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    NEXN
    Earnings call· Jun 2026(Q2 FY26)

    Nexxen International Q2 FY26 earnings call NEXN

    Aug 12, 2026 Source

    Executive summary

    Nexxen Q2 FY26 — Record CTV Revenue and Raised Full-Year Guidance

    Nexxen delivered a strong second quarter, exceeding consensus with record CTV and programmatic revenue, driven by strategic investments in AI, data, and go-to-market execution. The company raised its full-year revenue guidance, signaling confidence in its growth drivers, particularly enterprise adoption and CTV leadership, despite increased operating expenses for future expansion. Nexxen views its nexAI platform as a core differentiator and growth engine, not just a productivity tool.

    Highlights

    5

    • Record Q2 Contribution ex-TAC of $97.8 million, an 11% year-over-year increase.

    • Record Q2 programmatic revenue of $95.2 million, up 12% year-over-year.

    • All-time record quarterly CTV revenue of $37.8 million, growing 33% year-over-year.

    • Full-year Contribution ex-TAC guidance raised to $388M-$402M (midpoint 12% YoY growth).

    • Full-year programmatic revenue guidance raised to $380M-$393M (midpoint 13% YoY growth).

    Concerns

    4

    • Strategic wind-down of nonprogrammatic influencer marketing business, RhythmInfluence, resulted in restructuring expenses.

    • Desktop revenue declined by 13% year-over-year.

    • Softness observed within the travel vertical.

    • Adjusted EBITDA margin contracted to 28% in Q2, reflecting increased strategic investments.

    Guidance & targets

    8
    CategoryTargetConfidence
    Full-year 2026 Contribution ex-TAC
    $388M-$402M
    high materiality
    High
    Full-year 2026 Programmatic revenue
    $380M-$393M
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $122M-$132M
    high materiality
    High
    Nexxen TV Home Screen revenue contribution
    meaningful contribution in Q4, ramping throughout 2027
    medium materiality
    High
    Adjusted EBITDA margin
    34%
    high materiality
    Medium
    M&A activity
    make a move on acquisition
    medium materiality
    Medium
    Investment in V
    additional $15M investment, total $60M, 6% equity ownership
    low materiality
    High
    Incremental Contribution ex-TAC from US midterm elections
    incremental benefits
    medium materiality
    High

    Operational metrics

    16
    Contribution ex-TAC
    $97.8M11% YoY increase
    Q2 FY26

    Q2 record

    Programmatic revenue growth
    12%YoY
    Q2 FY26

    Q2 record

    CTV revenue growth
    33%YoY
    Q2 FY26

    All-time record quarterly CTV revenue of $37.8M

    Mobile revenue growth
    23%YoY
    Q2 FY26

    Driven by execution against mobile in-app strategy.

    Data products Contribution ex-TAC growth
    46%YoY
    Q2 FY26

    Contribution ex-TAC from data products.

    CMPs Contribution ex-TAC growth
    23%YoY
    Q2 FY26

    Contribution ex-TAC from CMPs.

    Display Contribution ex-TAC growth
    18%YoY
    Q2 FY26

    Contribution ex-TAC from display.

    Adjusted EBITDA margin
    28%vs 32% FY26 guidance midpoint
    Q2 FY26

    As a percentage of Contribution ex-TAC, reflecting increased investment.

    Cash and cash equivalents
    $132Mincreased significantly QoQ
    as of June 30, 2026

    Reflecting strong operating performance and collection of receivables outstanding at the end of Q1.

    Revolving credit facility capacity
    $50M
    current

    Additional available capacity, maintaining a debt-free balance sheet.

    Non-IFRS diluted earnings per share
    $0.23vs $0.29 in Q2 FY25
    Q2 FY26

    Reported for the quarter.

    Share repurchase program authorization
    $40M
    current

    Authorization to initiate a new repurchase program.

    Enterprise spend growth
    25%YoY
    Q2 FY26

    Supported by growing adoption and innovation.

    Advertisers activated through enterprise customers
    over 750vs less than 400 in Q2 FY25
    Q2 FY26

    Each leveraging more than one solution across the platform.

    AI support for software development
    95%
    current

    Enabling teams to deliver new capabilities faster while enhancing efficiency and supporting long-term operating leverage.

    FX headwind impact on costs
    $2.5M
    H1 FY26

    Impact from the ratio between the dollar and the new shekel, where approximately 20% of employees are located.

    Industry KPIs

    6
    MetricValueDetails
    Total revenue$95.2MUSD
    Net income EPS$0.23USD
    Adjusted EBITDA$27.6MUSD
    Cash marketable securities$132MUSD
    Ai product feature adoptionover 750advertisers
    Free cash flow operating cash flow$61.3MUSD

    Product announcements

    3
    ProductTypeDetails
    Nexxen TV Home Screenlaunch
    nexAI DSP UI and DSP assistantupdate
    nexAI interoperabilitylaunch

    Deals & partnerships

    2
    VAdditional investment in V, bringing total investment to $60M and equity ownership to approximately 6%.$15M additional investment

    Nexxen expects to complete an additional $15 million investment in V during Q3, bringing its total investment to $60 million and its equity ownership stake to approximately 6%.

    Unity and othersSDK integration to strengthen position in mobile in-app advertising.

    SDK integration with Unity and other partners has strengthened Nexxen's position in the mobile in-app channel, expanding monetization opportunities across its platform.

    Risks & headwinds

    5
    Strategic wind-down of nonprogrammatic influencer marketing business (RhythmInfluence)Q2 FY26

    restructuring expenses in the quarter

    Mitigation: Not expected to have a material impact on Contribution ex-TAC or adjusted EBITDA in H2 FY26. Evaluating strategic options for remaining nonprogrammatic business lines.

    Decline in desktop revenueQ2 FY26

    declined by 13%

    Mitigation: Evaluating strategic options for remaining nonprogrammatic business lines to improve business mix and sharpen programmatic focus.

    Softness in travel verticalQ2 FY26

    observed softness

    Mitigation: Overall strategy focuses on growth drivers like CTV, mobile, and AI to offset softness in specific verticals.

    Increased investment impacting EBITDA marginsQ2 FY26 and H2 FY26

    Adjusted EBITDA for Q2 came in ahead of Wall Street consensus at $27.6 million, representing a 28% margin... primarily reflects increased investment

    Mitigation: Expect to expand margins over time through end-to-end enterprise strategy, nexAI-driven operational efficiencies, and disciplined cost management, targeting 34% EBITDA margin in 2027.

    FX headwind (USD vs. New Shekel)H1 FY26

    around $2.5 million

    Mitigation: Company adjusts some activities to deal with it, but it is not directly controllable.

    What to watch in Q3 FY26

    5

    Nexxen TV Home Screen revenue contribution

    Q4 FY26
    Currentnot yet revenue-influencing
    Targetmeaningful contribution

    Why it matters

    This new programmatic ad solution on smart TV home screens is expected to be a significant long-term growth driver for CTV revenue.

    We expect Nexxen TV Home Screen to begin contributing more meaningfully to revenues in Q4 with contribution ramping throughout 2027, supported by a strong pipeline across demand and OEM partners.

    Q&A highlights

    6

    What factors are driving the strong CTV growth, and how sustainable are these growth rates?

    The impressive CTV growth is attributed to better execution, increased sales, incentivizing enterprise clients to utilize CTV properties, and new data initiatives. While Nexxen TV Home Screen is not yet a significant revenue contributor, it's generating interest. The media team is also expanding partnerships. Management views the growth as massive and expects it to continue.

    “It's coming from a few things that we've done lately, but most of that is better execution in generally speaking, meaning bringing more sales, more demand sources into the mix.”

    asked by Jason Kreyer · answered by Ofer Druker

    2 min read7 chapters

    Detailed Narrative

    01

    Strategic Investments Driving Growth

    Nexxen's Q2 outperformance is attributed to strategic investments in its platform, enhanced AI capabilities (nexAI), and a sharper go-to-market approach. These investments are leading to stronger adoption, accelerating spend ramp, and growing platform usage by clients and partners, particularly in CTV and mobile in-app. The company's full-year Contribution ex-TAC and programmatic revenue guidance were raised for the third time this year, reflecting confidence in these initiatives.

    02

    CTV Leadership and Innovation

    The company achieved record CTV revenue of $37.8 million, growing 33% year-over-year, with momentum continuing into Q3. This growth is broad-based, supported by integrated technology solutions, exclusive TV data assets, and premium media. Nexxen TV Home Screen, a programmatic smart TV home screen ad activation solution, is expected to contribute meaningfully to revenues from Q4 2026 and ramp throughout 2027, with a strong pipeline across demand and OEM partners.

    03

    AI as a Growth Engine (nexAI)

    Nexxen views nexAI as a core differentiator and a growth engine, not just a productivity tool. It drives growth by delivering stronger campaign outcomes, attracting more budget from clients, and enabling better monetization of the platform. nexAI is expanding its agentic capabilities across the campaign lifecycle, assisting with reporting, audience research, QA, and troubleshooting, with plans for media planning and creative automation. The company also announced nexAI interoperability to connect with external AI agents.

    04

    Enterprise Customer Adoption

    Enterprise spend increased over 25% year-over-year in Q2, with the number of advertisers activated through enterprise customers growing from under 400 in Q2 2025 to over 750 in Q2 2026. This is driven by improved go-to-market execution, the DSP's full-funnel performance, usability, and integration with nexAI, and enhanced first-party data onboarding capabilities. Toyota was cited as a case study, achieving 2.7x return on ad spend and 62% reduction in cost per vehicle sold.

    05

    Capital Allocation Strategy

    Nexxen maintains a debt-free balance sheet with $132 million in cash and $50 million available under its revolving credit facility. The company prioritizes financial flexibility for strategic investments in AI, data, and platform capabilities, and is actively evaluating disciplined M&A opportunities in CTV, mobile in-app, and AI. While no share repurchases occurred in Q2, a $40 million authorization remains, and an additional $15 million investment in V is expected in Q3.

    06

    Leadership Team Enhancements

    To support the next phase of growth, Nexxen promoted Chance Johnson to President, Kara Puccinelli to Chief Commercial Officer, and Ken Suh to Chief Business Officer. These changes aim to strengthen the commercial organization, unify execution, and accelerate growth across core drivers like enterprise, CTV, and mobile. The CEO, Ofer Druker, will continue focusing on short-term execution and long-term strategy.

    07

    Mobile In-App Strategy

    The mobile in-app strategy continues to drive significant year-over-year mobile revenue growth in Q2, with momentum extending into Q3. SDK integrations, including with Unity, have strengthened Nexxen's position in this AI-resilient channel, expanding monetization opportunities and positioning it as a durable long-term growth driver. This channel is considered AI-resilient and a key focus for future growth.

    AI-generated summary of the company’s earnings call. Not investment advice.