Nexxen, a programmatic advertising platform, told investors at Rosenblatt’s 6th Annual Technology Summit that its focus on artificial intelligence and connected TV is translating into accelerating profitability. The company, trading under the ticker NEXN, reported a 33% year-over-year increase in connected TV revenue for the second quarter, which now accounts for 40% of total programmatic revenue. Mobile revenue rose 23% and contributed a similar share of the revenue mix.
Gross profit margin stood at 83% for the last twelve months, while free cash flow is projected to reach $180 million within two quarters. Management raised its 2026 EBITDA guidance to approximately 15% growth, implying a margin near 33%, up from a 30% decline in the first quarter and an 8% drop in the second. The company also set a 2027 EBITDA margin target of about 34%, with annual gains of 1 to 2 percentage points thereafter and a long-term goal of roughly 40%.
Nexxen’s connected TV ecosystem is expanding through its VIDAA partnership, with the company expected to increase its stake to about 6% of VIDAA equity by the end of the third quarter. VIDAA’s platform is installed on approximately 50 million screens globally, primarily in Japan, Europe, and Asia-Pacific. Nexxen’s home screen revenue is slated to begin in the fourth quarter of 2026, scaling in 2027 as it adds OEM partners.
The company’s AI strategy centers on its proprietary nexAI layer, with over 90% of engineering code now written using AI tools. Nexxen manages costs by balancing token usage across multiple large language models from Anthropic, OpenAI, and Google. Integration of the Amobee acquisition has been completed, supporting customer growth.
Financially, Nexxen reported $132 million in cash at the end of the second quarter with no debt. Shares were trading at $10.51, below the prior close of $10.53, and have surged 76% over the past six months and 61% year-to-date. Rosenblatt maintains a buy rating with a $16 price target, implying over 50% upside. The stock trades at roughly 5 times enterprise value to adjusted EBITDA on a U.S. GAAP basis.
