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Nexxen International Ltd. (NEXN)
NASDAQ:NEXN
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Nexxen International
(NASDAQ:NEXN)
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Rating:66Neutral
Price Target:
$6.00
▼(-10.18% Downside)
Action:DowngradedDate:11/18/25
Nexxen International's overall score is primarily influenced by its strong financial performance and reasonable valuation. However, bearish technical indicators and challenges highlighted in the earnings call, such as declining CTV revenue and lowered guidance, weigh on the score.
Positive Factors
Low leverage / strong balance sheet
Very low debt-to-equity (0.068) and a strong equity ratio provide durable financial flexibility. This supports continued product investment, M&A optionality, and the ability to weather ad-market cyclicality without forced deleveraging, underpinning long-term operational resilience.
High and resilient margins
A 76.6% gross margin and 10.5% net margin indicate strong platform economics and pricing power in ad-tech. Sustained margins give Nexxen capacity to reinvest in R&D and data products, absorb competitive CPM pressure, and maintain profitability across moderate revenue cycles.
Programmatic growth, data momentum, Vida partnership
Sustained programmatic growth and 164% data-product expansion show product-market fit for data-driven ad solutions. The multi-year Vida exclusivity strengthens unique data access and monetization, creating a lasting competitive moat and enabling deeper advertiser/publisher integration over time.
Negative Factors
Sharp free cash flow decline
A ~68% drop in free cash flow growth materially reduces internal funding capacity. Over months this constrains discretionary investment, share repurchases, or buffering against ad-market shocks, and could force greater reliance on external financing if cash conversion doesn’t recover.
CTV revenue deterioration
A meaningful drop in CTV revenue signals structural headwinds in a fast-growing channel. If competitive CPMs and third-party deal softness persist, Nexxen’s ability to capture the secular shift to streaming diminishes, pressuring growth and requiring product or pricing adjustments.
Guidance cut and revenue concentration
Management lowered full-year targets and shows ~95% reliance on programmatic revenue. This concentration increases sensitivity to ad-spend cycles and channel shifts; weaker demand or platform-specific disruptions could materially affect results and amplify volatility.
Nexxen International (NEXN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$656.07M
Dividend YieldN/A
Average Volume (3M)297.95K
Price to Earnings (P/E)31.7
Beta (1Y)0.67
Revenue Growth1.63%
EPS GrowthN/A
CountryUS
Employees854
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.33
Shares Outstanding135,451,000
10 Day Avg. Volume256,206
30 Day Avg. Volume297,953
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)1.30
Price to Sales (P/S)1.89
P/FCF Ratio5.43
Enterprise Value/Market Cap0.52
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit1.19
Enterprise Value/Ebitda3.11
Forecast
1Y Price Target
$9.63Price Target Upside44.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.03
Revenue Forecast (FY)$381.36M
Nexxen International Business Overview & Revenue Model
Company DescriptionNexxen 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. It serves ad buyers, advertisers, brands, agencies, and digital publishers in Israel, the United States, the Asia-Pacific, Europe, the Middle East, and Africa. The company was formerly known as Tremor International Ltd and changed its name to Nexxen International Ltd. in January 2024. Nexxen International Ltd. was incorporated in 2007 and is headquartered in Tel Aviv-Yafo, Israel.
How the Company Makes MoneyNexxen International generates revenue through a multifaceted business model. The primary revenue streams include subscription fees from its cloud-based software platforms and licensing fees for its enterprise applications. Additionally, the company earns significant income from consulting services, where it provides digital transformation and cybersecurity expertise to its clients. Strategic partnerships with technology firms and ongoing client contracts also contribute to its financial success. Nexxen's focus on continuous innovation and customer-centric solutions helps maintain a steady flow of revenue and positions it competitively in the technology market.
Nexxen International Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The call balanced clear strategic progress and product/partnership momentum with notable near-term operational headwinds. Management highlighted meaningful 2025 investments (doubled SSP capacity, Next.AI, enterprise focus, and a programmatic smart-TV home-screen solution) and reported very strong early-2026 pacing and constructive FY2026 guidance (~8%–10% growth at midpoints). However, 2025 results showed modest organic growth (≈3% contribution ex-TAC), declines in key formats (CTV -19% YoY in Q4), lower retention, EPS and cash flow deterioration, and short-term customer/tariff pressures. Overall, the narrative is one of strategic positioning and improving momentum offsetting recent execution and macro challenges.Q4-2025 Updates
Positive Updates
Strong start to 2026 and positive guidance
Record January and February; Q1 contribution ex-TAC and programmatic revenue trending ahead of initial expectations. FY2026 guidance: contribution ex-TAC $375M–$390M (≈>8% YoY at midpoint), programmatic revenue $370M–$381M (≈10% YoY at midpoint), adjusted EBITDA $122M–$132M (≈33% margin at midpoint).
Infrastructure and platform scale expansion
In 2025 the company roughly doubled SSP capacity, upgrading infrastructure to better monetize publisher relationships and support programmatic trading growth in 2026 and beyond.
Enterprise growth and AI-driven product traction
Enterprise customer base more than doubled in 2025. Contribution ex-TAC per active customer rose to ~$563k (+7% YoY). Next.AI adoption driving efficiency (DSP assistant efficiency gains up to 97%, satisfaction >90%; Discovery assistant reducing audience research time up to 45%). Data used in >80% of campaigns.
Programmatic smart TV home screen solution and strategic partnerships
Launched what management calls the industry's first programmatic smart TV home screen solution, integrated with Vidaa (V). The Trade Desk adopted the solution (Ventura integration) and Yahoo DSP licensed TV data; management expects these partnerships to accelerate adoption and liquidity in CTV home-screen inventory. Company plans additional V investments to hold ~6% (~$60M) stake.
Strong expansion in high‑margin data products and desktop video
Contribution ex-TAC from data products increased 51% YoY in Q4. Desktop video revenue grew 21% YoY in Q4. Video accounted for 72% of programmatic revenue in Q4, reflecting demand for video/data-enabled offerings.
Healthy balance sheet and shareholder returns
Cash & equivalents $133.3M, no long-term debt, $50M available on revolver. Repurchased 1.44M shares (~$10.8M) in Q4 and repurchased ~38.5% of outstanding shares (~$258.2M) since Mar 2022; new repurchase program up to $40M approved to begin after current program.
Negative Updates
Q4 contribution ex-TAC and programmatic revenue declines
Q4 contribution ex-TAC $97.8M, down 7% YoY (down 1% ex-political). Q4 programmatic revenue $94.3M, down 4% YoY (up 2% ex-political). Management attributed part of the weakness to a large DSP customer's reduced spending and absence of political spend.
CTV revenue weakness in Q4
CTV revenue declined to $30.1M in Q4, down 19% YoY (down 12% ex-political), despite the company positioning CTV as a core long-term growth engine and launching new home‑screen programmatic initiatives.
Mixed performance across formats and product lines
Mobile video revenue declined 9% YoY in Q4; PMPs and display contribution ex-TAC each decreased 9%; self-service contribution ex-TAC declined 5%. Non-programmatic business contribution ex-TAC declined by approximately $3M YoY.
Retention and low organic growth in 2025
Full-year 2025 contribution ex-TAC retention rate fell to 92% from 102% in 2024. CFO noted contribution ex-TAC grew only ~3% for full-year 2025, indicating modest organic growth after portfolio adjustments.
Earnings, cash flow, and IFRS pressure
Non-IFRS diluted EPS in Q4 was $0.33 versus $0.48 in Q4 2024. Net cash from operating activities in Q4 was $37.7M versus $52.3M in Q4 2024. Management noted IFRS revenue was essentially flat for 2025 and Q4 IFRS was down ~10% (per Q&A), driven in part by non-core/performance activities.
Customer and macro headwinds
Q4 was impacted by reduced spending from one DSP customer (FPO initiative), tariff-driven reductions from certain partners, seasonality, and more competitive CPMs; some customers remain cautious, creating near-term volatility.
Short-term impact from strategic cleanup
Company discontinued smaller customer relationships that were not generating meaningful contribution ex-TAC; while this improved focus and per-customer economics, it contributed to the retention drop and pressured near-term reported growth.
Uncertain timing of political advertising lift
Absence of political advertising in Q4 2025 materially affected comps; political spend for 2026 is expected to be a tailwind but remains timing-dependent and uncertain.
Company Guidance
Nexxen guided FY2026 contribution ex‑TAC of $375M–$390M (implying >8% YoY growth at the midpoint) and programmatic revenue of $370M–$381M (≈10% YoY at the midpoint), with adjusted EBITDA of $122M–$132M (≈33% of contribution ex‑TAC at the midpoint); management said contribution ex‑TAC and programmatic revenue are already trending ahead in Q1 after record January and February. The outlook assumes growth from enterprise, data and CTV (including the V home‑screen product and expanded mobile in‑app), plus scalable benefits from Next.AI, while OpEx as a percent of contribution ex‑TAC is expected to decrease modestly, R&D to remain roughly flat, D&A and S&M to tick down slightly as a percent, and G&A and stock‑based comp to rise. For context, Q4/2025 contribution ex‑TAC was $97.8M (down 7% YoY, 1% ex‑political), programmatic revenue $94.3M (down 4% YoY, up 2% ex‑political), CTV revenue $30.1M (down 19% YoY, 12% ex‑political), desktop video +21% YoY, data products contribution ex‑TAC +51% YoY, full‑year 2025 retention 92% (from 102%), contribution ex‑TAC per active customer ≈ $563k (+7% YoY), Q4 adjusted EBITDA $33.9M (35% margin vs. contribution ex‑TAC), cash $133.3M, no long‑term debt, $50M undrawn revolver, Q4 buybacks 1.44M shares for ~$10.8M (≈$258.2M repurchased since Mar‑2022, ~38.5% of shares), ~$2M remaining on the current repurchase authorisation and a new $40M program approved to follow.Nexxen International Financial Statement Overview
Summary
Nexxen International demonstrates strong profitability and a stable balance sheet with low leverage and efficient equity utilization. However, the significant decline in free cash flow growth poses a potential risk, highlighting the need for improved cash management strategies.Income Statement
Nexxen International shows strong profitability with a high gross profit margin of 76.6% and a net profit margin of 10.5% in the TTM. Revenue growth is positive at 1.2%, indicating a steady increase in sales. However, the gross profit margin has decreased from the previous year, suggesting potential cost pressures.78
Positive
Balance Sheet
The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.068, indicating low leverage and financial stability. Return on equity is moderate at 7.9%, showing efficient use of equity to generate profits. The equity ratio is strong, reflecting a robust capital structure.82
Very Positive
Cash Flow
Cash flow performance is mixed, with a significant decline in free cash flow growth at -68.4% in the TTM, which could indicate cash management challenges. However, the operating cash flow to net income ratio is healthy at 0.50, suggesting good cash generation relative to net income.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 376.35M | 365.48M | 331.99M | 335.25M | 341.94M | 211.92M |
| Gross Profit | 288.42M | 304.46M | 269.72M | 274.50M | 270.29M | 152.11M |
| EBITDA | 110.11M | 106.15M | 69.50M | 89.74M | 115.20M | 39.61M |
| Net Income | 39.36M | 35.44M | -21.49M | 22.74M | 73.22M | 2.14M |
Balance Sheet | ||||||
| Total Assets | 747.73M | 840.51M | 904.80M | 956.16M | 802.74M | 535.01M |
| Cash, Cash Equivalents and Short-Term Investments | 116.73M | 187.07M | 234.31M | 217.50M | 367.72M | 97.46M |
| Total Debt | 31.84M | 37.20M | 136.13M | 127.88M | 14.99M | 21.21M |
| Total Liabilities | 276.81M | 309.66M | 361.25M | 404.55M | 230.36M | 205.99M |
| Stockholders Equity | 470.92M | 530.85M | 543.55M | 551.62M | 572.38M | 329.01M |
Cash Flow | ||||||
| Free Cash Flow | 114.52M | 127.31M | 41.12M | 67.83M | 161.74M | 29.71M |
| Operating Cash Flow | 128.13M | 150.84M | 60.74M | 83.01M | 170.09M | 35.16M |
| Investing Cash Flow | -50.37M | -21.21M | -16.96M | -232.99M | -16.49M | 4.92M |
| Financing Cash Flow | -132.01M | -174.74M | -26.55M | 3.06M | 116.86M | -22.37M |
Nexxen International Technical Analysis
Positive
6.68
Price Trends
6.20
Positive
6.84
Negative
8.47
Negative
Market Momentum
0.04
Negative
58.73
Neutral
89.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEXN, the sentiment is Positive. The current price of 6.68 is above the 20-day moving average (MA) of 6.07, above the 50-day MA of 6.20, and below the 200-day MA of 8.47, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.73 is Neutral, neither overbought nor oversold. The STOCH value of 89.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEXN.
Nexxen International Risk Analysis
Nexxen International disclosed 1 risk factors in its most recent earnings report. Nexxen International reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nexxen International Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $668.54M | 4.07 | 4.55% | ― | 43.12% | ― | |
67 Neutral | $964.21M | 7.45 | 13.16% | ― | 0.32% | 69.78% | |
67 Neutral | $1.99B | 14.68 | 17.11% | ― | 6.27% | 226.16% | |
66 Neutral | $656.07M | 31.69 | 7.91% | ― | 1.63% | ― | |
65 Neutral | $1.31B | 14.63 | 3.80% | ― | 6.76% | 1841.46% | |
65 Neutral | $703.27M | -945.84 | ― | ― | 31.28% | -22.05% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
NEXN
Nexxen International
6.68
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-29.68%
STGW
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QNST
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11.88
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CRTO
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19.10
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MGNI
Magnite
13.83
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MNTN
MNTN, Inc Class A
9.93
-17.78
-64.16%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.