Nexxen Q2 revenue up 6% YoY to $87.8mln, CTV revenue flat at $28.4mln.

• Nexxen reports record Q2 Contribution ex-TAC of $87.8mln, up 6% YoY. • Programmatic revenue reaches $85mln, up 8% YoY. • CTV revenue hits $28.4mln, up 1% YoY. • CTV revenue accounts for 33% of programmatic revenue. • Adjusted EBITDA margin increases to 34% from 32% in Q2 2024.

Nexxen International Ltd. (NASDAQ: NEXN) has reported robust financial results for the second quarter of 2025, highlighting its resilience and growth in the face of macroeconomic uncertainties. The company achieved a record Q2 Contribution ex-TAC of $87.8 million, up 6% year-over-year (YoY) [1]. This significant milestone was driven by strong performance across key revenue streams, with programmatic revenue reaching $85.0 million, an 8% YoY increase, and CTV revenue hitting $28.4 million, a 1% YoY rise [1].

The company's strategic focus on programmatic advertising is evident in the data, with programmatic revenue now comprising 93% of total revenue, up from 89% in Q2 2024 [1]. However, CTV revenue as a percentage of programmatic revenue decreased from 36% to 33%, indicating near-term challenges in this segment despite the company's strategic focus [1].

Nexxen's Adjusted EBITDA margin has improved significantly, expanding to 34% of Contribution ex-TAC from 32% in Q2 2024, reflecting the company's ability to scale its platform while maintaining cost discipline [1]. This margin improvement is a notable achievement, especially in light of the company's continued investment in technology and data.

The renewal and expansion of Nexxen's strategic partnership with VIDAA in Q3 2025 through 2029 is a significant development. The company increased its investment in VIDAA by $35 million to accelerate the latter's North American expansion, securing exclusive access to valuable automatic content recognition (ACR) data and ad monetization rights [1]. This partnership is expected to provide Nexxen with sustainable competitive differentiation in the data-driven advertising market.

Nexxen's launch of nexAI, an AI-powered platform suite, is another key highlight. The AI capabilities integrated across Nexxen's platform position the company to capitalize on the growing importance of AI in advertising technology while potentially reducing operational costs over time [1]. The nexAI Discovery Assistant exemplifies how this technology delivers tangible business value through automated audience insights reports with sentiment analysis and strategic recommendations.

Despite the strong Q2 results, management acknowledged macroeconomic uncertainties extending into Q3. However, the company's aggressive share repurchase program continues, having bought back 34.3% of outstanding shares since March 2022, with approximately $7.2 million remaining in the current authorization [1].

Nexxen's Q2 results underscore the company's technological transition in the adtech industry, with the introduction of nexAI representing a significant innovation milestone. The company's continued investment in technology, data, and AI through 2025 reflects its understanding that competitive advantage in adtech increasingly depends on technological sophistication rather than scale alone.

References:
[1] https://www.stocktitan.net/news/NEXN/nexxen-reports-second-quarter-2025-financial-6jpa7ar2bkb9.html