Nexxen International Ltd. Q4 FY2025 earnings call

• CEO Ofer Druker stated they met updated full-year guidance and saw strong momentum in early 2026. Q1 to date contribution at-stack and programmatic revenue trending ahead of initial expectation after strong January and February. - Payoff from 2025 infrastructure investment to support long-term programmatic trading growth and partnerships with leading DSPs driven by differentiated CTV media assets and data. - In 2025, fully upgraded infrastructure and expanded platform scale, roughly doubling SSP capacity. Increased focus on enterprise solutions, more than doubling enterprise customer base in 2025. - Invested in expanding into less-affected formats like exclusive smart TV on-screen partnerships and scaled mobile in-app relationships. Launched industry's first programmatic Smart TV home screen advertising solution. - Next.ai continues to evolve across platform, with DSP assistant delivering efficiency gains, discovery assistant driving operational savings. AI investments and releases in 2026 to focus on driving growth and scaling cost benefits. - ELTS vertical emerged as growth engine, launched Nexon ELTS with new measurement and optimization capabilities. Launched Nexen Sports combining live sport inventory with data-driven insights. Political advertising solutions to capture spend during 2026 U.S. midterm elections.

In Q4, contribution ex-stack was $97.8 million, reflecting a 7% year-over-year decrease or a 1% decrease ex-political. Programmatic revenue was $94.3 million, down 4% year-over-year, but up 2% ex-political. Data products saw a 51% year-over-year increase in contribution ex-tacks. Non-programmatic business line contribution ex-staff declined by approximately $3 million year-over-year. CCV revenue declined 19% year-over-year in Q4, or 12% ex-political, to $30.1 million. Desktop video revenue increased 21% year-over-year in Q4. Mobile video revenue declined 9%. Overall video revenue represented 72% of programmatic revenue. For full year 2025, contribution ex-tack retention rate declined to 92% from 102% in 2024, but contribution extracts per active customer increased to approximately $563,000, a 7% year-over-year improvement.

For full year 2026, expected contribution at stack in the range of $375 to $390 million (over 8% year-over-year growth at midpoint), programmatic revenue in the range of $367 to $381 million (approximately 10% year-over-year growth at midpoint). Adjusted EBITDA expected in the range of $122 to $132 million, representing an approximately 33% margin at midpoint of contribution extract and adjusted EBITDA guidance. Plan to leverage investment in V to expand retailer relationships and grow North American CTV footprint.

Known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from forward-looking statements, including unexpected changes in business or macroeconomic or industry conditions. More detailed information in filings with U.S. Securities and Exchange Commission, including risk factors in most recent annual report on Form 20-F.

Q: Matt Swanson with RBC Capital Markets asked about how AI reshaping impacted 2025 results and CTV growth in 2026.

A: Ofer Druker explained AI led to less browsing, increased efforts on CTV less affected by AI, opened programmatic marketplace for home screen native, in-app mobile less affected by AI, and growth in CTV through partnerships and unique offerings.

Q: Laura Martin with Needham and Company asked update on data and IFRS guidance.

A: Ofer Druker said data helps with direct revenues and enhanced media spend, Sagi Neary explained IFRS differences and growth engines for 2026.

Q: Andrew Merrick with Raymond James asked on CTV outlook and sustainability of desktop video growth.

A: Ofer Druker talked about CTV growth from native ads, partnerships, and standardization, and desktop video being part of revenue sources.

Q: Jason Krayer with Craig Hallam asked on channels driving Q1 strength and squaring Q1 with annual guide.

A: Ofer Druker said growth from across partners, infrastructure investment, enterprise solution effort, and positive market sentiment.

Q: Maria Rips with Canaccord asked on incremental demand from Olympics and enterprise offering.

A: Ofer Druker talked about enterprise solution growth and CTV growth from fundamental changes.

Q: Barton Crockett with Rosenblatt asked on guidance, political contribution, and acquisitions.

A: Ofer Druker said political season expected to assist, open to acquisitions, and DSP issue isolated and on right trend to recoup losses