Nexxen International (NEXN) Q4 2025 earnings summary

Executive summary

• Met updated full-year 2025 guidance and entered 2026 with record January and February performance, driven by infrastructure investments, expanded partnerships (notably with V and The Trade Desk), and AI integration, despite Q4 2025 being impacted by reduced DSP spending and non-programmatic weakness.

• Strategic focus on enterprise solutions, AI-driven innovations, and exclusive partnerships to drive programmatic growth, streamline workflows, and position for larger enterprise budgets.

• Diversified revenue base with strong momentum across programmatic, data, and enterprise offerings, positioning for growth in 2026, supported by major events like the Winter Olympics, FIFA World Cup, and U.S. midterm elections.

• Expanded into AI-resilient growth channels with enhanced mobile in-app capabilities and launched an industry-first programmatic Smart TV home screen ad activation solution, integrated with V and The Trade Desk.

• New product launches in health, sports, and political advertising are positioning for major 2026 events and U.S. mid-term election cycle.

Financial highlights

• Q4 2025 Contribution ex-TAC was $97.8M, down 7% year-over-year (1% decrease ex-political); programmatic revenue was $94.3M, down 4% year-over-year but up 2% ex-political; CTV revenue was $30.1M, down 19% year-over-year (12% ex-political).

• Full year 2025 Contribution ex-TAC: $353.1M, up 3% year-over-year (6% ex-political); programmatic revenue: $340.6M, up 5% year-over-year (8% ex-political); CTV revenue: $109.4M, down 4% year-over-year (flat ex-political).

• Adjusted EBITDA for Q4 2025: $33.9M (35% margin); full year: $115.1M (33% margin); Q4 net cash from operations: $37.7M; non-IFRS diluted EPS: $0.33 for Q4, $0.98 for FY 2025 (up 5% YoY).

• Data products contribution ex-TAC increased 51% year-over-year; self-service and display each declined 5-9%.

• Net income for 2025: $25.0M, down 29% YoY; diluted EPS: $0.41, down 19% YoY.

Outlook and guidance

• 2026 guidance: Contribution ex-TAC of $375M–$390M (8%+ growth at midpoint), programmatic revenue of $367M–$381M (10% growth at midpoint), and adjusted EBITDA of $122M–$132M (33% margin at midpoint).

• Q1 2026 Contribution ex-TAC and programmatic revenue to date have exceeded initial expectations.

• Expect growth in enterprise self-service, data products, and CTV, driven by expanded V partnership and Smart TV home screen solution; OpEx as a percentage of contribution ex-TAC expected to decrease modestly; R&D to remain stable; G&A to rise slightly; stock-based compensation to increase modestly.

• Anticipate strong tailwinds from major 2026 advertising events and continued scaling benefits from 2025 investments.