Earnings call transcript: Nexxen lifts 2026 outlook after record Q2 growth

Nexxen International Ltd reported record second-quarter results on Thursday, with significant growth in various revenue streams. The company's contribution ex-TAC and programmatic revenue both rose at double-digit rates, leading to an upward revision of its full-year revenue guidance for the third time this year. Nexxen's non-IFRS diluted earnings per share for Q2 2026 were $0.23, a decrease from $0.29 a year earlier, as the firm intensified its focus on artificial intelligence, data, and connected TV.

Despite the slight dip in per-share earnings, the company's strong execution and broader demand sources propelled its stock up 0.91% in premarket trading, settling at $10.39 after closing at $10.48 the previous day. Management highlighted several key drivers of its success, including a record-setting second quarter fueled by connected TV, mobile data products, and display advertising.

Connected TV revenue reached a new quarterly high of $37.8 million, marking a 33% increase year-over-year and accounting for 40% of programmatic revenue. Mobile revenue grew by 23%, while data products contributed 46% more compared to the previous year. Enterprise spend also increased by more than 25%, with the number of advertisers activated through enterprise customers surpassing 750, up from fewer than 400 a year earlier.

Notably, Nexxen is gradually shifting its business mix toward programmatic revenue, dissolving its non-programmatic influencer marketing unit, Rhythm Influence, and reviewing other non-programmatic lines. This strategic move is expected not to materially impact contribution ex-TAC or adjusted EBITDA in the second half.