Q2 2026 Nexxen International Ltd Earnings Call

August 12, 2026

Operator: Welcome to Nexxen's Q2 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 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.

Speaker #1: This call is being recorded, and a replay will be made available on Nexxen's Investor Relations website. We'll now hand the call over to Billy Eckert.

Speaker #1: Vice President of Investor Relations, for introductions and the reading of the Safe Harbor statement. Billy, please go ahead.

Speaker #2: Thank you, Operator. Good morning, everyone, and welcome to Nexxen's Q2 earnings call. During today's call, we will discuss our financial and operating results for the Q3 and Q6 ended June 30, 2026, as well as our forward-looking guidance.

Billy Eckert: Thank you, operator. Good morning, everyone, and welcome to Nexxen's Q2 earnings call. During today's call, we will discuss our financial and operating results for the three and six months ended 30 June 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.

Speaker #2: 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.

Speaker #2: During today's call, we will make forward-looking statements. All statements other than statements of historical facts may be deemed forward-looking. We advise caution in relying on them.

Speaker #2: These statements include, without limitation, statements of 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.

Billy Eckert: 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.

Speaker #2: In addition, we may provide forward-looking views on macroeconomic and industry conditions, as well as other statements regarding the expected development, performance, market share, or competitive position of our products and services.

Speaker #2: 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.

Speaker #2: 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.

Billy Eckert: 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.

Speaker #2: 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 20F.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: Ofer, please go ahead.

Speaker #3: Thanks, Billy. Q2 was another strong quarter as we delivered record results well ahead of consensus estimates highlighted by our best CTV revenue quarter in company history.

Ofer Druker: Thanks, Billy. Q2 was another strong quarter as we delivered record results well ahead of consensus estimates, highlighted by our best CTV revenue quarter in company history. Our outperformance enabled us to raise our full-year contribution ex-TAC and programmatic revenue guidance for the third time this year and reflects continued execution against our long-term strategy. The investment we have made across the major elements of our platform, alongside our enhanced AI capabilities and tighter, sharper go-to-market approach, are improving execution. These investments are translating into stronger adoption, accelerating spend ramp, and growing platform usage by clients and partners. We have continued to onboard a growing number of enterprise customers, and as they scale spend and adopt more solutions, we believe they will support our growth in the H2 and over the coming years.

Speaker #3: Our outperformance enabled us to raise our full-year contribution XTAC and programmatic revenue guidance for the third time this year and reflects continued execution against our long-term strategy.

Speaker #3: The investments we have made across the major elements of our platform, alongside our enhanced AI capabilities and a tighter, sharper go-to-market approach, are improving execution.

Speaker #3: This investments are translating into stronger adoption, accelerating spend ramp, and growing platform usage by clients and partners. We have continued to onboard a growing number of enterprise customers and, as they scale spend and adapt more solutions, we believe they will support our growth in the second half and over the coming years.

Speaker #3: We are also strengthening our CTV leadership through our growing strategic commercial initiative, and innovations like Nexxen TV on-screen. At the same time, we have continued to expand in AI resilient channels such as mobile in-app, reinforcing, several long-term growth drivers.

Ofer Druker: We are also strengthening our CTV leadership through our growing strategic commercial initiatives and innovations like Nexxen TV On Screen. At the same time, we have continued to expand in AI-resilient channels such as mobile in-app, reinforcing several long-term growth drivers. As AI reshapes programmatic advertising, we believe differentiation will be driven not simply by AI capabilities, but by the strength of the integrated platform on which those capabilities are built and the core platform elements that power them, including proprietary data, exclusive media assets, and open interoperable technology. Those are areas where Nexxen has built a durable competitive advantage through both our differentiated products and integrated end-to-end platform strategy, enabling us to innovate across the programmatic value chain. While many view AI as mainly efficiency tool, we are using AI primarily to drive growth by delivering stronger outcomes and expanding the benefits customers can realize from our platform.

Speaker #3: As AI reshape programmatic advertising, we believe differentiation will be driven not simply by AI capabilities but by the strength of the integrated platform on which those capabilities are built and the core platform elements that power them, including proprietary data exclusive media assets and open interoperable technology.

Speaker #3: Those are areas where Nexxen, as built a durable competitive advantage through both our differentiated products and integrated enabling us to innovate across the programmatic value chain.

Speaker #3: While many view AI as mainly efficiency tool, we are using AI primarily to drive growth by delivering stronger outcomes and expanding the benefits customers can realize from our platform.

Speaker #3: We strongly believe that Nexxen AI can represent a meaningful long-term strategic growth engine for Nexxen, not just a productivity enhancer. Over the last several quarters, we have made significant strides in our enterprise go-to-market execution while enhancing our DSPs full-funnel performance usability and integration with Nexxen AI.

Ofer Druker: We strongly believe that nexAI can represent a meaningful long-term strategic growth engine for Nexxen, not just a productivity enhancer. Over the last several quarters, we have made significant strides in our enterprise go-to-market execution while enhancing our DSP's full-funnel performance, usability, and integration with nexAI. The investments we have made are helping us attract enterprise customers with large, more recurring budgets and fueling deeper platform-wide engagement. In Q2, we announced our new DSP UI and enhanced nexAI DSP assistance, both of which are seeing growing usage across our enterprise customer base while improving performance and efficiency. Customers are also benefiting from our DSP's tighter integration with Nexxen Discovery, our proprietary audience insights and segmentation solution. This deeper integration is helping customers identify and activate new audiences using differentiated insights to expand, reach, and drive stronger outcomes.

Speaker #3: The investments we have made are helping us attract enterprise customers with large more recurring budgets and fueling deeper platform-wide engagement. In Q2, we announced our new DSP UI and enhanced Nexxen AI DSP assistants.

Speaker #3: Both of which are seeing growing usage across our enterprise customer base while improving performance and efficiency. Customers are also benefiting from our DSPs tighter integration with Nexxen Discovery, our proprietary audience insights and segmentation solution.

Speaker #3: This deeper integration is helping customers identify and activate new audiences, using differentiated insights to expand reach and drive stronger outcomes. We also significantly enhance our first-party data onboarding capabilities enabling advertisers to move audiences from upload to activation within 24 hours.

Ofer Druker: We also significantly enhanced our first-party data onboarding capabilities, enabling advertisers to move audiences from uploads to activation within 24 hours. Alongside our enhanced unified identity graph, these innovations simplify activation, strengthen intelligence, improve effectiveness, and accelerate campaign execution. Built upon our DSP's direct integration with Nexxen Discovery, our proprietary data assets, and our SSP premium media supply, these enhancements are strengthening an already differentiated enterprise value proposition. They are delivering even stronger results and driving customer adoption across more of our end-to-end solutions. For example, after initially onboarding as a DSP customer, Toyota expanded to leverage our data capabilities, Nexxen Discovery, and our media supply, generating approximately 2.7 times the return on ad spend and a 62% reduction in cost per vehicle sold. Supported by growing adoption and innovation, enterprise spend increased by over 25% year-over-year in Q2, and our pipeline remains strong.

Speaker #3: Alongside our enhanced unified identity graph, this innovation simplifies activation, strengthens intelligence, improves effectiveness, and accelerates campaign execution. Built upon our DSP's direct integration with Nexxen Discovery, our proprietary data assets, and our SSP premium media supply, these enhancements are strengthening an already differentiated enterprise value proposition.

Speaker #3: They are delivering even stronger results and driving customer adoption across more of our end-to-end solutions. For example, after initially onboarding as a DSP customer, Toyota extended to leverage our data capabilities.

Speaker #3: Nexxen Discovery and our media supply generating approximately 2.7 times the return on ad spend and a 62% reduction in cost per vehicle sold. Supported by growing adoption and innovation, enterprise spend increased by over 25% year over year in Q2, and our pipeline remains strong.

Speaker #3: Additionally, the number of advertisers activated through enterprise customers increased from less than 400 in Q2 2025 to over 750 in Q2 2026. With each leveraging more than one solution across our platform.

Ofer Druker: Additionally, the number of advertisers activated through enterprise customers increased from less than 400 in Q2 2025 to over 750 in Q2 2026, with each leveraging more than one solution across our platform. Our CTV momentum continued in Q2 as we delivered CTV revenue growth of 33% year-over-year, with year-over-year momentum carrying into Q3. Growth was broad-based as customers continued to increase spend across our integrated CTV technology solutions, exclusive TV data assets, and premium media. As enterprise customers continue scaling spend and new publishers on board, we believe we are well-positioned to extend our CTV revenue footprint over the long term. Momentum behind Nexxen TV On Screen, our industry-first programmatic smart TV on-screen ad activation solution, also continues to build.

Speaker #3: Our CTV momentum continue in Q2 as we deliver CTV revenue growth of 33% year over year, with year over year momentum carrying into Q3.

Speaker #3: Growth was broad-based, as customers continue to increase spend across our integrated CTV technology solutions, exclusive TV data assets, and premium media. As enterprise customers continue scaling spend and new publishers onboard, we believe we are well positioned to expand our CTV revenue footprint over the long term.

Speaker #3: Momentum behind Nexxen TV On-Screen, our industry-first programmatic smart TV on-screen ad activation solution, also continues to build. We expect Nexxen TV On-Screen to begin contributing more meaningfully to revenues in Q4, with contribution ramping throughout 2027.

Ofer Druker: We expect Nexxen TV On Screen to begin contributing more meaningfully to revenues in Q4, with contribution ramping throughout 2027, supported by a strong pipeline across demand and OEM partners. Looking ahead, we are also continuing to expand our performance-based CTV capabilities, which we believe can further support our long-term CTV revenue growth opportunity. Beyond CTV, we are also continuing to benefit from execution against our mobile in-app strategy, which helped drive significant year-over-year mobile revenue growth in Q2 with year-over-year momentum continuing into Q3. Our SDK integration with Unity and others have strengthened our position in this AI-resilient channel, expanding monetization opportunities across our platform. We continue to believe mobile in-app will remain a durable long-term growth driver. Beyond improving our platform today, we are also positioning Nexxen for the next evolution of programmatic advertising, where AI agents increasingly help advertisers and agencies plan and execute campaigns.

Speaker #3: Supported by a strong pipeline across demand and OEM partners. Looking ahead, we are also continuing to expand our performance-based CTV capabilities which we believe can further support our long-term CTV revenue growth opportunity.

Speaker #3: Beyond CTV, we also continue to benefit from execution against our mobile in-app strategy, which help drive significant year over year mobile revenue growth in Q2, with year over year momentum continuing into Q3.

Speaker #3: Our SDK integration with Unity and others have strengthened our position in this AI resilient channel expanding monetization opportunities across our platform. We continue to believe mobile in-app will remain a durable long-term growth driver.

Speaker #3: Beyond improving our platform today, we have also positioning Nexxen for the next evolution of programmatic advertising, where AI agents increasingly help advertisers and agencies plan and execute campaigns.

Speaker #3: We believe Nexxen AI represent a core differentiator built on the advantages of our end-to-end platform proprietary data premium media assets and audience intelligence. Today, Nexxen AI is already helping drive stronger customer outcomes, accelerating adoption and beginning to contribute to revenue growth, and we believe its value will continue to expand over time.

Ofer Druker: We believe nexAI represents a core differentiator built on the advantages of our end-to-end platform, proprietary data, premium media assets, and audience intelligence. Today, nexAI is already helping drive stronger customer outcomes, accelerating adoption, and beginning to contribute to revenue growth, and we believe its value will continue to expand over time. Our initial focus with nexAI has been on expanding its in-platform agentic capabilities across the campaign lifecycle. We already have agents assisting customers with reporting, audience research, QA, and troubleshooting, and we plan to introduce additional agents supporting media planning, audience creation, optimization, and advanced creative automation soon. As these capabilities continue to mature, we believe they will further support growing enterprise and publishers' engagements. During Q2, we also announced nexAI interoperability, which will enable our AI agents to connect with external AI agents through open standards such as MCP and agent-to-agent interoperability.

Speaker #3: Our initial focus with Nexxen AI has been on expanding its in-platform agentic capabilities across the campaign lifecycle. We already have agents assisting customers with reporting, audience research, QA and troubleshooting, and we plan to introduce additional agents supporting media planning, audience creation, optimization, and advanced creative automation soon.

Speaker #3: As these capabilities continue to mature, we believe they will further support growing enterprise and publishers engagements. During Q2, we also announced Nexxen AI interoperability which will enable our AI agents to connect with external AI agents through open standards such as MCP and agent-to-agent interoperability.

Speaker #3: This will allow advertisers and agencies to access Nexxen's data audience intelligence and activation capabilities directly from the AI tools and environments they already use.

Ofer Druker: This will allow advertisers and agencies to access Nexxen's data, audience intelligence, and activation capabilities directly from the AI tools and environments they already use. We believe interoperability will become more and more important as enterprises build out their own AI ecosystems. Our strategy is to ensure that whether campaigns are run on Nexxen or through our customers' own AI assistants, we remain a trusted source of data, intelligence, and campaign execution across those workflows, as well as an integral part of our partners' AI infrastructure. Additionally, we are continuing to expand our dedicated AI teams to increase our focus on accelerating product innovation. Today, AI supports approximately 95% of our software development efforts, enabling our teams to deliver new capabilities faster while enhancing efficiency and supporting long-term operating leverage. We expect these benefits to continue scaling into late 2026 and beyond.

Speaker #3: We believe interoperability will become more and more important as enterprises build out their own AI ecosystems. Our strategy is to ensure that whether campaigns are run on Nexxen or through our customers' own AI assistance, we remain a trusted source of data intelligence and campaign execution across those workflows.

Speaker #3: As well, as an integral part of our partners' AI infrastructure. Additionally, we are continuing to expand our dedicated AI teams to increase our focus on accelerating product innovation.

Speaker #3: Today, AI supports approximately 95% of our software development efforts enabling our teams to deliver new capabilities faster, while enhancing efficiency and supporting long-term operating leverage.

Speaker #3: We expect this benefits to continue scaling into late 2026 and beyond. In closing, we are continuing to execute against our strategy while investing in the priorities we believe matters most.

Ofer Druker: In closing, we are continuing to execute against our strategy while investing in the priorities we believe matters most. Accelerating enterprise adoption, growing our CTV leadership, deepening our mobile in-app footprint, enhancing our data capabilities, and advancing our AI leadership through expanded nexAI products and solutions. Together, we believe these investments are strengthening our competitive position while creating several durable long-term growth drivers. In H2, we expect to continue executing strongly and to also generate incremental revenues around the U.S. midterm elections, which are expected to represent a strong political advertising cycle. To support our next phase of growth, we have also made important enhancements to our leadership team. Chance Johnson, our former Chief Commercial Officer, has been promoted to President of Nexxen.

Speaker #3: Accelerating enterprise adoption, growing our CTV leadership, deepening our mobile in-app footprints, enhancing our data capabilities, and advancing our AI leadership through expanded Nexxen AI products and solutions.

Speaker #3: Together, we believe this investments are strengthening our competitive position while creating several durable long-term growth drivers. In H2, we expect to continue executing strongly and to also generate incremental revenues around the US mid-term elections which are expected to represent a strong political advertising cycle.

Speaker #3: To support our next phase of growth, we have also made important enhancement to our leadership team. Chance Johnson, our former Chief Commercial Officer, has been promoted to President of Nexxen.

Speaker #3: Chance will focus on strengthening Nexxen relationship with strategic clients and partners by better demonstrating how the company connected robust and differentiated full platform capabilities can uniquely position them for success in the market.

Ofer Druker: Chance will focus on strengthening Nexxen's relationship with strategic clients and partners by better demonstrating how the company's connected, robust, and differentiated full platform capabilities can uniquely position them for success in the market. Kara Puccinelli, formerly our Chief Customer Officer, has assumed the role of Chief Commercial Officer and will continue managing the company's enterprise offering. Finally, Ken Suh, formerly Nexxen's Chief Strategy Officer, has assumed the role of Chief Business Officer, continuing to position the company to capitalize on growth opportunities across its exchange business, particularly within mobile, in-app, and CTV. Chance, Kara, and Ken's leadership role strengthen our commercial organization, unify execution, and position us to accelerate growth across our core drivers, including enterprise, CTV, and mobile. I have the utmost confidence in each of them.

Speaker #3: Kara Fucinelli, formerly our Chief Customer Officer, has assumed the role of Chief Commercial Officer and will continue managing the company's enterprise offering. Finally, Ken Su, formerly Nexxen Chief Strategy Officer, has assumed the role of Chief Business Officer.

Speaker #3: Continuing to position the company to capitalize on growth opportunities across its exchange business, particularly within mobile in-app and CTV. Chance, Kara, and Ken's leadership roles strengthen our commercial organization, unify execution, and position us to accelerate growth across our core drivers, including enterprise CTV and mobile.

Speaker #3: I have the utmost confidence in each of them. As CEO, I will continue focusing on Nexxen’s short-term execution and long-term strategy, while supporting our leadership team as we execute against that strategy.

Ofer Druker: As CEO, I will continue focusing on Nexxen's short-term execution and long-term strategy while supporting our leadership team as we execute against that strategy. With that, I will turn the call to Sagi Niri.

Speaker #3: With that, I will turn the call over to Sagi.

Speaker #1: Thank you, Ofer. Our momentum from Q1 extended into Q2, as we once again generated record results that exceeded Wall Street contenders, fueled by continued disciplined execution across our core programmatic growth drivers.

Sagi Niri: Thank you, Ofer. Our momentum from Q1 extended into Q2, as we once again generated record results that exceeded Wall Street consensus, fueled by continued disciplined execution across our core programmatic growth drivers. In Q2, we delivered contribution ex-TAC of $97.8 million, a Q2 record, reflecting an 11% year-over-year increase. Programmatic revenue was $95.2 million, up 12% year-over-year, also representing a Q2 record. Our outperformance in the quarter was driven by strengths within CTV, mobile, data products, and display, supported by growth across our entertainment, automotive, and health verticals. In contrast, contribution ex-TAC from desktop and our non-programmatic business lines declined year-over-year, and we observed softness within our travel vertical. During Q2, we initiated a strategic wind-down of our non-programmatic influencer marketing business, Rhythm Influence.

Speaker #1: In Q2, we delivered contribution XTAC of 97.8 million dollars and Q2 record reflecting an 11% year-over-year increase. Programmatic revenue was 95.2 million dollars up 12% year-over-year, also representing a Q2 record.

Speaker #1: Our outperformance in the quarter was driven by strengths within CTV, mobile data products, and display, supported by growth across our entertainment, automotive, and other verticals.

Speaker #1: In contrast, contribution XTAC from desktop and our non-programmatic business lines declined year-over-year and we observed softness within our travel vertical. During Q2, we initiated a strategic wind-down of our non-programmatic influencer marketing business Rhythm Influence.

Speaker #1: The wind-down resulted in restructuring expenses in the quarter, but we do not expect it to have a material impact on contribution ex-TAC or adjusted EBITDA in H2.

Sagi Niri: The wind-down resulted in restructuring expenses in the quarter, but we do not expect it to have a material impact on contribution ex-TAC or Adjusted EBITDA in H2. We are continuing to evaluate strategic options for our remaining non-programmatic business line to further improve our business mix and sharpen our programmatic focus. Growth in the quarter was highlighted by CTV, as we delivered all-time record quarterly CTV revenue of $37.8 million, up 33% year-over-year, and that year-over-year momentum has continued to this point in Q3. CTV revenue growth was broad-based across our platform and not concentrated in any one particular area of the business. Mobile revenue increased 23% year-over-year in Q2, driven by execution against our mobile in-app strategy, and that year-over-year strength has also continued into Q3. Contribution ex-TAC from data products, TNPs, and display increased 46%, 23%, and 18% year-over-year respectively, while desktop revenue declined by 13%.

Speaker #1: We are continuing to evaluate strategic options for our remaining non-programmatic business line to further improve our business mix and sharpen our programmatic focus. Growth in the quarter was highlighted by CTV as we delivered all-time record quarterly CTV revenue of $37.8 million, up 33% year-over-year, and that year-over-year momentum has continued to this point in Q3.

Speaker #1: CTV revenue growth was broad-based across our platform and not concentrated in any one particular area of the business. Mobile revenue increased 23% year-over-year in Q2, driven by execution against our mobile in-app strategy, and that year-over-year strength has also continued into Q3.

Speaker #1: Contribution XTAC from data products TNPs and display increased 46% 23% and 18% year-over-year respectively while desktop revenue declined by 13%. Adjusted EBITDA for Q2 came in ahead of Wall Street's contenders at 27.6 million dollars representing a 28% margin as a percentage of contribution XTAC.

Sagi Niri: Adjusted EBITDA for Q2 came in ahead of Wall Street's consensus at $27.6 million, representing a 28% margin as a percentage of contribution ex-TAC. The year-over-year change in Adjusted EBITDA primarily reflects increased investment across AI, data, infrastructure, go-to-market execution, and platform capabilities to support the company's long-term growth opportunities. We remain confident in our ability to expand margins over time through execution against our end-to-end enterprise strategy, nexAI-driven operational efficiencies, and disciplined cost management. In Q2, we generated $61.3 million of operating cash flow compared to $17.4 million in Q2 2025. Our cash and cash equivalents increased significantly quarter over quarter to $132 million as of 30 June, reflecting strong operating performance as well as the collection of receivables outstanding at the end of Q1. We continue to maintain a debt-free balance sheet with an additional $50 million of available capacity under our revolving credit facility.

Speaker #1: The year-over-year change in adjusted EBITDA primarily reflects increased investment across AI, data, infrastructure, go-to-market execution, and platform capabilities to support the company's long-term growth opportunities.

Speaker #1: We remain confident in our ability to expand margins over time through execution against our end-to-end enterprise strategy Nexxen AI driven operational efficiencies and disciplined cost management.

Speaker #1: In Q2, we generated 61.3 million dollars of operating cash flow compared to 17.4 million dollars in Q2 2025. Our cash and cash equivalent increased significantly quarter over quarter to 132 million dollars as of June 30th reflecting strong operating performance as well as the collection of receivables outstanding at the end of Q1.

Speaker #1: We continue to maintain a debt-free balance sheet, with an additional $50 million of available capacity under our revolving credit facility. Non-IFRS diluted earnings per share was $0.23 in Q2, compared to $0.29 in Q2 2025.

Sagi Niri: Non-IFRS diluted earnings per share was $0.23 in Q2 compared to $0.29 in Q2 2025. On capital allocation, we did not repurchase any shares during Q2. We prioritize maintaining financial flexibility while evaluating disciplined M&A opportunities alongside opportunities to deploy capital across our long-term strategic priorities, including continuing investment in AI, data, platform capabilities, and go-to-market execution. Nexxen has authorization to initiate a new repurchase program of up to $40 million. We also expect to complete our additional $50 million investment in VIDAA during Q3, bringing our total investment to $60 million and our equity ownership stake to approximately 6%. Additionally, we are continuing to evaluate disciplined strategic opportunities that can further strengthen our mobile in-app, CTV data, and AI capabilities and accelerate long-term programmatic revenue growth. Turning to our outlook, we are raising our full-year 2026 contribution ex-TAC and programmatic revenue guidance last provided on 16 June.

Speaker #1: On capital allocation, we did not repurchase any shares during Q2. We prioritized maintaining financial flexibility while evaluating disciplined M&A opportunities alongside opportunities to deploy capital across our long-term strategic priorities including continued investment in AI, data, platform capabilities, and go-to-market execution.

Speaker #1: Nexxen has authorization to initiate a new repurchase program of up to $40 million. We also expect to complete our additional $15 million investment in Bid during Q3, bringing our total investment to $60 million and our equity ownership stake to approximately 6%.

Speaker #1: Additionally, we are continuing to evaluate disciplined, strategic opportunities that can further strengthen our mobile, in-app, and CTV data and AI capabilities, and accelerate long-term programmatic revenue growth.

Speaker #1: Turning to our outlook, we are raising our full year 2026 contribution XTAC and programmatic revenue guidance last provided on June 16th. We now expect contribution XTAC in the range of 388 million dollars to 402 million dollars up from our previous guidance of 385 million dollars to 400 million dollars representing approximately 12% year-over-year growth at the midpoint.

Sagi Niri: We now expect contribution ex-TAC in the range of $388 million to $402 million, up from our previous guidance of $385 million to $400 million, representing approximately 12% year-over-year growth at the midpoint. Programmatic revenue is now expected in the range of $380 million to $393 million, up from our previous guidance of $377 million to $391 million, representing approximately 13% year-over-year growth at the midpoint. This reflects our first top-line guidance raise this year. Since issuing the initial full-year guidance in March, we have increased the midpoint of our contribution ex-TAC growth estimate from approximately 8% to approximately 12%, and the midpoint of our programmatic revenue growth estimate from approximately 10% to approximately 13%.

Speaker #1: Programmatic revenue is now expected in the range of 380 to 393 million dollars up from our previous guidance of 377 to 391 million dollars representing approximately 13% year-over-year growth at the midpoint.

Speaker #1: This reflects our first hotline guidance raise this year. Since issuing initial full-year guidance in March, we've increased the midpoint of our contribution XTAC growth estimate from approximately 8% to approximately 12%, and the midpoint of our programmatic revenue growth estimate from approximately 10% to approximately 13%.

Speaker #1: We are reaffirming our full year 2026 adjusted EBITDA guidance which we continue to expect in the range of 122 to 132 million dollars representing approximately 10% year-over-year growth and a 32% margin on a contribution XTAC basis at the midpoint.

Sagi Niri: We are reaffirming our full-year 2026 Adjusted EBITDA guidance, which we continue to expect in the range of $122 million to $132 million, representing approximately 10% year-over-year growth and a 32% margin on a contribution ex-TAC basis at the midpoint. Our reaffirmed Adjusted EBITDA guidance primarily reflects our expectation to continue investing across our strategic growth initiatives and platform capabilities in H2. Our outperformance in Q2, alongside continued momentum into Q3 and increased visibility into the remainder of the year, enable us to increase our contribution ex-TAC and programmatic revenue guidance. We are seeing continued year-over-year momentum across our core drivers to this point in Q3 and believe growth in the back half will be driven by accelerating enterprise customer engagement, growing end-to-end utilization, and continued strength within CTV, mobile, and data products.

Speaker #1: Our reaffirmed adjusted EBITDA guidance primarily reflects our expectation to continue investing across our strategic growth initiatives and platform capabilities in H2. Our outperformance in Q2, alongside continued momentum into Q3 and increased visibility into the remainder of the year, enabled us to increase our contribution XTAC and programmatic revenue guidance.

Speaker #1: We're seeing continued year-over-year momentum across our core drivers to this point in Q3 and believe growth in the back half will be driven by accelerating enterprise customer engagement, growing end-to-end utilization, and continued strength within CTV, mobile, and data products.

Speaker #1: We continue to believe Nexxen TV on-screen will further support our long-term end-to-end CTV revenue opportunity with initial meaningful contribution expected in Q4 and increasing throughout 2027 and beyond.

Sagi Niri: We continue to believe Nexxen TV On Screen will further support our long-term end-to-end CTV revenue opportunity, with initial meaningful contribution expected in Q4 and increasing throughout 2027 and beyond. Additionally, we expect incremental contribution ex-TAC benefits in H2 around the US midterm election cycle. To support our growth drivers, we will continue investing in AI, data, infrastructure, go-to-market execution, and our CTV and mobile in-app capabilities to enhance performance, capitalize on the revenue opportunities ahead, and extend long-term operating leverage. In summary, we believe Nexxen is well-positioned not only for the second half, but also for leadership in the next generation of programmatic advertising, supported by our strong financial position, improving business mix, and accelerating growth profile. We are continuing to execute while building upon the advantages of our end-to-end platform and doubling down on our most compelling growth opportunities across enterprise, CTV, mobile in-app, data, and AI.

Speaker #1: Additionally, we expect incremental contribution from XTAC benefits in H2 around the US midterm election cycle. We are investing in AI, data, infrastructure, go-to-market execution, and our CTV and mobile in-app capabilities to enhance performance, capitalize on the revenue opportunities ahead, and expand long-term operating leverage.

Speaker #1: In summary, we believe Nexxen is well positioned not only for the second half but also for leadership in the next generation of programmatic advertising, supported by our strong financial position, improving business mix, and accelerating growth profile.

Speaker #1: We are continuing to execute while building upon the advantages of our end-to-end platform and doubling down on our most compelling growth opportunities across enterprise CTV, mobile in-app, data, and AI.

Speaker #1: Through disciplined execution and continued investment across our platform and highest-priority growth engine, we believe Nexxen is poised to deliver sustainable, profitable growth while creating long-term value for both customers and shareholders.

Sagi Niri: Through disciplined execution and continued investment across our platform and highest priority growth engine, we believe Nexxen is poised to deliver sustainable, profitable growth while creating long-term value for both customers and shareholders. As always, we thank our shareholders, employees, and partners for their support. Operator, we will now take questions.

Speaker #1: As always, we thank our shareholders, employees, and partners for their support. The operator will now take questions.

Speaker #2: At this time, if you would like to ask a question, press star followed by the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster.

Operator: At this time, if you would like to ask a question, press star, followed by the number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster. Your first question comes from Jason Kreyer with Craig-Hallum.

Speaker #2: Your first question comes from Jason Cryer with Correct Hallam.

Speaker #3: Thank you guys. Pretty impressive growth and connected TV particularly taking into consideration the turnaround that you guys have orchestrated there over the last couple of quarters.

Jason Kreyer: Thank you, guys. Pretty impressive growth in Connected TV, particularly, taking into consideration the turnaround that you guys have orchestrated there over the last couple of quarters. Can you just talk about what has driven that turnaround or the primary growth drivers in Connected TV, and then what is your view of the durability of those growth rates?

Speaker #3: Please talk about what's driven that turnaround or the primary growth drivers in connected TV and then what is your view of the durability of those growth rates?

Speaker #4: Thank you Craig. It's Ophil. I agree I think that we see growth across all elements of our company but it's really meaningful to see the growth over the CTV year-over-year.

Ofer Druker: Thank you, Craig. It is Ofer. I agree. I think that we see growth across all elements of our company, but it is really meaningful to see the growth over the CTV year-over-year. It is coming from a few things that we have done lately, but most of that is better execution in generally speaking, meaning bringing more sales, more demand sources into the mix. We spoke about the growth of our enterprise solution, and we are incentivizing our clients that are using our enterprise solution to buy on our properties of the CTV. So we see growth also from that direction coming in. Lately, we also issue new initiatives around data and the native CTV ads that we on-screen, that we basically launch programmatically, that is bringing a lot of interest.

Speaker #4: And it's coming from a few things that we've done lately but most of that is better execution in general speaking meaning bringing more sales more demand sources into the mix we said we spoke about the growth of our enterprise solution and we are incentivizing our clients that are using our enterprise solution to buy on our properties of the CTV so we see growth also from that direction coming in and lately we also issue new initiatives around data and the native CTV ads that we on-screen that we basically launch programmatically that's bringing a lot of interest it's still not kicking in in revenue but it's bringing interest and people are more open to work with us and bring their starting to move spend to our direction and on the other side I think that our media team is doing a great job managing our managing the relationship with our partners on the CTV front bringing new clients and new partners into the mix and all of that together we see growth coming in and when you look at the numbers not just percentage we see that it's massive and it's growing and of course it's super important and we'll keep put emphasizing emphasize on that.

Sagi Niri: It is still not kicking in in revenue, but it is bringing interest and people are more open to work with us and starting to move spend to our direction. On the other side, I think that our media team is doing a great job managing the relationship with our partners on the CTV front, bringing new clients and new partners into the mix. All of that together, we see growth coming in.

Ofer Druker: When you look at the numbers, not just percentage, we see that it is massive and it is growing. Of course, it is super important, and we will keep emphasizing that.

Speaker #3: Thanks, Ofer. I have a follow-up for Sagi. I just wanted to ask about operating expenses and the outlook there. We've seen accelerating growth over the last couple of quarters.

Jason Kreyer: Thanks, Ofer. I got a follow-up for Sagi. I just wanted to ask about operating expenses on the outlook there. We have seen accelerating growth over the last couple of quarters that has been paired with just a little bit of contraction on EBITDA margins. I know you have made some investments there, but can you just talk about the outlook for OpEx and thus the outlook for EBITDA margin expansion in the coming quarters?

Speaker #3: That's been paired with just a little bit of contraction on EBITDA margins. I know you've made some investments there, but please talk about the outlook for OpEx and, thus, the outlook for EBITDA margin expansion in the coming quarters.

Speaker #5: True Jason. Thanks. I think that what we are seeing is like kind of intentional strategic growth investment and as Opher mentioned it's all around.

Sagi Niri: Sure, Jason. Thanks. I think that what we are seeing is intentional strategic growth investment. As Ofer mentioned, it is all around. It is around AI, data, infrastructure, platform capabilities, enterprise go-to-market, strategic partnerships, and other. Of course, it is affecting our cost structure in 2026. I think that on the long term, EBITDA objective, it is still unchanged. As we disclosed it in our analyst day a couple of months ago, it is still on the long term, we are aiming to get to the 40%. In 2026, our guidance is reflecting 32% on Adjusted EBITDA margin, which is a little bit, 1% less than what we had in 2025. I think that we are seeing that the intentional investment is fruitful and we are doing right, and we are taking the more market share.

Speaker #5: It's around AI, data, infrastructure, platform capabilities, enterprise go-to-market, strategic partnerships, and other areas. Of course, it's affecting our cost structure. In 2026, I think that the long-term EBITDA objective is still unchanged, and as we disclosed in our Analyst Day a couple of months ago, it's still, in the long-term, we are aiming to get to the 40th percentile.

Speaker #5: In 2026 our guidance is reflecting 32% on adjusted EBITDA margin which is a little it's 1% less than what we had in 2025. I think that we are seeing that the intentional investment is fruitful and we are doing right and we are taking the more market share.

Speaker #5: Looking ahead to 2027, although it's still a bit early, we are seeing that some efficiencies we've already put in place in the last couple of months—and those ahead of us—are reflected in 2026, though not materially. To some extent, these efficiencies are going to be much more material in 2027. We feel that we can reach a 34% EBITDA margin as early as 2027.

Sagi Niri: Going into 2027, although it is a little bit initial, we are seeing that some efficiencies that we already put in place in the last couple of months and ahead of us, and reflecting 2026, not materially and to some extent, is going to be much more material in 2027. We feel that we can reach 34% EBITDA margin already in 2027. So I think it is like a transformational year around investment and in our cost structure, but it soon will show the right fruit and scale the expansion of our margin.

Speaker #5: So I think it's a transformational year around investment and in our cost structure, but it soon will show the right fruit and scale the expansion of our margin.

Speaker #3: All right. Got it. Thank you.

Jason Kreyer: All right. Got it. Thank you.

Speaker #4: I wanted just to say allow me just to say one more sentence Craig. I think that the investment is shown in the growth. We are growing a neat point for the full year.

Ofer Druker: Allow me just to say one more sentence, Greg. I think that the investment is shown in the growth. We are growing a midpoint for the full year according to our basically guidance, around 13% year-over-year, which is, in our eyes, it is a very good event. Of course, the growth that you just mentioned on CTV and the growth that we are reporting on in mobile in-app, all of that is coming also from investment. Together with nexAI, that we put a lot of resources and attention to that, but we can discuss it. It is bringing a lot of fruits already, and we believe that it will be the foundation of the company in the next couple of years. Thank you.

Speaker #4: According to our basically guidance around 13% year-over-year which is in our eyes it's a very good event and of course the growth that you just mentioned on CTV and the growth that we are reporting on in-app in mobile in-app all of that is coming also from investment and together with AI that we put a lot of resources and attention to that but we can discuss it.

Speaker #4: It's bringing a lot of fruits already and we believe that it will be the foundation of the company in the next couple of years.

Speaker #4: Thank you.

Speaker #2: Your next question is from Matt Swanson with RBC Capital Markets.

Operator: Your next question is from Matt Swanson with RBC Capital Markets.

Speaker #6: Hey guys, this is Simran from Matt Swanson. Congrats on the quarter. So for my first question, you framed Next AI as a growth engine and not just a productivity enhancer.

[Analyst] (RBC Capital Markets): Hey, guys. This is Simran on for Matt Swanson. Congrats on the quarter. For my first question, you framed nexAI as a growth engine and not just a productivity enhancer. Can you walk through the specific mechanism of how AI will help drive incremental revenue today versus improving internal efficiency?

Speaker #6: Can you walk through the specific mechanism of how AI will help drive incremental revenue today versus improving internal efficiency?

Speaker #4: Of course. In general, AI for a long time, until now in the last 18 or so months, brought mostly efficiency. But lately, we've integrated it very deeply into our product, and we see that basically it's creating two things.

Ofer Druker: Of course. In general, of course, AI, for a long time until now, in the last 18 or so months, brought mostly efficiency. But lately, we integrated very deeply into our product, and we see that basically it is creating two things. First of all, when people are testing our platform, basically, together with AI, they are getting much better outcome from the campaigns that they are running with us. Not just in efficiency, but also in general outcomes that they are basically running. It is basically driving them to move more of their budget to us. Most of the companies in our industry are not working with one provider, they are working with a few.

Speaker #4: First of all, when people are testing our platform, basically together with AI, they are getting much better outcomes from their campaigns that they are running with us.

Speaker #4: And not just in efficiency but also in general outcomes that they are basically running. And it's basically driving them to move more of their budget to us.

Speaker #4: Most of the companies in our industry are not working with one provider. They are working with a few. But if someone of this provider is generating better results of course they will shift their budget from other providers to this provider which is in this case us because of the results that we are driving and we see growth that is coming from better performance of our platforms thanks to AI.

Ofer Druker: But if someone of these providers is generating better results, of course, they will shift their budget from other providers to this provider, which is, in this case, us, because of the results that we are driving, and we see growth that is coming from better performance of our platforms thanks to AI. The second thing is basically when people are pitching our technology and product and platform to clients, new clients, and they are showing the importance, not just of an efficiency, which is there also of course, but also of the outcomes that they can generate. It is helping us to onboard more clients on our platform and getting them to run, as I mentioned, more budget with us, which is basically generating growth. I think that also the AI is open to us better monetization of our own platform.

Speaker #4: The second thing, it's basically when people are pitching our technology and product and platform to clients—new clients—and they are showing the importance, not just of efficiency, which is there also of course, but also of the outcomes that they can generate. It's helping us to onboard more clients on our platform and getting them to run, as I mentioned, more budget with us, which is basically generating growth.

Speaker #4: And I think that also the AI is open to us better monetization of our own platform. In general we believe that the power of the AI or Next AI is not coming just from the AI but also of the fundamental platform that is based on and working with and integrated in.

Ofer Druker: In general, we believe that the power of AI or nexAI is not coming just from the AI, but also of the fundamental platform that is based on and working with and integrated in. We feel that we have a very big advantage because we are end to end, and it is driving better results for the people and the clients that are basically utilizing our platform together with AI tools.

Speaker #4: And we feel that we have a very big advantage because we are end to end, and it's driving better results for the people and the clients that are basically utilizing our platform, together with AI tools.

Speaker #6: Okay. Got it. That's helpful. And then in the quarter it looks like enterprise spend was growing nicely and you have customers using more than one solution.

[Analyst] (RBC Capital Markets): Okay, got it. That is helpful. Then in the quarter, it looks like enterprise spend is growing nicely, and you have customers using more than one solution. Is that primarily driven by go-to-market execution, or is it more of the newer products that are resonating with customers? Or just more broadly, what has been working well that has been helping drive this adoption?

Speaker #6: Is that primarily driven by go-to-market execution or is it more of like the newer products that are resonating with customers and just like more broadly like what's been working well that's been helping drive this adoption?

Speaker #4: Well, I think that it starts with a better go-to-market that we implemented in the last 12 months or so. It comes with great talent and better training for the people that we have.

Ofer Druker: I think that it is starting with better go-to market that we implemented in the last 12 months or so. It comes with a great talent and better training to the people that we got. They learn how to basically package it and present it better that people will understand the value of the full platform that we can offer, as we indicated with the results that we already mentioned in my script. In general, I think that this is one, the go-to market. The second thing is that basically, as I mentioned before, people are running on a few platforms, and when they see that one of the platforms is delivering to them better results, they are shifting more and more spend.

Speaker #4: And they learn how to basically package it and present it better, so that people will understand the value of the platform, of the full platform that we can offer.

Speaker #4: As we indicated with the results that we already mentioned in our in my script. But in general I think that this is the one the go-to-market.

Speaker #4: The second thing is the basically as I mentioned before people are running on a few platforms and when they see that one of the platforms is delivering to them better results they are shifting more and more spend.

Speaker #4: In this case, we see agencies or clients that are running more clients moving more lines of business to us, and agencies moving more products, more of their customers, to run on our platform because of the results.

Ofer Druker: In this case, we see agencies or clients moving more lines of business to us and agencies moving more products, more of their customers to run on our platform because of the results and also, I am sure because of the efficiency. Altogether, we see growth in the number of customers that we are running on our enterprise solution, which is, of course, encouraging. As we indicated in the call, this is the foundation of our growth in the future. It is super important that people will learn, understand what is the value, get better outcomes, and shift budget to us in order to grow their business. We are making everything that we can, of course, in order to deliver to them the best outcomes in the condition and the efficiency that they need in order to run their business.

Speaker #4: And also, I'm sure because of the efficiency. But altogether, we see growth in the number of customers that we are running on our enterprise solution.

Speaker #4: Which is of course encouraging as we indicated in the call this is the foundation of our growth in the future. So it's super important that people will learn understand what is the value get better outcomes and shift budget to us in order to grow their business.

Speaker #4: And we are making everything that we can of course in order to deliver to them the best outcomes in the condition and the efficiency that they need in order to run their business.

Speaker #6: Great. Thanks guys. Congrats again.

[Analyst] (RBC Capital Markets): Great. Thanks, guys. Congrats again.

Speaker #4: Thank you.

Ofer Druker: Thank you.

Speaker #2: Your next question comes from Andrew Marouk with Raymond James.

Operator: Your next question comes from Andrew Marok with Raymond James.

Speaker #5: Hi. Thanks for taking my questions. Maybe first this was the first quarter in quite a while where you haven't bought back shares. So maybe two questions on that.

Andrew Marok: Hi. Thanks for taking my questions. This was the first quarter in quite a while where you haven't bought back shares. So maybe two questions on that. First, what were some of the specific signals you're seeing out of your product efforts so far that's giving you the confidence that internal reinvestment is the right move? Second, what types of M&A opportunities are raising your interest right now as you cited in your prepared remarks?

Speaker #5: First what were some of the specific signals you're seeing out of your product efforts so far that's giving you the confidence that internal reinvestment is the right move?

Speaker #5: And then, second, what types of M&A opportunities are raising your interest right now, as you cited in your prepared remarks?

Speaker #4: Okay. Thank you for your question. I think that it's a combination of a few things what you just said. First of all self-investment doesn't show sometimes a risk.

Ofer Druker: Okay. Thank you for your question. I think that it's a combination of a few things, what you just said. First of all, self-investment doesn't show sometimes a risk. It's showing an opportunity, meaning we believe and we show, we basically demonstrated that the extra investment that we made in the past 12 months in our own business basically generated for us better results. As we indicated, the growth of year-over-year, according to our guidance of 13% on the programmatic level, which is, for us, it's considered meaningful and good results. So we see that when we are investing back in our business and grow our operation, we are driving better growth to the company, which is a good signal. The second thing about buyback, we acquired in the last few years, about 40% of our company share. We invested about $250 million.

Speaker #4: It's showing an opportunity. Meaning, we believe and we basically demonstrated that the extra investment that we made in the past 12 months in our own business basically generated for us better results. As we indicated, the growth of peer-over-peer according to our guidance of 13% on the programmatic level—which for us is considered meaningful and good results.

Speaker #4: So we see that when we are investing back in our business and grow our operation we are driving better growth to the company which is a good signal.

Speaker #4: The second thing about the buyback: we acquired, in the last few years, about 40% of our company shares. We invested about $250 million.

Speaker #4: And we believe that we are not removing this tool from the table, and we feel that we need to look at it and examine this opportunity again.

Ofer Druker: We believe that we are not removing this tool from the table, and we feel that we need to look at it and examine this opportunity again, how we can basically utilize it, but side by side with that, in parallel to that, we are looking also at opportunities to make acquisition that will not be massive, will not create a disruption to the business that we are running now, but can touch points and increase the capabilities in certain areas, in the areas of growth. Some of them around CTV, some of them around in-app mobile, and of course AI, that can basically provide us additional advantages in these fields. We have the cash. We have no debt. We are generating cash. So we are looking at all the opportunities and all the tools, the variety of tools that we have in front of us.

Speaker #4: How we can basically utilize it. But side by side with that in parallel to that we are looking also at opportunities to make acquisition that will not be massive.

Speaker #4: Will not create disruption to the business that we are running now but can touch points and increase the capabilities in certain areas in the areas of growth.

Speaker #4: Meaning, some of them are around CTV, some of them are around in-app mobile, and of course, AI. That can basically provide us additional advantages in these fields.

Speaker #4: And we have the cash. We have no debt. We are generating cash. So, we are looking at all the opportunities and all the tools—the variety of tools—that we have in front of us.

Speaker #4: Meaning acquisition, as I mentioned right now, continuing buyback and, of course, keep investing in ourselves, which is already delivering very good results.

Ofer Druker: Meaning acquisition, as I mentioned right now, continuing buyback, and of course keep investing in ourselves, which is already delivering very good results.

Speaker #5: Great. Thank you. If I can maybe sneak in one more. We've heard the automotive vertical as being a drag for some of your peers and that vertical just kind of being generally soft on an industry basis.

Andrew Marok: Great. Thank you. If I can maybe sneak in one more. We have heard the automotive vertical as being a drag for some of your peers and that vertical just kind of being generally soft on an industry basis. In your remarks, you cited it as a growth vertical. You had a case study there in your remarks as well. So I guess what were some of the reasons why you are able to beat the general industry trend of softness there? Thank you.

Speaker #5: In your remarks, you cited it as a growth vertical. You had a case study there in your remarks as well. So, I guess, what were some of the reasons why you’re able to beat the general industry trend of softness there?

Speaker #5: Thank you.

Speaker #4: Of course. I think that all the industry and especially car industry also they know what they are looking for. They have very good KPIs that they are trying to achieve when they are running their campaigns and budgets.

Ofer Druker: Of course. I think that all the industry, and especially car industry also, they know what they are looking for. There are very good KPIs that they are trying to achieve when they are running their campaigns and budgets. I think that we are able to serve them well. I think that again, when you are talking an overall slowdown, we are still a part of this industry, and we are able to satisfy some of the needs, and we are growing the interaction and success with these providers. But I think that it is probably what people are reporting about is more about like a general macroeconomics or taxation that was happening at the beginning of the year and basically slowed down some of this.

Speaker #4: I think that we are able to serve them well. I think that again when you are talking an overall slowdown it's we are still part of this industry and we are able to satisfy some of the needs and we are growing the interaction and success with this providers.

Speaker #4: But I think that it's probably what people are reporting about is more about, like, general macroeconomics or taxation that happened at the beginning of the year and basically slowed down some of this. But as I mentioned in our case studies, we generated great success with these clients, and we are working hard in order to bring more clients to our platform to utilize the success and the platform that we created here that can drive them amazing results.

Ofer Druker: But as I mentioned in our case studies, we generate great success with these clients, and we are working hard in order to bring more clients to our platform in order to utilize the success and the platform that we created here that can drive them amazing results, efficiency, and save resources when they are basically trying to get new clients.

Speaker #4: Efficiency and saved resources when they are basically trying to get new clients.

Speaker #5: Great. Thank you.

Andrew Marok: Great. Thank you.

Speaker #4: Thank you.

Ofer Druker: Thank you.

Speaker #2: Your next question is from Laura Martin with Needham & Company.

Operator: Your next question is from Laura Martin with Needham & Company.

Speaker #3: Good morning. This is Dan calling, talking for Laura. CTV revenue hit an all-time record, and it's representing 40% of programmatic revenue. I'm curious as to how much of this acceleration is driven by native home screen ad units and the ACR data integration through the Vita partnership versus core stream inventory. And then, kind of as a follow-up to that, what does the pricing/CPM environment look like heading into the second half of '26?

[Analyst] (Needham & Company): Good morning. This is Dan calling, talking for Laura. CTV revenue hit an all-time record, and it is representing 40% of programmatic revenue. I am curious as to how much of this acceleration is driven by native home screen ad units and the ACR data integration through the VIDAA partnership versus core stream inventory. What does the pricing CPM environment look like heading into H2 2026? Thanks, and congratulations.

Speaker #3: Thanks and congratulations.

Speaker #4: Of course. Thank you, Dan. So, when we are looking at our CTV, the good news is this growth is without most of the elements that you just indicated.

Ofer Druker: Of course. Thank you, Dan. When we are looking at our CTV, the good news is this growth is without most of the elements that you just indicated, meaning it is still. I strongly believe, we strongly believe in what we built about the CTV On Screen because of a few reasons, and I will elaborate to the people that may be less aware of that. There are hundreds of millions of TV, CTV sets in the world. They are already showing ads on their platform when you are launching the TV, but until now it was not programmatic. We were the first to basically enable these OEMs to run programmatic advertising on the screens, and we are working very hard with VIDAA, with others in order to basically provide them this capability in order to run programmatically on their TV screen.

Speaker #4: Meaning it's still I strongly believe we strongly believe in what we built here about the CTV home screen. Because of a few reason and I'll elaborate to the people that may be less aware of that but there is like hundreds of millions of TV CTV sets in the world.

Speaker #4: They are already showing ads on their platform. When you are launching the TV but until now it was not programmatic. We were the first to basically enable this OEMs to run a programmatic advertising on the screens.

Speaker #4: And we are working very hard with Vita with others in order to basically provide them this capability in order to run programmatically on their TV screen.

Speaker #4: Since there are hundreds of millions of TVs outside, the volume of the media is huge. And this is a very unique media because it's encouraging engagement.

Ofer Druker: Since there are hundreds of millions of TVs outside, the volume of the media is huge. This is a very unique media because it is encouraging engagement. It is getting a lot of attention when the user is launching his TV because you are there, you are in front of him, and if you are putting the right ad at the right time, there is a very good chance that the outcome will be good. First result that we show already shows very good traction to that. But it is still early in our revenue. It is not contributing to this growth. This growth is coming from business initiative growth in our business, as I mentioned before. I feel that the next wave of growth will come from a few things. First of all is the native ads.

Speaker #4: It's getting a lot of attention when the user is launching his TV because you are there. You're in front of him. And if you are putting the right ad at the right time, there is a very good chance that the outcome will be good.

Speaker #4: And the first result that we show already demonstrates very good traction with that. But it's still early in our revenue; it's not yet contributing to this growth.

Speaker #4: This growth is coming from initiative business initiative growth in our business as I mentioned before. And I feel that the next wave of growth will come from a few things.

Speaker #4: First of all is the native ads. The second thing is the increasing activity on business initiatives that we are doing now around so many projects and things that we are working on with our clients and partners, in order to drive.

Ofer Druker: The second thing is the increased activity on business initiatives that we are doing now around so many projects and things that we are working with our clients and partners in order to drive. The third element is also the data. For the last few years, we are carrying the flag of data because we put it in front of the advertisers its importance in order to create audiences, build segmentation, measure the results, and so on. We feel that now it is becoming more and more evident to all the industry that it is super important, including to our clients, and is driving more spend coming to our platform overall, not just to VIDAA, but across the board. What we see is that the way that we are basically utilizing the data on our platform is helping us to generate better results.

Speaker #4: And the third element is also the data. So for the last few years, we are carrying the flag of data because we put it in front of the advertisers.

Speaker #4: It's important in order to create audiences, build segmentation, measure the results, and so on. And we feel that now it's becoming more and more evident to all the industry that it's super important—including to our clients—and it's driving more spend coming to our platform overall, not just to Vita, but across the board. What we see is that the way that we are basically utilizing the data on our platform is helping us to generate better results, and people are, again, likely to spend where it's working for them, so they are moving the spend to us.

Ofer Druker: People are, again, like to spend where it is working for them, so they are moving the spend to us. I feel that while we show great results in Q2, it is still without this initiative of Nexxen TV On Screen native, that is going to kick in mostly in Q4, but mainly in 2027 and forward. The rest of the initiatives that we see are supporting a growing and generating better outcome also on the CTV front. We are getting a lot of interest from advertisers, agencies, publishers, in order to increase the work around our CTV activity because it is working very well for them and of course for us.

Speaker #4: So I feel that while we show great results in Q2, it's still without this initiative of Nexxen Home Screen Native that is going to kick in mostly in Q4, but mainly in 2027 and forward.

Speaker #4: And the rest of the initiative that we see are supporting and growing and generating better and better outcome also the CTV front. And And we are getting a lot of interest from advertisers agencies publishers in order to increase the work around our CTV activity because it's working very well for them and of course for us.

Speaker #3: Great. Thank you.

[Analyst] (Needham & Company): Great. Thank you.

Speaker #4: Thank you.

Ofer Druker: Thank you.

Speaker #2: Your next question is from Tyler Dematteo with BTIG.

Operator: Your next question is from Tyler DiMatteo with BTIG.

Speaker #3: Great. Morning. Thank you for taking the question. A quick question on the CTV industry today and some of the dynamics. I guess I'm curious to hear your take on the competitive dynamics in CTV and maybe what you guys are seeing when you're going to market and winning customers and just what that looks like and maybe how that's changed.

Tyler DiMatteo: Great. Morning. Thank you for taking the question. Ofer, a quick question on the CTV industry today and some of the dynamics. I am curious to hear your take on the competitive dynamics in CTV and maybe what you guys are seeing when you are going to market and winning customers, and just what that looks like and maybe how that has changed. Secondarily, broadly speaking, on the programmatic side, I guess, what inning do you think that we are in terms of programmatic adoption with a lot of the customers that you are speaking to and just broadly some of the newer customer wins that you are having?

Speaker #3: And then, secondarily, broadly speaking on the programmatic side, I guess what inning do you think that we are in, in terms of programmatic adoption, with a lot of the customers that you’re speaking to, and just broadly some of the newer customer wins that you’re having?

Speaker #4: So thank you for the question first of all Tyler. From the CTV of course it's like the CTV is becoming like the center stage together and it's connected and getting more closer and more connected also to mobile in-app.

Ofer Druker: Thank you for the question, first of all, Tyler. From the CTV, of course, the CTV is becoming the center stage, and it is connected and getting more closer and more connected also to mobile in-app. That is why we invested also in this field, because we learned that and both of them are. Again, sorry for jumping back, but it is these two elements for us, is bringing a lot of capability to utilize data that we got and we are harvesting in order to basically better target, better create audiences with our clients and generate results from these two platforms, which are super important for us and represent the big majority of our revenue today.

Speaker #4: That's why we invested also in this field. Because we learned that, and both of them—again, sorry for jumping back, but it's like these two elements for us—it's bringing a lot of capability to utilize data that we got and we are harvesting.

Speaker #4: In order to basically better target and create audiences with our clients and generate results on these two platforms, which are super important for us and represent the vast majority of our revenue today.

Speaker #4: So I think that CTV players, CTV companies, are looking to increase their revenues in a way that is unique—that they will be able to maintain or grow their CPM levels thanks to utilizing data layers on top of their media and making it smarter for clients to buy.

Ofer Druker: I think that CTV players, CTV companies, are looking to increase their revenues in a way that is unique, that they will be able to maintain or grow their CPM levels, thanks to utilizing data layers on top of their media and making it smarter for the clients to buy. When we are talking about the native ads that I mentioned before with the major OEMs, when we look at them, of course, they have huge amount of media, huge amount of user base that they can better monetize with programmatic activity. We are hoping, and we are doing our best, and as I mentioned, we are the first to launch this product, and it is already active. Still not in major volumes that is influencing our numbers, but it is working.

Speaker #4: When we are talking about the native ads that I mentioned before with the OEM the major OEMs when we look at them of course they have huge amount of media huge amount of user base that they can better monetize with programmatic activity and we are hoping and we are doing our best and we are as I mentioned we are the first to launch this product and it's already active.

Speaker #4: Still not in major volumes that is influencing our numbers, but it's working. So all these elements, I think, show that OEMs are open to generating more revenue channels from their properties—from the investments that they made—and they are open, of course, to this programmatic sales.

Ofer Druker: All these elements, I think, show that OEMs are open to generate more revenue channels from their properties, from their investment that they made, and they are open, of course, to this programmatic sales. When we are looking at the market going forward, I think that it will just evolve. I think that CTV is becoming, again, more and more central point for people to target, to try and get for advertisers to get the attention of their user base or potential user base, and also to generate outcomes as we see. This is also why it is important to utilize the data in order to generate measurement and to show and to demonstrate to the clients that basically their efforts are bringing fruits or how to improve their campaigns in order to generate fruits.

Speaker #4: And when we are looking at the market going forward, I think that it will just evolve. And I think that CTV is becoming, again, more and more a central point for people to target, to try and get—for advertisers to get—the attention of their user base or potential user base.

Speaker #4: And also to generate outcomes as we see. This is also why it's important to utilize the data in order to generate measurement and to show and to demonstrate to the clients that basically their efforts are bearing fruit, or how to improve their campaigns in order to generate more results.

Speaker #4: So, I think that it's maturity, it's growth, and it's a main interest of this industry that it will grow. We see the big mobile in-app providers and advertisers are now also looking at CTV in order to utilize this media to generate and increase their reach and get more results from their campaigns.

Ofer Druker: I think that it is maturity, it is growth, and it is a main interest of this industry that it will grow. We see the big mobile in-app providers and advertisers are now looking also on the CTV in order to utilize this media in order to generate and increase their reach and get more results from their campaigns. In general, I think that the CTV, when I am looking at that, is moving ahead with maturity, with technology, with generating not just eyeballs but also results, and this is very encouraging, of course.

Speaker #4: So, in general, I think that CTV, when I'm looking at that, is moving ahead with maturity, with technology, with generating not just eyeballs but also results, and this is very encouraging, of course.

Speaker #3: Thanks for that Ofer I appreciate it.

Tyler DiMatteo: Thanks for that, Ofer. Appreciate it.

Speaker #4: Thank you.

Ofer Druker: Thank you.

Speaker #2: Your next question is from Barton Crockett with Rosenblatt.

Operator: Your next question is from Barton Crockett with Rosenblatt.

Speaker #5: Okay, thanks for taking the question. I guess a couple of things. One is, could you talk through in a little bit more detail how you were able to raise your contribution XTAC outlook but not raise the EBITDA?

Barton Crockett: Okay, thanks for taking the question. I guess, a couple of things. One is, could you talk through in a little more detail how you were able to raise your contribution ex-TAC outlook but not raise the Adjusted EBITDA? What is it that you are spending more on than you anticipated before you saw this revenue come in? That would be the first question.

Speaker #5: What is it that you're spending more on the new anticipated before you saw this revenue come in? That would be the first question.

Speaker #4: Okay. So as we mentioned of course in most cases you need first to invest in order to grow your business. But apart from that and Sagi maybe can elaborate more the ratio between the dollar and the new shekel where we have about 25% of our employees is exerting us also from profitability point of view.

Ofer Druker: As we mentioned, of course, in most cases, you need first to invest in order to grow your business. Apart from that, and Sagi maybe can elaborate more, the ratio between the dollar and the new shekel, where we have about 25% of our employees, is hurting us also from a profitability point of view. Again, we believe that in order to generate growth, you need to invest, and we invested, I think. The good news is that we didn't just invest, but we also saw that we are generating growth together with that, in parallel to that, which is a very good sign.

Speaker #4: And, but again, we believe that in order to generate growth, you need to invest, and we invested, I think. And the good news is that we didn't just invest, but we also saw that we are generating growth together with that.

Speaker #4: In parallel to that which is a very good sign and we see that the growth is coming in areas that we wanted to that to grow like CTV in-app mobile contribution XTAC when it's growing by 30% year over year on as I mentioned on a yearly basis according to our guidance it's very promising.

Ofer Druker: We see that the growth is coming in areas that we wanted that to grow, like CTV, in-app mobile, contribution ex-TAC when it's growing by 30% year-over-year, as I mentioned, on a yearly basis, according to our guidance, it's very promising. We have some factors that are hurting us, like the ratio between the dollar and the shekel that Sagi can provide a little bit more color. This is, of course, things that we cannot control. We can adjust some of our activity in order to deal with it, but we cannot control that. In general, I feel that this investment is the right thing in order to grow the business, to take market share.

Speaker #4: And we have some factors that are hurting us, like the ratio between the dollar and the shekel—Sagi can provide a little bit more color on that.

Speaker #4: And these are, of course, things that we cannot control. We can adjust some of our activity in order to deal with it, but we cannot control that.

Speaker #4: And in general I feel that this investment is the right thing in order to grow the business to take market share and in parallel to that we are working in order to optimize our operation in order to get to a point that the growth will basically compensate on the EBITDA side.

Ofer Druker: In parallel to that, we are working in order to optimize our operation in order to get to a point that the growth will basically compensate on the EBITDA side. Sagi, can you give us a little bit more colors about the FX?

Speaker #4: Sagi, can you give a little bit more color about the FX?

Speaker #3: Sure. Yes. I think on top of what Ofer just mentioned I don't know like around 20% of our employees are in Israel outside of the US and because of the FX headwinds fluctuation we got hurt from our infrastructure around end count mainly of around let's say on a half year basis it's somewhere around two and a half million dollars that we are like cost us more without really changing anything.

Sagi Niri: Sure. Yes. I think on top of what Ofer just mentioned, around 20% of our employees are in Israel, outside of the US. Because of the FX headwind fluctuation, we got hurt from our infrastructure around end count mainly of around, let's say, on a H1 basis, it's somewhere around $2.5 million that we are, cost us more without really changing anything.

Speaker #5: Okay. So that's the bulk of the delta there. All right. And the second thing that I was curious about is you guys continue to talk about saving some having opportunities for M&A saving some capacity for that.

Barton Crockett: Okay, so that's the bulk of the delta there. All right. The second thing that I was curious about is you guys continue to talk about having opportunities for M&A, saving some capacity for that. You've been saying that for some time. I was wondering if you could give us an update on to what degree are you actually engaged in discussions around M&A, or is this still just a general look-see as opposed to discussion? And your appetite to kind of add debt to support acquisitions, given that you're now debt-free but presumably have some capacity.

Speaker #5: You've been saying that for some time. I was wondering if you could give us an update on to what degree you are actually engaged in discussions around M&A, or is this still just a general look-see as opposed to active discussions?

Speaker #5: And your appetite to, kind of, add debt to support acquisitions, given that you're now debt-free but presumably have some capacity?

Speaker #4: So I didn't spend the last 10 times—what did you mean by that? Can you clarify?

Ofer Druker: I didn't understand the last sentence, what you meant by that. Can you clarify?

Speaker #5: Yeah. I mean, you're talking about interest in acquisitions. Are you actually in discussions with the entities, or is this just a general thought—maybe we could do something—without anything specific happening?

Barton Crockett: Yeah. You're talking about interest in acquisitions. Are you actually in discussions with entities, or is this just a general thought, maybe we could do something, without anything specific happening?

Speaker #4: Okay, so I got it now. Thank you. What we did until now, we basically sourced, first of all, the areas that we feel that we can use—as I mentioned, not a major acquisition, but an acquisition that can add to us capabilities and enhance our capabilities for the future, mainly around product that is related to the activities that we want to build.

Ofer Druker: Okay. So I got it now. Thank you. What we did until now, we basically sourced, first of all, the areas that we feel that we can use, as I mentioned, not a major acquisition, but an acquisition that can add to us capabilities and enhance our capabilities for the future, mainly around a product that is related to the activities that we want to build. We basically source the places that all the areas that we want to make this investment. We made already some shortlist of companies that can be a potential target for this acquisition. And I believe that in the next 6 to 9 months, we will make a move on that.

Speaker #4: We basically sourced the places that or the areas that we want to make this investment. We made already like some shortlist of companies that can be like a potential target for this acquisition.

Speaker #4: And I believe that in the next six to nine months, we will make a move on that. It's not happening overnight, and we feel that this is the right time.

Ofer Druker: It's not happening overnight, and we feel that this is the right time, which is about four years after we made the last acquisition of Amobee. The integration and the consolidation, and then the rebranded took a lot of our attention, and now we are in a very good position with execution and results. We don't want to make an acquisition that will create a disruption. So we are looking at an acquisition that will mainly touch, locally, some of our business units and will enable us to increase our capabilities. But we will be able to share more in the next six to nine months, I guess. I estimate.

Speaker #4: Which is about four years after we made the last acquisition of Amobee. The integration and the consolidation, and then the rebranding, took a lot of our attention. Now we're in a very good position with execution and results, and we don't want to make an acquisition that will create a disruption.

Speaker #4: So we are looking at an acquisition that will mainly touch some of our business units locally and will enable us to increase our capabilities.

Speaker #4: But we will be able to share more in the next six to nine months, I guess—I estimate.

Speaker #2: Your next question is from Brianna Diaz with Citizens.

Operator: Your next question is from Brianna Diaz with Citizens.

Speaker #1: Great, thanks so much for taking my question. So, just on Nexxen HomeScreen—you highlighted Nexxen HomeScreen as a meaningful contributor beginning in Q4, with an acceleration through 2027.

Brianna Diaz: Great. Thanks so much for taking my question. So just on Nexxen TV Home Screen, you highlighted Nexxen TV Home Screen as a meaningful contributor beginning in Q4 with an acceleration through 2027. Can you just talk about the size of this opportunity and the visibility you have into this, or early demand that gives you confidence in that outlook?

Speaker #1: Can you just talk about the size of this opportunity and the visibility you have into this, or really the demand that gives you confidence in that outlook?

Speaker #4: Of course. Thank you Brianna for this question. We are working here in both ways. First of all we prove the capability to run what we wanted to do.

Ofer Druker: Of course. Thank you, Brianna, for this question. We are working here in both ways. First of all, we prove the capability to run what we wanted to do. So basically, to run different formats programmatically on the home screen with everything that is attached to that, like targeting, measurement, of course, counting and all that. We already start running campaigns with leading companies globally that are happy with the results that they are generating on this format that we are running. We basically engage with the big DSP, like you saw the agreement that we signed with The Trade Desk, but we are also in engagement with other companies like we already notify, and we are working with them on integration. We need to understand that the technical integration, while it's taking time, it's the first move.

Speaker #4: So, basically, to run different formats programmatically on the home screen, with everything that is attached to that—like targeting, measurement, of course, counting, and all that.

Speaker #4: And we have already started running campaigns with leading companies globally that are happy with the results they are generating from this format that we are running.

Speaker #4: We basically engage with the big DSP like you saw they gave me that we signed with the trade desk but we are also engaged with other companies like we already notify and we are working with them on integration.

Speaker #4: We need to understand that the technical integration, while it's taking time, is the first move. Then the teams need to educate their clients about what this media can bring to them, why they should utilize it, what is the importance of that, and all of that is, of course, taking time.

Ofer Druker: Then the teams need to educate their clients about what this media can bring to them, why they should utilize it, what is the importance of that. All of that is, of course, taking time. Then we are talking about also of our clients, that we are educating them about the benefit of running this type of ads on this type of media. Again, it is a process. It is not overnight. From the other side, we are talking to other OEMs, not just VIDAA and the names that we mentioned, but also other companies in order to show them how they can basically utilize this. We are getting good response on that. But again, it is like every integration, and it takes time for them to basically integrate it into their systems.

Speaker #4: Then we are talking about also of our clients that we are educating them about the benefit of running this type of ads on this type of media.

Speaker #4: And again it's a process. It's not overnight. From the other side we are talking to other OEMs not just Vida and the names that we mentioned but also other companies in order to show them how they can basically utilize this we are getting good response on that but again it's like every integration and it's take time for them to basically integrate it into their systems and when even we have cases that it's ready and it's working it will take time to move budgets major budget into this mix because of all the points that I said about the demand side.

Ofer Druker: Even when we have cases that it is ready and it is working, it will take time to move budgets, major budget into this mix because of all the points that I said about the demand side. So we believe that in Q4, we see already a pipeline. We believe that in 2027 it will become more and more mainstream, that people will utilize these capabilities and will direct some of their spend to native ads on CTV, on on-screen, which we believe that we deliver a very good platform for that. It will become meaningful mostly in 2027, probably during the H2 of the year because of the size of our activity. It is very meaningful on CTV, of course.

Speaker #4: So we believe that in Q4 we already see a pipeline, and we believe that in 2027 it will become more and more mainstream that people will utilize these capabilities and will direct some of their spend to native ads on CTV on the home screen.

Speaker #4: Which we believe that we deliver a very good platform for that. And it will become meaningful mostly in 2027 during probably the second half of the year because of the size of our activity which is very meaningful on CTV of course.

Speaker #1: Got it. And if I can just squeeze one other question in. Just following up on the prior question understood FX but on investments overall where are the three top areas where you're investing in today and then as you look ahead in 2027 are those the same three areas or is there a potential for that to shift given a potential acquisition over the next six to nine months?

Brianna Diaz: Got it. If I can just squeeze one other question in. Just following up on the prior question, understood FX, but on investments overall, where are the three top areas where you are investing in today? Then as you look ahead in 2027, are those the same three areas, or is there a potential for that to shift given a potential acquisition over the next six to nine months?

Speaker #4: Okay. So we don't think that it will change next year. We are already in August, so we don't think it will change the focus of where we are investing.

Ofer Druker: Okay. We do not think that it will change next year. We are already in August. So we do not think that it is like we will change the focus of where we are investing. We are investing in AI. We like when we understand that something will become massive and major in this industry, you need to put effort into that. You need to bring talent into that. You need to shift talent into that. That is exactly what we are doing with AI. So we are basically shifting more and more resources into building it, and it is showing rewards, as I mentioned before. I think that we will keep doing that in 2027. Also, in infrastructure that we are investing in order to increase our capabilities and growth that is also based, of course, of your capability of bandwidth, QPS, and stuff like that we are doing.

Speaker #4: We are investing in AI because we like, when we understand that something will become massive and major in this industry, you need to put effort into that.

Speaker #4: You need to bring talent into that. You need to shift talent into that. And that's exactly what we are doing with AI. So we are basically shifting more and more resources into building it and showing rewards, as I mentioned before.

Speaker #4: I think that will keep doing that in 2027. Also in infrastructure that we are investing in order to increase our capabilities and growth that is also based of course of your capability of bandwidth, QPS, and stuff like that that we are doing.

Speaker #4: And it’s related also to effort and investment in manpower. And the last point is, of course, in the organization itself—to increase the mid-management when it’s needed to increase efficiency and the ability to move fast when we recognize a good opportunity.

Ofer Druker: It is related also to effort and investment in manpower. The last point is, of course, in the organization itself, to increase the mid-management when it is needed, to increase the efficiency and the ability to move fast when we recognize a good opportunity, and we are investing in these areas. It is not coming in conjunction to what I said about acquisitions. I think that it is complementary to them, and I think that the points that we are invested in this year will also serve us in next year, and we will keep investing in them. But we believe, as I mentioned, that the growth of revenues will basically compensate on this transition year, that we are investing more than we usually do in order to generate growth.

Speaker #4: And we are investing in these areas. It's not connected to what I said about acquisitions; I think that it's complementary to them.

Speaker #4: And I think that the points that we are invested in this year will also serve us next year, and we will keep investing in them.

Speaker #4: But we believe, as I mentioned, that the growth of revenues will basically compensate in this transition year, where we are investing more than we usually do in order to generate growth.

Speaker #1: Great. Thank you so much.

Brianna Diaz: Great. Thank you so much.

Speaker #4: Thank you.

Ofer Druker: Thank you.

Speaker #2: Your final question is from Nat Schindler with Scotiabank.

Operator: Your final question is from Nat Schindler with Scotiabank.

Operator: Hi, this is Steve Chroman on for Nat Schindler. Just one question here. Enterprise engagement, end-to-end platform utilization, and AI adoption were highlighted repeatedly in the press release. My question is, what metrics or milestones should investors watch over the next 12 months to determine whether those initiatives are translating into durable share gains and not simply stronger near-term spending trends? Thank you.

Steve Chroman: Hi, this is Steve Chroman on for Nat Schindler. Just one question here. Enterprise engagement, end-to-end platform utilization, and AI adoption were highlighted repeatedly in the press release. My question is, what metrics or milestones should investors watch over the next 12 months to determine whether those initiatives are translating into durable share gains and not simply stronger near-term spending trends? Thank you.

Speaker #5: Hi. Hi. This is Steve Holman on for Nat Schindler. So just one question here. Enterprise engagement, end-to-end platform utilization, and AI adoption were highlighted repeatedly in the press release.

Speaker #5: So my question is: What metrics or milestones should investors watch over the next 12 months to determine whether those initiatives are translating into durable share gains and not simply stronger near-term spending trends?

Speaker #5: Thank you.

Speaker #4: Okay. Hi, Nate. Of course. I think that investors and analysts should look at results at the end of the day—overall net revenue growth, which is the purpose of this investment.

Ofer Druker: Okay. Hi, Nate. Of course. I think that the investors and analysts should look at the results in the end of the day. Overall net revenue growth, which is the purpose of this investment. When we are looking at this, what you mentioned, end-to-end investment is true. We see that when clients are running on our more than one side, meaning more than one of our platforms, not just the DSP, but also using our DMP and connected to our media properties that are generating much better results. It is growing our revenues. It is building more connectivity and more loyalty with these clients. I feel that the major test is revenue. We are happy that we see, that we show and demonstrate that we are able to grow 13% year-over-year on the programmatic level.

Speaker #4: And when we are looking at this, what you mentioned about end-to-end investment is true. We see that when clients are running on more than one side—meaning more than one of our platforms, not just the DSP, but also using our DMP and connecting to our media properties—they are generating much better results.

Speaker #4: It's growing our revenues. It's building more connectivity and more loyalty with these clients. And I feel that the major test is revenue. We are happy that we see, show, and demonstrate that we are able to grow 13% year over year on the programmatic level. As I mentioned, we feel that it's meaningful, showing growth, and of course, growth around the CTV that is very meaningful—32% on a relatively big number of revenue per quarter.

Ofer Druker: That, as I mentioned, we feel that it is meaningful, showing growth, and of course, growth around the CTV, that is very meaningful, 32% on relatively big number of revenue per quarter. That is showing that we are on the right spot. We need to keep growing, and we need to keep investing in order to generate this type of growth. We believe that, as we mentioned, this year is a transition, and we will see the additional growth coming in next year. Most of the time, you need, first of all, to build a foundation, invest more in order to generate additional revenues in the near-term future and not, as you mentioned, long term and over time.

Speaker #4: That is showing that we are on the right spot. So, we need to keep growing, and we need to keep investing in order to generate this type of growth.

Speaker #4: And we believe that as we mentioned this year is a transition and we'll see the additional growth coming in next year and most of the time you need first of all to build the foundation invest more in order to generate additional revenues in the near-term future and not as you mentioned long-term and over time.

Speaker #5: Great. Thank you.

Ofer Druker: Great. Thank you.

Steve Chroman: Great. Thank you.

Speaker #2: There are no further questions at this time. I'll now turn the call back over to Mr. Druker for any closing remarks.

Operator: There are no further questions at this time.

Ofer Druker: Thank you.

Operator: I will now turn the call back over to Mr. Druker for any closing remarks.

Speaker #4: Thank you. I just want to thank our clients, partners, shareholders, and, of course, our employees for a great effort and for bringing their talent and their energy in order to drive these great results that we reported today.

Ofer Druker: Thank you. I just want to thank our clients, partners, shareholders, and of course, our employees for a great effort in bringing their talent and their energy in order to drive this great result that we reported today. We really strongly believe in what we created and the future of the company. With the trends that we recognize in the market, we feel that we invested in the right strategy, technology, and product marketing, meaning how we are basically demonstrating it to the market. We are hoping to keep demonstrating like we basically were able to do this quarter and into the near future and the long term. Thank you everyone for your support, and thank you again.

Speaker #4: And we really strongly believe in what we created, in the future of the company. With the trends that we recognize in the market, we feel that we invested in the right strategy, technology, and product marketing.

Speaker #4: Meaning how we are basically demonstrating it to the market. And we are hoping to keep demonstrating, like we basically were able to do this quarter, and into the near future and the long term.

Speaker #4: So thank you, everyone, for your support, and thank you again.

Speaker #2: Ladies and gentlemen this concludes today's conference call. Thank you for joining. You may now disconnect.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for joining. You may now disconnect.

Ofer Druker: Thank you.