Nexxen International (NEXN) AI Stock Analysis

• Market Cap: $656.07M
• Dividend Yield: N/A
• Average Volume (3M): 479.95K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.79
• Revenue Growth: 1.63%
• EPS Growth: N/A
• Country: US
• Employees: 854
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.20
• Shares Outstanding: 135,451,000
• 10 Day Avg. Volume: 506,070
• 30 Day Avg. Volume: 479,946
• PEG Ratio: -0.04
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 2.71
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $11.14
• Price Target Upside: 73.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ―

Nexxen International's strong performance in key growth areas such as CTV and improved EBITDA margins drive a positive outlook, despite financial challenges and valuation concerns. The company's strategic initiatives and raised guidance further bolster its stock potential.

Positive Factors

Strong CTV Growth

The substantial growth in CTV revenue indicates Nexxen's successful expansion in a high-demand sector, enhancing its competitive position and potential for sustained revenue growth.

Adjusted EBITDA Increase

The significant increase in adjusted EBITDA and margin improvement demonstrates operational efficiency and profitability, strengthening financial stability.

New Partnerships and Clients

The addition of new clients and partners expands Nexxen's market reach and revenue base, supporting long-term growth and diversification.

Negative Factors

Declining Revenue

The trend of declining revenue poses a challenge to Nexxen's growth strategy, potentially impacting its ability to invest in innovation and expansion.

Profitability Challenges

Persistent profitability issues could hinder Nexxen's ability to reinvest in its business and compete effectively, affecting long-term sustainability.

Cash Flow Management

Decreasing free cash flow highlights potential liquidity issues, which could limit Nexxen's operational flexibility and ability to fund growth initiatives.

Nexxen International Business Overview & Revenue Model

Company Description

Nexxen International (NEXN) is a global leader in the technology sector, specializing in innovative software solutions and digital transformation services. The company offers a wide range of products, including cloud-based platforms, cybersecurity solutions, and enterprise applications designed to enhance business efficiency and security. Nexxen International serves a diverse clientele, ranging from small businesses to large multinational corporations, across various industries such as healthcare, finance, and retail.

How the Company Makes Money

Nexxen 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 Financial Statement Overview

Summary

Nexxen International faces financial challenges with declining revenues and a negative net profit margin, but maintains a strong balance sheet with low leverage. Operational inefficiencies impact profitability, and cash flow management needs improvement for sustaining operations.

Income Statement

Nexxen International's income statement reveals a mixed performance with declining revenue over the past few years. The gross profit margin remains healthy at 81.3% in 2023. However, the company is currently facing profitability challenges, evidenced by a negative net profit margin of -6.5% due to a net loss. The EBIT margin has also turned negative at -5.1%, indicating operational inefficiencies. The significant drop in revenue from 2021 to 2022 highlights growth concerns.

Balance Sheet

The balance sheet of Nexxen International shows a strong equity base with a debt-to-equity ratio of 0.25, indicating low leverage and financial stability. The equity ratio stands at 60.1%, showcasing a robust capital structure. However, there is a slight decline in stockholders' equity over the years. Despite this, the company's return on equity (ROE) has decreased to -3.95% in 2023, reflecting recent profitability issues.

Cash Flow

Nexxen's cash flow statement demonstrates resilience with a positive operating cash flow to net income ratio of -2.83, despite the net loss. The free cash flow has decreased from previous years, showing a contraction in liquidity. The free cash flow to net income ratio is a positive highlight, but the overall cash flow trends indicate a need for better cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	371.75M	365.48M	331.99M	335.25M	341.94M	211.92M
Gross Profit	302.30M	304.46M	269.72M	274.50M	270.29M	152.11M
EBITDA	115.56M	106.15M	69.50M	89.74M	115.20M	39.61M
Net Income	49.69M	35.44M	-21.49M	22.74M	73.22M	2.14M
Balance Sheet
Total Assets	740.87M	840.51M	904.80M	956.16M	802.74M	535.01M
Cash, Cash Equivalents and Short-Term Investments	131.46M	187.07M	234.31M	217.50M	367.72M	97.46M
Total Debt	31.65M	37.20M	136.13M	127.88M	14.99M	21.21M
Total Liabilities	260.58M	309.66M	361.25M	404.55M	230.36M	205.99M
Stockholders Equity	480.29M	530.85M	543.55M	551.62M	572.38M	329.01M
Cash Flow
Free Cash Flow	111.01M	127.31M	41.12M	67.83M	161.74M	29.71M
Operating Cash Flow	128.80M	150.84M	60.74M	83.01M	170.09M	35.16M
Investing Cash Flow	-24.41M	-21.21M	-16.96M	-232.99M	-16.49M	4.92M
Financing Cash Flow	-126.57M	-174.74M	-26.55M	3.06M	116.86M	-22.37M

Nexxen International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEXN, the sentiment is Negative. The current price of 6.43 is below the 20-day moving average (MA) of 8.03, below the 50-day MA of 8.69, and below the 200-day MA of 9.45, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 26.28 is Positive, neither overbought nor oversold. The STOCH value of 26.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEXN.

Nexxen International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEXN	75 Outperform	$656.07M	8.25	7.91%	―	1.63%	―
DLX	72 Outperform	$909.60M	11.08	12.96%	6.60%	-0.94%	47.48%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
EEX	53 Neutral	$809.03M	189.35	1.21%	1.50%	11.18%	―
CCO	52 Neutral	$964.77M	―	―	―	-29.67%	30.13%
NCMI	50 Neutral	$403.47M	-26.20	-4.10%	2.93%	-3.67%	34.36%
ADV	44 Neutral	$400.91M	-1.19	-29.47%	―	-7.12%	-7.75%

Nexxen International Corporate Events

Nexxen International Reports Mixed Q3 2025 Results

Nexxen International Ltd., a global advertising technology platform specializing in data and advanced TV solutions, recently released its financial results for the third quarter of 2025, showcasing significant developments in its strategic partnerships and financial performance.

TREMOR INTERNATIONAL LIMITED’s Earnings Call Highlights Growth Amid Challenges

During the recent earnings call, TREMOR INTERNATIONAL LIMITED expressed a generally positive sentiment, highlighting significant achievements in programmatic revenue growth and record contribution ex-TAC. The company attributed these successes to strategic partnerships and the expansion of data products. However, challenges such as declining CTV revenue, competitive CPMs, and reduced spending in non-core business lines have led to a lowered full-year guidance. Despite these hurdles, the company remains optimistic about its long-term growth potential through continued strategic investments and partnerships.

Tremor International’s Earnings Call: Mixed Sentiments and Strategic Gains

Tremor International Limited’s recent earnings call revealed a mixed sentiment, highlighting both achievements and challenges. The company celebrated record programmatic revenue and strategic partnerships, yet faced hurdles with certain revenue streams and slower-than-expected growth in Connected TV (CTV).

Nexxen Reports Strong Q2 2025 Financial Results

Nexxen International Ltd., a global advertising technology platform specializing in data and advanced TV, has reported its financial results for the second quarter of 2025. The company, known for its flexible and unified technology stack, operates primarily in the advertising sector and is listed on NASDAQ.