Nexxen's $40M Buyback: A Bold Confidence Signal in a Shifting Ad Tech Market

NEW YORK, NY – January 02, 2026 – Advertising technology firm Nexxen International Ltd. (NASDAQ: NEXN) has signaled strong confidence in its financial footing and future prospects, announcing board approval for a new share repurchase program of up to $40 million. The announcement came as the company revealed it had bought back 495,000 of its own shares in December 2025 at an average price of $6.63.

This new, substantial authorization is set to begin after the completion of its current program, which had approximately $7.5 million remaining at the end of 2025. The move represents a significant continuation of Nexxen's aggressive capital return strategy, suggesting that management believes its stock is undervalued, particularly as it navigates the seismic shifts occurring within the global ad tech industry.

A Consistent Strategy of Capital Return

The $40 million program is not an isolated event but rather the latest chapter in a multi-year effort to return significant capital to shareholders. This strategy underscores a clear preference for buybacks over dividends, which the company has not paid in over seven years, opting instead to reinvest earnings and reduce its share count.

Since March 2022, Nexxen has been remarkably active in the market. Through September 30, 2025, the company invested approximately $247.4 million to repurchase 28.3 million Ordinary Shares. This powerful buyback campaign has retired a staggering 36.6% of the company's shares outstanding over that period, demonstrating a long-term commitment to enhancing shareholder value by increasing per-share metrics.

The structure of the new program mirrors previous ones, granting the company the flexibility to repurchase shares opportunistically without being obligated to a specific number. This allows management to adapt to market conditions and deploy capital when it views its equity as most attractive. According to the company, any shares repurchased will be held in treasury as dormant shares under Israeli Companies Law, effectively removing them from the public float.

The Financial Bedrock Supporting the Buyback

Such a sustained and large-scale capital return program is only possible due to a robust financial foundation. Nexxen's balance sheet appears well-positioned to support these initiatives without compromising its operational or growth investments. As of the end of the third quarter of 2025, the company held $116.7 million in cash and cash equivalents and, critically, carried no long-term debt. Furthermore, it maintained an undrawn $50 million revolving credit facility, providing additional liquidity.

Profitability has also remained strong. The third quarter of 2025 marked a record for the company in Contribution ex-TAC (a key ad tech revenue metric), which grew 8% year-over-year to $92.6 million. Programmatic revenue saw a 10% increase to $89.6 million. Adjusted EBITDA for the quarter was $28.2 million, representing a healthy 30% margin. This performance has informed optimistic guidance for the full year 2025, with the company anticipating Adjusted EBITDA to land between $113 million and $117 million.

This combination of high liquidity, zero long-term debt, and consistent profitability provides the financial firepower necessary to execute the $40 million buyback while simultaneously funding strategic initiatives.

A Strategic Play in a Volatile Market

The timing of the intensified buyback strategy is particularly noteworthy. Prior to the announcement, Nexxen's stock had experienced significant downward pressure, falling over 36% in the preceding six months and trading near its 52-week low. From this perspective, the repurchase program can be interpreted as a strategic move by management to capitalize on what it perceives as a disconnect between the company's intrinsic value and its public market valuation.

The initial market reaction was positive, with the stock climbing 3.8% in premarket trading following the news. This suggests investors view the buyback as a bullish signal. Analyst sentiment, despite some recent price target adjustments, remains broadly positive. The average price target from ten analysts stands at $12.94, suggesting a significant potential upside from its recent trading levels and the average repurchase price of $6.63 in December.

By actively buying its own shares at these levels, Nexxen is sending a clear message to the market: it believes its own stock is one of the most attractive investments available.

Positioning for the Future of Ad Tech

While returning capital is a key priority, Nexxen is also navigating a rapidly transforming industry. The global ad tech market is projected to expand at a compound annual growth rate of over 22% through 2034, driven by powerful trends in artificial intelligence, the explosive growth of Connected TV (CTV), and a paradigm shift toward privacy-first data solutions.

Nexxen's core business, which integrates a demand-side platform (DSP), a supply-side platform (SSP), and a central data platform, is squarely focused on the high-growth areas of data and advanced TV. The company is actively positioning itself to capitalize on the CTV boom, where programmatic ad spending is projected to surge. Its strategic investment in VIDAA, a global CTV operating system, is a prime example of its dual strategy: using its strong financial position not only for buybacks but also to invest in long-term growth drivers.

As the industry moves away from third-party cookies, Nexxen's expertise in data curation and privacy-compliant targeting will become increasingly vital. The future of advertising lies in leveraging AI for hyper-targeted campaigns and personalizing content at scale, all while respecting user privacy. Nexxen's continued investment in its unified technology stack is designed to meet these evolving demands, ensuring it remains competitive in a landscape increasingly influenced by AI platforms and walled gardens.