Nexxen International Ltd.

Q1 2026 Contribution ex-TAC was $84.5 million, up 13% year over year, and programmatic revenue was $81.9 million, up 14% year over year. Q1 CTV revenue was $29.4 million, up 12% year over year; mobile revenue rose 18% year over year; desktop revenue rose 3%; data products Contribution ex-TAC rose 81%; display rose 57%; PMP fell 17%; non-programmatic Contribution ex-TAC declined by approximately $560,000 year over year. Adjusted EBITDA was $16.3 million, representing a 19% margin as a percentage of Contribution ex-TAC, and non-IFRS diluted EPS was $0.06 versus $0.16 in Q1 2025. Cash from operations used $21 million, cash and cash equivalents were $94.6 million, there was no long-term debt, and $50 million was available under the revolving credit facility. Nexxen raised full-year 2026 guidance: Contribution ex-TAC to $382 million-$397 million from $375 million-$390 million; programmatic revenue to $374 million-$388 million from $367 million-$381 million; adjusted EBITDA remains $122 million-$132 million. Management said this implies over 10% year-over-year Contribution ex-TAC growth at the midpoint, about 12% year-over-year programmatic revenue growth at the midpoint, and about a 33% adjusted EBITDA margin at the midpoint. The company also reiterated plans to invest an additional $15 million in V in Q3 2026, bringing total investment to $60 million, and noted a new share repurchase authorization of up to $40 million.

Ofer Druker framed the quarter as validation of Nexxen’s strategy, pointing to stronger enterprise go-to-market execution, deeper use of data, and expanding AI capabilities as the main drivers. He said the company is building a structural advantage in AI-driven advertising by combining transparency, customer control, and full-funnel tools across DSP, SSP, CTV, and mobile in-app. His tone was upbeat but measured, repeatedly emphasizing that the business is seeing momentum now and expects more acceleration in the second half from CTV, mobile, the World Cup, and political advertising.

Sagi Niri said Q1 was a ‘clear financial inflection point’ with record Contribution ex-TAC of $84.5 million and adjusted EBITDA of $16.3 million at a 19% margin. He highlighted that operating cash flow used $21 million, largely due to working capital changes that he expects to normalize in Q2, and that Nexxen ended the quarter with $94.6 million in cash, no long-term debt, and $50 million of revolver capacity. He also described capital allocation as active: roughly 1.1 million shares repurchased for about $7.2 million in Q1, about 40% of outstanding shares repurchased since March 2022 for about $265.3 million, a completed prior $20 million buyback, and authorization for up to a new $40 million program. On outlook, he said full-year EBITDA guidance stays at $122 million-$132 million while Contribution ex-TAC and programmatic revenue guidance were both raised, and he said margins should remain generally consistent with prior-year levels despite continued investment.

Analysts focused on what is driving enterprise wins, the growth of the new CTV home screen inventory, the mix shift in programmatic video, and why guidance still implies some deceleration despite strong Q1 and Q2 momentum. Management said enterprise traction is being driven by the combination of data, AI tools, improved DSP usability, and CTV opportunities, while home screen inventory is a large incremental opportunity because it adds high-engagement impressions and can be sold programmatically through partners like The Trade Desk, StackAdapt, Basis, TCL, TiVo, and V. On the video mix question, Sagi said the lower percentage was mainly due to stronger growth in other formats in Q1 and that video should move back closer to 70% over the year; on the guide, management said it was intentionally conservative because of broader macro and ad-market uncertainty, not because of a specific product problem. On capital allocation, Ofer said the V investment is primarily about commercial value and data exclusivity, while also offering potential equity upside over time.