Nexxen International NASDAQ: NEXN reported record second-quarter results for the period ended June 30, 2026, led by growth in connected television, mobile and data products, while raising its full-year outlook for contribution ex-TAC and programmatic revenue.
Chief Executive Officer Ofer Druker said the company’s performance exceeded consensus estimates and included its strongest quarterly CTV revenue result to date. He attributed the momentum to investments in the company’s integrated platform, AI capabilities and enterprise go-to-market efforts.
“Our outperformance enabled us to raise our full-year contribution ex-TAC and programmatic revenue guidance for the third time this year,” Druker said, adding that enterprise customers have been increasing spending and adopting more of Nexxen’s products.
Second-Quarter Results
Chief Financial Officer Sagi Niri said second-quarter contribution ex-TAC, a non-IFRS measure, rose 11% year over year to a record $97.8 million. Programmatic revenue increased 12% to a second-quarter record of $95.2 million.
- CTV revenue increased 33% year over year to a record $37.8 million.
- Mobile revenue rose 23% year over year.
- Contribution ex-TAC from data products increased 46%, while CMPs and display rose 23% and 18%, respectively.
- Desktop revenue declined 13% year over year.
- Adjusted EBITDA was $27.6 million, representing a 28% margin on contribution ex-TAC.
- Operating cash flow totaled $61.3 million, compared with $17.4 million in the prior-year quarter.
Niri said results were supported by CTV, mobile, data products and display, along with growth in entertainment, automotive and health advertising verticals. He also cited declines in desktop and non-programmatic business lines, as well as softness in travel.
Non-IFRS diluted earnings per share were $0.23, compared with $0.29 in the second quarter of 2025. Nexxen ended June with $132 million in cash and cash equivalents, carried no debt, and had an additional $50 million available under its revolving credit facility, according to Niri.
CTV, Enterprise and AI Strategy
Druker said CTV growth was broad-based and stemmed largely from improved execution, additional demand sources, enterprise customer activity and expanded relationships with CTV partners. He said the reported CTV growth did not yet materially reflect Nexxen TV Home Screen, the company’s programmatic smart-TV home-screen advertising product.
Nexxen expects the Home Screen product to begin contributing more meaningfully to revenue in the fourth quarter, with contribution increasing during 2027. Druker said the company has begun running campaigns with major global companies and is working with demand-side platforms, advertisers, agencies, original equipment manufacturers and other partners to expand adoption.
The company also said enterprise spending increased more than 25% year over year in the second quarter. The number of advertisers activated through enterprise customers rose to more than 750, from fewer than 400 in the second quarter of 2025, with each advertiser using more than one Nexxen solution.
Druker pointed to Toyota as an example of an enterprise customer that expanded beyond the company’s DSP to use Nexxen Discovery, data capabilities and media supply. He said the customer generated approximately 2.7 times return on ad spend and reduced cost per vehicle sold by 62%.
Nexxen said it has introduced a new DSP user interface, enhanced nexAI DSP assistance and improved integration between its DSP and Nexxen Discovery audience-insights platform. The company also upgraded first-party data onboarding, saying advertisers can move audiences from upload to activation within 24 hours.
Druker described nexAI as a potential long-term growth engine rather than solely an efficiency initiative. He said AI-assisted campaign tools are intended to improve advertiser outcomes, which could encourage customers to shift more spending to Nexxen’s platform. The company currently uses AI in approximately 95% of its software development efforts, he said.
Investment, Capital Allocation and Outlook
Niri said the company is maintaining investment in AI, data infrastructure, platform capabilities and go-to-market execution, which has affected near-term margins. Nexxen reaffirmed full-year adjusted EBITDA guidance of $122 million to $132 million, implying roughly 10% annual growth and a 32% margin on contribution ex-TAC at the midpoint.
Management said a foreign-exchange headwind also affected costs. Niri said approximately 20% of employees are based in Israel and that currency fluctuations added roughly $2.5 million in costs during the first half without changes to staffing.
The company raised its full-year 2026 revenue-related outlook:
- Contribution ex-TAC is now expected to be $388 million to $402 million, up from prior guidance of $385 million to $400 million.
- Programmatic revenue is now expected to be $380 million to $393 million, up from prior guidance of $377 million to $391 million.
At the midpoint, the updated outlook implies approximately 12% year-over-year growth in contribution ex-TAC and 13% growth in programmatic revenue. Management said it expects second-half results to benefit from enterprise engagement, CTV, mobile, data products and incremental political advertising tied to the U.S. midterm elections.
Nexxen did not repurchase shares during the second quarter, though it has authorization for a new repurchase program of up to $40 million. Druker said the company has repurchased about 40% of its shares over recent years, investing about $250 million, but is also evaluating internal investment and smaller acquisitions in CTV, mobile in-app and AI.
The company expects to complete an additional $50 million investment in VIDAA during the third quarter, bringing its total investment to $60 million and its equity stake to approximately 6%. Nexxen also said it is winding down its non-programmatic influencer marketing business, Rhythm Influence, and continues to evaluate options for its remaining non-programmatic business line.
About Nexxen International (NASDAQ:NEXN)
Tremor 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.
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