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1. Company Snapshot

1.a. Company Description

Nexxen 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.

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1.b. Last Insights on NEXN

Negative drivers behind Nexxen International's recent performance include the lack of significant catalysts to drive a bullish surge, despite improved fiscal performance and undervalued status. The company's stock exchange and trading structure changes in February 2025 may have created uncertainty among investors. Additionally, the absence of a substantial earnings beat in Q4 2024, despite record-breaking Contribution ex-TAC, programmatic revenue, and CTV revenue, may have tempered investor enthusiasm. Furthermore, the company's recent focus on share repurchases, while positive, may not be enough to offset the lack of other significant drivers.

1.c. Company Highlights

2. Nexxen International's Q3 Earnings: A Mixed Bag

Nexxen International reported a strong Q3 with programmatic revenue reaching a record $89.6 million, up 10% year-over-year or 15% ex-political. Contribution ex-TAC was $92.6 million, also a Q3 record, reflecting an 8% increase year-over-year or 14% ex-political. However, the company's EPS came in at $0.2, slightly below estimates of $0.22. The company's revenue growth was driven by its omnichannel DSP, data product self-service, and increases across various verticals.

Publication Date: Nov -21

📋 Highlights
  • Q3 Programmatic Revenue Growth:: 10% YoY increase ($89.6M) or 15% ex-political, driven by omnichannel strength and enterprise DSP adoption.
  • Enhanced DSP Performance:: AI and automation upgrades reduced media costs by 8% while improving ROI, enabling direct competition with top standalone DSPs.
  • Full-Year Guidance Cut:: Contribution ex-TAC lowered to $350–$360M (8% YoY growth), with programmatic revenue growth midpoint at 6% (9% ex-political).
  • Vida Partnership Expansion:: Expected to boost 2026 contribution ex-TAC via ACR data licensing and programmatic smart TV home screen activation.
  • Next.ai Adoption Impact:: Expanded first-party data integration improved customer targeting, driving measurable performance gains and EBITDA margin expansion.

Operational Highlights

The company's omnichannel DSP has been enhanced with automation, performance, and user experience improvements, bringing more enterprise partners onto the platform. The data platform has been expanded through Next AI, improving customers' first-party data connects and usability. The company's Discovery tool, acquired from Amobee, has been a differentiator, and they're adding mobile data from partners to their platform.

Guidance and Outlook

Despite the strong Q3, the company lowered its full-year 2025 guidance, expecting contribution ex-TAC in the range of $350 million to $360 million, adjusted EBITDA in the range of $113 million to $117 million, and programmatic revenue growth of approximately 6% at the midpoint or 9% ex-political. However, the company remains confident in its long-term strategy and positioning, with a solid foundation, expanding partnerships, and critical capabilities unique to Nexxen International.

Valuation

With a P/E Ratio of 4.75, P/B Ratio of 0.4, and P/S Ratio of 0.53, the company's valuation appears reasonable. The EV/EBITDA ratio is 1.04, indicating a relatively low valuation. Analysts estimate next year's revenue growth at 7.8%, which is slightly higher than the company's current growth rate. The company's ROE is 7.93%, and ROIC is 7.26%, indicating a decent return on equity and invested capital.

Future Prospects

The company's focus on CTV is expected to bring growth next year, as well as reducing reliance on third-party DSPs. The in-app focus is also showing good results, and they believe it will generate growth next year. With a solid foundation and expanding partnerships, Nexxen International is well-positioned to capitalize on emerging trends and insulate itself from potential headwinds in 2026.

3. NewsRoom

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Nexxen Announces November 2025 Share Repurchase Program Summary

Dec -01

Source: globenewswire.com

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Nexxen International Ltd. Sponsored ADR (NASDAQ:NEXN) Receives Average Rating of “Moderate Buy” from Brokerages

Dec -01

Source: defenseworld.net

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Nexxen International Ltd. (NEXN) Q3 2025 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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Nexxen Reports Third Quarter 2025 Financial Results

Nov -13

Source: globenewswire.com

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Nexxen Announces October 2025 Share Repurchase Program Summary

Nov -03

Source: globenewswire.com

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Nexxen's ACR Audience Segments Licensed by Yahoo DSP for Activation

Oct -16

Source: globenewswire.com

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Nexxen International Ltd. Sponsored ADR (NEXN) Soars 7.7%: Is Further Upside Left in the Stock?

Oct -15

Source: zacks.com

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Nexxen's Curated Marketplace Enables Partners to Unlock New Value from Data for Smarter Curation

Oct -01

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.20%)

6. Segments

Programmatic

Expected Growth: 8%

Nexxen International Ltd.'s Programmatic growth is driven by increasing demand for data-driven advertising, expansion into new markets, and strategic partnerships. Additionally, advancements in AI and machine learning are enhancing the platform's efficiency, leading to higher adoption rates. The company's focus on transparency, brand safety, and customer support also contributes to its growth.

Performance

Expected Growth: 10%

Nexxen International Ltd.'s 10% growth is driven by increasing demand for its innovative products, strategic expansion into emerging markets, and effective cost management. Additionally, the company's focus on research and development has led to the introduction of new products, further boosting revenue. Strong operational efficiency and a solid financial position have also contributed to the company's impressive growth.

7. Detailed Products

Nexxen Smart Locks

Advanced digital locks with biometric authentication, Bluetooth connectivity, and remote monitoring capabilities.

Nexxen Access Control Systems

Comprehensive access control solutions for managing and monitoring entry and exit points in various settings.

Nexxen Surveillance Systems

IP-based CCTV cameras and recording systems for monitoring and securing premises.

Nexxen Intrusion Detection Systems

Advanced intrusion detection systems for detecting and alerting on potential security breaches.

Nexxen Fire Detection Systems

Advanced fire detection and suppression systems for early warning and response to fire hazards.

Nexxen Integrated Security Solutions

Customized security solutions integrating multiple security systems for comprehensive protection.

8. Nexxen International Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Nexxen International Ltd. is medium due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the presence of a large number of customers who can easily switch to alternative products.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the presence of multiple suppliers in the market, giving Nexxen International Ltd. the power to negotiate prices.

Threat Of New Entrants

The threat of new entrants is medium due to the moderate barriers to entry in the industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to a competitive pricing strategy.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 20.03%
Debt Cost 6.62%
Equity Weight 79.97%
Equity Cost 10.48%
WACC 9.71%
Leverage 25.05%

11. Quality Control: Nexxen International Ltd. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Nexxen

A-Score: 5.2/10

Value: 9.4

Growth: 6.3

Quality: 7.8

Yield: 0.0

Momentum: 6.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
4imprint

A-Score: 4.9/10

Value: 6.0

Growth: 8.9

Quality: 7.6

Yield: 3.8

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
M&C Saatchi

A-Score: 3.6/10

Value: 5.5

Growth: 4.3

Quality: 4.8

Yield: 0.6

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
S4 Capital

A-Score: 3.5/10

Value: 10.0

Growth: 2.8

Quality: 3.8

Yield: 3.8

Momentum: 0.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
YouGov

A-Score: 3.4/10

Value: 5.2

Growth: 4.9

Quality: 3.9

Yield: 3.8

Momentum: 1.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Ascential

A-Score: 3.3/10

Value: 5.0

Growth: 0.7

Quality: 3.7

Yield: 5.0

Momentum: 4.0

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.47$

Current Price

6.47$

Potential

-0.00%

Expected Cash-Flows