Q2 FY2026
Filed Aug 12, 2026Record Q2 Contribution ex-TAC and programmatic revenue, highlighted by all-time record quarterly CTV revenue; raises full-year 2026 Contribution ex-TAC and programmatic revenue guidance for the third time this year
Revenue, programmatic revenue, Contribution ex-TAC and CTV revenue reached records and full-year revenue-related guidance increased, while Adjusted EBITDA, operating profit, net income and diluted earnings per share declined year-over-year amid growth investments and foreign currency exchange fluctuations.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $100.5M | – | 11% |
| Programmatic revenueother | $95.2M | – | 12% |
| Gross profitother | 67,087 USD thousands | – | 1 % |
| Cost of revenue (exclusive of depreciation and amortization)other | 18,793 USD thousands | – | – |
| Depreciation and amortizationother | 17,751 USD thousands | – | – |
| Research and development expensesother | 14,711 USD thousands | – | – |
| Selling and marketing expensesother | 34,731 USD thousands | – | – |
| General and administrative expensesother | 10,373 USD thousands | – | – |
| Total operating costsother | 77,566 USD thousands | – | – |
| Operating profitother | $4.2M | – | (52 %) |
| Net incomeother | 3,640 USD thousands | – | (58 %) |
| Total comprehensive incomeother | $4.2M | – | (63 %) |
| Diluted earnings per shareother | 0.06 (in USD) | – | (55 %) |
| Contribution ex-TACnon-GAAP | $97.8M | – | 11% |
| Adjusted EBITDAnon-GAAP | $27.6M | – | (8 %) |
| Adjusted EBITDA Margin on a Contribution ex-TAC basisnon-GAAP | 28% | – | – |
| Adjusted EBITDA Margin on a total revenue basisnon-GAAP | 27% | – | – |
| Non-IFRS net incomenon-GAAP | $13.3M | – | (27 %) |
| Non-IFRS diluted earnings per sharenon-GAAP | 0.23 (in USD) | – | (22 %) |
| Net cash provided by operating activitiesother | 40,231 USD thousands | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Programmatic revenueProgrammatic revenue increased to 95% of total revenue, compared to 93% in Q2 2025. | $95.2M | – | 12% |
| CTV revenueAll-time record quarterly CTV revenue. CTV revenue increased to 40% of programmatic revenue, compared to 33% in Q2 2025. | $37.8M | – | 33% |
full-year 2026 outlook
- NoteContribution ex-TAC in the range of $388 - $402 million, representing approximately 12% year-over-year growth at the midpoint
- NoteProgrammatic revenue in the range of $380 - $393 million, representing approximately 13% year-over-year growth at the midpoint
- NoteAdjusted EBITDA in the range of $122 - $132 million, representing approximately 10% year-over-year growth and an Adjusted EBITDA margin of 32% on a Contribution ex-TAC basis at the midpoint
Capital returns
- The Company did not repurchase any shares during Q2 2026.
- The Company has authorization to initiate a new share repurchase program of up to $40 million.
- Since March 1, 2022, the Company has repurchased 30,928,265 shares, or approximately 39.9% of shares outstanding, investing approximately $265.3 million.
- Nexxen expects to invest an additional $15 million in V (formerly VIDAA) during Q3 2026, bringing its total investment to $60 million, representing approximately 6% equity ownership.
- Acquisition of own shares was 7,301 USD thousands for the six months ended June 30, 2026.
What drove it
- Enterprise engagement with the AI-native DSP user interface and enhanced nexAI DSP assistant continued to accelerate, supporting greater end-to-end platform utilization.
- Nexxen TV Home Screen adoption increased across leading CTV OEMs, platforms and agencies.
- Direct SDK integrations with Unity and other mobile in-app partners supported continued mobile revenue growth.
- Programmatic revenue represented 95% of total revenue, compared to 93% in Q2 2025.
- Video revenue represented 70% of programmatic revenue, compared to 68% in Q2 2025.
- The updated full-year guidance reflects Q2 outperformance, continued momentum across enterprise, CTV, mobile and data products in Q3, and increased visibility into the remainder of the year.
Concerns
- Adjusted EBITDA declined to $27.6 million from $29.9 million, and Adjusted EBITDA margin on a Contribution ex-TAC basis declined to 28% from 34%.
- Operating profit declined to $4.2 million from $8.7 million, while net income declined to 3,640 USD thousands from 8,666 USD thousands.
- The year-over-year change in Adjusted EBITDA primarily reflects increased investment across AI, data, infrastructure, go-to-market execution and platform capabilities, as well as foreign currency exchange fluctuations.
- The strategic wind-down of RhythmInfluence resulted in restructuring expenses during Q2 2026.
- The Company continues to evaluate strategic options for its remaining non-programmatic business lines.
What to watch
- Progress toward full-year 2026 Contribution ex-TAC guidance of $388 - $402 million and programmatic revenue guidance of $380 - $393 million.
- Whether continued investment in strategic growth initiatives and platform capabilities affects delivery of the reaffirmed $122 - $132 million Adjusted EBITDA range.
- Commercial traction and revenue contribution from Nexxen TV Home Screen, mobile in-app SDK integrations, CTV and data products.
- The planned additional $15 million investment in V during Q3 2026.
- Execution of the RhythmInfluence wind-down, which the Company does not expect to have a material impact on Contribution ex-TAC or Adjusted EBITDA in H2 2026.
Balance sheet and cash flow
- $132.0 million in cash and cash equivalents as of June 30, 2026.
- No long-term debt as of June 30, 2026.
- $50 million available under the Company’s undrawn revolving credit facility as of June 30, 2026.
- Trade receivables, net were 224,032 USD thousands as of June 30, 2026, compared to 196,101 USD thousands as of December 31, 2025.
- Net cash provided by operating activities was 40,231 USD thousands for the six months ended June 30, 2026, compared to 36,631 USD thousands for the six months ended June 30, 2025.
- Net cash used in investing activities was 28,434 USD thousands for the six months ended June 30, 2026, compared to 12,700 USD thousands for the six months ended June 30, 2025.
- Net cash used in financing activities was 14,963 USD thousands for the six months ended June 30, 2026, compared to 80,427 USD thousands for the six months ended June 30, 2025.
- Cash and cash equivalents were 132,044 USD thousands as of June 30, 2026, compared to 133,308 USD thousands as of December 31, 2025.
Analysis
Nexxen reported record Q2 Contribution ex-TAC of $97.8 million, up 11% year-over-year, and record programmatic revenue of $95.2 million, up 12%. Total revenue increased 11% to $100.5 million. CTV revenue reached an all-time quarterly record of $37.8 million, up 33%, while programmatic revenue represented 95% of total revenue. CTV represented 40% of programmatic revenue and video represented 70%, both above their Q2 2025 mix levels.
The profitability picture weakened despite revenue growth. Adjusted EBITDA declined to $27.6 million from $29.9 million, and the Adjusted EBITDA margin on a Contribution ex-TAC basis declined to 28% from 34%. Operating profit declined to $4.2 million from $8.7 million, net income declined to 3,640 USD thousands from 8,666 USD thousands, and diluted earnings per share declined to 0.06 (in USD) from 0.14 (in USD). The Company attributed the Adjusted EBITDA change primarily to investment in AI, data, infrastructure, go-to-market execution and platform capabilities, as well as foreign currency exchange fluctuations.
The Company raised its full-year 2026 Contribution ex-TAC range to $388 - $402 million from $385 - $400 million and its programmatic revenue range to $380 - $393 million from $377 - $391 million. It reaffirmed Adjusted EBITDA guidance of $122 - $132 million. Management said the unchanged EBITDA outlook reflects planned H2 2026 investment across strategic growth initiatives and platform capabilities, framing the central execution issue as sustaining growth while restoring operating leverage.
Liquidity remained substantial, with $132.0 million in cash and cash equivalents, no long-term debt and $50 million available under an undrawn revolving credit facility at June 30, 2026. For the first six months, net cash provided by operating activities was 40,231 USD thousands, while investing cash outflow was 28,434 USD thousands and financing cash outflow was 14,963 USD thousands. Nexxen did not repurchase shares in Q2, prioritizing flexibility for M&A and strategic investment, but retained authorization for a new program of up to $40 million.
Operationally, management emphasized accelerating enterprise engagement, the nexAI DSP interface and assistant, MCP and A2A interoperability, Nexxen TV Home Screen adoption, and expanded mobile in-app SDK integrations. The wind-down of the non-programmatic RhythmInfluence business adds restructuring expense in Q2 but is not expected to materially affect Contribution ex-TAC or Adjusted EBITDA in H2 2026. The reported mix shift toward programmatic, CTV and video supports the revenue guidance increase, while the lower profitability metrics and continuing investment posture remain key factors to monitor.
Management, verbatim
We once again exceeded consensus expectations, delivering record Q2 Contribution ex-TAC and programmatic revenue, highlighted by all-time record quarterly CTV revenue which increased 33% year-over-year, supporting our decision to increase our full-year Contribution ex-TAC and programmatic revenue guidance for the third time this year.
Ofer Druker, Chief Executive Officer of Nexxen
Not in the filing
stated, not guessed- Q2 gross margin
- Q2 free cash flow
- Q2 operating cash flow
- Q2 cash flow from investing activities
- Q2 cash flow from financing activities
- Quarter-over-quarter comparisons for reported operating metrics
- Dividend information
- Q3 2026 quantitative financial guidance
- Full-year 2026 total revenue guidance
- Full-year 2026 gross margin guidance
- Full-year 2026 operating expense guidance
- Full-year 2026 tax-rate guidance
- Prior-release outlook needed for comparison of actual Q2 results with prior guidance
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.