Nexxen International (NEXN) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 results with 8% year-over-year growth in Contribution ex-TAC and 10% growth in programmatic revenue, driven by 40% CTV revenue growth and advanced data solutions.

• Launched nexAI, a generative AI suite integrated across the platform, enhancing campaign efficiency and insights, with initial deployment in DSP and further AI innovations planned for 2025.

• Expanded partnerships, notably with Tubi, VIDAA/Hisense, FOX Sports, DirecTV, FanDuel, and StackAdapt, and added 101 new advertising customers and 63 new supply partners in Q1.

• Streamlined to a single Nasdaq listing, improving capital markets recognition, trading volume, and investor engagement.

• Completed $50M share repurchase program and launched a new $50M buyback in April 2025, with $39M remaining as of April 30.

Financial highlights

• Q1 2025 Contribution ex-TAC reached $75.0M, up 8% year-over-year; programmatic revenue was $71.8M, up 10%; CTV revenue was $26.4M, up 40% and now 37% of programmatic revenue.

• Adjusted EBITDA was $23.1M, a 95% increase from Q1 2024, with margin rising to 31% from 17%.

• Net cash from operations was $19.3M; cash and equivalents totaled $164.7M as of March 31, 2025, with no long-term debt and $90M undrawn credit facility.

• Non-IFRS diluted EPS was $0.16, up from $0.02 in Q1 2024; IFRS diluted EPS was $0.02, up from -$0.10.

• Non-IFRS net income increased to $10.6M from $1.2M year-over-year; net income was $1.6M (vs. -$6.9M YoY).

Outlook and guidance

• Reaffirmed FY2025 guidance: Contribution ex-TAC ~$380M, programmatic revenue ~90% of total, Adjusted EBITDA ~$125M.

• Expect continued growth in CTV and data licensing revenue for 2025, with ongoing investment in technology, data, and generative AI.

• Management remains confident in guidance despite Q2 market softness, contingent on stable macro and ad conditions.

• Cautious on macroeconomic and policy risks but confident in guidance barring material deterioration.