Nexxen International Ltd. (NEXN)
NASDAQ:NEXN
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Nexxen International
(NASDAQ:NEXN)
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Rating:71Outperform
Price Target:
$9.00
▲(20.16% Upside)
Action:Reiterated
Date:05/23/26
The score is driven primarily by solid fundamentals (notably a low-leverage balance sheet and strong gross margins) and supportive technical momentum. This is tempered by uneven profitability and cash-flow volatility, while the latest earnings call was broadly encouraging on growth and guidance but flagged near-term EPS/cash timing headwinds. Valuation is constrained by a negative P/E and no dividend yield data.
Positive Factors
Low leverage / strong balance sheet
Nexxen's extremely low leverage and sizable equity provide durable financial flexibility: supports continued buybacks, strategic investments (e.g., VIDAA stake, AI), and resilience through ad-market cyclicality. Low debt reduces interest burden and preserves optionality for M&A or product spend.
Negative Factors
Volatile cash generation
Sharp TTM free cash flow decline after a strong 2024 highlights inconsistency in cash conversion. Variable working capital and timing can constrain reinvestment, limit steady buybacks, and make capital allocation less predictable, increasing sensitivity to slower ad spend cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Nexxen's extremely low leverage and sizable equity provide durable financial flexibility: supports continued buybacks, strategic investments (e.g., VIDAA stake, AI), and resilience through ad-market cyclicality. Low debt reduces interest burden and preserves optionality for M&A or product spend.
Read all positive factors
Nexxen International (NEXN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$487.56M
Dividend YieldN/A
Average Volume (3M)255.29K
Price to Earnings (P/E)28.0
Beta (1Y)0.77
Revenue Growth1.06%
EPS Growth-52.89%
CountryUS
Employees854
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.31
Shares Outstanding55,720,780
10 Day Avg. Volume177,630
30 Day Avg. Volume255,292
Financial Highlights & Ratios
PEG Ratio-0.88
Price to Book (P/B)0.82
Price to Sales (P/S)1.07
P/FCF Ratio3.99
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue1.11
Enterprise Value/Gross Profit1.32
Enterprise Value/Ebitda4.38
Forecast
1Y Price Target
$11.31Price Target Upside51.03% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.06
Revenue Forecast (FY)$390.72M
Nexxen International Business Overview & Revenue Model
Company Description
Nexxen International Ltd. provides a comprehensive, integrated software platform that enables advertisers to effectively connect with relevant audiences and digital publishers. Its Demand Side Platform (DSP) offers flexible options, providing adve...
How the Company Makes Money
Nexxen primarily makes money by facilitating programmatic advertising transactions and providing advertising technology services to both the buy side (advertisers/agencies) and the sell side (publishers). Key revenue streams typically include: (1)...
Nexxen International Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive operational and commercial update: Nexxen delivered record Q1 contribution ex-TAC and programmatic revenue with strong growth in CTVIDAA, mobile in-app, data products, and display, and raised full‑year revenue guidance. Key strategic initiatives—programmatic home‑screen (TVIDAA on screen), AI (NextAI), enterprise go‑to‑market expansion, and SDK integrations—appear to be translating into measurable client wins and product traction. Offsets include weaker non‑IFRS EPS, negative operating cash in Q1 versus last year, some non‑programmatic and PMP declines, and management’s deliberately conservative full‑year posture because of macro and partner risks. Overall, positive growth and product momentum outweigh near‑term profitability and cash timing headwinds.Positive Updates
Record Q1 Contribution ex-TAC
Contribution ex-TAC of $84.5M in Q1 (a company Q1 record), up 13% year-over-year, driven by programmatic growth.
Negative Updates
Decline in Non‑IFRS EPS
Non‑IFRS diluted earnings per share of $0.06 in Q1 versus $0.16 in Q1 2025, reflecting lower per‑share profitability despite record revenue and contribution growth.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Q1 Contribution ex-TAC
Contribution ex-TAC of $84.5M in Q1 (a company Q1 record), up 13% year-over-year, driven by programmatic growth.
Read all positive updates
Company Guidance
Nexxen raised its full‑year 2026 guidance after a strong Q1: contribution ex‑TAC is now expected to be $382M–$397M (up from $375M–$390M), implying just over 10% YoY growth at the midpoint, and programmatic revenue is guided to $374M–$388M (up from $367M–$381M), implying ~12% YoY growth at the midpoint; adjusted EBITDA is reiterated at $122M–$132M (≈10% YoY growth) with a 33% margin at the midpoint. Management cited Q1 results that supported the raise — contribution ex‑TAC of $84.5M (+13% YoY), programmatic revenue $81.9M (+14% YoY), CTVIDAA revenue $29.4M (+12% YoY), mobile +18% YoY and desktop +3% YoY, with data product contribution ex‑TAC +81% and display +57% (PMPs −17%) — and Q1 adjusted EBITDA of $16.3M (a 19% margin on contribution ex‑TAC). They noted cash of $94.6M, no long‑term debt, $50M available on the revolver, Q1 operating cash use of $21M (vs. $19.3M generated in Q1‑25), non‑IFRS EPS of $0.06 (vs. $0.16), continued share repurchases (~1.1M shares, ~$7.2M in Q1; ~$265M repurchased since Mar‑2022) and an authorized new $40M buyback, plus an additional $15M investment planned in Q3 (bringing a strategic stake to ~$60M, ~6%). Management expects further H2 acceleration from Nexxen TVIDAA home‑screen adoption, the FIFA World Cup and the U.S. midterm cycle.Nexxen International Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
82
Very Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 373.29M | 364.78M | 365.48M | 331.99M | 335.25M | 341.94M |
| Gross Profit | 313.08M | 309.80M | 304.46M | 269.72M | 274.50M | 270.29M |
| EBITDA | 94.27M | 102.58M | 106.15M | 69.50M | 89.74M | 115.20M |
| Net Income | 18.09M | 25.04M | 35.44M | -21.49M | 22.74M | 73.22M |
Balance Sheet | ||||||
| Total Assets | 739.35M | 756.07M | 840.51M | 904.80M | 956.16M | 802.74M |
| Cash, Cash Equivalents and Short-Term Investments | 94.56M | 133.31M | 187.07M | 234.31M | 217.50M | 367.72M |
| Total Debt | 29.75M | 31.93M | 37.20M | 136.13M | 127.88M | 14.99M |
| Total Liabilities | 272.60M | 281.40M | 309.66M | 361.25M | 404.55M | 230.36M |
| Stockholders Equity | 466.75M | 474.67M | 530.85M | 543.55M | 551.62M | 572.38M |
Cash Flow | ||||||
| Free Cash Flow | 57.45M | 97.99M | 127.31M | 41.12M | 67.83M | 161.74M |
| Operating Cash Flow | 76.28M | 110.11M | 150.84M | 60.74M | 83.01M | 170.09M |
| Investing Cash Flow | -53.39M | -48.35M | -21.21M | -16.96M | -232.99M | -16.49M |
| Financing Cash Flow | -100.55M | -117.52M | -174.74M | -26.55M | 3.06M | 116.86M |
Nexxen International Technical Analysis
Positive
7.49
Price Trends
7.86
Positive
7.18
Positive
7.43
Positive
Market Momentum
0.24
Positive
57.64
Neutral
68.33
Neutral
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 7.49 is below the 20-day moving average (MA) of 8.46, below the 50-day MA of 7.86, and above the 200-day MA of 7.43, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 57.64 is Neutral, neither overbought nor oversold. The STOCH value of 68.33 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.66B | 16.50 | 18.57% | ― | 7.10% | 404.29% | |
73 Outperform | $743.92M | 11.18 | 23.85% | ― | 14.75% | ― | |
71 Outperform | $487.56M | 28.00 | 3.82% | ― | 1.06% | -52.89% | |
70 Outperform | $651.27M | 26.57 | 8.30% | ― | 21.51% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $858.68M | 7.69 | 10.17% | ― | -0.43% | -15.84% | |
56 Neutral | $1.70B | 87.69 | 2.52% | ― | 4.48% | 868.83% |
* Communication Services Sector Average
NEXN
Nexxen International
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MNTN
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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.