Key Highlights

  • CTV Revenue reached a record USD 34.1 million, up 39% year over year.
  • Adjusted EBITDA rose 22% to USD 34.5 million, a 34% margin.
  • Operating cash flow was USD 46.1 million, against USD 35.8 million.
  • Cash and cash equivalents were USD 152.9 million, with no long-term debt.

Nexxen International (NASDAQ:NEXN) reported third-quarter 2026 contribution ex-TAC of USD 100.3 million, a third-quarter record and an increase of 8% year over year. The figure compares with an estimate of USD 100.14 million. Programmatic revenue was USD 97.8 million, up 9%, also a third-quarter record. Non-IFRS Diluted Earnings per Share were USD 0.32, against an estimate of USD 0.30 and USD 0.20 in the third quarter of 2025.

Management said growth was broad-based, led by CTV, mobile, data products and display, and supported by its government, automotive, entertainment and retail verticals. These trends offset year-over-year declines in desktop and its non-programmatic business, along with softness in some other verticals. It said the quarter was the third consecutive quarterly record for CTV revenue, which was USD 34.1 million, up 39% year over year. It attributed the increase to continued momentum across its platform CTV solutions.

Product Lines and Margins

Contribution ex-TAC from data products increased 73%, from private marketplaces 18% and from display 11% year over year. Desktop revenue declined 29%. On the call, an analyst asked about CTV growth of 39%, enterprise DSP usage growth of 40% and the desktop decline. Management responded on the dynamics behind each.

Management also described its Smart TV home screen offering, Nexxen TV Home Screen. In the quarter it launched standardized home screen inventory specifications across OEMs, with access to inventory from V, TCL, TiVo ads and others. Demand-side partners include The Trade Desk, Google's Display and Video 360 and StackAdapt. It also launched programmatic CTV pause ad activation capabilities for partners such as DIRECTV advertising, and said SDK integrations with partners like Unity continue to scale for mobile in-app.

Adjusted EBITDA increased 22% year over year to USD 34.5 million. That represented a Margin of 34% as a percentage of contribution ex-TAC, against 30% in the third quarter of 2025. Management said that as revenue rises, the margin on adjusted EBITDA moves higher.

Cash Flow and Capital Allocation

The company generated USD 46.1 million of Operating Cash Flow in the quarter, against USD 35.8 million in the third quarter of 2025. As of September 30, it had USD 152.9 million in cash and cash equivalents, USD 50 million available under its revolving Credit Facility and no long-term debt.

On capital allocation, management said it completed an additional USD 15 million Investment in V in the third quarter. That brings its total investment to USD 60 million and its Equity ownership to approximately 6% of shares outstanding.

2026 Guidance

Management maintained its guidance for contribution ex-TAC in the range of USD 388 million to USD 402 million, approximately 12% year-over-year growth at the midpoint. Programmatic revenue is guided at USD 380 million to USD 393 million, approximately 13% growth at the midpoint.

Adjusted EBITDA is guided at USD 122 million to USD 132 million, approximately 10% year-over-year growth at the midpoint and a 32% margin as a percentage of contribution ex-TAC. Management referred on the call to the fourth-quarter guidance and to its outlook going into 2027.

The reported items for the quarter are contribution ex-TAC of USD 100.3 million, CTV revenue of USD 34.1 million, adjusted EBITDA of USD 34.5 million, operating cash flow of USD 46.1 million and the maintained 2026 guidance ranges. The company's shares are listed on the Nasdaq Stock Market.