Nexxen's Q2 2025: Diverging Views on Geopolitical Impact, AI Integration, and Data Growth

Revenue and Contribution Ex-TAC Growth:
- Nexxen International Ltd. reported a Q2 record contribution ex-TAC of $87.8 million, a 6% year-over-year increase.
- Growth was driven by strength in data product, self-service, tech licensing, and desktop revenue, alongside increased contributions from specific verticals like health, travel, and education.

AI and Product Innovation:
- Nexxen introduced nexAI, a suite of AI-powered features, which was adopted by over 100 combined users, including major agencies and brands.
- The adoption of nexAI has been positive, showing productivity gains and improved outcomes, which are expected to drive broader adoption and deeper engagement over time.

CTV and Partnership Strategy:
- CTV revenue grew 1% year-over-year, reaching $28.4 million, despite macroeconomic challenges.
- Growth was supported by strategic partnerships, such as the expanded agreement with VIDAA, providing exclusive access to premium inventory and enhancing data capabilities.

Off-Platform Data Licensing Opportunity:
- Nexxen's data and technology licensing saw early traction with the introduction of novel solutions like the cookie-less data platform.
- This segment is expected to become a significant profit center and encourages more clients to partner with Nexxen, offering substantial future growth potential.