive income (loss) items: | |||||||
| Foreign currency translation differences for foreign operation | 2,949 | 1,540 | (399) | 1,944 | |||
| Total other comprehensive income (loss) for the period | 2,949 | 1,540 | (399) | 1,944 | |||
| Total comprehensive income for the period | 17,456 | 12,123 | 3,809 | 16,485 | |||
| Earnings per share | |||||||
| Basic earnings per share (in USD) | 0.23 | 0.15 | 0.07 | 0.21 | |||
| (*) Prior period results have been retroactively adjusted to reflect the Company's two-for-one reverse share split and the changes in par value from NIS 0.01 to NIS 0.02 effected on February 14, 2025. See also Note 1a of the Company's annual financial statements included in its Annual Report on Form 20-F, filed on March 5, 2025, with the Securities and Exchange Commission, for details. | |||||||
| CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (Unaudited) | |||||||||
| Share capital | Share premium | Other comprehensive income (loss) | Retained earnings | Total | |||||
| USD thousands | |||||||||
| Balance as of January 1, 2025 | 377 | 362,507 | (2,476) | 170,446 | 530,854 | ||||
| Total comprehensive income for the period | |||||||||
| Profit for the period | - | - | - | 14,507 | 14,507 | ||||
| Other comprehensive income: | |||||||||
| Foreign currency translation | - | - | 2,949 | - | 2,949 | ||||
| Total comprehensive income for the period | - | - | 2,949 | 14,507 | 17,456 | ||||
| Transactions with owners, recognized directly in equity | |||||||||
| Own shares acquired | (53) | (90,006) | - | - | (90,059) | ||||
| Share based compensation | - | 12,228 | - | - | 12,228 | ||||
| Exercise of share options | 8 | 435 | - | - | 443 | ||||
| Balance as of September 30, 2025 | 332 | 285,164 | 473 | 184,953 | 470,922 | ||||
| Balance as of January 1, 2024 | 417 | 410,563 | (2,441) | 135,009 | 543,548 | ||||
| Total comprehensive income for the period | |||||||||
| Profit for the period | - | - | - | 10,583 | 10,583 | ||||
| Other comprehensive income: | |||||||||
| Foreign currency translation | - | - | 1,540 | - | 1,540 | ||||
| Total comprehensive income for the period | - | - | 1,540 | 10,583 | 12,123 | ||||
| Transactions with owners, recognized directly in equity | |||||||||
| Own shares acquired | (37) | (41,647) | - | - | (41,684) | ||||
| Share based compensation | - | 9,175 | - | - | 9,175 | ||||
| Exercise of share options | 9 | 724 | - | - | 733 | ||||
| Balance as of September 30, 2024 | 389 | 378,815 | (901) | 145,592 | 523,895 | ||||
| CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited) | ||||
| Nine months ended September 30 | ||||
| 2025 | 2024 | |||
| USD thousands | ||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
| Profit for the period | 14,507 | 10,583 | ||
| Adjustments for: | ||||
| Depreciation and amortization | 46,868 | 44,055 | ||
| Net financing expense (income) | (4,008) | 1,581 | ||
| Loss (gain) on leases modification | 44 | (16) | ||
| Remeasurement of net investment in a finance lease | - | 1,488 | ||
| Share-based compensation and restricted shares | 13,453 | 8,678 | ||
| Tax expenses | 8,768 | 3,628 | ||
| Change in trade and other receivables | 24,495 | 2,306 | ||
| Change in trade and other payables | (23,945) | 28,549 | ||
| Change in employee benefits | (27) | (44) | ||
| Income taxes received | 539 | 553 | ||
| Income taxes paid | (10,226) | (2,489) | ||
| Interest received | 3,505 | 5,002 | ||
| Interest paid | (1,588) | (5,293) | ||
| Net cash provided by operating activities | 72,385 | 98,581 | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||
| Change in pledged deposits, net | (89) | 172 | ||
| Payments on finance lease receivable | 906 | 1,350 | ||
| Acquisition of fixed assets | (9,327) | (3,870) | ||
| Repayment of debt investment | 68 | 74 | ||
| Investment in shares | (20,000) | - | ||
| Acquisition and capitalization of intangible assets | (12,866) | (11,867) | ||
| Net cash used in investing activities | (41,308) | (14,141) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Acquisition of own shares | (90,853) | (41,213) | ||
| Proceeds from exercise of share options | 443 | 733 | ||
| Leases repayment | (12,349) | (11,144) | ||
| Repayment of long-term debt | - | (100,000) | ||
| Net cash used in financing activities | (102,759) | (151,624) | ||
| Net decrease in cash and cash equivalents | (71,682) | (67,184) | ||
| CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF PERIOD | 187,068 | 234,308 | ||
| EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | 1,342 | (589) | ||
| CASH AND CASH EQUIVALENTS AS OF THE END OF PERIOD | 116,728 | 166,535 | ||
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