Nexxen Reports Record Third Quarter 2026 Financial Results

Quarterly profit improved, but nine-month operating profit and adjusted EBITDA remained below their year-earlier levels.

Rhea-AI Summary

Nexxen (NEXN) reported third-quarter 2026 revenue of $102.9 million, with growth in programmatic advertising and connected TV supporting higher quarterly profit. Revenue rose 9% year over year. Contribution ex-TAC, a non-IFRS measure excluding traffic acquisition costs, increased 8% to $100.3 million. Programmatic revenue rose 9% to $97.8 million, while connected TV revenue grew 39% to $34.1 million.

Adjusted EBITDA increased 22% to $34.5 million, with its margin on Contribution ex-TAC rising to 34% from 30%. Diluted earnings per share reached $0.18 versus $0.07. However, nine-month operating profit fell 38% to $12.0 million. Nexxen reaffirmed full-year Contribution ex-TAC guidance of $388–$402 million and adjusted EBITDA of $122–$132 million. It held $152.9 million in cash with no long-term debt, extended its up to $40 million buyback authorization and expects repurchases to resume in the second half of Q4.

24 points · 0 major

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Positive

• Moderate pointQ3 revenue of $102.9 million increased 9% year over year.
• Moderate pointQ3 Contribution ex-TAC of $100.3 million increased 8% year over year.
• Moderate pointQ3 adjusted EBITDA of $34.5 million rose 22%; margin on Contribution ex-TAC reached 34% versus 30%.
• Moderate pointQ3 operating profit of $12.7 million increased 75% year over year.
• Moderate pointNine-month revenue of $290.3 million increased 10% year over year.
• Moderate pointNine-month Contribution ex-TAC of $282.7 million increased 11% year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Up to $40 million buyback authorization extended; repurchases are expected to resume in the second half of Q4 2026. 7.8% of market cap
• Moderate pointAdditional $15 million investment in V completed, bringing total investment to $60 million and approximately 6% equity ownership. 2.9% of market cap

16 minor points

• Minor pointQ3 programmatic revenue of $97.8 million rose 9%, reaching 95% of revenue versus 94% a year earlier.
• Minor pointQ3 connected TV revenue of $34.1 million rose 39%, reaching 35% of programmatic revenue versus 27%.
• Minor pointQ3 total comprehensive income of $10.3 million increased 169% year over year.
• Minor pointQ3 diluted earnings per share of $0.18 increased 150% year over year.
• Minor pointQ3 net income margin on gross profit increased to 15% from 6%.
• Minor pointQ3 non-IFRS net income of $19.1 million rose 59%; non-IFRS diluted EPS rose 60% to $0.32.
• Minor pointNine-month programmatic revenue of $275.0 million increased 12% year over year.
• Minor pointEnterprise-customer Q3 Contribution ex-TAC grew over 40% year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year Contribution ex-TAC guidance reaffirmed at $388–$402 million, approximately 12% year-over-year growth at the midpoint.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year programmatic revenue guidance reaffirmed at $380–$393 million, approximately 13% year-over-year growth at the midpoint.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year adjusted EBITDA guidance reaffirmed at $122–$132 million, approximately 10% growth and 32% Contribution ex-TAC margin at the midpoint.
• Minor point. Forward-looking: it has not happened yet and may not happen.Q4 Contribution ex-TAC, programmatic and connected TV revenue are each expected by management to reach all-time records.
• Minor point. Forward-looking: it has not happened yet and may not happen.Q4 adjusted EBITDA growth and margin expansion are expected sequentially and year over year.
• Minor pointCash of $152.9 million, no long-term debt and $50 million in undrawn revolving credit supported September-end liquidity.
• Minor point. Forward-looking: it has not happened yet and may not happen.AI, data and infrastructure investment remains planned alongside performance-based connected TV and mobile in-app capabilities.
• Minor point. Forward-looking: it has not happened yet and may not happen.Bolt-on acquisitions remain under evaluation, focusing on opportunities management expects would add Contribution ex-TAC and adjusted EBITDA.

Negative

• Moderate pointNine-month operating profit of $12.0 million declined 38% year over year.
• Moderate pointNine-month adjusted EBITDA of $78.4 million fell 4%; margin on Contribution ex-TAC decreased to 28% from 32%.
• Minor pointNine-month total comprehensive income of $9.0 million declined 48% year over year.
• Minor pointNine-month diluted earnings per share of $0.15 declined 36% year over year.
• Minor pointNine-month net income margin on gross profit decreased to 4% from 8%.

2 minor points

• Minor pointNine-month non-IFRS net income of $35.9 million fell 12%; non-IFRS diluted EPS fell 6% to $0.61.
• Minor pointNo shares were repurchased in Q3 2026 as management prioritized financial flexibility and investment.

News Explained

The completed V investment establishes an approximately 6% equity position; Nexxen made no share repurchases in Q3.

Nexxen completed an additional $15 million investment in V during Q3 2026, bringing its total investment to $60 million and its equity ownership to approximately 6%.

No shares were repurchased during Q3 2026; the company extended its share-repurchase authorization of up to $40 million and expects to resume repurchases in the second half of Q4 2026.

Key Figures

Q3 Contribution ex-TAC: $100.3 million, up 8% year over year Q3 programmatic revenue: $97.8 million, up 9% year over year Q3 CTV revenue: $34.1 million, up 39% year over year +5 more

Q3 Contribution ex-TAC

$100.3 million, up 8% year over year

Record Q3 2026

Q3 programmatic revenue

$97.8 million, up 9% year over year

Record Q3 2026

Q3 CTV revenue

$34.1 million, up 39% year over year

Record Q3 2026

Q3 Adjusted EBITDA

$34.5 million, up 22% year over year

34% margin on a Contribution ex-TAC and total revenue basis

2026 Contribution ex-TAC guidance

$388–$402 million

Full-year guidance reaffirmed

2026 programmatic revenue guidance

$380–$393 million

Full-year guidance reaffirmed

2026 Adjusted EBITDA guidance

$122–$132 million

Full-year guidance reaffirmed

Share repurchase authorization

Up to $40 million

Authorization extended; company expects to resume repurchases in the second half of Q4 2026

Previous Earnings Reports

2 past events · Latest: Aug 12

Same Type 2 events

1. Aug 12

   Quarterly earnings

   24h Move

   +2.5%

   Raised 2026 Contribution ex-TAC and programmatic guidance to the ranges reaffirmed this quarter.

2. Nov 13

   Quarterly earnings

   24h Move

   -21.3%

   Comparable Q3 report showed CTV revenue down 17% and Adjusted EBITDA down 11% year over year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

demand-side platform, supply-side platform

2 terms

demand-side platform technical

"Comprised of a demand-side platform (“DSP”) and supply-side platform (“SSP”)"

A demand-side platform is an automated tool advertisers use to buy digital ad space across many websites and apps in real time, combining audience data, budgets and bidding rules to decide where and when ads appear. It matters to investors because DSPs make ad spending more efficient and measurable—improving targeting, lowering wasted spend and enabling faster scaling—so businesses that operate or rely on them can show stronger revenue efficiency and more predictable marketing returns.

supply-side platform technical

"demand-side platform (“DSP”) and supply-side platform (“SSP”)"

A supply-side platform is an online tool publishers use to sell their digital advertising space automatically to the highest bidders across many ad networks and buyers. For investors, an SSP matters because it determines how efficiently publishers convert audience attention into revenue, influences ad pricing and margins, and signals competitive strength or risk in companies that depend on programmatic advertising — like the marketplace software that matches supply with demand.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Delivered record Q3 Contribution ex-TAC and programmatic revenue, highlighted by continued enterprise momentum and 39% year-over-year CTV revenue growth, alongside a 22% year-over-year increase in Adjusted EBITDA 

Reaffirmed full-year 2026 Contribution ex-TAC, programmatic revenue and Adjusted EBITDA guidance following three top line guidance increases earlier this year

Extended $40 million share repurchase program authorization and currently expects to resume share repurchases in the second half of Q4 2026

NEW YORK, Nov. 12, 2026 (GLOBE NEWSWIRE) -- Nexxen International Ltd. (NASDAQ: NEXN) (“Nexxen” or the “Company”), the advertising technology platform powered by unique data and media, announced today its financial results for the three and nine months ended September 30, 2026.

Q3 2026 Financial Highlights

• Record Q3 Contribution ex-TAC of $100.3 million, up 8% year-over-year.
• Record Q3 programmatic revenue of $97.8 million, up 9% year-over-year.
• Record Q3 CTV revenue of $34.1 million, up 39% year-over-year.
• Programmatic revenue increased to 95% of total revenue, compared to 94% in Q3 2025.
• CTV revenue increased to 35% of programmatic revenue, compared to 27% in Q3 2025.
• Video revenue represented 66% of programmatic revenue, compared to 70% in Q3 2025.
• Adjusted EBITDA of $34.5 million, up 22% year-over-year, representing a 34% Adjusted EBITDA margin on both a Contribution ex-TAC and total revenue basis, compared to $28.2 million and a 30% Adjusted EBITDA margin on a Contribution ex-TAC and total revenue basis in Q3 2025.
• $152.9 million in cash and cash equivalents, no long-term debt and $50 million available under the Company’s undrawn revolving credit facility as of September 30, 2026.
  

“We delivered record Q3 Contribution ex-TAC and programmatic revenue, highlighted by strength across enterprise, CTV, mobile in-app and data products, while returning to Adjusted EBITDA growth and margin expansion following three top line guidance increases earlier this year,” said Ofer Druker, Chief Executive Officer of Nexxen. “Our investments across data, AI, CTV, mobile in-app and platform capabilities are driving tangible results, supporting what we believe are continued share gains across agencies, brands and major holding companies.”

Mr. Druker added, “We are also advancing our strategy to capitalize on the AI-driven transformation of the advertising ecosystem. As Nexxen has evolved, we think of ourselves not simply as a DSP, data platform and SSP, but increasingly as an AI-native, full-funnel performance advertising platform, powering better outcomes for both buyers and sellers while enabling them to transact directly in a streamlined, transparent and unified agentic environment. As AI agents play a greater role, we believe Nexxen’s in-platform and interoperable agentic capabilities, powered by nexAI, unique data and end-to-end infrastructure, position us to help lead that evolution. Based on preliminary results, we believe October was our best top line month ever, and with momentum accelerating across our key growth engines, we believe Nexxen is well-positioned to deliver an all-time record quarter in Q4 and enter 2027 from a position of strength.”

Financial Guidance and Outlook

• Nexxen reaffirms its prior full-year 2026 financial guidance following three top line guidance increases earlier this year:
   
  • Contribution ex-TAC in the range of $388 - $402 million, representing approximately 12% year-over-year growth at the midpoint
  • Programmatic revenue in the range of $380 - $393 million, representing approximately 13% year-over-year growth at the midpoint
  • Adjusted EBITDA in the range of $122 - $132 million, representing approximately 10% year-over-year growth and an Adjusted EBITDA margin of 32% on a Contribution ex-TAC basis at the midpoint
    
    
• The Company’s reaffirmed guidance reflects continued year-over-year momentum across enterprise customers, increased end-to-end platform utilization and strength within CTV, mobile in-app and data products thus far in Q4 2026. Based on current visibility, including preliminary unaudited results for October, which the Company believes represented its best top line month ever, management anticipates all-time record Contribution ex-TAC and programmatic revenue in Q4 2026.
• While Nexxen benefitted from political advertising related to the U.S. mid-term election cycle in Q3 and early Q4 2026, management does not expect political revenue comparisons to represent a meaningful growth headwind in 2027.
• Management currently anticipates all-time record CTV revenue in Q4 2026, driven by broad-based momentum across Nexxen’s end-to-end CTV solutions and the continued ramp of Nexxen TV Home Screen, which is progressing in line with management’s expectations. Based on early results and a strong pipeline, management continues to believe the offering will represent an increasingly meaningful growth catalyst into 2027 and beyond.
• Management currently expects sequential and year-over-year Adjusted EBITDA growth and margin expansion in Q4 2026, with most incremental Contribution ex-TAC expected to flow to the Company’s Adjusted EBITDA, demonstrating the operating leverage enabled by Nexxen’s end-to-end model. The Company intends to continue investing in AI, data and infrastructure, alongside performance-based CTV and mobile in-app capabilities, to support long-term programmatic revenue growth and operating leverage.
  

Q3 2026 Operational Highlights and Recent Developments

• Significantly enhanced Nexxen’s unique data capabilities, enabling additional differentiated signals to enter its platform faster, improving ease of use and performance, advancing nexAI and supporting the Company’s long-term growth opportunities. Nexxen launched new first-party data onboarding capabilities that allow customers to prepare audiences for activation in 24 hours or less, supported by an enhanced Unified Identity Graph that incorporates additional online and offline signals and nearly doubles Nexxen’s global identity footprint.
   
• Advanced Nexxen’s in-platform and interoperable agentic AI capabilities, expanding how customers can interact with and derive value from its platform while creating new growth opportunities. Nexxen now has several live in-platform agents spanning key customer workflows including reporting, QA, audience intelligence, incremental spend analysis and campaign and deal troubleshooting, with additional agents expected to be released in the coming quarters. These capabilities are also accessible through Nexxen’s MCP integrations, alongside a broader suite of AI-driven tools supporting campaign management workflows. Eight agency and holding company partners are now actively testing or utilizing Nexxen within their own AI-driven environments, with initial feedback indicating the Company’s agentic capabilities are advanced relative to other platforms.
   
• Drove continued enterprise momentum in Q3, generating over 40% year-over-year Contribution ex-TAC growth from enterprise customers that access the Nexxen DSP on a self-service or platform-managed basis and activating many additional advertisers through them, with several citing Nexxen’s data capabilities and agentic AI solutions as key catalysts. Enterprise customers have continued to consolidate spend and expand their use of Nexxen’s combined data, media and technology solutions, driving greater end-to-end platform utilization. Third-party studies, including from DISQO, an independent advertising effectiveness measurement provider, have highlighted double- to triple-digit percentage improvements across metrics such as awareness, conversion, campaign performance and cost efficiencies on campaigns run through Nexxen compared to peer platforms, which the Company believes supports the benefits of its end-to-end strategy.
   
• Advanced Nexxen TV Home Screen through the standardization of Smart TV home screen inventory specifications across OEMs, expanding Nexxen’s long-term CTV revenue opportunity. Nexxen TV Home Screen, now also available across EMEA, provides access to premium inventory from V (formerly VIDAA), TCL, TiVo Ads and others, with additional major OEMs in testing or active discussions. Programmatic access is supported through Nexxen DSP and other industry-leading platforms, including The Trade Desk, Google’s Display & Video 360 and StackAdapt, with spend scaling in line with expectations thus far in Q4 and a strong pipeline supporting continued growth.
   
• Expanded CTV media footprint through recent integrations with premium partners including Disney, Sling TV and others, further strengthening Nexxen’s CTV coverage, which the Company believes ranks among the industry’s highest.
   
• Increased programmatic access to premium CTV formats, making pause ad inventory from partners including DIRECTV Advertising available through Nexxen SSP to buyers using Nexxen DSP and other leading third-party DSPs.
   
• Deepened Nexxen’s partnership with Omnicom’s Acxiom, integrating its consumer intelligence and audience data into Nexxen Discovery to combine interest, purchase and household-level insights with Nexxen’s contextual, behavioral and viewership signals, enabling advertisers to more precisely identify, refine and activate audiences across channels.
   
• Integrated with Shopify, enabling advertisers to connect first-party online and offline e-commerce purchase and conversion signals directly to Nexxen’s unified platform to support measurement and attribution across Nexxen DSP.
   
• Completed the wind-down of RhythmInfluence, Nexxen’s non-programmatic influencer marketing business. The wind-down did not have a material impact on Contribution ex-TAC or Adjusted EBITDA during Q3 2026, nor is it expected to materially impact these measures in Q4 2026. Management continues to evaluate strategic options for its remaining non-programmatic business lines.
  

Share Repurchase Program and Capital Allocation Updates

• Nexxen’s strong balance sheet and robust cash generation, alongside its absence of long-term debt, provide financial flexibility to simultaneously invest in organic growth, pursue disciplined acquisition opportunities and return capital to shareholders:
  

• • Nexxen completed its additional $15 million investment in V (formerly VIDAA) during Q3 2026, bringing its total investment to $60 million, representing approximately 6% equity ownership.
  • The Company did not repurchase shares during Q3 2026, as management prioritized maintaining financial flexibility while actively evaluating disciplined bolt-on acquisition opportunities and continuing to invest across Nexxen’s strategic priorities, including AI, data, platform capabilities and go-to-market execution.
  • The Company extended its share repurchase program authorization of up to $40 million and currently expects to resume share repurchases in the second half of Q4 2026. Since March 1, 2022, Nexxen has repurchased 30,928,265 shares, or approximately 39.9% of shares outstanding, investing approximately $265.3 million.
  • Management continues to actively evaluate bolt-on acquisitions that can enhance the Company’s platform capabilities, competitive positioning and long-term growth, with a focus on opportunities that management expects would be accretive to Contribution ex-TAC and Adjusted EBITDA.
    

Financial Highlights for the Three and Nine Months Ended September 30, 2026 ($ in millions, except per share amounts)

		Three months ended September 30							Nine months ended September 30
		2026			2025		%		2026		2025		%
IFRS Highlights
Revenue		102.9			94.8		9%		290.3		264.1		10%
Programmatic revenue		97.8			89.6		9%		275.0		246.3		12%
Operating profit		12.7			7.3		75%		12.0		19.4		(38%)
Net income margin on a gross profit basis		15%			6%				4%		8%
Total comprehensive income		10.3			3.8		169%		9.0		17.5		(48%)
Diluted earnings per share		0.18			0.07		150%		0.15		0.23		(36%)
Non-IFRS Highlights
Contribution ex-TAC		100.3			92.6		8%		282.7		255.4		11%
Adjusted EBITDA		34.5			28.2		22%		78.4		81.3		(4%)
Adjusted EBITDA Margin on a Contribution		34%			30%				28%		32%
ex-TAC basis
Non-IFRS net income		19.1			12.0		59%		35.9		40.9		(12%)
Non-IFRS diluted earnings per share		0.32			0.20		60%		0.61		0.66		(6%)

Third Quarter 2026 Financial Results Webcast and Conference Call Details

• When: November 12, 2026, at 9:00 AM ET
• Webcast: A live and archived webcast can be accessed from the Events and Presentations section of Nexxen’s Investor Relations website at https://investors.nexxen.com/
• Participant Dial-In Numbers:
  • U.S. / Canada Toll-Free Dial-In Number: (888) 596-4144
  • U.K. Toll-Free Dial-In Number: +44 800 260 6470
  • International Dial-In Number: +1 (646) 968-2525
  • Conference ID: 4150652
    

About Nexxen

Nexxen is the advertising technology platform that delivers full-funnel performance powered by unique data and media. Comprised of a demand-side platform (“DSP”) and supply-side platform (“SSP”), with the Nexxen Data Platform at its core, we meet the demands of today’s converging media landscape with exclusive audience intelligence, automation and expertise.

Headquartered in Israel, Nexxen maintains offices throughout North America, Europe and Asia-Pacific and is traded on Nasdaq (NEXN). For more information, please visit nexxen.com.

For further information please contact:

Billy Eckert, Vice President of Investor Relations
ir@nexxen.com

Genevieve Wheeler, Senior Director of Communications
gwheeler@nexxen.com

Forward Looking Statements

This press release contains forward-looking statements, including forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are identified by words such as “anticipates,” “believes,” “expects,” “intends,” “may,” “can,” “will,” “estimates,” and other similar expressions. However, these words are not the only way Nexxen identifies forward-looking statements. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding anticipated financial results for October, Q4 and full year 2026 and beyond; anticipated benefits of Nexxen’s strategic transactions and commercial partnerships; anticipated features and benefits of Nexxen’s products and service offerings, including anticipated benefits relating to nexAI, MCP and A2A interoperability and the Company's AI investment strategy; anticipated industry adoption of Nexxen TV Home Screen; Nexxen’s positioning for accelerated growth and continued future growth; Nexxen’s medium- to long-term prospects; management’s belief that Nexxen is well-positioned to benefit from future industry growth trends and Company-specific catalysts; the Company’s plans with respect to its cash reserves as well as its future share repurchase programs, including the expected resumption of share repurchases; the Company’s plans to pursue strategic opportunities for its non-programmatic business lines and other targeted, smaller-scale strategic opportunities to accelerate programmatic revenue growth and expand capabilities, including its acquisition priorities and the expected accretive impact of any acquisition; the expected impact of the wind-down of RhythmInfluence; anticipated benefits from the Company’s strategic partnership with V (formerly VIDAA), as well as any other statements related to Nexxen’s future financial results and operating performance. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors that may cause Nexxen’s actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including, but not limited to, the following: negative global economic conditions, including risks related to tariff impacts or policy shifts (including trade negotiations or enforcement actions) that could materially affect market sentiment, consumer behavior and advertising demand; global conflicts and war, including the conflict involving Israel and Iran and related regional and international tensions, including U.S. military involvement, and the war and hostilities between Israel and Hamas, Hezbollah and the Houthis in Yemen, and how those conditions may adversely impact Nexxen’s business, customers and the markets in which Nexxen competes; changes in industry trends, and other negative developments in Nexxen’s business or unfavorable legislative or regulatory developments. Nexxen cautions you not to place undue reliance on these forward-looking statements. For a more detailed discussion of these factors, and other factors that could cause actual results to vary materially, interested parties should review the risk factors listed in the Company’s most recent Annual Report filed with the U.S. Securities and Exchange Commission (www.sec.gov) on Form 20-F. Any forward-looking statements made by Nexxen in this press release speak only as of the date of this press release, and Nexxen does not intend to update these forward-looking statements after the date of this press release, except as required by law.

Nexxen and the Nexxen logo are trademarks of Nexxen International Ltd. in the United States and other countries. All other trademarks are the property of their respective owners. The use of the word “partner” or “partnership” in this press release does not mean a legal partner or legal partnership.

Use of Non-IFRS Financial Information

In addition to our IFRS results, we review certain non-IFRS financial measures to help us evaluate our business, measure our performance, identify trends affecting our business, establish budgets, measure the effectiveness of investments in technology and development and sales and marketing and assess our operational efficiencies. These non-IFRS measures include Contribution ex-TAC, Adjusted EBITDA, Adjusted EBITDA Margin, Non-IFRS Net Income and Non-IFRS Earnings per Share, each of which is discussed below.

These non-IFRS financial measures are not intended to be considered in isolation from, as substitutes for, or as superior to the corresponding financial measures prepared in accordance with IFRS. You are encouraged to evaluate these adjustments and review the reconciliation of these non-IFRS financial measures to their most comparable IFRS measures and the reasons we consider them appropriate. It is important to note that the particular items we exclude from, or include in, our non-IFRS financial measures may differ from the items excluded from, or included in, similar non-IFRS financial measures used by other companies. See “Reconciliation of Revenue to Contribution ex-TAC,” “Reconciliation of Total Comprehensive Income to Adjusted EBITDA,” and “Reconciliation of Net Income to Non-IFRS Net Income,” included as part of this press release.

• Contribution ex-TAC: Contribution ex-TAC for Nexxen is defined as gross profit plus depreciation and amortization attributable to cost of revenue and cost of revenue (exclusive of depreciation and amortization) minus Performance (non-programmatic) media costs (“traffic acquisition costs” or “TAC”). Performance (non-programmatic) media costs represent the costs of purchases of impressions from publishers on a cost-per-thousand impression basis in our non-core, non-programmatic Performance activities. Contribution ex-TAC is a supplemental measure of our financial performance that is not required by or presented in accordance with IFRS. Contribution ex-TAC should not be considered as an alternative to gross profit as a measure of financial performance. Contribution ex-TAC is a non-IFRS financial measure and should not be viewed in isolation. We believe Contribution ex-TAC is a useful measure in assessing the performance of Nexxen because it facilitates a consistent comparison against our core business without considering the impact of traffic acquisition costs related to revenue reported on a gross basis.
   
• Adjusted EBITDA: We define Adjusted EBITDA for Nexxen as total comprehensive income for the period adjusted for foreign currency translation differences for foreign operation, tax expenses, financial income, net, depreciation and amortization, stock-based compensation expenses, restructuring and delisting related one-time costs. Adjusted EBITDA is included in the press release because it is a key metric used by management and our Board of Directors to assess our financial performance. Adjusted EBITDA is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Management believes that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate directly to the performance of the underlying business.
   
• Adjusted EBITDA Margin: We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of Contribution ex-TAC.
   
• Non-IFRS Net Income and Non-IFRS Earnings per Share: We define non-IFRS earnings per share as non-IFRS net income divided by non-IFRS weighted-average shares outstanding. Non-IFRS net income is equal to net income excluding amortization of acquired intangibles, restructuring, delisting related one-time costs and stock-based compensation expenses, and also considers the tax effects of non-IFRS adjustments. In periods in which we have non-IFRS net income, non-IFRS weighted-average shares outstanding used to calculate non-IFRS earnings per share include the impact of potentially dilutive shares. Potentially dilutive shares consist of stock options, restricted stock awards, restricted stock units and performance stock units, each computed using the treasury stock method. We believe non-IFRS earnings per share is useful to investors for evaluating our ongoing operational performance and trends on a per share basis and also facilitates comparison of our financial results on a per share basis with other companies, many of which present a similar non-IFRS measure. However, a potential limitation of our use of non-IFRS earnings per share is that other companies may define non-IFRS earnings per share differently, which may make comparison difficult. This measure may also exclude expenses that may have a material impact on our reported financial results. Non-IFRS earnings per share is a performance measure and should not be used as a measure of liquidity. Because of these limitations, we also consider the comparable IFRS measure of net income.
  

We do not provide a reconciliation of forward-looking non-IFRS financial metrics because reconciling information is not available without an unreasonable effort, such as attempting to make assumptions that cannot reasonably be made on a forward-looking basis to determine the corresponding IFRS metric.

Reconciliation of Total Comprehensive Income to Adjusted EBITDA

		Three months ended September 30						Nine months ended September 30
		2026		2025		%		2026		2025		%
($ in thousands)
Total comprehensive income		10,260		3,809		169%		9,015		17,456		(48%)
Foreign currency translation differences for foreign operation		171		399				(259)		(2,949)
Tax expenses		2,713		4,455				4,031		8,768
Financial income, net		(431)		(1,390)				(779)		(3,849)
Depreciation and amortization		17,375		16,080				51,442		46,868
Stock-based compensation expenses		4,431		4,844				13,632		13,453
Restructuring		-		-				1,323		-
Delisting related one-time costs		-		-				-		1,520
Adjusted EBITDA		34,519		28,197		22%		78,405		81,267		(4%)

Reconciliation of Revenue to Contribution ex-TAC 

		Three months ended September 30						Nine months ended September 30
		2026		2025		%		2026		2025		%
($ in thousands)
Revenue		102,934		94,791		9%		290,294		264,069		10%
Cost of revenue (exclusive of depreciation and amortization)		(17,576)		(16,262)				(52,802)		(39,518)
Depreciation and amortization attributable to cost of revenue		(14,328)		(12,944)				(42,260)		(37,769)
Gross profit (IFRS)		71,030		65,585		8%		195,232		186,782		5%
Depreciation and amortization attributable to cost of revenue		14,328		12,944				42,260		37,769
Cost of revenue (exclusive of depreciation and amortization)		17,576		16,262				52,802		39,518
Performance media cost		(2,585)		(2,229)				(7,582)		(8,712)
Contribution ex-TAC (Non-IFRS)		100,349		92,562		8%		282,712		255,357		11%

Reconciliation of Net Income to Non-IFRS Net Income

		Three months ended September 30										Nine months ended September 30
		2026		2025		%						2026			2025			%
($ in thousands)
Net income		10,431		4,208		148%						8,756			14,507			(40%)
Amortization of acquired intangibles		5,903		5,920								17,670			17,702
Restructuring		-		-								1,323			-
Delisting related one-time costs		-		-								-			1,520
Stock-based compensation expenses		4,431		4,844								13,632			13,453
Tax effect of Non-IFRS adjustments(1)		(1,686)		(2,954)								(5,502)			(6,321)
Non-IFRS net income		19,079		12,018		59%						35,879			40,861			(12%)
Weighted average shares outstanding—		59.0		59.5								58.4			62.3
diluted (in millions)(2)
Non-IFRS diluted earnings per share (in USD)		0.32		0.20		60%						0.61			0.66			(6%)

	(1)		Non-IFRS net income includes the estimated tax impact from the expense items reconciling between net income and non-IFRS net income
	(2)		Non-IFRS earnings per share is computed using the same weighted-average number of shares that are used to compute IFRS earnings per share

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION  (Unaudited)
		September 30			December 31
		2026			2025
		USD thousands
Assets
ASSETS:
Cash and cash equivalents		152,911			133,308
Trade receivables, net		227,517			196,101
Other receivables		5,040			6,116
Current tax assets		1,701			1,809
TOTAL CURRENT ASSETS		387,169			337,334
Fixed assets, net		25,471			18,033
Right-of-use assets		34,452			27,005
Intangible assets, net		303,472			318,376
Deferred tax assets		8,225			9,407
Investment in shares		60,000			45,000
Other long-term assets		1,119			918
TOTAL NON-CURRENT ASSETS		432,739			418,739
TOTAL ASSETS		819,908			756,073
Liabilities and shareholders’ equity
LIABILITIES:
Current maturities of lease liabilities		15,681			13,287
Trade payables		246,891			207,020
Other payables		40,237			41,282
Current tax liabilities		377			441
TOTAL CURRENT LIABILITIES		303,186			262,030
Employee benefits		226			213
Long-term lease liabilities		23,571			18,644
Deferred tax liabilities		2,123			515
TOTAL NON-CURRENT LIABILITIES		25,920			19,372
TOTAL LIABILITIES		329,106			281,402
SHAREHOLDERS’ EQUITY:
Share capital		329			324
Share premium		285,621			278,510
Other comprehensive income		607			348
Retained earnings		204,245			195,489
TOTAL SHAREHOLDERS’ EQUITY		490,802			474,671
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		819,908			756,073

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATION AND OTHER COMPREHENSIVE INCOME (LOSS) (Unaudited)
	For the nine months ended September 30				For the three months ended September 30
	2026		2025		2026		2025
	USD thousands				USD thousands
Revenues	290,294		264,069		102,934		94,791
Cost of revenues (Exclusive of depreciation and amortization shown separately below)	52,802		39,518		17,576		16,262
Research and development expenses	43,886		42,494		14,124		14,765
Selling and marketing expenses	100,622		90,530		31,615		30,369
General and administrative expenses	29,534		25,233		9,531		10,042
Depreciation and amortization	51,442		46,868		17,375		16,080
Total operating costs	225,484		205,125		72,645		71,256
Operating profit	12,008		19,426		12,713		7,273
Financing income	(2,746)		(5,685)		(1,015)		(1,944)
Financing expenses	1,967		1,836		584		554
Financing income, net	779		3,849		431		1,390
Profit before taxes on income	12,787		23,275		13,144		8,663
Tax expenses	4,031		8,768		2,713		4,455
Profit for the period	8,756		14,507		10,431		4,208
Other comprehensive income (loss) items:
Foreign currency translation differences for foreign operation	259		2,949		(171)		(399)
Total other comprehensive income (loss) for the period	259		2,949		(171)		(399)
Total comprehensive income for the period	9,015		17,456		10,260		3,809
Earnings per share
Basic earnings per share (in USD)	0.15		0.24		0.18		0.07
Diluted earnings per share (in USD)	0.15		0.23		0.18		0.07

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (Unaudited)
		Share capital		Share premium		Other comprehensive income (loss)		Retained earnings		Total
		USD thousands
Balance as of January 1, 2026		324		278,510		348		195,489		474,671
Total comprehensive income for the period
Profit for the period		-		-		-		8,756		8,756
Other comprehensive income:
Foreign currency translation		-		-		259		-		259
Total comprehensive income for the period		-		-		259		8,756		9,015
Transactions with owners, recognized directly in equity
Own shares acquired		(7)		(7,146)		-		-		(7,153)
Share based compensation		-		14,042		-		-		14,042
Exercise of share options		12		215		-		-		227
Balance as of September 30, 2026		329		285,621		607		204,245		490,802
Balance as of January 1, 2025		377		362,507		(2,476)		170,446		530,854
Total comprehensive income for the period
Profit for the period		-		-		-		14,507		14,507
Other comprehensive income:
Foreign currency translation		-		-		2,949		-		2,949
Total comprehensive income for the period		-		-		2,949		14,507		17,456
Transactions with owners, recognized directly in equity
Own shares acquired		(53)		(90,006)		-		-		(90,059)
Share based compensation		-		12,228		-		-		12,228
Exercise of share options		8		435		-		-		443
Balance as of September 30, 2025		332		285,164		473		184,953		470,922

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited)
		Nine months ended September 30
		2026			2025
		USD thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Profit for the period		8,756			14,507
Adjustments for:
Depreciation and amortization		51,442			46,868
Net financing income		(969)			(4,008)
Loss on leases modification		8			44
Share-based compensation and restricted shares		13,632			13,453
Tax expenses		4,031			8,768
Change in trade and other receivables		(31,043)			24,495
Change in trade and other payables		40,852			(23,945)
Change in employee benefits		5			(27)
Income taxes received		1,098			539
Income taxes paid		(2,258)			(10,226)
Interest received		2,204			3,505
Interest paid		(1,401)			(1,588)
Net cash provided by operating activities		86,357			72,385
CASH FLOWS FROM INVESTING ACTIVITIES
Change in pledged deposits, net		45			(89)
Payments on finance lease receivable		774			906
Acquisition of fixed assets		(20,819)			(9,327)
Repayment of debt investment		63			68
Investment in shares		(15,000)			(20,000)
Acquisition and capitalization of intangible assets		(15,548)			(12,866)
Net cash used in investing activities		(50,485)			(41,308)
CASH FLOWS FROM FINANCING ACTIVITIES
Acquisition of own shares		(7,301)			(90,853)
Proceeds from exercise of share options		227			443
Leases repayment		(11,594)			(12,349)
Net cash used in financing activities		(18,668)			(102,759)
Net increase (decrease) in cash and cash equivalents		17,204			(71,682)
CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF PERIOD		133,308			187,068
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS		2,399			1,342
CASH AND CASH EQUIVALENTS AS OF THE END OF PERIOD		152,911			116,728

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Nexxen's full-year 2026 financial guidance?

Nexxen reaffirmed Contribution ex-TAC of $388–$402 million, programmatic revenue of $380–$393 million and adjusted EBITDA of $122–$132 million. At the midpoints, these represent approximately 12%, 13% and 10% year-over-year growth, respectively, with a 32% adjusted EBITDA margin on Contribution ex-TAC.

When does Nexxen expect to resume share repurchases?

Nexxen currently expects to resume share repurchases in the second half of Q4 2026 under its extended authorization of up to $40 million. It did not repurchase shares during Q3 2026.

What happened to Nexxen's RhythmInfluence business?

Nexxen completed the wind-down of RhythmInfluence, its non-programmatic influencer marketing business. The wind-down did not materially affect Q3 2026 Contribution ex-TAC or adjusted EBITDA, and management does not expect a material effect on either measure in Q4. Strategic options for the remaining non-programmatic business lines remain under evaluation.

Does Nexxen expect political advertising comparisons to hurt growth in 2027?

Management does not expect political revenue comparisons to create a meaningful growth headwind in 2027. Nexxen benefited from advertising related to the U.S. mid-term election cycle in Q3 and early Q4 2026.