NEXN

Welcome to Nexxen's first quarter earnings call. At this time, participants are in a listen-only mode with a question and answer session to follow at the end of the presentation. This call is being recorded, and a replay will be made available on Nexxen's Investor Relations website. I'll now hand the call over to Billy Eckert, Vice President of Investor Relations, for introductions and reading of the safe harbor statement. Billy, please go ahead.

Thank you, operator. Good morning, everyone, and welcome to Nexxen's first quarter earnings call. During today's call, we will discuss our financial and operating results for the three months ended March 31, 2026, as well as our forward-looking guidance. With us on today's call are Ofer Druker, Nexxen's chief executive officer, and Sagi Niri, the company's chief financial officer.

This morning, we issued a press release which you can access on our IR website at investors.nexxen.com. During today's call, we will make forward-looking statements. All statements other than statements of historical fact may be deemed forward-looking. We advise caution in relying on them. These statements include, without limitation, statements and projections regarding our anticipated future financial and operating performance, market opportunity, growth prospects, strategy, and financial outlook.

They also include, without limitation, statements regarding our partnerships and anticipated benefits related to those partnerships, as well as expected benefits from our growth initiatives and platform investments. In addition, we may provide forward-looking views on macroeconomic and industry conditions and other statements regarding the expected development, performance, market share, or competitive position of our products and services.

All forward-looking statements are based on information available to us as of the date of this call. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those implied by these statements. These include, among other things, unexpected changes in our business or in macroeconomic or industry conditions.

More detailed information about these risk factors and additional risk factors are set forth in our filings with the U.S. Securities and Exchange Commission, including, but not limited to, those listed in the section entitled Risk Factors in our most recent annual report on Form 20-F.

Nexxen does not intend to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Additionally, the company's press release and management statements during this call will include discussions of certain measures and financial information in IFRS and non-IFRS terms. We refer you to the company's press release for additional details, including definitions of non-IFRS items and reconciliations of IFRS to non-IFRS results. At this time, it is my pleasure to introduce Ofer Druker, CEO of Nexxen. Ofer, please go ahead.

Thanks, Billy. We have had a strong start to the year, delivering record Q1 results and continued momentum into Q2, enabling us to raise our full-year guidance, which Sagi will expand upon. In Q2, Contribution ex-TAC, programmatic revenue, and CTV revenue are trending ahead of our expectation following a record April and a strong start to the month of May.

We are happy to report strong execution on the strategy we laid out and on the steps we have taken to support it, including advancing our enterprise go-to-market efforts to reach more clients and partners in the U.S. and globally, continuing to enhance the platform's full funnel performance and usability through integration with our unique data, media, and growing AI capabilities, and extending our CTV leadership through our first-mover advantage in programmatic Smart TV Home Screen advertising, which we expect to support CTV revenue growth.

Expanding our mobile in-app footprint to strengthen long-term growth, durability, and resilience to AI-driven disruption. This execution is translating into measurable results across the business. We have made targeted investment to strengthen and differentiate our DSP, capitalizing on the advantage we have built over the past several years around data, direct connectivity to premium media, and more recently, accelerating AI capabilities and enablement.

Our AI capabilities are becoming more and more important to customer decisions to work with Nexxen and grow their spend and platform utilization over time. In late 2025, we invested in growing our enterprise teams and enhancing our go-to-market strategy through both new hires and internal resource shift, which is paying off through increased enterprise partnerships and Contribution ex-TAC growth. In 2026, we have already onboarded more new enterprise clients than we did in all of 2025.

Based on current expectations, these customers each have the potential to generate more than $1 million of spend annually. Early indicators point to larger budgets, higher recurrence, and deeper engagement, with enterprise spend expected to accelerate in the second half and beyond through increasing full stack adoption, growing wallet share, and new customer additions.

As part of our strategy to more deeply integrate our data into our DSP's activation stack, we enhance connectivity with our discovery tool, enabling proprietary insight to flow directly into activation. Based on internal analysis, the discovery assistant helped customers reduce audience research time by over 40% year-over-year in Q1. Enhancements to our DSP assistant are also improving optimization, QA, and troubleshooting, driving over 90% year-over-year efficiency gains across key workflows.

We are also expanding programmatic access to scaled AI resilient media, unlocking high attention, performance-driven mobile in-app and CTV native on-screen media for advertisers. nexAI, our branded suite of platform-wide AI capabilities and solutions, is at the core of our strategy and is reinforcing our tech stacks value proposition acting as a force multiplier.

We believe we have a structural AI advantage due to our end-to-end model, enabling nexAI to operate across the full campaign life cycle and drive more efficient, higher-performing planning, activation, and optimization. Our AI approach combines data, machine learning, generative AI, and agentic capabilities to deliver speed, performance, and automation across advertisers workflow.

While Nexxen and others are working towards fully autonomous advertising, we are deliberately differentiating with a core focus on transparency and customer control to enhance decision-making and performance. Our goal is to empower buyers, not bypass them.

As trust builds, these systems can take on greater responsibility, progressing from insight to assisted execution to higher level of automation, driving productivity without disrupting how partners operate. We are also aligning with standards such as AdCP and integrating our agentic solution with MCP and broader agent-to-agent workflows, enabling interoperability across AI-driven environments and positioning Nexxen to lead in the new era of programmatic advertising.

As part of this, we are actively contributing to the IAB Agentic Ad Management Protocols, helping shape the standards that will define how agent-based advertising system operate across the ecosystem. In 2026, we will expand nexAI within our SSP to enhance publisher performance and monetization and introduce more autonomous deal creation, negotiation, and management solution for advertiser customers. Internally, our AI capabilities are expected to drive increasing efficiency, faster development timelines, and operating leverage with benefit scaling into late 2026 and beyond.

As mentioned, we are already seeing success with our AI strategy, which has been integral to our winning and retaining clients and partners across the ecosystem. CTV revenue returned to growth in Q1, increasing 12% year-over-year with momentum building into Q2 and a clear path to acceleration in the second half and beyond. Driven by our industry-first programmatic Smart TV on-screen ad activation solution, Nexxen TV Home Screen.

With Nexxen TV Home Screen, we are not just enhancing our CTV differentiation, we are defining and leading a new programmatic category. This offering enable advertisers to access high attention, non-skippable CTV inventory at scale through existing programmatic workflows, unlocking the full potential of a surface where consumers spend over 10 minutes per day on average. Historically, this inventory has been transacted through direct deals and ad servers, limiting scale and efficiency for advertisers while constraining monetization for OEMs.

By bringing this surface into programmatic, we are unlocking a sizable under-monetized opportunity for advertisers and OEMs, and are capitalizing on our first-moving advantage. Our solution is now live across VIDAA-powered devices and leading DSPs and agencies, including The Trade Desk, StackAdapt, Basis, H&L, and others are onboarding and expected to start scaling spend soon.

We are also rapidly growing our home screen reach and monetization potential. We initially launched with programmatic access to over 25 million VIDAA-powered home screens and have since expanded our footprint through partnership with additional OEMs. We secured programmatic access to TCL's native on-screen inventory globally, including exclusivity on select native placement in the U.S. and Canada on TCL Android TV devices. Additionally, we gain programmatic access to TiVo EDGE native on-screen inventory in North America and the U.K.

These partnerships have increased our base by nearly 10 million devices. We expect to expand to more by year-end. We also expanded our partnership with LG and are now testing activating their native on-screen inventory through Nexxen platform, further reinforcing our role in enabling programmatic workflows across this premium and rapidly growing CTV category. Nexxen TV Home Screen represents a clear structural growth driver for our CTV business, one that accelerates our enterprise strategy and expands our end-to-end CTV revenue opportunities.

Our exclusive ACR data from VIDAA also continues to drive licensing momentum, creating incremental high-margin revenue opportunities. In Q1, Adform joined as a partner, expanding a growing roster that includes leading platforms such as The Trade Desk, StackAdapt, and Yahoo DSP, further validating the value and scalability of our data revenue strategy. Our mobile in-app supply expansion is enhancing our growth profile in an AI-resilient channel supported by secular tailwinds.

Mobile revenue increased 18% year-over-year in Q1. We see early signs of acceleration. We have strengthened our position through direct SDK integration with Unity and others, expanding access to scale high-quality supply, driving strong performance, and enabling greater platform-wide monetization. Mobile in-app is becoming critical for advertisers seeking measurable, performance-driven outcomes in high engagement environment with strong identity and signal quality, areas where our platform is advantaged.

We believe mobile in-app will represent a meaningful growth driver while reinforcing our AI resilience, revenue diversification, and enterprise opportunity. In closing, we believe our integrated platform, differentiated CTV and data offering, and AI innovation are establishing Nexxen as an industry leader and must-have partner. As we move into the second half, we see catalysts that can further accelerate our momentum.

The FIFA World Cup and U.S. midterm election cycle represent meaningful incremental revenue opportunities where we are well-positioned to capture spend. For the World Cup, this is driven by Nexxen TV Home Screen, Nexxen Sports, and our exclusive data, while our political solutions, growing partnership, and expanded access to budget across both sides of the aisle position us to capitalize on what is expected to be a strong political ad cycle.

As our platform strengthens, we expect to attract greater enterprise spend, expand profitability, and reinvest to scale performance and adoption, reinforcing a powerful growth flywheel. The industry shift towards AI-driven, data-rich advertising defined by performance aligns directly with our strengths, positioning us for share gains in the quarters and years ahead. With that, I will turn the call to Sagi.

Thank you, Ofer. Q1 marked a clear financial inflection point with record results that exceeded both our expectation and Wall Street consensus. Importantly, momentum is carried into Q2, supported by broad-based strength across our programmatic business lines. In Q1, we delivered contribution ex-TAC of $84.5 million, a Q1 record reflecting a 13% year-over-year increase driven by robust programmatic growth.

Programmatic revenue was $81.9 million, up 14% year-over-year, also representing a Q1 record. This performance underscores the success of our deliberate mix shift towards durable, higher growth, higher quality programmatic channels. This progress reflects our platform investment in disciplined execution as we scale our programmatic capabilities, advance our enterprise strategy, and strengthen our position across mobile in-app, CTV, and data. We expect each of these drivers to accelerate through 2026 and beyond.

Performance in the quarter was driven by broad-based strength across our programmatic channels, particularly within CTV, mobile, data products, and display, supported by growth across our entertainment, retail, finance, government, and automotive verticals.

In contrast, Contribution ex-TAC from our non-programmatic business lines, which we are actively evaluating strategic options for, declined by approximately $560,000 year-over-year, and we saw softness within our education vertical. CTV returned to growth in the quarter with record Q1 CTV revenue of $29.4 million, up 12% year-over-year. We are seeing continued momentum into Q2 and remain confident in CTV as a core growth engine for 2026 and beyond.

This is supported by multiple catalysts, including increasing utilization of our robust CTV data, technology and media offerings, as well as the FIFA World Cup, the U.S. midterm elections, and growing adoption of Nexxen TV Home Screen. Our expansion within mobile in-app is also delivering results. Mobile revenue increased 18% year-over-year in Q1, with strength continuing in Q2. Desktop revenue also increased 3% year-over-year.

Elsewhere, Contribution ex-TAC from data products and display increased 81% and 57% year-over-year respectively, while Contribution ex-TAC from PMPs decreased 17%. Adjusted EBITDA for Q1 was $16.3 million, ahead of Wall Street consensus, representing a 19% margin as a percentage of Contribution ex-TAC. We remain confident in our ability to expand margins over time through greater enterprise adoption, increased end-to-end platform utilization, disciplined cost management, and growing benefits from nexAI.

In Q1, we used $21 million in net cash from operating activities compared to generating $19.3 million in Q1 2025. As of March 31st, we had $94.6 million in cash and cash equivalents, no long-term debt, and $50 million available under our revolving credit facility.

The year-over-year decrease in operating cash flow, as well as the sequential decline in cash and cash equivalents, largely reflect changes in working capital, including collection expected to normalize in Q2 2026 alongside strategic investments. Non-IFRS diluted earnings per share was $0.06 compared to $0.16 in Q1 2025. On capital allocation, we repurchased roughly 1.1 million shares in Q1, investing approximately $7.2 million.

From March 2022 through the end of Q1 2026, we repurchased approximately 40% of our outstanding shares, investing roughly $265.3 million. During the quarter, we completed our previous $20 million share repurchase program. In addition, we have authorization to initiate a new program of up to $40 million.

We also remain on track to invest an additional $15 million in VIDAA in Q3 2026, bringing our total investment to $60 million, reflecting an approximately 6% equity stake. We continue to believe this investment, alongside our commercial partnership, drives compounding value. As VIDAA expands its Smart TV footprint, it increases the value of our data exclusivity, expands our monetization opportunities, and drives equity upside benefiting Nexxen and its shareholders.

At the same time, we are continuing to evaluate targeted, smaller-scale strategic opportunities to accelerate programmatic revenue growth and strengthen our position across mobile in-app, CTV, and data. Turning to our outlook, we are raising our full-year 2026 Contribution ex-TAC and programmatic revenue guidance following outperformance in Q1, continuing momentum into Q2, and expected acceleration in the second half. We now expect Contribution ex-TAC in the range of $382 million-$397 million, up from our previous guidance of $375 million-$390 million, representing over 10% year-over-year growth at the midpoint.

Programmatic revenue is now expected at the range of $374 million-$388 million, up from our previous guidance of $367 million-$381 million, representing approximately 12% year-over-year growth at the midpoint. We continue to expect Adjusted EBITDA in the range of $122 million-$132 million, representing approximately 10% year-over-year growth and a 33% margin at the midpoint.

As mentioned, we are seeing continuing momentum into Q2, which we believe reflects the early payoff from our investments in platform scale, enterprise go-to-market execution, mobile in-app expansion, and our strategic partnership with VIDAA. Looking ahead, we expect 2026 growth to be driven by increasing enterprise adoption, growing end-to-end platform utilization, accelerating CTV revenue, scaling mobile in-app contribution, and continued data revenue momentum.

We believe Nexxen TV Home Screen represents a significant opportunity in 2026 and beyond, given our first-mover advantage and its early traction across industry leaders. We expect revenue contribution to scale over time with the potential to represent a meaningful percentage of Contribution ex-TAC in future years. To support our growth drivers, we will continue investing in AI, data infrastructure, and our CTV and mobile in-app capabilities to enhance performance, fuel growth, and expand operating leverage.

We are encouraged by our first quarter results and the continued trends we are seeing into Q2. What we are seeing is not just improvement. It is sustained acceleration across our core growth engines, particularly in CTV, mobile in-app, and data, supported by increasing enterprise adoption, deeper end-to-end platform utilization, and disciplined execution across our teams.

With momentum, clear competitive advantages, a profitable and cash-generative model, and a disciplined, flexible capital allocation framework, we believe we are well positioned to deliver durable growth, expanding profitability, and increasing long-term shareholder value. As always, we thank our shareholders, employees, and partners for their support and look forward to hosting our upcoming Investor Day on June 16th. Operator, we are now ready to take questions.

Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad to join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.

Participants may ask one question and one follow-up during their turn and can just simply join the queue again after that if they have more questions. Thank you. Your first question comes from Matthew Swanson from RBC Capital Markets. Please go ahead.

Great. Thank you. Congratulations on such a strong start to the year. I wanted to click on the enterprise go-to-market success, especially kind of that idea of signing more enterprise customers year to date than all of 2025. I mean, is it the CTV differentiation, the new AI capabilities that are kinda driving these conversations, or maybe a combination of both?

Hi, Matt. Thank you for the question. I will give some color on that. Our DSP basically is winning more clients now and more attention because of the situation that is placed inside our platform that includes also our DMP.

Very strong connection to data, and it's helping for people to take decision to choose this DSP as their major DSP. Apart from that, all the tools that we created lately around the AI, most of them in the last 12-18 months were directed to the DSP side and to the audience side, to the data side, which is basically enabling to use the platform in a much, much more efficient manner with less effort and with great results. Because also our algorithm were upgraded in the last few years.

The operational-- When people are operating the DSP, they are generating better results. Not just that, through the AI, they're able to basically conduct it in a much more efficient manner and to integrate data, unique data and data into the mix and generate better results. Apart from that is the connection, of course, to our SSP and the CTV part, which is growing, as you can see also by the report.

Apart from that, we are now that didn't affect it yet, but it's building up all the issue of the native ads on the CTV front of the surface of the operating system, which will, I'm sure, will launch late this quarter, but effect in Q3 and Q4, which is giving people additional and new exciting way to generate results, to get engagement with users on the big screen.

I think all of that together, meaning the algorithm, the platform, the new UI that we generated, the AI that we built on top of that, the connection to data and the connection to the CTV inventory and to the in-app and other inventories of media, which are very robust, all of them together are providing us like a strong start for the year.

I think that also getting people prepared for the new, you know, two events that's supposed to happen in the second half of the year, starting even from next month, is the World Cup in soccer and the midterm election. That, of course, will be heavily relying also on CTV. Our advantages on this front is pushing the people to use our platform.

That's super helpful. If I can kind of, maybe double-click on the CTV growth, just 'cause, I mean, it's great to see that return to a positive number this quarter. The home screen product obviously is comping kind of off of zero from a growth rate perspective, so that's beneficial. What else is going well that really, like, turned around the CTV growth?

I think again, I think that it's the growth of the full platform, meaning all the elements of the platform, which is integrating data, unique data like the ACR data in some cases, 70 different partners from data that we are basically providing in order to improve measurement and targeting.

Signing new publishers all the time, growing our roster of publishers. I think that also we're starting to see, like, the first signs of CTV performance influencing our numbers, and we are of course, going to put more emphasis on that in the future and grow this segment. All of that together, when you are driving good results on the enterprise, on the strategic sales, which mean our sales team on the ground are able to secure more deals that are pushing also for CTV.

Our trading is getting better on the open market. All of that together is supporting the CTV that come with, as I mentioned, the performance element that is starting to kick in, and I'm sure that it will grow. In general, we generate better results. That's, as you indicated rightfully, it's even before we felt the acceleration thanks to the native ads that we believe that will start kicking in and making a big effect again in the second half of the year.

All right. Congratulations again. Thanks.

Thank you, Matt.

Your next question comes from Andrew Marok from Raymond James. Please go ahead.

Hi, thanks for taking my questions. My first is on the home screen inventory access. I think you kinda hinted at this on your prepared remarks as you're talking about expansion into the second half of the year. What do you think the TAM is here for your ability to access home screen ad inventory? Are there anybody who might wanna lock that behind their own operating system or own ad tech infrastructure? I have a follow-up.

Yeah, of course. Great, Andrew. I think that the TAM of that is huge because the number of impression that people are exposed when they're launching their TVs is really meaningful. According to Nielsen re-reports and studies.

There is about 10.5 minutes a day that the user is being exposed to the interface of his operating system before he choose a channel that he wants to basically utilize or click on and get in. There is a lot of impressions a lot of opportunities to show ads to these users in a very unique environment with high engagement. If you think just on VIDAA, there is tens of millions of TVs around the globe that we can reach out.

Add to that the agreements that we signed with other partners with TiVo and TCL, and our ability to run on other platforms soon, that we will announce soon. Together with the ability that we generated that, we turn it into programmatic. It's not a new location. It was always there.

The big change that we done a few weeks, a few months ago, sorry, was in order to turn this into a programmatic activity that enable advertisers to run programmatically with all the ways that they are used in order to run a campaign, to measure, to integrate targeting and so on. We see very great response from the market. We announced the first partnership with The Trade Desk, which we are very happy about a few months ago, we hope to launch it very, very soon.

The idea is to use basically all the infrastructure or a lot of the infrastructure with The Trade Desk, which is very present among so many clients, globally, in order to present to them the new opportunity with all the capabilities and the also the standards and the reputation of The Trade Desk in order to start buying this inventory from us.

There are more DSPs like StackAdapt, Basis, and more to come that are showing interest. We are already partnered with these two, but are more that are joining and making the right adjustment in order to be able to operate on this interface.

I'm sure that in this strategy of us to move this media into programmatic instead of just running it with an ad server, I think this will be a winning, a winning solution for the market and basically for the OEMs that we are working with. About what you mentioned about getting into their closed gardens and so on.

I believe that what we are able to generate to most of them is incremental revenues, so I don't see any real reason for them to block or to avoid using this technology in the future because they can run whatever they want with their strong sales teams and strategy. We can for sure deliver for them additional revenue programmatically through the strong partnerships that we build and through our strong sales team, which is a global one.

Great. Thank you. Really appreciate the detail. Then maybe a follow-up for Sagi. This is a little bit of a nitpick considering how good the numbers were this quarter. Looking at the cost of revenue line, that was a little bit higher than I think I was expecting. Just if you could give us a little bit of color on that kind of cost of revenue going forward and how the mix in formats and things like that might affect it as we look to forecast the rest of the year. Thank you.

Sure, Andrew. Thanks. I think, you know, we raised the top-line guidance, of course driven by the stronger than expected Q1 execution. Of course we are seeing it continued into Q2. Of course, as Ofer mentioned, we are expecting acceleration in the second half across core programmatic businesses.

I think we maintain the Adjusted EBITDA guidance range as we are continuing to investing in strategic growth initiatives that will support long-term revenue growth, platform differentiation and market share expansion. I think for your like specific question, we are continuing to invest behind, you know, key growth areas, including enterprise adoption, as Ofer mentioned, AI capabilities, data CTV and platform innovation. We are not seeing like a specific, you know, pressure on our gross margin.

It's just, as you mentioned, some of it is the mix of things, some of it is other stuff, but I don't think we will see like a material or even non-material change to our gross profit going forward. I think that despite, you know, the continued investment that we are doing, we are expecting full year Adjusted EBITDA margin and gross margin to remain generally consistent with previous years' levels.

Okay. Thank you.

Your next question comes from Jason Kreyer from Craig-Hallum. Please go ahead.

Great, thank you. I wanted to stick on the topic of the home screen expansion, specifically adding TCL and TiVo. Is there any different scope to what you're doing there versus what you're doing with VIDAA? What are the logical cross-sell opportunities as you land that home screen capability? You know, do you see other routes of monetization with these partners? Thanks.

Thank you for your question, Jason. Basically we are looking to expand our activity, you know, on top of what we got with VIDAA because we get to get more reach in the market, in every market that we are operating. Really we approach other partners, other potential partners, OEMs in this industry in order to offer them the solution.

Also our PR that we mentioned that we issued in November basically brought us a lot of interest from publishers and OEMs that wants to utilize this media programmatically. It's not different. We are working by IAB standard, so it's not that we are creating like different mechanism from each one of them.

It's like taking some time to set the location to integrate the right ads in the right place in order to generate the most of that and to be able to increase the reach for every client that is launching a campaign on our platform, generally speaking. I think that around that, it's a blessing that more people are coming. We are able to increase the reach for advertisers to get it more interesting for them. In the end of the day, most of the advertisers when they are issuing a new activity, they want to know what is the incremental.

In this case, of course, joining all these OEMs to the mix is increasing the incremental for them and making that more interesting. Regarding cross-sale and stuff like that, of course, when people are buying from your media, people usually advertise. I'm not saying everyone, but most of them likes to manage their campaigns on one platform that enable them to measure results apple to apples, to see if they can shift budget between channels of revenues and media that they are running.

Basically, when they will run with us on this native ad, which is super interesting for them, high engagement and so on, probably they will start running with us or increase their spend in other formats like in-stream CTV, in-video, in-app, and so on, which is of course open a lot of new discussion and enhancing core discussion and partnership that we got, which of course is good for us.

Wonderful. Thank you.

Your next question comes from Brianna Diaz from Citizens. Please go ahead.

Great. Thank you so much for taking my question. My first just double-clicking on the enterprise opportunity. You shared that each new enterprise customer has the potential to generate more than $1 million in annual spend. How should we think about the ramping up in the curve for these new enterprise customers that are joining the platform?

How should we think about the levers that are contributing most to the ramp? Then just my second question is, video stepped down from 72% last quarter to 65% of programmatic revenue. Can you just help us understand the changes in the mix shift and what's driving that step down or just underlying strength in display?

Hey, I will take the second question. Did you ask around the decrease in our video revenue?

Yeah, the video, mix of programmatic.

Yeah. Okay. First of all, programmatic revenue as a total went up. If you're talking specifically on video, as we said, like, long time ago and for the last couple of years, we are very focused on video as a format, which is the most growing and the most engaging and on CTV and mobile as the most dominant and AI resilient devices.

I think that when you are looking on the, you know, on the, on the total picture, you can see, you know, maybe a momentary drop in our video percentage. I think that in absolute numbers, it didn't went down, but in percentage it is because we grew different formats in Q1 specifically.

I think that on a yearly basis, probably it will go higher and it will be more close to the 70%. I think some of the Nexxen home screen ecosystem is affected by that because some of the advertisers that are going over there are using display or native display, what we are calling, and some of them are using video in-streams format as well. I think over time it will change from native display into in-stream video. For now, most of the advertisers are looking for this native display. This is like the momentary impact on our video revenue.

Brianna, on the other question that you asked about the one million dollar, we just wanted to show that the number of clients that basically joined our platform in the last few months are meaningful, meaning that they can deliver at least like minimum of $1 million with us. Of course, we believe that it will grow more than one.

They will deliver revenues to us or work with us for more than $1 million a year. We wanted to set some sort of a base so you will understand when we are talking about number of clients that are joining, it's a meaningful one to deliver at least that we believe that they will deliver at least $1 million in revenue in 12 months.

The second thing, your question that you asked for about is this the element of growth. We believe since our investment in Amobee in the end of 2022, we believe that we need to have a strong DSP and relationship with advertisers. That's why we acquired Amobee. That's why we integrated.

That's why in the last few, in the few months, but in the last 1.5 years, we are moving more and more resources into the enterprise solution. We added strong talent from the industry. We promoted people in our company to support this activity. We see success. We believe that this engine of growth for us is very meaningful already now.

In the years to come, it will be the majority of the revenues from net revenue perspective like in two years from now and so on, it will be the massive revenue generator for us. We are making the right investment. Also, as I mentioned around innovation and AI, innovation in everything that is supporting the DSP, meaning connection to unique data, connection to special media resources and so on, mainly CTV, but also in-app and so on, which is AI resilient, in order to open up more opportunities with clients. We see very good traction in the market right now.

People are adopting our technology, are happy with the results, and we believe that it will just enhance and accelerate in the rest of the year and will influence our revenues until the end of the year, but also in the years to come.

Great. Thank you so much.

You're welcome.

Your next question comes from Maria Ripps from Canaccord. Please go ahead.

Great. Thanks for taking my questions. I just wanted to ask about your momentum in mobile. With Unity and others now sort of integrated via SDK, how large is the SDK sort of integration pipeline beyond what's been announced so far? I guess, at what point does mobile in-app becomes large enough to contribute more meaningfully to consolidated revenue growth?

Sorry, just the last question? The last point? I didn't understand.

Yeah. It's just at what point does mobile in-app becomes large enough to contribute more meaningfully, to become a more meaningful contributor to your overall sort of financials?

Okay. All this agreement, we started this in-app stuff, in-app activity acceleration last year when we adopted this strategy to focus on media channels that are less affected by AI, or we call it AI resilience.

We believe that we know that web search and all that, we never touched in the past also sales, but web, we started to become drive revenues through that, and we believe that it will be more difficult. We said, "Okay, we will now basically focus on CTV." We developed this native ads activity in the end of last year. We made last year moves, the first move in mobile in-app in order to be efficient at growing in that. We feel that last year was a good start.

We saw meaningful revenues coming in. We're accelerating now with Unity and other brands that we joined. Unity is a massive partner that we believe that we can grow a lot of revenue with them. We believe in mobile in-app in general.

We feel that the relationship that we got with Unity, the mutual interest, the great technologies on both sides, the great branding that we have on both sides will help us to grow the revenues to be very meaningful. In general, mobile is already massive in our revenues. It's about 40%, and it's very meaningful already. If you look at CTV, it's close to 35, a little bit more than 35%. I think that on that front, we are already in a good place.

Together, it's more than 75% of our revenues in general. We believe that we are in good spot. We believe that the two media channels that will grow in the years to come, and even until the end of the year, but mostly in the years to come, will be CTV and mobile in-app.

That's why we are basically now structuring this agreement with mobile app, mobile in-app partners and also, of course, with CTV OEMs that are helping us to grow our reach, as I explained before, in order to have, like, more efficient, to offer like a better solution for clients that wants to work with us and need to get an extra reach, an incremental reach to their offering.

Got it. That's very helpful. My second question is, you're investing another $15 million in Q3, so that brings total to $60 million. It represents a 6% equity stake. Can you maybe help us understand sort of the return framework here? Is the value here primarily in the commercial relationship and data exclusivity? Do you see a path here to a liquidity event for the equity stake itself?

I think you touched a very good point. I think both. Meaning our commercial activity with the VIDAA/Hisense is growing year over year. We believe that in the next 24 months is the year that we will see the fruits of the hard work that we've done in the last few years in order to build this relationship and to nourish them and to build technologies that can really serve both sides in the equation.

On a separate path, VIDAA has their own agenda, which is a very interesting company. They are one of the most growing OEM distributed TVs in the market. They are like number two or number three in the market, depends where you are measuring and looking at, but it's very impressive.

There is no doubt that CTV is a major force and super important platform in this marketplace. When we're looking at VIDAA and on every initiative that they choose to take and to build, we believe in their management, in their support that they are getting from Hisense in order to take it to the next level.

Their ambitions are to, of course, to turn this company to be a leading one in the market. We, we believe in this statement and this opportunity, which will increase the value of the company and will generate for us also equity value, which is bigger than the investment that we made.

Got it. That's very helpful. Thank you.

Thank you.

Your next question comes from Barton Crockett from Rosenblatt. Please go ahead.

Thanks for taking the question. I was curious about the seeming kind of disconnect between the first quarter Contribution ex-TAC growth of 13%, the commentary around acceleration in April and May, and more to come with the FIFA World Cup in June and political in the fall. The guidance would call for deceleration for the year to a 10% Contribution ex-TAC growth. Is, you know, is that conservatism or, you know, is there some other explanation for why the guidance doesn't match the discussion of acceleration?

Thank you, Barton. It's a great question. It's helping us also to explain. Basically, in this case, when you look at also the results of the other companies, you don't see impressive growth in most of the other companies. Of course, there is a lot of risk factor in the market, still there, no change.

We prefer to be conservative, so we increase the guidance in a number that we feel that is the right one for this period of time. We will keep watching our performance, which as we said in Q2, we still feel strong momentum and above expectation, which is good for us. When the time will come and we will assess if we can increase, further increase the guidance that we are giving.

In this case, when we are looking around in the market and there is a lot of, a lot of elements around that are basically making it easier for us to be conservative when you look at them, because we don't want to overpromise in this case. We see that we are delivering well.

We see in Q1, we feel that the momentum continue in Q2, we can always keep increasing the guidance as the time pass, and we get more confidence that the market is stable and going to the right direction. What you mentioned is super true. The market shows that there is opportunities to grow further through the FIFA World Cup games, which increase commercial activity and the midterm election that's supposed to do that also.

We are optimistic, but at the same time, we are careful, and we want to do step by step.

Okay. Thank you for that. One other topic I'm curious about. You'd mentioned that you're supporting agentic and you've got some MCP capability. Curious if you would see the future evolving to a world where agencies and marketers will be running access to many kind of marketing platforms through some type of orchestration layer within an LLM or chatbot like Claude.

If so, if everything's gonna be going through Claude to orchestrate access to multiple different advertising kind of venues, does that mean anything for take rates, customer relationships, go-to-market? You know, your thoughts about how that evolves.

Again, thank you for the good question. I think that the agentic, we are dipping into that. We are working very closely with all the, everything that is happening in the market around this technology that can basically assist companies like us.

We are adapting MCP and AGCP in order to be able to utilize better our capabilities and to integrate agentic elements into our technology. I believe that agentic connection between companies will grow. I'm not sure that it, I think that it will accelerate things. I'm not sure it will replace people that are salespeople, because in the end of the day, you need people to create a relationship in this stage.

A lot of this industry is still pending on relationship and good employees and talent in your company that will give the intuition, the direction, the thought leadership around these things in order to generate better results.

For sure, it will make things faster, it will make things much efficient, and it will, it can, it can grow a partnership based on technology connection and not just handshake like it used to be maybe a few years ago. I believe that AI is like challenging us all the time and creating new fronts for us, which is a good thing. We feel that we are in the right position because I just want to remind you, the forum, that we are end-to-end solution.

When you're end-to-end solution, the number of data points to the AI is very big, it's high, and you can influence the journey of the campaign in so many points, which is very helpful. The second thing is that our emphasis on data is helping us to feed the AI with more information in order to get the right decisions.

The way that we choose to implement the AI is innovative, it's more transparent, it's more friendly to the users. It's like communicating with the people, not a black box that basically is being integrated. We are getting a lot of great response from our clients to this approach and to this technology that we built, and we feel that we are on the right path to that.

I think that in the near future, there is more and more companies that are talking to us about integration, that are talking to us about how to integrate basically these capabilities. I'm sure that in the near future, which is couple of months here, we are not talking about years, we'll see more usage of agentic solution in the industry of the advertisers, and we will be one of the leaders on that front. Okay, thank you.

Your next question comes from Tyler DiMatteo from BTIG. Please go ahead.

Great. Thanks for taking the question. Ofer, I wanted to follow up on Barton's comments there because that's where I was gonna go. How much of the conservatism in the guide is predicated on overall macro and kind of some of those comments around the industry versus something more idiosyncratic in nature versus product adoption rates for the home screen, for example. How much of the conservatism is split between the two?

You know, you need to assess every morning when you wake up, what's going on in the market. In general, we believe that everything that we control, we can of course manage, like processes, adoption mostly, issuing of new products and so on. In general, I think that you usually need to look at the market in a more careful manner.

Like I said, I think that we raised the consensus. We are in good momentum. We want to keep some sort of conservativity around the decisions that we are making because when we are looking at things, not in everything we control 100% of the effort. When we are talking about partnership, you need two for tango.

When you're looking at the economy, of course we are not controlling the ecosystem. I think that it's a mix of both in general.

Yeah. Just to add to Ofer, you know, if you could promise us that macro will stay the same as it was up to date, we may increase the guidance more. I think the current guidance is reflecting a prudent approach, given the broader macroeconomic and advertising market environment.

Okay, great. Then a follow-up for Sagi. On the EBITDA and the operating expense contribution to the business, if you had to prioritize kinda where the investment dollars are going, is it more about sales and marketing and the go-to-market and customer acquisition? Is it more about kind of tech and development and AI investments? Can you help us kind of frame up, like, where the dollars are going in terms of the reaffirmation of the EBITDA guide?

Yeah, sure. I think that, you know, we will continue to invest in our key growth areas as Ofer mentioned. It's a good question. I think that most of our dollars are going into investment in AI capabilities, data and platform innovation because this is like It's not a bottleneck, but this is where we are seeing after we are deploying a new feature or a new capability, we are seeing like, you know, greater utilization of existing clients over our platform and ecosystem, and of course, generating more revenue and more cash for us.

The second thing is that when everything is going, you know, so good and you are seeing the engagement, and you are engaging new clients as well because I have to tell you, I was in couple of our agentic AI presentation to different partners. I didn't really.

They don't owe us anything because some of them are existing clients and some of them were new. Everyone said that we have the most robust and the most advanced capabilities around agentic AI that they saw. I think most of the money, if I need like 80/20, is going to innovation, product development. Of course, in order to follow that and in order to fulfill all the great engagement and adoption of our platform, we need to invest more in sales and marketing.

I think we are investing in both, but most of the, of the resources and most of the effort is going to product technology and capabilities.

Great. Thanks, guys. Really appreciate the time.

Thank you. I just want to use the last, I don't know, one, two minutes that I have your attention in order to close this session by saying that we see the results from our strategic decisions, that we did great execution, drive improved results. We strongly support our strategy around our adoption and strongly promoting our DSP to focus on the AI resilient media channels of the CTV native and the in-app mobile, and to keep pushing and integrating and innovate around AI, which we strongly believe in, and we believe that will bring us a lot of value because of the points that I mentioned.

I want to thank all our teams around the globe for their hard work, for their commitment, and for the great achievement that they generated in the past few months. Thank you very much, everyone.

Ladies and gentlemen, thank you all for joining, and that concludes today's conference call. All participants may now disconnect. Thank you.

Thank you.

Welcome to Nexxen International Ltd.'s fourth quarter earnings call. At this time, participants are in a listen-only mode with a question-and-answer session to follow at the end of the presentation. This call is being recorded, and a replay of today's call will be made available on Nexxen International Ltd.'s investor relations website. I will now hand the call over to Billy Eckert, Vice President of Investor Relations, for introductions and the reading of the safe harbor statement. Billy, please go ahead.

Thank you, Operator. Good morning, everyone, and welcome to Nexxen International Ltd.'s fourth quarter earnings call. During today's call, we will discuss our financial and operating results for the three and twelve months ended 12/31/2025 as well as our forward-looking guidance. With us on today's call are Ofer Druker, Nexxen International Ltd.'s Chief Executive Officer, and Sagi Niri, the company's Chief Financial Officer. This morning, we issued a press release, which you can access on our IR website at investors.nexxen.com. During today's conference call, we will make forward-looking statements. All statements other than statements of historical fact could be deemed as forward-looking. We advise caution in reliance on forward-looking statements. These statements include, without limitation, statements and projections regarding our anticipated future financial and operating performance, market opportunity, growth prospects, strategy, and financial outlook. These statements also include, without limitation, statements regarding our partnerships and anticipated benefits related to those partnerships, anticipated benefits related to the company's intended growth and platform investments, forward-looking views on macroeconomic and industry conditions, as well as any other statements concerning the expected development, performance, and market share, or competitive performance relating to our products or services. All forward-looking statements are based on information available to us as of the date of this call. These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those implied by these forward-looking statements, including unexpected changes in our business or unexpected changes in macroeconomic or industry conditions. More detailed information about these risk factors and additional risk factors are set forth in our filings with the U.S. Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled “Risk Factors” in our most recent Annual Report on Form 20-F. Nexxen International Ltd. does not intend to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in IFRS and non-IFRS terms. We refer you to the company's press release for additional details, including definitions of non-IFRS items and reconciliations of IFRS to non-IFRS results. At this time, it is my pleasure to introduce Ofer Druker. Ofer, please go ahead.

Thanks, Billy. I am pleased to report that we met our updated full year guidance and are seeing strong momentum in early 2026. In Q1 to date, contribution ex-TAC and programmatic revenue are trending ahead of our initial expectation following the strongest January and February in our history. This performance reflects the payoff from infrastructure investments made in 2025 to support long-term programmatic trading growth, as well as our ability to form new and expanded partnerships with leading DSPs driven by our differentiated CTV media assets and data. These efforts, along with our strategic differentiation, continued innovation, and a favorable advertising backdrop featuring incremental growth catalysts like the Winter Olympics, FIFA World Cup, and especially the U.S. midterm elections, position Nexxen International Ltd. for a strong 2026. In 2025, we meaningfully upgraded our infrastructure and expanded platform scale, roughly doubling SSP capacity. This positions us to better monetize publisher relationships and support growth in 2026 and beyond. We also increased focus around our enterprise solutions and plan to continue doing so. Over the past several years, we have enhanced our combined DSP and data capabilities through innovative new solutions and deeper AI integration to fuel enterprise adoption. In 2025, we saw early results and expanded on these efforts by adding experienced talent across our go-to-market and product teams and shifting internal sales resources towards our enterprise offering. This combined initiative led us to more than double our enterprise customer base in 2025. We plan to expand these efforts in 2026 to capitalize on the strength of our unique enterprise solutions built on proven technologies developed over the years. While enterprise growth is a long-term process, we believe now is the right time to invest to capture the vast opportunities ahead. Additionally, as AI reshapes how consumers engage across the open internet, we invested in expanding into less-affected formats that offer strong growth potential and revenue durability through exclusive smart TV home screen partnerships and scaled mobile in-app relationships. In 2025, we announced the launch of what we believe is the industry's first programmatic smart TV home screen advertising solution, providing scaled programmatic access to home screen inventory on CTV OEMs. I would like to provide some background, as this type of CTV media has not historically been available for programmatic activation. When a user turns on their smart TV, they land on the operating system home screen, which presents them with a menu of apps and content to consume. According to Nielsen, viewers spend an average of about ten minutes per day on this screen deciding what to watch, making it a highly visible and valuable surface. Until now, advertising space on this page has been sold and managed through direct deals and ad servers. Our innovations transform this surface into a fully programmatic advertising opportunity. It creates a significant new growth channel for advertisers using the same programmatic workflow they already rely on, while enabling OEMs to monetize their home screen inventory more efficiently and effectively. Vidaa, which rebranded as V, is a CTV operating system for Hisense and other OEM brands, and is our first OS partner to adopt this technology, which is now integrated across V-powered devices globally. As announced by The Trade Desk last week, we are pleased to welcome them as our first strategic DSP partner to adopt the solution following an agreement between V, The Trade Desk, and Nexxen International Ltd. to bring this inventory into The Trade Desk Ventura ecosystem. Together, we are collaborating to establish standardized DSP capabilities and drive industry awareness. We have strong conviction in this partnership, believe it is fundamental to building a new ecosystem for programmatic smart TV home screen advertising, and are proud to work with The Trade Desk to bring this opportunity to their vast global customer and partner network. By working directly with the leading enabler of programmatic advertising on the open internet, we believe we can accelerate awareness and adoption of our solution, support industry standardization, and enable trading across both our customer bases. We view this as a pivotal milestone in expanding high-quality programmatic advertising on the open internet through a new, engaging channel that is more resistant to AI-driven disruption. V’s footprint combined with programmatic activation creates a compelling opportunity for advertisers to drive brand impact and ROI. Our V partnership also continues to drive data momentum as we jointly market ACR data in North America and globally. In Q4, we entered a licensing agreement with Yahoo DSP, expanding our TV data partnership with major DSPs, which already included platforms like The Trade Desk and StackAdapt. Together, our smart TV media assets, proprietary data, and strategic partnerships reinforce our ad tech leadership while strengthening our opportunities with brands, agencies, and leading DSPs. In 2025 and early 2026, we partnered with leading mobile in-app ecosystem players to support long-term growth, diversification, and revenue durability with strong early results. Mobile in-app remains a strategic focus, as it is less exposed to AI-driven disruption than browser-based traffic. According to eMarketer, over 80% of mobile ad spend occurred in apps in 2025, and mobile is expected to account for over two-thirds of total digital ad spend by 2027. To capitalize on this shift, we built infrastructure to scale in-app media, enabling us to support growing supply and demand in a channel with strong tailwinds. We will continue enhancing our mobile in-app capabilities and will pursue new and expanded partnerships in 2026 to build on our progress. Next.AI continues to evolve across our platform and is receiving strong client feedback. Customers are achieving better results with less effort while unlocking new capabilities. Our DSP assistant is delivering efficiency gains of up to 97% and satisfaction scores over 90%, helping users act on real-time insights faster while improving outcomes and usability. Our Discovery assistant is also driving operational savings, with some clients reporting reductions of up to 45% in audience research time. Through Next.AI, we are building a difficult-to-match AI advantage across our DSP, SSP, and data platform by streamlining workflows and enhancing supply chain-wide performance, positioning us to win larger enterprise budgets. In 2026, our AI investments and releases will focus on driving growth and generating scalable cost benefits. We are introducing Next.AI to our SSP to optimize publisher performance and revenue. On the DSP side, we will continue integrating our insights and segmentation tool, Discovery, with our DSP so audience data flows directly into our buying platform, supporting accelerated enterprise adoption. Finally, our DSP assistant will expand to include AI-driven QA and campaign troubleshooting, automatically flagging errors to reduce waste and maximize buyer budgets. Internally, Next.AI is becoming more embedded across our sales operations, product, and data teams, driving efficiency and cost savings. AI-assisted coding is accelerating development, enabling faster release of revenue-generating solutions while reducing prior investment needs, freeing up capital for specialized data and AI tools. We have continued releasing solutions designed to capitalize on sector growth trends and major 2026 advertising events. The health vertical has emerged as a growth engine following the release of Nexxen Health, with new measurement and optimization capabilities introduced in Q4 2025, including the first-to-market auto-allocate feature powered by Phrama/health partners. This allows advertisers to optimize spend in real time using real-world health signals and verified outcome data, improving targeting and full-funnel performance, and reinforcing Nexxen International Ltd. as a leading health DSP. We plan to continue investing in vertical-specific solutions to drive growth across additional sectors. We also launched Nexxen Sports in Q4, combining large sports inventory with data-driven insights, targeting, retargeting, and dynamic creative. This solution helps brands drive engagement during live events while enabling advertisers to reach consumers beyond the live window, positioning Nexxen International Ltd. for the biggest live sports advertising year on record, highlighted by events like the FIFA World Cup. Finally, our political advertising solutions position us to capture spend during the 2026 U.S. midterm elections, which we expect to be a major cycle, especially for CTV. While still early in the year, we are very encouraged by our strong start to 2026 and what it signals about the direction of the business. Our momentum validates the strategic decisions made in 2025 and the quality of the product offerings we have built and acquired over the past several years. It also highlights our progress in building a more diversified and durable revenue base as the industry adapts to AI-driven disruption. Our differentiators, including our end-to-end model, V partnership, home screen solution, and platform-wide data and AI integration, are creating growing competitive advantages. Our DSP is now deeply integrated with our exclusive data and media, positioning it to expand our end-to-end enterprise revenue opportunity. This combination is already helping us win larger budgets and deliver stronger outcomes for advertisers and publishers, and we expect scaling benefits in 2026 and beyond. We remain focused on execution and innovation to drive sustainable growth and strengthen our leadership as we help define the future of programmatic advertising. With that, I will turn the call over to Sagi Niri.

Thank you, Ofer. Before I discuss Q4, I want to remind listeners, as noted in our Q3 earnings call, that results were impacted by several factors. These factors included reduced spending from one DSP customer amid their FPO initiative, softness in our non-programmatic business line, more competitive CPMs, tariff-driven reductions from certain partners, and the absence of political advertising spend compared to Q4 2024. While non-programmatic weakness has persisted and some customers remain cautious due to tariffs and seasonality, I am pleased to report that contribution ex-TAC and programmatic revenue to date in Q1 are trending ahead of our initial expectations, driven by broad-based strength across our programmatic business line. The impact from the DSP customer also appears isolated to Q4. The customer has increased its year-over-year spend with us so far in Q1, and based on this trend and our ongoing discussions, we believe they will contribute positively to our expected growth in 2026. In Q4, we delivered contribution ex-TAC of $97.8 million, reflecting a 7% year-over-year decrease, or a 1% decrease ex-political. Programmatic revenue was $94.3 million, down 4% year over year but up 2% ex-political. Despite this decline, we saw strength in data products and desktop video, along with growth across our health, business, and finance verticals. In contrast, contribution ex-TAC from our non-programmatic business line declined by approximately $3 million year over year. We also experienced year-over-year decreases in CTV, mobile video, and display alongside reduced spending within our retail and government verticals. CTV revenue declined 19% year over year in Q4, or 12% ex-political, to $30.1 million, as results were impacted by several of the factors I mentioned, particularly the DSP customer. Importantly, we are not seeing a negative CTV revenue impact from these customers to date in Q1, and we feel well positioned for CTV revenue growth in 2026 and beyond through the catalysts Ofer discussed. We continue to believe CTV will represent the core long-term growth engine for Nexxen International Ltd. Elsewhere in Q4, desktop video revenue increased 21% year over year, mobile video revenue declined 9%, and overall video revenue represented 72% of programmatic revenue. Contribution ex-TAC from data products increased 51% year over year, self-service contribution ex-TAC declined 5%, and contribution ex-TAC from PMPs and display each decreased 9%. For full year 2025, our contribution ex-TAC retention rate declined to 92% from 102% in 2024. This primarily reflects our decision to discontinue smaller customer relationships that were not generating meaningful contribution ex-TAC, allowing us to focus on larger customers with greater spend potential. Contribution ex-TAC per active customer, however, increased to approximately $563,000, reflecting a 7% year-over-year improvement. We believe we remain well positioned to grow both our retention rate and ex-TAC per customer over time through continued focus on driving full-stack enterprise adoption. Adjusted EBITDA for Q4 was $33.9 million, representing a 35% margin as a percentage of contribution ex-TAC. We remain confident in our ability to expand margins over time through contribution ex-TAC growth, increased enterprise adoption and end-to-end spending, disciplined cost management, and anticipated benefits from our AI initiatives. In Q4, we generated $37.7 million in net cash from operating activities compared to $52.3 million in Q4 2024. As of December 31, we had $133.3 million in cash and cash equivalents, no long-term debt, and $50 million available under our undrawn revolving credit facility. Non-IFRS diluted earnings per share was $0.33 in Q4, compared to $0.48 in Q4 2024. We repurchased 1,440,000 shares in Q4, investing approximately $10.8 million. From March 2022 through 2025, we repurchased approximately 38.5% of our outstanding shares, investing roughly $258.2 million. As of February 28, approximately $2 million remained under our current repurchase authorization, and a new program of up to $40 million has been approved to begin after the current program concludes. Following our additional $20 million of investments in V in Q3, we will invest another $15 million in Q3 2026. Once deployed, we expect to hold an approximately 6%, or $60 million, equity stake, making us the largest shareholder outside of Hisense. Alongside the anticipated benefits from our commercial agreement with V, we continue to expect attractive long-term returns on our investment, which we view as an underappreciated component of our story. This year, we plan to leverage our investment to expand retailer relationships and grow its North American CTV footprint, which we believe will enhance the long-term value of both our data and ad monetization exclusivity, as well as our equity stake. We believe our investment in V provides multiple paths to future value creation for Nexxen International Ltd. and its shareholders. In addition to share repurchases and increasing our reinvestment, we will continue exploring strategic opportunities to accelerate programmatic revenue growth and strengthen our CTV, data, and mobile in-app capabilities. With that, I will turn to our outlook. For full year 2026, we expect contribution ex-TAC in the range of $375 million to $390 million, representing over 8% year-over-year growth at the midpoint, and programmatic revenue in the range of $370 million to $381 million, representing approximately 10% year-over-year growth at the midpoint. Programmatic revenue is expected to continue extending as a percentage of total revenue as we actively evaluate strategic options for our non-programmatic business line and deliberately shift our mix towards higher-growth, higher-quality revenue. In 2026, we expect growth across enterprise self-service, data products, and CTV, driven by focused sales execution, our expanded partnership with V, and growing adoption of our programmatic smart TV home screen solution. We also expect adjusted EBITDA in the range of $122 million to $132 million, representing approximately 33% at the midpoint of our contribution ex-TAC and adjusted EBITDA guidance. As I mentioned, contribution ex-TAC and programmatic revenue have trended above our initial expectations to date in Q1, driven by broad strength within our programmatic business line. We believe this momentum is sustainable, supported by the anticipated payoff from infrastructure investments made in 2025 to scale platform capacity, our extension within mobile in-app, our V partnership, growing adoption of our smart TV home solution, and deeper expected penetration with enterprise customers. In 2026, we expect OpEx as a percentage of contribution ex-TAC to decrease modestly from 2025. Research and development is expected to remain relatively consistent as a percentage of contribution ex-TAC, depreciation and amortization and sales and marketing are expected to decrease slightly as percentages of contribution ex-TAC, and G&A is expected to increase as a percentage of contribution ex-TAC. We also anticipate stock-based compensation will rise. We will continue investing in data, technology, infrastructure, and AI, including further integrating Next.AI across our platform, to improve performance and usability for customers. We believe these investments and our upcoming Next.AI releases will support both long-term revenue expansion and operating leverage. 2026 is shaping up to be an exciting year for Nexxen International Ltd. The mix is improving. The model is scaling. Our recognition is growing, and we are entering the year with momentum, operating leverage, and multiple growth catalysts already working in our favor. Our extended partnership with V and our programmatic smart TV home screen solution are expected to drive meaningful contribution ex-TAC that we believe will scale throughout 2026 and beyond. We believe both strengthen our differentiation while positioning us for accelerated long-term growth across enterprise, CTV, and data products. These initiatives have already attracted strategic partners from across the ecosystem, and based on strong inbound interest and active discussions, we expect additional partners to follow. At the same time, we are also well positioned to capitalize on major advertising events in 2026, including the FIFA World Cup and U.S. midterm elections, building on the strength we saw during the Winter Olympics. After several years of building our platform, business, and brand, and securing important partnerships, we see multiple opportunities for long-term customer and shareholder value creation. As always, we thank our shareholders, employees, and partners for their support. We will now open for questions.

At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We do request for today's session that you please limit to one question only and one follow-up. We will pause for just a moment to compile the Q&A roster.

Your first question comes from the line of Matt Swanson with RBC Capital Markets. Your line is now open. Please go ahead.

Great. Thank you so much. Ofer, I would like to follow up on a couple of comments you made about specific formats. The first is I think we talked a little bit more than usual about having some more defensive strategies to how AI is reshaping the open internet. So if you could just give us some more color maybe on how that AI reshaping has maybe impacted the 2025 results or what you are seeing out there? And then just a little bit more, too, on CTV growth within 2026. If it is more about some of these headwinds diminishing, or if it is more about the company-specific tailwinds that you have built up for this to be more of a secular driver. Thank you.

Thank you very much for the question, and of course I will explain. So when we are looking at AI, in general, we feel that some of these effects already happen in the market. Some of them will grow over the next twelve months or so. We see that the touchpoint between the content and the user and, of course, the advertisers and the users is changing, meaning people are less surfing on the web. They are looking for answers through ChatGPT, and basically the traffic on what we call desktop is going down, and also mobile desktop is going down. So browsing in general is going down, and I think that most of the companies are talking about it and feeling it. So what we did basically in order to encounter this issue, we are increasing our efforts on CTV, which is less affected by AI, and we opened last year the first programmatic marketplace with what we call on-screen native, meaning when people launch their TV, there is a screen that shows all the apps that you can basically consume content from. On this screen, basically, the OEMs are already showing ads, but what we did, we turned this surface into a programmatic surface that we can basically manage through our DSP and connect this surface to other DSPs, like the partnership that we did with The Trade Desk, which is very meaningful, of course. And just to give you some indication, Nielsen, according to their studies and research, says users are facing this surface for about ten minutes a day. So the number of impressions that we see that is coming from V—we are already connected to Vidaa, which rebranded to V—and we see the numbers of impressions that people are generating through these platforms, it is immense. So, of course, this is something that will be less affected by AI, and we took a step last year to be the first company, as we understand it, to offer that on a programmatic level. We believe that this will help us first with AI, but also will help us to grow CTV, which is your other touchpoint that you asked about, and I will elaborate even more on that. Apart from that, when we analyze what other channels or what other type of media will be less affected by AI, we understood that in-app mobile is less affected by AI. So early last year, we started partnering with in-app mobile companies to work with them in order to place their media and to work with their publishers, and our publishers now, because we are basically creating direct relationships with the publishers, in order to place them in our programmatic ecosystem. We see very good initial results that we believe can drive immense growth in the years to come, and this area, from what we understand and see and analyze, is less affected by AI. So I think that these two channels, apart from the in-stream CTV that we are already running and apart from other things that we are already running and less affected, when we are looking at native CTV and in-app mobile, it is increasing our resilience basically to AI disruption and giving us room to grow our business in the coming years. Regarding growth of CTV, this marketplace that we spoke about, this programmatic home screen marketplace that we spoke about, is helping us to build relationships with a lot of partners in the ecosystem that are interested in order to monetize this type of media. As part of that, they will increase their work with us not just on this specific media, but also on in-stream and everything else, which will grow our presence in CTV. The fact that we are unique in our offering, and it is also complementary to what we call in-stream because this same media, which is native on CTV, is very good for performance advertising. Basically, people can buy complementary media positions on the in-stream and on the home screen in order to deliver the results, and our DSP is also very impressive in these results and performance. It is helping clients to basically grow their presence and, of course, to other DSPs to start increasing spend on CTV with us. So I think that, in general, we are in a good spot, and this marketplace will help us and is already helping us to grow our presence in CTV and overall. Apart from that, our teams are working very hard to close the gap on some publishers that are still in a process to be integrating with us in order to grow our reach. But if you check, our reach is also already very massive on CTV, and we believe that this development, this technology, this product that we are issuing is getting the attention of the big DSPs and the big brands that want to participate in that, and they will grow their spend on CTV with us in the future. Thank you. I hope that answers your question.

Your next question comes from the line of Laura Martin with Needham & Company. Please go ahead.

Okay. Can we get an update on data? I know you took the V data and you put it onto The Trade Desk platform. Can you tell us what the revenue stream for data is running at these days? And then for Sagi, could you tell us IFRS revenue was 0% for growth for 2025 and down 10% in the fourth quarter? Could you tell us what it requires for your guidance to hit the sort of up 7%–8% growth rate for 2026? Thank you.

No problem. So, basically, ACR, that—hi. We are in Israel, so we are sorry that we are not in New York, but we could not basically fly to New York this time. We are staying with some of our families, of course. Anyway, when I am touching the data issues, the data point that you—when we are looking at that, ACR is becoming something that DSPs want to utilize in their platform. There are a few levels of data that we can offer to partners, and, as we indicated also in my script, we are already working with three top DSPs, which are The Trade Desk, StackAdapt, and now Yahoo DSP that joined the project, and we believe that we will be able to add more DSPs and more partners. We see this coming also not just in the U.S., but also internationally, and, of course, we will announce these partnerships in the future. It is helping us in two elements. First of all, direct revenues that are coming from the ACR and the data itself that we are basically reselling or doing activity with the partner. Basically, this type of cooperation is increasing the media spend of these companies on our media positions, which, of course, is a first priority for us. In general, we believe that this type of unique data—there is not a lot of data like that in the open web—is helping us to get the attention of brands, the attention of DSPs and SSPs, and also agencies that are increasing their spend with us in general. It is very hard to give you a number, but the net revenues of the data, of course, are high margin because we are basically selling data here. But we are looking at that as a whole, and it is very meaningful. As I indicated several times, today, data is in more than 80% of our campaigns. We are integrating data, which is one of our advantages, because when you are running an end-to-end solution and you have a strong DMP, you basically can move the data between and also the DSP and SSP with data, and enhance the results of clients and brands and generate more revenues for publishers. So it is not fair to look at it just as the money that we are selling and licensing the data itself. It is connected also to enhance spend in general on media that all these DSPs, brands, and agencies are basically working with us in order to increase their reach together with unique data that we enable them for targeting and measurement.

Thank you, Ofer. I will take the second question. So, regarding your question on numbers, IFRS, you know, is a different way of reporting things. I want to explain what we are doing on the contribution ex-TAC because it makes more sense and it is apples to apples with our peers. We grew only 3% contribution ex-TAC in 2025. We are not saying otherwise. I think that what you saw on the IFRS side is mainly because we are reporting some of our revenues on a gross basis, and some of the data that we got in 2025, I am reminding you from the previous earnings, was the performance activity, which we did. It is a non-core activity, which we are not too much focused on, and we got a big hit in 2025 on those activities. Some of them, of course, we are looking to understand what we are doing with them, and some of them probably will leave very soon, unfortunately. Having said that, I think that what Ofer just laid out with the growth engines into 2026—which are the in-app mobile partnerships that we signed already in 2025 and we are signing much more in 2026, the V investment and, for the first time, exclusive monetization of their North American inventory, the native display home screen ecosystem which we built, which is unique and nobody else has this solution because of our end-to-end ecosystem and service—brought already The Trade Desk in, and probably it will bring more demand partners and more supply partners into this ecosystem, which can be huge. So I think that having these growth engines in place and, on top, a big focus and restructure of our enterprise business and putting a lot of emphasis on the product over there—we just announced a new UI—so I think all of that will take us to a very good 2026. We are already seeing the first fruits in January, which was the best January we ever had, and February, which was the best February we have ever had. We are seeing the first signs to a really pivotal 2026. So we are quite confident that we can reach this 8% of general growth and almost 10% in our programmatic growth.

Thank you.

Your next question comes from the line of Andrew Marok with Raymond James. Please go ahead.

Hi. Thanks for taking my questions. Maybe one more on the CTV topic, if we could, just to get a sense of the various moving pieces that are in the 2026 outlook between the macro, the 2026 events, the Ventura integration. Is there any sense of maybe rank ordering those in order of their importance or their upside potential for the 2026 guide? And then maybe separately, you called out the desktop video growing over 20% year over year in 4Q. How sustainable is that? We have seen that format be pretty volatile in the past. How well does that need to do in order for you to hit your 2026 assumptions? Thank you.

First of all, thank you for the question, but I did not understand the point of what you felt that is volatile in the past.

The desktop video component.

Which one?

Desktop video. What do you mean by that? Desktop.

Maybe we are not looking at the same thing, but I will explain and then tell me if I touch your concern or not. Our main revenue source and revenue generation also in 2026 will be in-stream that we are managing and selling by our own sales teams and, of course, getting a lot of demand from direct brands that are using our enterprise solution, from DSPs that are basically buying media from us. Overall, this is the majority of our revenues. We feel, as Sagi just mentioned now, a very strong January and February when you are looking at the programmatic level on all fronts and all types of media that we are running, including CTV. When you are looking at the growth that we are now going to bring into the system, it is coming from the native ads, and the amount of media that is associated with that is huge. On this ground, we basically built a partnership with Ventura with The Trade Desk, which we are very proud of to be their first partner because we believe that The Trade Desk can make a very big difference for us because they are the major enabler of the agencies in the world to buy media from companies like us also. I think that the type of discussions and relationships that we are building with them around this unique media will bring us a lot of value in the years to come. Now, this type of media—starting with Vidaa, with V as they rebranded their name now—we already see a lot of growth that will come from more OEMs and publishers that are interested in using this technology, which is making it more efficient. When you are more programmatic and you are turning your media into commodity, you are able to basically monetize much more of your space than when you are doing it manually. In the past year, most people did it with ad servers or manually selling deals on their type of media. Now they can basically integrate programmatically to their sources or our sources and generate more revenue. The second thing is also from big DSPs, other DSPs that want to join this. The first is, of course, The Trade Desk, and more will come, and the others that will come will basically increase the liquidity of the platform and will generate more demand into the platform. We believe that it is a win-win situation, meaning the OEMs that have so much media that they never monetized fully, now they can do that in a very effective and efficient manner, and the advertisers, the agencies that are basically looking at this media, looking at a new channel that they can basically trust. We are working with Ventura to create also standardization of this type of media, which is super important, and education and getting the attention of the agencies and brands into that, and it will increase the usage of the big advertisers and brands and agencies in this type of media and will grow our CTV revenue. So, again, not to confuse: the main revenues this year, in 2026, come from the things that we have done in 2025, meaning in-stream—growing it, building it more, building more relationships. Also, as I mentioned, when people will buy from us native ads, they will increase also their exposure on our in-stream media because it makes sense to run on the same systems and the same reporting. What we start growing now, our revenues, and support our growth in 2026 and years to come, will be the native ads that we are running basically on the operating system screens around the globe and mainly in the U.S. and North America and Canada. I hope that I answer your question.

Your next question comes from the line of Jason Kreyer with Craig-Hallum. Please go ahead.

Hi. Thank you, guys. You have talked about the strengths that you have seen early in Q1, and you talked about the record January and February. I am just wondering if you can give more details on what channels are driving that strength. With that, I know you are not giving a quarterly guide, but I just wanted to try to square things between the contribution decline that we saw in Q4 relative to the high single-digit growth that you are guiding to for the year. Where is Q1 shaping up within that continuum?

We see the growth coming from everywhere, basically, meaning not a specific vertical, not a specific format. It is coming from across the board from all the major partners that we are working with. They are increasing the level of work with us. They are increasing their level of investment in media with us, which is, of course, great. Our salespeople are able to deliver very good results until now in Q1, bringing in the advertisers that we work with and others into the system. We feel that it is a combination of two—or three—things that happen. One is that the fact that we increased our infrastructure last year, almost doubled it, is helping us on the programmatic level because now people can see the real size of our media and they can buy more media from us. It is a process that is taking time. You are not lighting it in one day. It is a process of several months and a lot of investment in the data centers and so on, but we see that it is already generating results very quickly, which is great. The second thing is we are now putting much more effort also on our enterprise solution, meaning our DSP and Discovery tool, which is basically segmentation and data platform. We feel that with all the sessions that we have done with our salespeople and leaders in sales, our message to the market is resonating much better, and we deliver better results by our salespeople, which is, of course, very important, and we feel encouraged by that. The third element is the market itself, which seems to be better than we saw last year, meaning it is more positive. The sentiment is better for advertising until now, and I think that it is basically pushing all the numbers up. As we mentioned, January was the best ever. February was the best ever. The reason that we are keeping our forecast for the year and thinking about this number is that it is only two months. We want to be conservative. If it continues like that and we generate amazing results in Q1 and we see the trend going through also the beginning of Q2, we will look at the numbers for the year and, of course, adjust them accordingly.

Your next question comes from the line of Maria Ripps with Canaccord. Please go ahead.

Great. Thanks so much for taking my questions. I just wanted to follow up on Jason’s question regarding Q1. How should we think about incremental demand from the Olympics versus the broader underlying trends? Any color on that would be helpful. And then can you maybe share a little bit more color on your enterprise offering? You mentioned that you more than doubled the number of customers last year. I know the sales cycle here can be a little bit longer, but how should we think about it becoming a larger contributor to growth over the next year or two?

Thank you for your questions. I think that will help us and help people understand better what we are doing, which is great. Again, when we are looking at everything that is happening in the market and how we prepare ourselves, we are always thinking ahead in our strategy. Almost three and a half years ago, when we acquired Amobee and we turned it into our DSP—enterprise DSP—we had the idea that we need to be closer to the brands that are buying media. We need to provide them the best solution in order for them to invest in media, to generate results, to get the performance that they are looking for from their investment. We saw very big progress over the last few years. In the end, last year, and mostly in the end of last year, we also shifted more resources from other sales channels to this sales channel. We brought additional talent into the main points of engagement with the market, and we feel a very big response to that, because what we are talking about for many years about integrating data into the mix of buying media, and smart data into that, is starting to resonate, and people are looking for that. Apart from that, the Next.AI tools that we developed are very practical, generating amazing feedback and results and helping the buyers to buy media better as we see that. When you are looking at that, we believe that—yes, as you indicated—it is true that the growth cycle of these partners takes a little bit longer than when you are launching programmatic activity with someone, because they need to learn the system, they need to train, they need to gain confidence and start moving their budget into that. But a good indication is when we are able to get many more clients to test and run on this platform, and we believe that this is the main growth engine for us in the years to come, meaning we will work with more and more agencies and brands for them to adopt our technology, to generate great results, to run and to incentivize them to run on our media, consume our data, and work together with us in order to achieve that. All of that together is driving great results. Regarding your question about CTV and the quarter, we believe that it is the beginning of the year, so it is two months. This year, we are reporting earlier than we used to, but we see that the fundamental changes we have made with our sales, with our platform, with our programmatic, with interesting products that are able to gain the attention of the big DSPs and brands to work with us, are super important and are driving results for us across the board. We believe that it is something that will continue during the year and the years to come. I hope that I answered your question.

Your last question comes from the line of Barton Crockett with Rosenblatt. Please go ahead.

Thank you for taking the question. Since this is the end, maybe one and a half or so. I was curious about your guidance. I was wondering if you could parse out a little bit what portion of the growth you are seeing is political, and in general, how the political that you are seeing for this year would compare to what you have seen in the past, and whether you have any early indications, given that there has been some meaningful activity in some of the early primaries in Texas, whether that gives you any learnings in terms of how to think about the political contribution to your growth this year. Also, your growth— you have spoken in the past about a desire for acquisitions, potentially. I assume that guide is excluding any acquisitions that you might do, but if you could confirm that and maybe just update us on where your current stance is about interest in acquisitions, given there has been a lot of reset in valuations of late and maybe rethink as the LLMs ramp. Where you stand on that would be interesting. Thank you.

Of course. Regarding political, in general, when we are looking at what we learned to do in the last couple of years and in the last round of the last election, we saw that basically our setting—that we have a strong segmentation tool and data that enable the partners to onboard their data in order to target their audience to general channels and so on—is very useful for political use. We built dedicated teams for that. Already last election, they generated the best ever results that we saw from a political cycle. Our focus right now is not taking it into account in a very big manner because we spoke about the first two months. It is not strong in political yet, but we feel there is a lot of interest. There are a lot of partners that are joining our platform now in order to use our technology, which is a great solution for DSPs, which enables you to target audiences in a very smart manner, with a segmentation tool that enables you to launch your data in order to reach the users that you want to reach in these campaigns that you are running. Of course, the media reach that we can offer to these clients. We believe that this political season will be strong and assist us. It is always dependent on what will happen from a political level to see how much money the parties will engage in these campaigns, but we have a sense that it will be a fairly good and rewarding season that will enhance our revenues in 2026. Regarding your other question about acquisitions, we are always open to look around and see. We do not have any target in our mind, and, of course, if we did not speak about it, we are not sure it is active. But we are looking always at how we can grow organically but also non-organically. There are many ways to do that, and our eyes are open in order to see what can be done, because we believe that in this market, of course, you need to evolve all the time and to add mostly size in this case, because we feel that we have the technology that we need in order to compete and win in the market.

If I could just follow up, on the commentary you had about the DSP pacing up here as we start the year, my recollection is that the DSP really started to hit you in the middle of last year. So the fact that it is pacing up even before you comp that is interesting. Does that imply that you are on pace to recoup everything that you lost from the DSP as you go into the back half, given that you are pacing up here to start the year? If you could elaborate on that, it would be interesting.

Hey, Barton. Yes. First of all, this one DSP that hurt us in 2025, mainly in Q4, was isolated. Yes, this DSP is now going back into the level of spend that we are used to. It is not there yet, but it is on the right trend. Hopefully, yes, if they will continue as it started with this DSP and, of course, all the other programmatic lines of business that Ofer discussed and shared, we can recoup most of the money. Hopefully, until Q4 it will be the same, but hopefully we can recoup most of the money that we got hit in 2025 for sure.

That concludes our Q&A session. I will now turn the call back over to Ofer Druker for closing remarks.

Thank you, everyone. Again, sorry for some of the miscommunications—sometimes maybe a bit of a line issue or something like that. In general, we feel that 2026 started very strong for us. We had a record month. We feel that it is across the board. It is not coming from a certain partner or a certain client or a certain vertical. It is across the board, which is great. I feel that it is coming from our technology that is being adopted more in the market, our people that trained, the people that we added adding the value that we expected them to add, and we feel that also the messaging, the brand, is starting to take off, which is great news for us, and we feel positive about 2026 right now. Thank you very much.

Ladies and gentlemen, that does conclude our conference call today. Thank you all for joining, and you may now disconnect. Everyone, have a great day.

Welcome to Nexxen International Ltd.'s Third Quarter Earnings Call. At this time, participants are in a listen-only mode, with a question and answer session to follow at the end of the presentation. This call is being recorded, and a replay of today's call will be made available on Nexxen International Ltd.'s Investor Relations website. I will now hand the call over to Billy Eckert, Vice President of Investor Relations, for introductions and the reading of the safe harbor statement. Billy, please go ahead.

Thank you, Operator. Good morning, everyone, and welcome to Nexxen International Ltd.'s third quarter earnings call. During today's call, we will discuss our financial and operating results for the three and nine months ended September 30, 2025, as well as our forward-looking guidance. With us on today's call are Ofer Druker, Nexxen International Ltd.'s Chief Executive Officer, and Sagi Niri, the company's Chief Financial Officer. This morning, we issued a press release, which you can access on our IR website at investors.nexxen.com. During today's conference call, we will make forward-looking statements. All statements other than statements of historical fact could be deemed as forward-looking. We advise caution in reliance on forward-looking statements. These statements include, without limitation, statements and projections regarding our future financial and operating performance, market opportunity, growth prospects, strategy, and financial outlook. These statements also include, without limitation, statements regarding our partnerships and anticipated benefits related to those partnerships, anticipated benefits related to the company's intended growth and platform investments, forward-looking views on macroeconomic and industry conditions, as well as any other statements concerning the expected development, performance, and market share competitive performance relating to our products or services. All forward-looking statements are based on information available to us as of the date of this call. These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those implied by these forward-looking statements, including unexpected changes in our business or unexpected changes in macroeconomic or industry conditions. More detailed information about these risk factors and additional risk factors are set forth in our filings with the US Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled "Risk Factors" in our most recent annual report on Form 20-F. Nexxen International Ltd. does not intend to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in IFRS and non-IFRS terms. We refer you to the company's press release for additional detail, including definitions of non-IFRS items and reconciliations of IFRS to non-IFRS results. At this time, it is my pleasure to introduce Ofer Druker, CEO of Nexxen International Ltd. Ofer, please go ahead.

Thanks, Billy. Nexxen International Ltd. delivered a strong Q3, generating 10% year-over-year programmatic revenue growth or 15% ex-political, driven by omnichannel strength, rising enterprise DSP adoption, and growing data demands. Throughout 2025, we have been leveraging the combined assets we have built and acquired over the years, strengthening and better showcasing the power and interconnectivity of our full stack to drive greater enterprise demand. Q3 results show this effort is paying off. Our SSD benefited from proprietary data assets like Nexxen Discovery, delivering stronger performance and greater market recognition. Our renewed and expanded data partnership also adds a long-term growth engine via exclusive ACR data and CTV media while enabling innovation like the industry's first solution for programmatic smart TV on-screen through the Nexxen DSP and SSS. SSD. This opens a new frontier for advertisers to reach send OEM media via high attention placement never before available programmatically. With an advanced enterprise DSP, proprietary data, and a unique and growing CTV and cross-device media footprint, Nexxen International Ltd. is creating a very impressive value proposition that sets the stage for meaningful long-term growth. We have continued investing in our omnichannel DSP, enhancing automation, performance, and user experience to bring more enterprise partners onto the platform and believe it can now compete directly with and win against top standalone DSPs. What truly depreciated is how it connects across and benefits from our full stack, combining text data, AI, creative, and media to deliver superior performance and efficiency to enterprise customers and independent agencies. Recent upgrades have not only enhanced the DSP itself but also strengthened the data, AI, and media engines that power it. In the DSP, we have improved buying algorithms and automated budget optimization, lowering media costs and increasing return of expense. Meanwhile, Next AI continues to elevate its performance and efficiency. The NextAI DSP assistant is helping users gain and act on powerful real-time insights faster, enhancing results and usability with customer satisfaction scores often above 90% and some reporting efficiency gains of up to 97%. We are also leveraging our data platform to strengthen the value proposition of our enterprise DSP. Nexxen Discovery, our proprietary insights and audience segmentation tool, is now central to agency and brand conversation and integral to pitching and winning new clients. It unifies cross-channel data sources, including exclusive Asia data, enabling advertisers to uncover, build, and activate high-performing audiences at scale while generating critical insights and reporting. We have enhanced discovery in our broader data platform through Next AI by improving our customers' first-party data connects with Nexxen International Ltd. and improving usability for users of all skill levels. This has resulted in greater adoption, expanded reach, more precise targeting, and measurable performance gains. Discovery has become a true competitive advantage that we believe will grow over time. Together, these advancements are driving stronger cross-channel performance across targeting, activation, optimization, media buying, and measurement. End-to-end users are achieving roughly two times higher retail of ad spend and 30% lower costs. Key reasons we are winning more in ad-to-ad USP evaluations. Our DSP's performance, connected to and driven by our full stack, has brought dozens of new enterprise customers on the platform in 2025, creating significant long-term growth potential. As more enterprise customers onboard, we capture greater direct demand, strengthen our end-to-end revenue opportunities, and reduce reliance on third parties, which is critical as major DSPs continue to tighten SPOs within their ecosystem and work directly with publishers. With a stronger DSP, more powerful and connected data solution, and deeper AI integration, we are now focused on capitalizing on strategic partnerships and scaling platform adoption. We believe this will further our end-to-end revenue opportunities, drive increased growth potential, and create greater resilience against evolving industry dynamics. In Q3, we announced our updated partnership with Vida, successfully renewing and expanding it through 2029, extending exclusive global access to the ACL data, and securing third-party ad monetization exclusivity on their North American media. This provides a durable advantage over peers lacking exclusive and unique assets. We believe we struggle to differentiate and drive value in the future. As advertisers need alternatives to walled gardens, Nexxen International Ltd. is well-positioned to fill that gap as an open, independent platform. Our ratio data cements us as a fundamental targeting and measurement data provider, fueling both platforms' spend and licensing opportunities. For example, our ACR audience segments recently became available for targeting in the Yahoo DSP, underscoring growing demand and paving the way for licensing growth in 2026 and beyond. Our media exclusivity also creates leverage to attract new partners and incremental spend through unique opportunities unavailable anywhere else. And as Vida's footprint grows, so does the value of our facilities. The new agreement is already powering breakthrough innovation. We recently launched the industry's first solution for programmatic smart TV on-screen activation that will be available exclusively through the Nexxen DSP. It provides direct access to native smart TV inventory via the Nexxen SSD across iSense CTVs and other CTV OM brands powered by Vida's operating system. This marks a major step forward for the CTV industry, unlocking previously inaccessible scaled OEM media for programmatic activation and creating exclusive eye attention placement that commands premium pricing. Advertiser interest has been strong, and this solution differentiates us as major competitors cannot offer similar capabilities. We believe this will become a powerful intermediate and long-term growth engine for Nexxen International Ltd., one that can accelerate DSP adoption, expand end-to-end spending, and reinforce our leadership in programmatic smart TV innovation. While we are encouraged by our momentum and strategic progress, we are disappointed to lower guidance due to near-term headwinds, including softness in select channels and a shift in our leading DSP customer reinforcing its SPO strategy. That said, our platform's interconnected advanced technology solutions, TV data, and robust omnichannel media footprint give us confidence we can navigate these dynamics and emerge stronger in 2026 and beyond. Our strategy is evolving, not changing, as we are doubling down on our DSP, discovery, and broader data platform to drive enterprise adoption, strengthen end-to-end revenue opportunities, and reduce third-party reliance. In 2026, we are releasing new DSP innovations, expanding infrastructure and capacity, and deepening new AI integration to enhance usability and performance. To insulate against disruptive open Internet trends, like LLM-driven traffic sheets, we are enhancing our CTV capability through innovative product launches like our first-to-market programmatic smart TV home screen activation solution. In addition, we are entering new scales mobile in-app partnerships. Finally, we are aggressively pursuing new sizable strategic commercial partnerships, leveraging our Vida exclusivities and first-to-market programmatic smart TV on-screen activation solution. These assets provide leverage with ecosystem partners, agencies, postcos, and data providers and can ask if you last spent commitments, greater enterprise adoption, and scale licensing opportunities. While Q4 presents near-term charges, our long-term outlook and conviction in our strategy remain strong. The actions underway, combined with continued investment in our enterprise DSP, cross-device capabilities, and data and AI innovation and integration, position us for a stronger 2026 and beyond. We are on a clear path to becoming a strategic and partner of choice for industry leaders, fueled by exclusive TV data, advanced tech, and innovative smart TV solutions unavailable anywhere else. With a solid foundation, expanding partnerships, and critical capabilities unique to Nexxen International Ltd., we are confident in our positioning to drive greater enterprise adoption and outsized long-term growth. With that, I will turn it over to Sagi Niri.

Thank you, Ofer. In Q3, we delivered contribution ex-TAC of $92.6 million, a Q3 record reflecting an 8% increase year-over-year or 14% ex-political. Programmatic revenue also reached a Q3 record of $89.6 million, up 10% year-over-year or 15% ex-political. Growth was driven by data product self-service, desktop and mobile, alongside increases across our health, business, and finance verticals. In contrast, contribution ex-TAC from our non-programmatic business line declined roughly $1 million year-over-year. We also observed year-over-year decreases in CTV and display, as well as reduced spending within our government, retail, and education verticals. CTV revenue declined 17% year-over-year in Q3, or 13% ex-political, to $24.5 million. Results were impacted by decreased activity from select third-party deals, partners within our ONP and PMP channels, tariff-related spending reductions from certain customers, and more competitive CTV CPMs. Though these pressures have persisted in Q4, we continue to see significant CTV revenue growth opportunities in 2026 and beyond, particularly following the renewal and expansion of our strategic partnership with Vida. In Q3, desktop revenue increased 67% year-over-year, and mobile revenue rose 3% as our targeting tools continue to help advertisers find audiences across devices, while overall video revenue represented 70% of programmatic revenue. Contribution ex-TAC from PMP declined 4% year-over-year in Q3, and contribution ex-TAC from display decreased 2%. Despite headwinds across some formats and devices, we achieved record Q3 contribution ex-TAC, thanks to the benefits of our diversified omnichannel approach and continued momentum across focus areas we've invested heavily in over the past several years. In Q3, self-service contribution ex-TAC grew 11% year-over-year amid greater enterprise DSP adoption, while contribution ex-TAC from data products increased 164%. We generated adjusted EBITDA of $28 million in Q3, reflecting a 30% adjusted EBITDA margin as a percentage of contribution ex-TAC. We remain confident in our ability to expand margins over time through contribution ex-TAC growth, cost discipline, and anticipated benefits from our AI initiatives. In Q3, we generated $35.8 million in net cash from operating activities, compared to $39.9 million in Q3 2024. As of September 30, we had $116.7 million in cash and cash equivalents, no long-term debt, and $50 million undrawn on our revolving credit facility. Non-IFRS diluted earnings per share were $0.20 in Q3 compared to $0.27 in Q3 2024, on a post-reverse split basis. We repurchased roughly 1.8 million shares in Q3, investing approximately $18.1 million through our now-completed $50 million program and recently launched $20 million program. From March 2022 through 2025, we repurchased roughly 36.6% of outstanding shares, investing approximately $247.4 million. As of October 31, approximately $13.9 million remained under our authorization, and we intend to evaluate implementing a new repurchase program following completion of our current program. We invested $20 million in Vida in Q3, with an additional $15 million planned for Q3 2026, and we are also continuing to explore M&A opportunities focused on accelerating programmatic revenue growth and enhancing our data, CTV, and mobile in-app capabilities. With that, I'll turn to our outlook. Despite meeting our expectations for both Q3 and the first nine months of 2025, we are lowering our full-year 2025 guidance. We now expect contribution ex-TAC in the range of $350 million to $360 million, adjusted EBITDA in the range of $113 million to $117 million, for programmatic revenue to represent roughly 95% of total revenue. Our updated guidance now reflects full-year 2025 contribution ex-TAC growth of approximately 3% at the midpoint or 6% ex-political, and programmatic revenue growth of approximately 6% at the midpoint or 9% ex-political. Our revised guidance reflects several factors impacting Q4 performance. We have experienced lower-than-expected activity from certain third-party DSP partners in our OMP and TMP channels, which has impacted contribution ex-TAC within the Nexxen SSP. That said, demand generated directly through the Nexxen DSP to the Nexxen SSP has remained in line with expectations. The majority of softness within our ONP channels has been attributable to changes in spending behavior from one DSP customer. While the customer remains active on our platform, its activity to this point in Q4 has decreased significantly year-over-year following a sizable increase in spending during Q4 2024, partly driven by the 2024 U.S. Election cycle. We expect contribution impact related to this customer's reduced spending to be isolated to Q4 2025 and to not have a material impact on Nexxen International Ltd.'s performance in full-year 2026. In Q4, we've also observed more competitive CTV CPM as well as reduced spending from certain customers reflecting some macro softness, which we believe has been driven largely by tariffs. Additionally, we've experienced continued weakness in our non-core non-programmatic business lines for which we are actively evaluating all options. As Ofer mentioned, while we are disappointed with our reduced guidance, we are confident in the swift actions we've taken to address near-term headwinds in our long-term strategy and positioning. Our strategic shift towards revenue generators from our omnichannel self-service DSP and data products continues to gain momentum, supported by our unique data and media assets fueling greater enterprise adoption and growing end-to-end opportunities. Over time, we believe this combination will continue to attract new partners and increase spending, create larger growth opportunities, and drive more predictable and resilient contribution ex-TAC. We expect contribution ex-TAC from our Vida partnership to increase in 2026, supported by ACR data licensing revenue, exclusive third-party ad monetization opportunities, and the launch of our programmatic smart TV home screen activation solution. Adoption of Next.ai is strong and growing, and as usage increases, we expect it to be a driver of operational efficiency, adjusted EBITDA growth, and margin expansion over time. We will continue investing in AI, data, and technology to reinforce our platform advantages and depreciation. Through the actions we've taken to address Q4 challenges and continued execution on our long-term strategy, we are confident we will become a stronger, more resilient, leading platform well-aligned with where the industry is heading and better positioned for sustainable long-term growth and margin expansion. As always, thank you to our shareholders, employees, and partners for your support. Operator, we'll now take questions.

Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press 1 again. If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset to ensure that your phone is not on mute when asking your question. We do request for today's session that you please limit to one question and one follow-up question. Our first question comes from Matt Swanson from RBC Capital Markets. Please go ahead.

Great. Yes. Thank you for taking my question. When thinking about this DSP headwind, Sagi, I think you mentioned that you do not expect it to be a material impact to 2026. Could you just talk a little bit about the steps that you're taking in Q4 to kind of help rectify some of these headwinds? The one thing I know we've seen from some of your SSP peers is leaning heavier into more DSP diversity, especially DSPs that may be set in the mid-market. I'm just curious if that goes into your strategy as well.

Hi, Matt, first of all, and thank you for your question. We have a very clear path that we are taking, but we are going, of course, to accelerate according to what we are feeling in the market. The first thing is about CTV media. So a lot not far, like, the last month or so, we announced that we basically launched a new product that enables us to run programmatically TBS on the platform of the OS of the operating system of Vida and others. And this is very meaningful because the amount of media that you have on the CTV is massive. And basically, users are spending about ten to eleven minutes a day on a TV in front of the operating system, and we will have the opportunity to engage with them in a programmatic manner for the first time in the industry. So this is, like, something that we believe that also is resilient for the AI changes in the world and is supporting us. The second thing is, of course, when you mentioned about the DSPs, so what we feel is that we see that our sales team this year and in Q3 and also what we are seeing going forward is reaching their targets, which means that our offering is very compelling, and we are able to satisfy the needs of the clients with our technology and capabilities. And we are going, of course, to continue doing that. Our self-serve solution we are going to enhance what we did until now. We already see very good traction to that. It grew 14% in the first nine months of the year compared to last year. And it grew about compared to last year. Percent in Q3. Which is very nice numbers. And I think that with the push in resources and capabilities, we will be able to achieve even more. So we are going to do that in order to lower the reliance on third-party DSPs in the market. That's the reason that we made this investment a few years ago. We built the capabilities, and we believe that this is a unique capability that we got. And if we enhance it, we'll enjoy that in the future. On top of that, we are also adding one of the key things that we are doing all the time, which is like a differentiator, also, is the way that we are dealing with data. And the discovery tool that we basically acquired from the acquisition of Amobee, and we made it like a standalone platform that is attracting a lot of advertisers and partners. We are going to also add to this platform now mobile data that is coming from partners that we are talking to or already got agreements with. And this will enable us to put it side by side with our strong and exclusive data sets that we have from the agreement that we got with Vida. Which is super important. They share data globally and especially in the US and Canada, which is more related to us because more than 90% of our revenues are coming from the US. The last point that we feel is important to mention is also to add in-app mobile media to the mix because we tried in the middle of the year to understand what basically channels of media will be less affected by AI. We got into the resolution that basically also in-app mobile is less affected by AI, and we are investing in that. We already signed a few agreements around that, and we stopped moving resources into this channel of media. And we believe that everything that I just said, like CTV, the TV ads, native ads in the operating system, in-app mobile media, and data that we are adding, moving resources to the self-serve solutions that we are basically already showing and demonstrating growth year over year. All of that, including the fact that our sales teams are able to reach their targets with our offering, give us optimism and the belief that we can continue next year with full power.

That's really helpful. You mentioned AI a couple of times. One of the big points of emphasis at your Investor Day earlier this year was talking about the power of your AI platform once you've got all three pieces, right, working kind of interoperability of being full stack with AI. I know we have a couple of products launched. Can you just talk about how close we are to getting that kind of full stack vision completed?

So first of all, we keep, of course, the investment in AI. For us, it's already, like, a part of everything that we are doing. And basically, what we see is that if we are looking at, for example, the discovery tool and we mentioned it also in the script, basically, what we see is that sellers that are using the discovery plus AI, in the past, it took you, like, a few hours to issue a report. You need, like, an expert to do that. And people were like I will not say they were not tempted to use it so much. But now we see that people are using the AI, our discovery tool, and data segments. They are getting in a few minutes, like, a very good speech. It basically doubled the revenues that the seller that is using our tools is generating compared to a seller that is not. So, of course, it's encouraging us, and we keep pushing for this development. The second thing is that we release and we are getting really good feedback. Feedback is from the usage of AI on our in order to buy media, and it's helping buyers not just to buy smartly, but also more efficiently, and we see very good engagement around that. We now, as we mentioned before, are moving to the SSP side. I feel that early next year, we'll have, like, news also around that. Because this is the third element, as we mentioned, and you have a good memory, Matt, because this is the third piece that we are building, which will be around the SSD side. Building these capabilities, improving the way that publishers can interact with our media, with our data, and understand also their needs. And I think that then in the middle of next year, we will add the layer that will help us manage the full platform, meaning connected to all these three elements of the DSP, DMP, and SSD, and enable us to work much more fluently, much more effectively, and generate better results for our clients.

Our next question comes from Jason Kreyer from Craig Hallum. Please go ahead.

Thank you, guys. So I just wanted to ask about the current trend line in CTV. We've seen a deceleration there over the last few quarters that culminated into a bigger decline in Q3. So just wondering if you could unpack that a little bit. My understanding is that the changes with this DSP partner are less attributed on the CTV side, but maybe you can talk about kind of what that trend line looks like and what's ahead for CTV.

Thanks. Of course. Thank you, Jason. I think that our CTV strategy is solid, as I mentioned before. But in Q4, and also earlier this year, we felt softness in some of the categories that are basically usually supported by CTV in order to advertise their product, and it's, of course, affected us. The second thing is basically competition in the market that is very fierce in the last six months between some of the big companies in the market that are basically lowering their prices in order to attract advertisers. So the CPM in general, what we feel again at least is, went down. So people can deliver their results with less budgets, which was, of course, affecting companies like us because if a company used to spend $1 million in order to achieve certain results, maybe today, they can do that with a few dozens of percentage less in order to do that, and it's affecting the revenues of a company like us. And the last point that I feel is also the political element that last year in Q3 and Q4 was meaningful for us. And, of course, it's not existing almost totally this year. So all these things together I think basically affected us in the second half of the year. But when we are looking at 2026 and going forward, I think that what I mentioned before when I spoke to Matt, when I'm looking at that, this TVS, native ads that we are running, and the agreement with Vida, the investment that we did in order to kick in more TVs in the US, will give us more ground because we have also a full exclusivity on that media, which is growing. ISense and Vida is becoming a very big player in the market. Currently, like, number two globally in pushing new TVs to the market according to the last professional reports that we see. And when we are looking at the TV ads, and our ability to turn them in programmatically, I'm getting a lot of interest in the market from other publishers like Vida, which is OEMs, which need this solution in order to simplify the sale process and make it more competitive. And the second thing is, of course, to advertisers that it will be more like a commodity for them to buy this media than today that they need to deliver the campaign to the OEM in order to run it on this platform. And, of course, it's heavier and it's more difficult to run and to maintain. So I feel that the CTV part, we feel that in 2026 onwards, we start seeing the effect of that, and we will be able to return to growth on that piece of media.

Appreciate that, Ofer. Just one follow-up. So recently, one of your competitors announced a win with an advertiser you've worked with in the past. Just wondering if you could talk to that at all and maybe help us understand why that perhaps a more isolated event. Thanks.

So, this specific client used to work with us for many, many years. Sometimes people want needs or want to change, which makes sense. We did it in good terms and all good. We are winning other accounts in the market as I just mentioned. Our self-serve grew in the first nine months by 14%. And I think that our offering we have a lot of advantages in our offering that we are even going to enhance now. Which is about data platform that we are connected to our DSP. Including exclusive TV targeting, TV data for targeting and measurements. That is very important. We see now, as we also integrated some of these data elements, but it's giving us a clear advantage in the market around data and TV, whichever is related to TV. And the second thing is the fact that we are an end-to-end solution and we can also generate revenues from them by media that can turn our offering to much more attractive and we are going to use this, of course, in the near future. So I think that overall, you win some, you lose some, you are trying to win more than you lose. And I think that we have a strategy that can support our growth. And we see the growth already in 2025 even that it was not an easy year because some of our clients are already using the platform. Even some of them lower a little bit their spend. But I see that we are winning, 14% in the last nine months growth compared to last year. 11% in Q3, and I'm optimistic that with more resources that we are shifting there, and with the capabilities that I just mentioned, we will see much more growth in 2026 and going forward.

Our next question comes from Laura Martin from Needham. Please go ahead.

Yes. My first question is on, could you remind us how much of your total traffic is from a desktop browser? And you mentioned that traffic was you're seeing traffic down. How much was traffic down in Q3 for you? So that's my first question. And then my second question is on the DSP. So your three-quarter numbers were great, which means this DSP loss for the fourth quarter was a surprise, and I get presumably you didn't really have visibility until this quarter started. If you don't have visibility so I don't understand why this DSP spending less money doesn't affect next year at all. But even if that's true, you didn't have visibility for this, how can you have confidence that 2026 is gonna be okay since I don't think you're anticipating this DSP disappearing in April. Those are my two questions. Yeah. This will disappear.

No problem, Laura. First of all, this DSP didn't disappear. It's there. It's buying media. We didn't close the DSP. A major one on our platform. They keep buying from us. There is a few issues with the big DSPs right now. Some of them changed the way that they are buying media. And they prefer more media that is basically related to their algorithm and to their SPO processes. And it's affecting the market. The second thing what I mentioned is that we are trying to lower the reliance on third-party DSPs. And we are increasing the resources and pushing forward our plans to enhance our self-serve capabilities, which we see that is growing and is making a very good effect on our revenues because it's not just the taxes that we are winning, but also these clients are shifting some of their budgets to our SSP. So this is a solution that basically helps us to mitigate risk that is coming from third-party DSPs. The second thing is that the fact that we are now adding really important pillars of CTV media. We already started discussions with big DSPs and partners in order to enhance their spend with us. Mainly on CTV because of this unique technology and unique capabilities. And we believe that it will compensate and even generate growth next year. We didn't mention in my conversation drop, but I said is that when we look at the market for the future, sometimes you need to plan ahead, of course. And what we understood the display that we invested in that in 2024, in the '25, we see that it's like a we don't feel it so much in our revenues. We see very, very small drop in revenues of DSP, but we feel that it will it can be a challenge in the future because of AI. And people are surfing some sites and so on and even mobile browsing. So we shifted more attention also to in-app mobile that is basically will grow our revenues and lower our dependency on media that can be affected by AI.

Our next question comes from Andrew Marok from Raymond James. Please go ahead.

Hi, thanks for taking my question. Another theme we've heard across some of your peers has been kind of leaning into performance objectives in kind of what are considered maybe traditional brand formats. I guess, you talk a bit about how you're positioned for that trend and maybe any advantages provided by things like the Nexxen Data Platform? And to the extent that you're able to capitalize on those types of trends, the type of potentially insulating impact it could have on '26? Thank you.

Amazing question. Thank you, Andrew. I think that performance is now is the right time to basically push for that, and we are doing it in the last twelve months. Our DSP is built for performance and generating amazing results when it's being compared to other DSPs around measurement of performance. And that's also one of the key things that is helping us to win new accounts because when they run us head to head with another DSP or a couple of DSPs, we are generating most in most cases, better results. So it's helping us, of course. I think that also the combination with CTV, which was until now more challenging. And my background is performance for many, many years. It was the price of the CTV. Because when the price was the average price was a note of $15 to $20, it was very difficult to generate results from performance on CTV. But now when the prices are basically dropping, the volumes are growing, we can see that there is a bigger opportunity to combine basically performance with CTV and we are putting a lot of efforts on that. And we have also additional advantage with that because when we mentioned the PVS, this is basically PVS are getting a lot of attention from the clients because they can be alone on the screen for a certain time, we can basically achieve additional impact by using that. So I think that the near future, which is giving us opportunity because the lower CPM that I mentioned, that also reduced our revenues, will help us to basically enable us to do more things around performance and our DSP is basically built for that. It was we built a lot of algorithms that are helping the buyers to generate better results. And I think that in the past few years, we basically moved it to the level that now is one of the top DSPs that is related to performance in the market.

Great. Thank you. And maybe a quick follow-up, if I could. On your non-programmatic business, you called that out as one of the potential headwinds to Q4. Just wondering, to the extent that it provides any benefit to the programmatic business, is it kind of completely in its own little silo, or are there some benefits that the programmatic business can realize from it maybe in terms of data sharing or something like that? That's all. Thank you.

Thank you. No. There are totally silos. There is no relationship between this performance element and our core business. Basically, it's business units that we acquired in one of the major acquisitions that we did in the past with RhythmOne. That we basically inherited two business units that were not related to what we are doing today. They are in silos. We are not getting from them any benefit of data, as you mentioned, or around that, and it will not affect us when we will take these steps. And we kept them basically running as long as they were generating value for us. But now, as I mentioned, we as we mentioned, we are basically evaluating what we should do with them because they are not hitting their targets and, of course, cause us a loss of revenues in our forecast, which is meaningful. So not so meaningful, but still meaningful. And but there is no relationship to any of the other business that we are doing, and it will not affect us at all when we will basically take action with them.

Our next question comes from Matt Condon from Citizens. Please go ahead.

Thank you so much for taking my questions. My first one is just on you guys announced in the press release a new data licensing partnership with Yahoo DSP. Can you maybe just refresh us on how The Trade Desk partnership is going and then how big Yahoo can be and then maybe overall just how big data licensing can be for you guys?

Very good question also. So basically, there are a few elements for us to cooperate with partners around our data. The easiest way for us is basically to create segments and to send them to the DSP that basically wants to utilize them in order to contact targeting. That's what we are doing mostly with The Trade Desk and now with Yahoo. And it's growing. I cannot reveal numbers, but it's growing. And it's showing good signs, and we have a list of new DSPs that are showing interest in order to grow basically with us and embrace this technology and these capabilities. And we need to remember that, basically, the profit or the net revenues of this initiative are 100% because it's coming to utilizing our data that we own. And when we are looking at more advanced solutions, it's basically licensing this data for measurement, integrating raw data into DSPs or other DMPs, this is a very big this is even a bigger opportunity. And we tie it with, basically, the ability to utilize our discovery tool, which is the platform that enables clients to utilize the data but also enrich their data. Meaning, they can upload their first-party data into the platform, enrich it with our TV data, and get, like, unique reach, which changes sometimes their perspective about their audiences. And this is also something that we start selling and generating revenues. And I believe that in the near twenty-four months, we'll see these segments grow in our revenues. The licensing, and the licensing of data in segments, like I mentioned, but also even AVL platform like the discovery plus data that we are licensing to companies in order to utilize them on their platforms and in favor of their activity and their clients.

That's very helpful. And then maybe just a follow-up. You mentioned also in the press release just the potential to do more M&A transactions with smaller than what you did with Amobee. Just what are the key areas when you look at your business today that you think that you need to round out or different functionalities that you need to add on to? You know, via M&A.

Okay. So I think that from a technology perspective, we have everything that we need. We have a very strong DSP, a very advanced and robust DMP, and a very powerful SSP. But I think that there are supposed to be now more opportunities to buy sometimes clients or verticals activity in verticals you are less exposed to or less working in these verticals and can enrich your technology. I think that also from an integration point of view, we are not interested right now to buy another DSP or another SSP or DSP or DMP because we have this platform, but also from an integration process. We did a heavy lifting in the last two or three years that we have we got to the point that we are really happy with the technology stack that we got. So what we are looking more is to buy activities for clients, as I mentioned, or knowledge or client-based or activity-based that we are not familiar with that we can integrate into our platform and generate additional revenues from them.

Our next question comes from Barton Crockett from Rosenblatt. Please go ahead.

Okay, great. Thanks for taking the question. I'd like to try and understand a little bit better the DSP impact being just a one-quarter phenomenon. In your guide. I guess the first thing I just want to understand around that are you saying that that's because whatever revenue you lose in the fourth quarter will come back to you in the first quarter, or is it because you see other revenue sources offsetting whatever the negative impact is that you see this quarter and next quarter being offset by new revenue sources starting by next year.

Hey, Barton. Thanks for the question. I think that's what we are trying to say. You know? I think you answered your question by yourself. So it's like first of all, aforementioned a couple of times, like, all the actions we are doing in order to have our usual growth in 2026, you know, the in-app focus, the self-serve focus, the data focus, the Vida deal, focus. Which are our main growth engines going forward. The one DSP that's, like, you know, is part of the gap in Q4. It's something that we expected this DSP to do with us or to spend with us in Q4 because this is what it did last year, which some of it, of course, connected to the political spend. And this series is spending much less. It's not going with us into 2026 because we already acknowledge that this is the new base, and this is its level of spend. And we are not, like, taking into consideration that for some reason, he may spend more in 2026. Yeah. That's what So I think this answers your question. I hope.

Okay. And so when you say your normal level of growth mean, you guys think of normal growth being double-digit.

Yeah. I think that, yes, the lower double-digit, I think that according to the growth engine in front of us and, of course, we are already working very extensively on the 2026 budget. I think that we can achieve this growth of 10% in programmatic activity.

Our next question comes from Tyler DeMatteo from BTIG. Please go ahead.

Great. Thank you. Appreciate the time. I wanted to start with on the double growth comments right there. When you think about the different product solutions and how you're trying to go to market, I mean, what physically needs to happen with the different business and product solutions to get you back to double-digit growth? Like what's the real needle mover to get you there? And can you just kind of unpack that for us? And then my second question here is I want to talk about the Vida partnership. How much of a contribution I think you kind of quoted this on an ex-TAC basis. How much of a contribution do you actually expect next year? And how is that going to flow through? Thank you.

First of all, Tyler. I think that the main thing that will bring us growth next year will be the CTV part because, generally speaking, this is something that we put emphasis on it for a long time. We suffered from weakness in the last quarter and also, the last quarter was not a great one for CTV, as I mentioned. But I think that by integrating this solution, building relationships with a lot of buyers that are interested in this type of media will see a growth in that section from the feedback that we are getting in the market and from even additional publishers that are interested to integrate with big volume of media and so on can be very helpful. The second thing is again, in order to reduce the reliance on third-party DSP, in 2022, we acquired Amobee for that reason. We saw it coming. We knew that basically the big DSPs in the future will have to build their own end-to-end solution in order to increase their margin and so on. That's why we made we look for DSP that can add to us enterprise capabilities and can grow and can help us to grow in dependency. That's why we acquired Amobee, and we invested a lot of money and time in order to build and improve the technology, grow the talent, build the models, integrate them with data, not in silos, but as one piece. And we believe that the growth that we are seeing from the beginning of the year will continue and even emerge more next year. And will support our growth in the future. And the in-app that we are testing now is showing really good results. From the middle of the year, we are testing and running media on in-app, and we see that by utilizing our capabilities in the ecosystem of the programmatic world, we are able to drive meaningful revenue into the in-app. And we feel that also next year with the agreement that we already signed, and we will announce some of them soon. We will see that basically we believe that this sort of media will generate for us growth also in 2026 and going forward. And the last point is about data. It was tough in the beginning to educate the market, and to also to build the models for ourselves. As I mentioned before in the call, selling segments, selling raw data, or selling it as part of the discovery tool, and now we feel that the market is getting to the notion of how to work with us. Because we need to remember this ACR data and TV data is not common in the market. Most of the companies that we are looking at or other OEMs are keeping it in their gaze for obvious reasons, and we are one of the only ones that is basically willing to use it in order to build partnerships and to enhance cooperation between us and other partners. And this is, of course, with the full support of Vida. And we feel that this is unique and getting more and more attention from the market as we indicated the traders, the Yahoo, and other DSPs that are basically looking to work with us. To give you an exact number of net revenues of Vida, I think it's too early to say, but it will be much more meaningful, of course, than today because today it's very, very small.

Our next question comes from Maria Ripps from Canaccord Genuity. Please go ahead.

Hi. This is Matt on for Maria. Thanks for squeezing me in here. We just wanted to ask about the increasing focus on mobile and app. As we think about Nexxen International Ltd. scaling this channel further, how much of that is a function of building supply versus adding specific in-app targeting and measurement capabilities? And then just on supply specifically, based on an earlier response, it doesn't sound like, you know, M&A is in the works here in terms of scaling supply. So just could you just talk to why you feel ostensibly, I don't want to put words in your mouth, that a partnership approach is more appropriate here. Thanks so much.

I didn't understand the last question. What you said about the attitude? The attitude is just trying to

Yeah. I just just thinking trying to think through the puts and takes in terms of, say, you know, acquiring another SSP to sort of, you know, build out mobile and app supply versus, you know, partnering with other SSPs? Just trying to understand, you know, how you're thinking about those two options.

Okay. So I will touch first on the last question because I think that it's easier to, you know, to give a quick answer. But basically, today, with all the SPO laws, if you want to regulations and practices, if you want to utilize your programmatic capabilities and footprint, you cannot basically jump between yourself and another SSP in order to drive media. You need to be connected directly to the in-app, and we are doing it by working with the SDK companies that basically we are connected to them, and then we can basically bring the app into the market and pay them directly. And maintain the SPO rules and get, like, more of a traction by the buyers. Which is you can audit it by pulling this media from another SSP. It will not work anymore. In the current market conditions. I hope that it's understood. If not, I can explain more. The second thing, your first question was about INAP. And acquisition. Basically, you don't need to buy an SSP in order to get connected to more SDK inventory. Basically, what we are doing is we are, as you mentioned, we are signing agreements, cooperation agreements, partnership agreements with SDK companies that allow us to monetize and interact introduce us to their clients in order for us to generate additional revenues from the apps that they own. And this is until now, we found it very successful and promising, and we believe that it could grow even further, of course.

That concludes the question and answer session. I would like to turn the call back over to Ofer Druker, CEO, for closing remarks.

Thank you. I think that, as we mentioned, we deliver a good Q3 numbers, you know, record in many fields, maybe not in CTV, but in revenues. And in growth year over year and so on. But when we are looking at the full year, of course, it's disappointing to reduce guidance. But even after reducing guidance, we need to remember that we are growing year over year around 3% to 6% in general, but six to 9% programmatically. If we are looking at that. And I think that the fact that we are more heavier in the US it's showing that the US lately was more of a challenge to grow the business than other markets. And we are, like, more than 90% in that market. So it affected us maybe a little bit more than others. But again, when we are looking at growth, we didn't shrink. We grew still even with a disappointing Q4. And what we saw until the end of September was a good result. In October, usually, from year to year, we see, like, an increase in demand. Coming from not just one DSP or other DSP, but from the market as a whole. And mostly. And now this year, we didn't see this wave of growth coming into the system. So we basically felt that we need to announce this guidance reduction because we didn't see this wave of growth coming and supporting our growth. It's usually from Q3 to Q4 statistically, is meaningful. So that's the issue, but we believe strongly in our strategy, in our platform, in our technology, in our talent, and we are willing to work hard in order, of course, to improve our performance in 2026 and going forward. So thank you very much, all of you, for your support. Thank you to our employees, our shareholders, stakeholders, and we are obligated to work hard in order, of course, to have a better 2026. Thank you.

This concludes today's conference call. You may now disconnect.