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Nexxen International Ltd. (NEXN)
NASDAQ:NEXN
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Nexxen International
(NASDAQ:NEXN)
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Rating:75Outperform
Price Target:―
Nexxen International's strong performance in key growth areas such as CTV and improved EBITDA margins drive a positive outlook, despite financial challenges and valuation concerns. The company's strategic initiatives and raised guidance further bolster its stock potential.
Positive Factors
Strong CTV Growth
The substantial growth in CTV revenue indicates Nexxen's strong market position and ability to capitalize on the expanding digital advertising space, which is crucial for long-term revenue growth and competitive advantage.
Adjusted EBITDA Improvement
The significant improvement in adjusted EBITDA and margins reflects operational efficiency and financial health, which can enhance profitability and investor confidence over the long term.
New Partnerships and Clients
The addition of new clients and partnerships strengthens Nexxen's market reach and revenue base, supporting sustainable growth and enhancing its competitive position in the tech industry.
Negative Factors
Declining Revenue
The trend of declining revenue raises concerns about Nexxen's ability to maintain market share and growth, potentially impacting its long-term financial stability and strategic initiatives.
Profitability Challenges
Ongoing profitability issues, such as a negative net profit margin, can hinder Nexxen's ability to reinvest in growth opportunities and may affect its competitive positioning over time.
Operational Inefficiencies
Negative EBIT margins suggest operational inefficiencies that could undermine Nexxen's cost management and profitability, posing risks to its long-term operational success and financial health.
Nexxen International (NEXN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$656.07M
Dividend YieldN/A
Average Volume (3M)361.94K
Price to Earnings (P/E)12.4
Beta (1Y)0.91
Revenue Growth9.65%
EPS GrowthN/A
CountryUS
Employees854
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.29
Shares Outstanding135,451,000
10 Day Avg. Volume357,295
30 Day Avg. Volume361,940
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue1.38
Enterprise Value/Gross Profit1.70
Enterprise Value/Ebitda4.45
Forecast
1Y Price Target
$15.50Price Target Upside63.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Nexxen International Business Overview & Revenue Model
Company DescriptionNexxen International Ltd. provides end-to-end software platform that enables advertisers to reach relevant audiences and publishers. The company's demand side platform (DSP) offers full-service and self-managed marketplace access to advertisers and agencies to execute their digital marketing campaigns in real time across various ad formats. Its sell supply side platform (SSP) provides access to data and a comprehensive product suite to drive inventory management and revenue optimization. The company also offers data management platform solution, which integrates DSP and SSP solutions enabling advertisers and publishers to use data from various sources in order to optimize results of their advertising campaigns. It serves ad buyers, advertisers, brands, agencies, and digital publishers in Israel, the United States, the Asia-Pacific, Europe, the Middle East, and Africa. The company was formerly known as Tremor International Ltd and changed its name to Nexxen International Ltd. in January 2024. Nexxen International Ltd. was incorporated in 2007 and is headquartered in Tel Aviv-Yafo, Israel.
How the Company Makes MoneyNexxen International generates revenue through a multifaceted business model. The primary revenue streams include subscription fees from its cloud-based software platforms and licensing fees for its enterprise applications. Additionally, the company earns significant income from consulting services, where it provides digital transformation and cybersecurity expertise to its clients. Strategic partnerships with technology firms and ongoing client contracts also contribute to its financial success. Nexxen's focus on continuous innovation and customer-centric solutions helps maintain a steady flow of revenue and positions it competitively in the technology market.
Nexxen International Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were significant achievements, such as record programmatic revenue and strategic partnerships, challenges in certain revenue streams and slower-than-expected CTV growth were notable concerns.Q2-2025 Updates
Positive Updates
Record Contribution ex-TAC and Programmatic Revenue
Nexxen generated contribution ex-TAC of $87.8 million, a Q2 record, and programmatic revenue reached a Q2 record of $85 million, reflecting an 8% increase compared to Q2 2024.
Expansion of Strategic Partnership with VIDAA
Nexxen renewed and expanded its strategic partnership with VIDAA, securing exclusive ad monetization rights on VIDAA Media in North America through at least the end of 2029.
Introduction of nexAI
Launched nexAI, a suite of AI-powered assistance and features that have already been adopted by over 100 users, signaling productivity gains and improved outcomes.
Strong Adjusted EBITDA Performance
Nexxen exceeded Wall Street's adjusted EBITDA expectations, generating $29.9 million in Q2, a 12% increase from Q2 2024.
Growth in Data Products
Contribution ex-TAC from data products increased 76% year-over-year.
Negative Updates
Decline in Non-Programmatic Business
Experienced an approximately $1.7 million year-over-year decline in contribution ex-TAC from the non-programmatic business line.
Slow Growth in CTV Revenue
CTV revenue grew only 1% year-over-year to $28.4 million, despite expectations of higher growth due to the VIDAA partnership.
Decline in Mobile and Display Revenue
Mobile revenue declined 9%, and contribution ex-TAC from PMPs and display declined 6% and 4% year-over-year, respectively.
Company Guidance
During Nexxen's second quarter earnings call, the company provided several key financial metrics and forward-looking guidance. Nexxen reported a contribution ex-TAC of $87.8 million, a record for Q2 and a 6% increase year-over-year. Programmatic revenue achieved a Q2 record of $85 million, reflecting an 8% increase from the same period in 2024. Despite a challenging advertising environment, CTV revenue grew by 1% year-over-year to $28.4 million. The company also highlighted strong growth in data products, with contribution ex-TAC from these products rising by 76%. Adjusted EBITDA for the quarter was $29.9 million, a 12% increase compared to Q2 2024, leading to an adjusted EBITDA margin of 34% of contribution ex-TAC. Looking ahead, Nexxen reaffirmed its full-year guidance, anticipating a contribution ex-TAC of approximately $380 million, with adjusted EBITDA projected at around $125 million. The company expects programmatic revenue to account for roughly 90% of full-year 2025 revenue and foresees year-over-year growth in both CTV and data licensing revenue, despite ongoing macroeconomic uncertainties.Nexxen International Financial Statement Overview
Summary
Nexxen International faces financial challenges with declining revenues and a negative net profit margin, but maintains a strong balance sheet with low leverage. Operational inefficiencies impact profitability, and cash flow management needs improvement for sustaining operations.Income Statement
Nexxen International's income statement reveals a mixed performance with declining revenue over the past few years. The gross profit margin remains healthy at 81.3% in 2023. However, the company is currently facing profitability challenges, evidenced by a negative net profit margin of -6.5% due to a net loss. The EBIT margin has also turned negative at -5.1%, indicating operational inefficiencies. The significant drop in revenue from 2021 to 2022 highlights growth concerns.65
Positive
Balance Sheet
The balance sheet of Nexxen International shows a strong equity base with a debt-to-equity ratio of 0.25, indicating low leverage and financial stability. The equity ratio stands at 60.1%, showcasing a robust capital structure. However, there is a slight decline in stockholders' equity over the years. Despite this, the company's return on equity (ROE) has decreased to -3.95% in 2023, reflecting recent profitability issues.78
Positive
Cash Flow
Nexxen's cash flow statement demonstrates resilience with a positive operating cash flow to net income ratio of -2.83, despite the net loss. The free cash flow has decreased from previous years, showing a contraction in liquidity. The free cash flow to net income ratio is a positive highlight, but the overall cash flow trends indicate a need for better cash management strategies.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 371.75M | 365.48M | 331.99M | 335.25M | 341.94M | 211.92M |
| Gross Profit | 302.30M | 304.46M | 269.72M | 274.50M | 270.29M | 152.11M |
| EBITDA | 115.56M | 106.15M | 69.50M | 89.74M | 115.20M | 39.61M |
| Net Income | 49.69M | 35.44M | -21.49M | 22.74M | 73.22M | 2.14M |
Balance Sheet | ||||||
| Total Assets | 740.87M | 840.51M | 904.80M | 956.16M | 802.74M | 535.01M |
| Cash, Cash Equivalents and Short-Term Investments | 131.46M | 187.07M | 234.31M | 217.50M | 367.72M | 97.46M |
| Total Debt | 31.65M | 37.20M | 136.13M | 127.88M | 14.99M | 21.21M |
| Total Liabilities | 260.58M | 309.66M | 361.25M | 404.55M | 230.36M | 205.99M |
| Stockholders Equity | 480.29M | 530.85M | 543.55M | 551.62M | 572.38M | 329.01M |
Cash Flow | ||||||
| Free Cash Flow | 111.01M | 127.31M | 41.12M | 67.83M | 161.74M | 29.71M |
| Operating Cash Flow | 128.80M | 150.84M | 60.74M | 83.01M | 170.09M | 35.16M |
| Investing Cash Flow | -24.41M | -21.21M | -16.96M | -232.99M | -16.49M | 4.92M |
| Financing Cash Flow | -126.57M | -174.74M | -26.55M | 3.06M | 116.86M | -22.37M |
Nexxen International Technical Analysis
Negative
9.49
Price Trends
9.95
Negative
10.34
Negative
9.75
Negative
Market Momentum
-0.12
Positive
45.10
Neutral
18.56
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEXN, the sentiment is Negative. The current price of 9.49 is below the 20-day moving average (MA) of 9.78, below the 50-day MA of 9.95, and below the 200-day MA of 9.75, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 45.10 is Neutral, neither overbought nor oversold. The STOCH value of 18.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEXN.
Nexxen International Risk Analysis
Nexxen International disclosed 1 risk factors in its most recent earnings report. Nexxen International reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nexxen International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | 521.37B | 52.29 | 41.07% | ― | 14.28% | 46.86% | |
77 Outperform | 15.00B | -240.05 | -2.37% | ― | 17.32% | 87.79% | |
77 Outperform | 43.31B | 43.46 | 17.13% | 0.44% | 2.68% | -6.15% | |
75 Outperform | $656.07M | 12.37 | 9.91% | ― | 9.65% | ― | |
59 Neutral | 21.74B | 53.62 | 15.48% | ― | 23.18% | 63.48% | |
55 Neutral | 46.27B | -10.48 | -121.49% | ― | 7.33% | -7.46% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
NEXN
Nexxen International
9.49
1.25
15.17%
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1.40
-0.26
-15.66%
DLX
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19.42
1.12
6.12%
NCMI
National Cinemedia
4.77
-1.96
-29.12%
EEX
Emerald Expositions Events
5.14
0.38
7.98%
ADV
Advantage Solutions
1.77
-1.83
-50.83%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.