Nexxen International Ltd. reported fourth‑quarter 2025 results that surpassed consensus expectations, with revenue of $100.7 million and a non‑IFRS diluted earnings per share of $0.33—an $0.07 beat over the $0.26 estimate and a 26% increase over the prior‑year quarter. The company’s contribution ex‑TAC rose to $97.8 million, while programmatic revenue reached $94.3 million, reflecting continued demand in its core advertising technology segments.
For the full year 2025, Nexxen generated IFRS revenue of $364.8 million, flat against 2024, but its contribution ex‑TAC climbed to $353.1 million and programmatic revenue grew to $340.6 million. Adjusted EBITDA reached $115.1 million, a 33% margin on contribution ex‑TAC, and net income stood at $25.0 million. The non‑IFRS diluted EPS of $0.98 beat the $0.93 estimate and marked a 5% year‑over‑year increase.
Margin pressure in the fourth quarter is evident: adjusted EBITDA margin fell to 35% from 42% in Q4 2024, largely due to the absence of political advertising that had boosted the prior year’s results. The full‑year margin of 33% remained steady, indicating that the company’s core operations maintained profitability despite the Q4 dip. The decline in Q4 contribution ex‑TAC and programmatic revenue—down 7% and 4% respectively—highlights near‑term headwinds, while the steady full‑year figures suggest resilience in the underlying business.
Management guided for 2026 with contribution ex‑TAC of $375 million to $390 million, programmatic revenue of $367 million to $381 million, and adjusted EBITDA of $122 million to $132 million. These targets represent roughly 8% to 10% year‑over‑year growth at the midpoint, underscoring confidence in the company’s AI‑driven growth channels, expanding partnership with V (formerly VIDAA), and new programmatic Smart TV home‑screen solutions. The guidance signals that Nexxen expects the momentum from Q1 2026 to continue, offsetting the Q4 headwinds.
CEO Ofer Druker emphasized that the company “met our updated 2025 guidance and is off to a strong start in 2026, with contribution ex‑TAC and programmatic revenue exceeding our initial expectations to this point in Q1, driven by broad‑based strength across our programmatic business lines.” He added that the firm’s focus on AI‑resilient growth channels and data‑driven solutions positions it for long‑term expansion.
The market reacted positively, with the stock rising 4.26% to $6.45 on March 4 2026. The lift was driven by the company’s strong Q1 2026 performance, the upward‑revised 2026 guidance, and management’s confidence in its strategic initiatives, which reassured investors that the near‑term headwinds are temporary.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.