Nexxen International Ltd.

Q1 Contribution ex-TAC was $84.5 million, up 13% year over year; programmatic revenue was $81.9 million, up 14% year over year; CTV revenue was $29.4 million, up 12% year over year; mobile revenue was up 18% year over year; desktop revenue was up 3% year over year. Data products Contribution ex-TAC increased 81% year over year and display increased 57% year over year, while PMP decreased 17%. Adjusted EBITDA was $16.3 million, with a 19% margin as a percentage of Contribution ex-TAC. Non-IFRS diluted EPS was $0.06 versus $0.16 in Q1 2025. The company used $21 million in net cash from operating activities versus generating $19.3 million in Q1 2025, and ended March 31 with $94.6 million in cash and cash equivalents, no long-term debt, and $50 million available under its revolver. Full-year 2026 guidance was raised to Contribution ex-TAC of $382 million-$397 million, programmatic revenue of $374 million-$388 million, and adjusted EBITDA of $122 million-$132 million, which management said implies about 10% year-over-year growth at the midpoint for Contribution ex-TAC, about 12% for programmatic revenue, and about 10% for adjusted EBITDA.

Ofer Druker framed the quarter as validation of Nexxen’s strategy: stronger enterprise go-to-market execution, deeper data integration, and investment in AI-enabled tools. He emphasized that AI is improving customer efficiency and making the DSP more attractive, while CTV home screen inventory and mobile in-app are key long-term growth vectors. His tone was upbeat but still measured, repeatedly noting that the company is being deliberate and expects more upside in the second half from product launches and major events like the FIFA World Cup and the U.S. midterm cycle.

Sagi Niri highlighted record Q1 metrics and said momentum carried into Q2, which supported the full-year guide raise. He cited $84.5 million of Contribution ex-TAC, $81.9 million of programmatic revenue, $16.3 million of adjusted EBITDA, and a 19% adjusted EBITDA margin as a percentage of Contribution ex-TAC. He said operating cash flow was negative by $21 million in Q1 mainly because of working capital timing that should normalize in Q2, and noted $94.6 million of cash, no long-term debt, and $50 million available on the revolver. On capital allocation, he said Nexxen repurchased roughly 1.1 million shares for about $7.2 million in Q1, has repurchased about 40% of outstanding shares since March 2022, completed its prior $20 million buyback authorization, and has a new authorization of up to $40 million.

Analysts pressed on the drivers of enterprise customer wins, the CTV rebound, home screen inventory TAM, mix shifts in programmatic video, and the conservatism in guidance. Management said enterprise demand is being driven by the DSP’s data connectivity, new AI tools, and the growing CTV/home screen opportunity, while the CTV turnaround also reflects broader platform strength, more publisher relationships, and early performance benefits. On home screen inventory, Ofer Druker said the TAM is large because users spend meaningful time on TV interfaces and that Nexxen’s move to programmatic makes the inventory more scalable and incremental for OEMs. On guidance, management said it was intentionally conservative because of macro uncertainty and broader industry risk, even though Q2 is tracking ahead of expectations and second-half catalysts are building.