Nexxen's Aggressive Share Buybacks and Capital Allocation Strategy in a Changing Market

Nexxen International (NEXN) has emerged as a compelling case study in strategic capital allocation, with its dual-pronged share repurchase programs signaling both management confidence and a belief in undervaluation. As of August 31, 2025, the company had $2.7 million remaining under its current $2.7 million buyback program, having repurchased 460,000 ordinary shares at an average price of $9.82 during the month [1]. This follows a July repurchase of 880,000 shares at $10.41, reflecting a consistent effort to acquire stock at what management perceives as a discount to intrinsic value [4]. The current share price of $10.03 as of August 29 further reinforces this narrative, as the August repurchase price was 2.1% below the recent closing price [2][3].

The company’s planned $20 million share repurchase program, set to launch after the completion of its current authorization, amplifies this strategy. This next phase, requiring creditor approval and shareholder authorization, underscores Nexxen’s commitment to capital returns even amid regulatory hurdles [1][2]. The decision to pursue such an aggressive buyback—despite a 2024 EBITDA forecast of $107 million (still below 2022 levels)—suggests management views equity as a compelling investment [2]. This is particularly notable given the ad tech sector’s volatility, where disciplined capital allocation often separates resilient players from underperformers.

Nexxen’s financial performance further supports this thesis. Third-quarter results revealed 12% revenue growth and a 49% year-over-year increase in EBITDA to $31.6 million [2]. While the 2024 EBITDA forecast remains below pre-pandemic peaks, the upward revision of 7% indicates improving operational momentum. Coupled with the buybacks, this suggests a strategic pivot toward shareholder value creation through both earnings growth and equity repurchases.

The company’s broader strategic shifts—such as its planned departure from AIM and conversion of Nasdaq-listed ADRs to ordinary shares—add another layer of confidence. These moves, to be voted on at the AGM, aim to streamline governance and enhance liquidity, potentially attracting a broader investor base [2]. Such structural changes often precede periods of renewed focus on core operations and shareholder returns, aligning with Nexxen’s current capital allocation priorities.

Critically, the average repurchase prices in July and August ($10.41 and $9.82, respectively) suggest the company has been opportunistic in its buying, snapping up shares during dips. This pattern, combined with the current $10.03 share price, implies a disciplined approach to valuation. For value investors, this represents a rare combination: a management team actively reducing the share count at a discount while demonstrating financial discipline through EBITDA growth.

In conclusion, Nexxen’s dual-pronged repurchase strategy—combining an ongoing $2.7 million program with a planned $20 million expansion—positions the company as a standout in the ad tech sector. The data points to a management team that is both confident in its intrinsic value and proactive in deploying capital to enhance shareholder returns. For investors seeking undervalued opportunities with clear catalysts, Nexxen’s aggressive buybacks and improving financials present a compelling case.

**Source:[1] Nexxen Announces August 2025 Share Repurchase [https://www.stocktitan.net/news/NEXN/nexxen-announces-august-2025-share-repurchase-program-xiafonhy8u1f.html][2] Nexxen International (NEXN) plans ask shareholder permission at its AGM for a departure from AIM and change its Nasdaq listing from ADRs to ordinary shares. Third quarter figures show 12% growth in revenues, while EBITDA is 49% ahead at $31.6m. The 2024 EBITDA forecast has been raised by 7% to $107m, which is still well below the 2022 level. [https://www.branduk.net/tag/aqx/][3] Stock Information | Nexxen International [https://tremorinternationalltd.gcs-web.com/shareholder-information/stock-information][4] Nexxen Announces June 2025 Share Repurchase Program [https://finance.yahoo.com/news/nexxen-announces-june-2025-share-113000820.html]