NEXN Stock Forecast & Price Target

Nexxen International Ltd has demonstrated significant revenue growth, with revenue from its data product increasing by 102% year-over-year in the fourth quarter of FY24, and Connected TV (CTV) net revenues reaching $37 million, a notable 86% increase year-over-year, accounting for 38% of total programmatic revenues. The company is positioned for continued acceleration in revenue growth for FY24, supported by the introduction of new integrated planning tools and an expanding customer base, exemplified by the addition of 73 new supply-side customers in the quarter. Projections for FY26 reflect continued financial strength, with anticipated net revenue of $416 million (up 9% year-over-year) and adjusted EBITDA expected to rise by 16% to $144 million, highlighting strong operational performance.

Nexxen International Ltd is experiencing a deterioration in its Performance revenue segment, which constitutes approximately 10%-15% of its net revenues, signaling potential challenges to overall revenue growth. Additionally, the company has seen a continuous decline in its full-time equivalents (FTEs), currently at 854, compared to higher figures in previous quarters, reflecting operational scaling back that may impact service delivery and innovation. Furthermore, external pressures such as increasing competition, weak economic growth, and stringent regulatory environments pose significant risks to market demand, further exacerbating the company's negative outlook.