<div id="readability-page-1"><p>Nexxen International Ltd. ((NEXN)) has held its Q1 earnings call. Read on for the main highlights of the call.</p><h3>Claim 55% Off TipRanks</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Discover top-performing stock ideas and upgrade to a portfolio of market leaders with  Smart Investor Picks  </li></ul> <p>Nexxen International’s latest earnings call painted a generally upbeat picture, with record Q1 contribution ex‑TAC and programmatic revenue underscoring solid demand across connected TV, mobile, data, and display. Management balanced this optimism with caution on earnings, cash flow, and macro risks, but growth momentum and product traction clearly dominated the discussion.</p> <h2>Record Q1 Contribution ex‑TAC</h2> <p>Nexxen reported contribution ex‑TAC of $84.5 million for Q1, a company record for the quarter and up 13% year over year. Management tied the performance mainly to the strength of its programmatic business, signaling that the core engine of the platform is expanding at a healthy pace.</p> <h2>Programmatic Revenue Growth and Higher Targets</h2> <p>Programmatic revenue reached a Q1 record of $81.9 million, up 14% from a year ago and now the key driver of the group’s top line. Off the back of this, the company raised full‑year programmatic revenue guidance to a range of $374 million to $388 million, implying about 12% growth at the midpoint.</p> <h2>CTVIDAA Rebounds and Home‑Screen Push</h2> <p>CTVIDAA returned to growth, with Q1 revenue of $29.4 million, up 12% year over year after prior softness. Nexxen highlighted the launch of its Nexxen TVIDAA on‑screen programmatic home‑screen solution and new TCL and TiVo deals, which together expand its connected TV footprint by nearly 10 million devices.</p> <h2>Mobile In‑App as a Durable Growth Engine</h2> <p>Mobile revenue climbed 18% year over year, powered by direct SDK integrations with publishers such as Unity that open up higher‑quality in‑app supply. Management framed mobile in‑app as a long‑term, AI‑resilient growth driver, positioning it as a key pillar alongside connected TV in the evolving ad landscape.</p> <h2>Data and Display Deliver Outsized Gains</h2> <p>Data products posted an 81% year‑over‑year jump in contribution ex‑TAC, while display contribution rose 57%, showing strong traction beyond core video formats. Automatic content recognition data licensing is gaining momentum, with new partners including AdForm underscoring the monetization potential of Nexxen’s data assets.</p> <h2>EBITDA Beat and Upgraded Contribution Guidance</h2> <p>Adjusted EBITDA came in at $16.3 million for Q1, a 19% margin on contribution ex‑TAC and ahead of consensus expectations. Management lifted full‑year contribution ex‑TAC guidance to $382 million to $397 million, implying just over 10% growth at the midpoint and targeting adjusted EBITDA of $122 million to $132 million, or roughly a 33% margin.</p> <h2>Enterprise Client Wins Signal Commercial Strength</h2> <p>The company has already onboarded more new enterprise clients this year than in all of last year, each with potential annual spend above $1 million. Early signs from this cohort point to larger budgets, more recurrent campaigns, and deeper engagement, supporting a pipeline of higher‑value, stickier relationships.</p> <h2>AI‑Driven Efficiency Across the Platform</h2> <p>Investments in the NextAI initiative are beginning to pay off in efficiency, with Discovery Assistance reducing audience research time by more than 40% year over year. Nexxen also cited over 90% efficiency gains in key DSP workflows and plans to push AI capabilities further across both the demand‑ and supply‑side parts of its platform.</p> <h2>Partnership Expansion and Capital Deployment</h2> <p>Nexxen broadened relationships with major platforms including The Trade Desk, StackAdapt, and Basis and is testing with OEMs such as LG alongside existing VIDAA, TCL, and TiVo ties. On capital allocation, it repurchased about 1.1 million shares for roughly $7.2 million in Q1, authorized a fresh $40 million buyback, and is proceeding with an incremental investment to lift its stake in VIDAA.</p> <h2>Margin Pressures: EPS and Cash Flow</h2> <p>Despite top‑line records, non‑IFRS diluted EPS fell to $0.06 from $0.16 a year ago, reflecting near‑term pressure on per‑share profitability. Operating activities used $21 million of cash versus $19.3 million generated in the prior‑year quarter, which management tied to working capital timing, while reiterating expectations for normalization in the second quarter.</p> <h2>Non‑Programmatic and PMP Softness</h2> <p>Outside programmatic, performance was more muted, with contribution ex‑TAC from non‑programmatic lines slipping by about $560,000 year over year amid weakness in education. Private marketplace contribution ex‑TAC fell 17%, suggesting some advertisers are favoring open‑auction and other formats even as overall programmatic demand strengthens.</p> <h2>Video Mix Shift Toward Native and Display</h2> <p>Video’s share of programmatic revenue dropped from 72% to 65% quarter over quarter, driven by faster growth in home‑screen, native, and other display formats. Management implied this may be a temporary mix effect ahead of an expected ramp in in‑stream video, as new home‑screen and native placements scale up.</p> <h2>Conservative Tone Despite Near‑Term Acceleration</h2> <p>Analysts pressed on why guidance implies only around 10% contribution ex‑TAC growth at the midpoint, below the 13% delivered in Q1. Management cited macroeconomic uncertainty and dependencies on key partners as reasons for keeping the full‑year stance conservative, even as they pointed to acceleration in April and May and upcoming event‑driven catalysts.</p> <h2>Guidance and Outlook</h2> <p>For the full year, Nexxen now expects contribution ex‑TAC between $382 million and $397 million and programmatic revenue of $374 million to $388 million, both implying low‑double‑digit growth at the midpoint. Adjusted EBITDA is guided to $122 million to $132 million, and management highlighted a debt‑free balance sheet, substantial liquidity, and anticipated second‑half tailwinds from major sporting and political advertising cycles.</p> <p>Nexxen’s earnings call blended strong operational momentum with measured financial caution, but the overall tone skewed clearly positive for growth‑oriented investors. Record programmatic and CTVIDAA performance, rapid data and display expansion, and rising enterprise and AI leverage are setting the stage for further scale, even as the market watches margins and cash conversion in the coming quarters.</p></div>

NEXN

<p>Nexxen International Ltd. reported a record Q1 with contribution ex-TAC of $84.5 million, up 13% year-over-year, driven by strong programmatic revenue growth of 14%. The company raised its full-year programmatic revenue guidance to $374-$388 million. Mobile revenue increased by 18%, and data products saw an 81% jump. Adjusted EBITDA was $16.3 million, exceeding expectations. However, non-IFRS diluted EPS fell to $0.06, and cash flow was negative due to working capital timing. Analysts noted a conservative outlook despite strong growth momentum in programmatic demand.</p>

Nexxen International Lifts Outlook on Record Q1