Press Release: Nexxen Reports Fourth Quarter and Full Year 2025 Financial Results

Dow Jones
Mar 04

Expanded into AI-resilient growth channels through enhanced mobile in-app capabilities and the release of Nexxen's industry-first programmatic Smart TV home screen ad activation solution, which is now integrated with V (formerly VIDAA) and The Trade Desk's Ventura Ecosystem

Launched expanded V partnership, strengthening Nexxen's competitive advantages and differentiation while enhancing the Company's long-term CTV and data revenue opportunities

Guides to 2026 Contribution ex-TAC and programmatic revenue growth of approximately 8% and 10% at the midpoint; Q1 2026 Contribution ex-TAC and programmatic revenue to date have exceeded management's initial expectations

NEW YORK, March 04, 2026 (GLOBE NEWSWIRE) -- Nexxen International Ltd. (NASDAQ: NEXN) ("Nexxen" or the "Company"), a global, flexible advertising technology platform with deep expertise in data and advanced TV, announced today its financial results for the three and twelve months ended December 31, 2025.

Q4 2025 Financial Highlights

   -- Contribution ex-TAC of $97.8 million, down 7% year-over-year (-1% 
      excluding political) 
 
   -- Programmatic revenue of $94.3 million, down 4% year-over-year (+2% 
      excluding political) 
 
   -- CTV revenue of $30.1 million, down 19% year-over-year (-12% excluding 
      political) 
 
   -- CTV revenue reflected 32% of programmatic revenue, compared to 38% in Q4 
      2024 
 
   -- Programmatic revenue increased to 94% of revenue, from 88% in Q4 2024 
 
   -- Adjusted EBITDA of $33.9 million, down 23% year-over-year, representing a 
      35% Adjusted EBITDA Margin on a Contribution ex-TAC basis (34% on a 
      revenue basis), compared to 42% on a Contribution ex-TAC basis (39% on a 
      revenue basis) in Q4 2024 
 
   -- Video revenue represented 72% of programmatic revenue, compared to 75% in 
      Q4 2024 
 
   -- $133.3 million in cash and cash equivalents, no long-term debt and $50 
      million available under the Company's undrawn revolving credit facility 
      as of December 31, 2025 

Full Year 2025 Financial Highlights

   -- Record Contribution ex-TAC of $353.1 million, up 3% year-over-year (+6% 
      excluding political) 
 
   -- Record programmatic revenue of $340.6 million, up 5% year-over-year (+8% 
      excluding political) 
 
   -- CTV revenue of $109.4 million, down 4% year-over-year (relatively flat 
      excluding political) 
 
   -- CTV revenue reflected 32% of programmatic revenue, compared to 35% in 
      2024 
 
   -- Programmatic revenue increased to 93% of revenue, from 89% in 2024 
 
   -- Adjusted EBITDA of $115.1 million, up 1% year-over-year, representing a 
      33% Adjusted EBITDA Margin on a Contribution ex-TAC basis (32% on a 
      revenue basis), compared to 33% on a Contribution ex-TAC basis (31% on a 
      revenue basis) in 2024 
 
   -- Video revenue represented 71% of programmatic revenue, compared to 72% in 
      2024 
 
   -- Contribution ex-TAC retention rate of 92%, compared to 102% in 2024 
 
   -- Contribution ex-TAC per active customer increased to approximately 
      $563,000, from approximately $526,000 in 2024 

"We met our updated 2025 guidance and are off to a strong start in 2026, with Contribution ex-TAC and programmatic revenue exceeding our initial expectations to this point in Q1, driven by broad-based strength across our programmatic business lines," said Ofer Druker, Chief Executive Officer of Nexxen.

Mr. Druker added, "Looking ahead, we believe we are well-positioned for success in 2026 and beyond. Our increased focus on our enterprise DSP and supporting product ecosystem, V partnership, growing adoption of our industry-first programmatic Smart TV home screen solution and our expansion into mobile in-app are strengthening the Company's long-term growth opportunities while creating a more durable and diverse revenue base resilient to AI disruption. Nexxen's Smart TV home screen solution represents a powerful differentiator that is expected to drive meaningful value for both sides of the ecosystem and has been adopted by strategic partners including V and The Trade Desk, with others expected to follow. We believe our additional nexAI launches and sales initiatives in 2026 will help accelerate enterprise adoption, and we are ready to capitalize on the vast opportunities ahead."

Financial Guidance

   -- Nexxen provides the following financial guidance for full year 2026: 
 
          -- Contribution ex-TAC in the range of $375 - $390 million 
             (approximately 8% year-over-year growth at the midpoint) 
 
          -- Programmatic revenue in the range of $367 - $381 million 
             (approximately 10% year-over-year growth at the midpoint) 
 
          -- Adjusted EBITDA in the range of $122 - $132 million (approximately 
             10% year-over-year growth at the midpoint, representing a 33% 
             Adjusted EBITDA Margin at the midpoint of Contribution ex-TAC and 
             Adjusted EBITDA guidance) 
 
   -- Contribution ex-TAC impact from reduced spending by one DSP customer, as 
      noted in Q3 2025 earnings, is expected to remain isolated to Q4 2025 and 
      not affect 2026 performance. The customer has increased its 
      year-over-year spend with Nexxen to date in Q1 2026. 
 
   -- Contribution ex-TAC and programmatic revenue to date in Q1 2026 have 
      exceeded management's initial expectations, driven by broad-based 
      strength across Nexxen's programmatic business lines. 
 
   -- Management expects growth in CTV, self-service and data products revenue 
      in 2026, supported by the Company's traditional sales efforts, its 
      exclusive TV data and media partnership with V and growing adoption of 
      its programmatic Smart TV home screen solution. 
 
   -- In 2026, management intends to continue shifting sales, product and 
      commercial resources toward Nexxen's DSP and data platform, while 
      increasing nexAI investments. These initiatives are expected to drive 
      deeper enterprise adoption, expand end-to-end revenue opportunities and 
      reduce reliance on third-party DSP partners. 
 
   -- Management also expects to continue driving adoption of Nexxen's 
      programmatic Smart TV home screen solution and to pursue new and expanded 
      scaled mobile in-app partnerships in 2026 to strengthen resilience to 
      AI-driven industry disruption and support long-term growth. 
 
   -- The Company will continue evaluating strategic options for its non-core, 
      non-programmatic business lines, following weakness in Q4 2025 that has 
      persisted in Q1 2026. 
 
   -- Operating expenses are expected to decrease modestly as a percentage of 
      Contribution ex-TAC in 2026 compared to 2025. Research and development 
      expenses are expected to remain relatively consistent as a percentage of 
      Contribution ex-TAC, depreciation and amortization and sales and 
      marketing expenses are expected to decrease slightly as percentages of 
      Contribution ex-TAC and general and administrative expenses are expected 
      to increase as a percentage of Contribution ex-TAC. Stock-based 
      compensation expenses are expected to rise modestly in 2026 compared to 
      2025. 

Q4 2025 Operational Highlights and Recent Developments

   -- Launched extended and expanded partnership with V, granting Nexxen 
      exclusive third-party video and native display monetization rights across 
      V's North American CTV media, along with exclusive global access to V's 
      automatic content recognition ("ACR") data through at least 2029. This 
      collaboration is attracting significant interest across both sides of the 
      advertising ecosystem and is expected to strengthen Nexxen's TV data and 
      media differentiation, supporting long-term growth across its enterprise, 
      data and CTV revenue streams. 
   -- Increased adoption of Nexxen's industry-first solution for programmatic 
      Smart TV home screen ad activation, which initially provided direct 
      access to scaled native inventory across Hisense and other V-powered CTV 
      OEM brands via the Nexxen DSP and SSP. V adopted the solution as Nexxen's 
      first CTV operating system partner and it is now integrated across 
      V-powered devices globally, generating positive early results. 
   -- Partnered with The Trade Desk and V in Q1 2026 to bring programmatic 
      access to scaled native inventory from V-powered CTV OEM brands within 
      The Trade Desk's Ventura Ecosystem, leveraging Nexxen's programmatic 
      Smart TV home screen ad activation solution. 
   -- Entered data licensing agreement with Yahoo DSP in Q4 2025, making 
      Nexxen's ACR audience segments available for targeting on its platform in 
      the U.S., U.K. and Germany, expanding the Company's TV data partnerships 
      with major DSPs, which includes other leading platforms like The Trade 
      Desk and StackAdapt. 
   -- Introduced Nexxen Sports in Q4 2025, a solution suite combining premium 
      live sports inventory with data-driven audience insights, targeting, 
      retargeting and dynamic creative. The offering is designed to help brands 
      drive stronger engagement and performance during marquee live sports 
      events and year-round live sports programming, while enabling advertisers 
      to reach consumers beyond the live window. It also positions Nexxen to 
      capitalize on what is expected to be the biggest live sports advertising 
      year on record, featuring major events like the 2026 FIFA World Cup. 
   -- Announced the general availability of Curated Marketplace in Q4 2025, 
      enabling customers to package, activate and monetize premium data-driven 
      private marketplace ("PMP") deals. The solution is expected to improve 
      advertiser outcomes and drive incremental publisher demand on Nexxen's 
      platform. 
   -- Introduced measurement and optimization capabilities to Nexxen Health in 
      Q4 2025, including the first-to-market "Auto Allocate" feature in the 
      Nexxen DSP powered by PurpleLab, enabling health and pharmaceutical 
      advertisers to optimize spend in real-time using real-world health 
      signals and verified outcome data, improving targeting accuracy and 
      full-funnel campaign performance. The innovation is expected to further 
      solidify Nexxen as a leading health and pharmaceutical DSP. 

Share Repurchase Program and Capital Allocation Updates

   -- Nexxen repurchased 1,440,000 shares during Q4 2025 at an average price of 
      $7.47, investing approximately $10.8 million. 
 
   -- From March 1, 2022, when the Company launched a series of share 
      repurchase programs, through December 31, 2025, Nexxen repurchased 
      29,794,967 shares, or approximately 38.5% of shares outstanding, 
      investing approximately $258.2 million. 
 
   -- As of February 28, 2026, the Company had approximately $2.0 million 
      remaining under its current $20 million repurchase authorization and has 
      received approval to launch a new repurchase program for up to $40 
      million, scheduled to begin upon completion of the current program. 
 
   -- After deploying $20 million of its previously announced additional $35 
      million investment in V during Q3 2025, the Company is expected to invest 
      the remaining $15 million in Q3 2026. Upon full deployment, the Company 
      will have invested a total of $60 million, representing an approximately 
      6% equity ownership stake in V. 
 
   -- Nexxen is continuing to explore strategic opportunities focused on 
      accelerating programmatic revenue growth and enhancing and expanding its 
      data, CTV and mobile in-app capabilities. 

Financial Highlights for the Three and Twelve Months Ended December 31, 2025 ($ in millions, except per share amounts)

 
                       Three months ended      Twelve months ended 
                           December 31             December 31 
                      2025    2024     %      2025     2024     % 
                     ------  ------  ------  -------  ------  ------ 
IFRS Highlights 
Revenue               100.7   112.3   (10%)    364.8   365.5      0% 
Programmatic 
 revenue               94.3    98.7    (4%)    340.6   324.5      5% 
Operating profit       13.0    24.8   (47%)     32.4    40.8   (21%) 
 
Net income margin 
 on a gross profit 
 basis                  15%     30%              10%     14% 
 
Total comprehensive 
 income                10.4    23.3   (55%)     27.9    35.4   (21%) 
Diluted earnings 
 per share             0.18    0.37   (50%)     0.41    0.51   (19%) 
 
Non-IFRS Highlights 
Contribution ex-TAC    97.8   105.2    (7%)    353.1   343.5      3% 
 
Adjusted EBITDA        33.9    44.3   (23%)    115.1   114.6      1% 
Adjusted EBITDA 
 Margin on a 
 Contribution 
 ex-TAC basis           35%     42%              33%     33% 
 
Non-IFRS net income    19.0    32.4   (41%)     59.9    65.2    (8%) 
Non-IFRS diluted 
 earnings per 
 share                 0.33    0.48   (31%)     0.98    0.93      5% 
 
 

Fourth Quarter 2025 Financial Results Webcast and Conference Call Details

   -- When: March 4, 2026, at 9:00 AM ET 
 
   -- Webcast: A live and archived webcast can be accessed from the Events and 
      Presentations section of Nexxen's Investor Relations website at 
      https://investors.nexxen.com/ 
 
   -- Participant Dial-In Numbers: 
 
          -- U.S. / Canada Toll-Free Dial-In Number: (888) 596-4144 
 
          -- U.K. Toll-Free Dial-In Number: +44 800 260 6470 
 
          -- International Dial-In Number: +1 (646) 968-2525 
 
          -- Conference ID: 2738966 

About Nexxen

Nexxen empowers advertisers, agencies, publishers and broadcasters around the world to utilize data and advanced TV in the ways that are most meaningful to them. Our flexible and unified technology stack comprises a demand-side platform ("DSP") and supply-side platform ("SSP"), with the Nexxen Data Platform at its core. With streaming in our DNA, Nexxen's robust capabilities span discovery, planning, activation, monetization, measurement and optimization -- available individually or in combination -- all designed to enable our partners to achieve their goals, no matter how far-reaching or hyper niche they may be.

Nexxen is headquartered in Israel, maintains offices throughout the United States, Canada, Europe and Asia-Pacific, and is traded on Nasdaq (NEXN). For more information, visit www.nexxen.com.

For further information please contact:

Billy Eckert, Vice President of Investor Relations

ir@nexxen.com

Caroline Smith, Vice President of Communications

csmith@nexxen.com

Forward Looking Statements

This press release contains forward-looking statements, including forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are identified by words such as "anticipates, " "believes," "expects," "intends," "may," "can," "will," "estimates," and other similar expressions. However, these words are not the only way Nexxen identifies forward-looking statements. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding anticipated financial results for Q1 and full year 2026 and beyond; anticipated benefits of Nexxen's strategic transactions and commercial partnerships; anticipated features and benefits of Nexxen's products and service offerings, including anticipated benefits relating to nexAI; anticipated industry adoption of Nexxen's programmatic Smart TV home screen ad activation solution; Nexxen's positioning for accelerated growth and continued future growth; Nexxen's medium- to long-term prospects; management's belief that Nexxen is well-positioned to benefit from future industry growth trends and Company-specific catalysts; the Company's plans with respect to its cash reserves as well as ongoing and future share repurchase programs and further investment in V (formerly VIDAA); the Company's plans to pursue strategic opportunities; anticipated benefits from the renewed and expanded strategic partnership with V, as well as any other statements related to Nexxen's future financial results and operating performance. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors that may cause Nexxen's actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including, but not limited to, the following: negative global economic conditions, including risks related to tariff impacts or policy shifts (including trade negotiations or enforcement actions) that could materially affect market sentiment, consumer behavior and advertising demand; global conflicts and war, including the war between the United States, Israel and Iran, and the war and hostilities between Israel and Hamas, Hezbollah and the Houthis in Yemen, and how those conditions may adversely impact Nexxen's business, customers and the markets in which Nexxen competes; changes in industry trends; and other negative developments in Nexxen's business or unfavorable legislative or regulatory developments. Nexxen cautions you not to place undue reliance on these forward-looking statements. For a more detailed discussion of these factors, and other factors that could cause actual results to vary materially, interested parties should review the risk factors listed in the Company's most recent Annual Report filed with the U.S. Securities and Exchange Commission (www.sec.gov) on Form 20-F. Any forward-looking statements made by Nexxen in this press release speak only as of the date of this press release, and Nexxen does not intend to update these forward-looking statements after the date of this press release, except as required by law.

Nexxen, and the Nexxen logo are trademarks of Nexxen International Ltd. in the United States and other countries. All other trademarks are the property of their respective owners. The use of the word "partner" or "partnership" in this press release does not mean a legal partner or legal partnership.

Use of Non-IFRS Financial Information

In addition to our IFRS results, we review certain non-IFRS financial measures to help us evaluate our business, measure our performance, identify trends affecting our business, establish budgets, measure the effectiveness of investments in technology and development and sales and marketing, and assess our operational efficiencies. These non-IFRS measures include Contribution ex-TAC, Adjusted EBITDA, Adjusted EBITDA Margin, Non-IFRS Net Income and Non-IFRS Earnings per Share, each of which is discussed below.

These non-IFRS financial measures are not intended to be considered in isolation from, as substitutes for, or as superior to the corresponding financial measures prepared in accordance with IFRS. You are encouraged to evaluate these adjustments and review the reconciliation of these non-IFRS financial measures to their most comparable IFRS measures and the reasons we consider them appropriate. It is important to note that the particular items we exclude from, or include in, our non-IFRS financial measures may differ from the items excluded from, or included in, similar non-IFRS financial measures used by other companies. See "Reconciliation of Revenue to Contribution ex-TAC," "Reconciliation of Total Comprehensive Income to Adjusted EBITDA," and "Reconciliation of Net Income to Non-IFRS Net Income," included as part of this press release.

   -- Contribution ex-TAC: Contribution ex-TAC for Nexxen is defined as gross 
      profit plus depreciation and amortization attributable to cost of revenue 
      and cost of revenue (exclusive of depreciation and amortization) minus 
      Performance (non-programmatic) media costs ("traffic acquisition costs" 
      or "TAC"). Performance (non-programmatic) media costs represent the costs 
      of purchases of impressions from publishers on a cost-per-thousand 
      impression basis in our non-core, non-programmatic Performance 
      activities. Contribution ex-TAC is a supplemental measure of our 
      financial performance that is not required by or presented in accordance 
      with IFRS. Contribution ex-TAC should not be considered as an alternative 
      to gross profit as a measure of financial performance. Contribution 
      ex-TAC is a non-IFRS financial measure and should not be viewed in 
      isolation. We believe Contribution ex-TAC is a useful measure in 
      assessing the performance of Nexxen because it facilitates a consistent 
      comparison against our core business without considering the impact of 
      traffic acquisition costs related to revenue reported on a gross basis. 
   -- Adjusted EBITDA: We define Adjusted EBITDA for Nexxen as total 
      comprehensive income for the period adjusted for foreign currency 
      translation differences for foreign operations, tax expenses (benefit), 
      financial expenses (income), net, depreciation and amortization, 
      stock-based compensation expenses, other expenses, net, and delisting 
      related one-time costs. Adjusted EBITDA is included in the press release 
      because it is a key metric used by management and our Board of Directors 
      to assess our financial performance. Adjusted EBITDA is frequently used 
      by analysts, investors and other interested parties to evaluate companies 
      in our industry. Management believes that Adjusted EBITDA is an 
      appropriate measure of operating performance because it eliminates the 
      impact of expenses that do not relate directly to the performance of the 
      underlying business. 
   -- Adjusted EBITDA Margin: We define Adjusted EBITDA Margin as Adjusted 
      EBITDA as a percentage of Contribution ex-TAC. 
   -- Non-IFRS Net Income and Non-IFRS Earnings per Share: We define non-IFRS 
      earnings per share as non-IFRS net income divided by non-IFRS 
      weighted-average shares outstanding. Non-IFRS net income is equal to net 
      income excluding amortization of acquired intangibles, delisting related 
      one-time costs, stock-based compensation expenses, and other expenses, 
      net, and also considers the tax effects of non-IFRS adjustments. In 
      periods in which we have non-IFRS net income, non-IFRS weighted-average 
      shares outstanding used to calculate non-IFRS earnings per share include 
      the impact of potentially dilutive shares. Potentially dilutive shares 
      consist of stock options, restricted stock awards, restricted stock units 
      and performance stock units, each computed using the treasury stock 
      method. We believe non-IFRS earnings per share is useful to investors for 
      evaluating our ongoing operational performance and trends on a per share 
      basis and also facilitates comparison of our financial results on a per 
      share basis with other companies, many of which present a similar 
      non-IFRS measure. However, a potential limitation of our use of non-IFRS 
      earnings per share is that other companies may define non-IFRS earnings 
      per share differently, which may make comparison difficult. This measure 
      may also exclude expenses that may have a material impact on our reported 
      financial results. Non-IFRS earnings per share is a performance measure 
      and should not be used as a measure of liquidity. Because of these 
      limitations, we also consider the comparable IFRS measure of net income. 

We do not provide a reconciliation of forward-looking non-IFRS financial metrics because reconciling information is not available without an unreasonable effort, such as attempting to make assumptions that cannot reasonably be made on a forward-looking basis to determine the corresponding IFRS metric.

Reconciliation of Total Comprehensive Income to Adjusted EBITDA

 
                       Three months ended      Twelve months ended 
                           December 31             December 31 
                     ----------------------  ----------------------- 
                      2025     2024     %     2025     2024      % 
                     -------  ------  -----  -------  -------  ----- 
($ in thousands) 
Total comprehensive 
 income               10,411  23,279  (55%)   27,867   35,402  (21%) 
  Foreign currency 
   translation 
   differences for 
   foreign 
   operations            125   1,575         (2,824)       35 
  Tax expenses 
   (benefit)           3,448   (533)          12,216    3,095 
  Financial 
   expenses 
   (income), net       (961)     435         (4,810)    2,289 
  Depreciation and 
   amortization       16,256  14,621          63,124   58,676 
  Stock-based 
   compensation 
   expenses            4,595   2,782          18,048   11,460 
  Other expenses, 
   net                     -      16               -    1,504 
  Delisting related 
   one-time costs          -   2,094           1,520    2,094 
Adjusted EBITDA       33,874  44,269  (23%)  115,141  114,555     1% 
 
 

Reconciliation of Revenue to Contribution ex-TAC

 
                      Three months ended       Twelve months ended 
                          December 31               December 31 
                   -------------------------  ---------------------- 
                     2025      2024      %      2025      2024    % 
                   --------  --------  -----  --------  -------- 
($ in thousands) 
Revenue             100,711   112,284  (10%)   364,780   365,477  0% 
   Cost of 
    revenue 
    (exclusive of 
    depreciation 
    and 
    amortization)  (15,461)  (17,068)         (54,979)  (61,020) 
   Depreciation 
    and 
    amortization 
    attributable 
    to cost of 
    revenue        (13,143)  (12,139)         (50,912)  (47,372) 
Gross profit 
 (IFRS)              72,107    83,077  (13%)   258,889   257,085  1% 
   Depreciation 
    and 
    amortization 
    attributable 
    to cost of 
    revenue          13,143    12,139           50,912    47,372 
   Cost of 
    revenue 
    (exclusive of 
    depreciation 
    and 
    amortization)    15,461    17,068           54,979    61,020 
   Performance 
    media cost      (2,939)   (7,122)         (11,651)  (21,976) 
Contribution 
 ex-TAC 
 (Non-IFRS)          97,772   105,162   (7%)   353,129   343,501  3% 
 
 

Reconciliation of Net Income to Non-IFRS Net Income

 
                         Three months ended       Twelve months ended 
                             December 31              December 31 
                       -----------------------  ----------------------- 
                        2025     2024    %      2025     2024     % 
                       -------  -------  -----  -------  -------  ----- 
($ in thousands) 
Net income              10,536   24,854  (58%)   25,043   35,437  (29%) 
    Amortization of 
     acquired 
     intangibles         5,914    5,409          23,616   23,359 
    Delisting related 
     one-time costs          -    2,094           1,520    2,094 
    Stock-based 
     compensation 
     expenses            4,595    2,782          18,048   11,460 
    Other expenses, 
     net                     -       16               -    1,504 
    Tax effect of 
     Non-IFRS 
     adjustments (1)   (2,054)  (2,800)         (8,375)  (8,630) 
Non-IFRS net income     18,991   32,355  (41%)   59,852   65,224   (8%) 
 
Weighted average 
 shares 
 outstanding--diluted 
 (in millions) (2)        57.5     67.8            61.1     70.1 
 
Non-IFRS diluted 
 earnings per share 
 (in USD)                 0.33     0.48  (31%)     0.98     0.93     5% 
 
 

(1) Non-IFRS net income includes the estimated tax impact from the expense items reconciling between net income and non-IFRS net income

(2) Non-IFRS earnings per share is computed using the same weighted-average number of shares that are used to compute IFRS earnings per share

 
 
            CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 
                              (Audited) 
 
                                                       December 31 
                                                     ---------------- 
                                                      2025     2024 
                                                     -------  ------- 
                                               Note   USD thousands 
                                               ----  ---------------- 
ASSETS: 
    Cash and cash equivalents                    10  133,308  187,068 
    Trade receivables, net                        8  196,101  217,960 
    Other receivables                             8    6,116    4,579 
    Current tax assets                                 1,809    3,373 
                                                     -------  ------- 
 
TOTAL CURRENT ASSETS                                 337,334  412,980 
                                                     -------  ------- 
 
    Fixed assets, net                             5   18,033   15,727 
    Right-of-use assets                           6   27,005   31,500 
    Intangible assets, net                        7  318,376  336,768 
    Deferred tax assets                           4    9,407   17,800 
    Investment in shares                         18   45,000   25,000 
    Other long-term assets                               918      738 
                                                     -------  ------- 
 
TOTAL NON-CURRENT ASSETS                             418,739  427,533 
                                                     -------  ------- 
 
TOTAL ASSETS                                         756,073  840,513 
                                                     =======  ======= 
 
Liabilities and shareholders' equity 
 
LIABILITIES: 
    Current maturities of lease liabilities       6   13,287   14,340 
    Trade payables                                9  207,020  228,514 
    Other payables                                9   41,282   38,526 
    Current tax liabilities                              441    4,677 
                                                     -------  ------- 
 
TOTAL CURRENT LIABILITIES                            262,030  286,057 
                                                     -------  ------- 
 
    Employee benefits                                    213      300 
    Long-term lease liabilities                   6   18,644   22,857 
    Deferred tax liabilities                      4      515      445 
 
TOTAL NON-CURRENT LIABILITIES                         19,372   23,602 
                                                     -------  ------- 
 
TOTAL LIABILITIES                                    281,402  309,659 
                                                     -------  ------- 
 
SHAREHOLDERS' EQUITY:                            15 
    Share capital                                        324      377 
    Share premium                                    278,510  362,507 
    Accumulated comprehensive income (loss)              348  (2,476) 
    Retained earnings                                195,489  170,446 
                                                     -------  ------- 
 
TOTAL SHAREHOLDERS' EQUITY                           474,671  530,854 
                                                     -------  ------- 
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY           756,073  840,513 
                                                     =======  ======= 
 
 
 
      CONSOLIDATED STATEMENTS OF OPERATION AND OTHER COMPREHENSIVE 
                              INCOME (LOSS) 
                                (Audited) 
 
                                                      Year ended 
                                                      December 31 
                                              -------------------------- 
                                               2025     2024      2023 
                                        Note        USD thousands 
                                        ----  -------------------------- 
 
Revenue                                   12  364,780  365,477   331,993 
 
Cost of Revenue (Exclusive of 
 depreciation and amortization shown 
 separately below)                        13   54,979   61,020    62,270 
 
 
Research and development expenses              58,059   49,992    49,684 
Selling and marketing expenses                122,975  112,227   105,914 
General and administrative expenses       14   33,194   41,237    51,051 
Depreciation and amortization                  63,124   58,676    78,285 
Other expenses, net                                 -    1,504     1,765 
                                              -------  -------  -------- 
 
Total operating costs                         277,352  263,636   286,699 
                                              -------  -------  -------- 
 
Operating Profit (loss)                        32,449   40,821  (16,976) 
                                              -------  -------  -------- 
 
Financing income                              (7,010)  (6,657)   (8,192) 
Financing expenses                              2,200    8,946    10,200 
                                              -------  -------  -------- 
 
Financing expenses (income), net              (4,810)    2,289     2,008 
                                              -------  -------  -------- 
 
 
Profit (loss) before taxes on income           37,259   38,532  (18,984) 
 
Tax expenses                               4   12,216    3,095     2,503 
                                              -------  -------  -------- 
 
Profit (loss) for the year                     25,043   35,437  (21,487) 
                                              =======  =======  ======== 
 
Other comprehensive income (loss) 
items: 
Foreign currency translation 
 differences for foreign operations             2,824     (35)     2,126 
Foreign currency translation for 
 subsidiary sold reclassified to 
 profit and loss                                    -        -     1,234 
                                              -------  -------  -------- 
 
Total other comprehensive income 
 (loss) for the year                            2,824     (35)     3,360 
                                              -------  -------  -------- 
 
Total comprehensive income (loss) for 
 the year                                      27,867   35,402  (18,127) 
                                              =======  =======  ======== 
 
Earnings per share 
Basic earnings (loss) per share (in 
 USD)                                     16     0.42     0.51    (0.30) 
Diluted earnings (loss) per share (in 
 USD)                                     16     0.41     0.51    (0.30) 
 
 
 
             CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 
                               (Audited) 
 
                                       Accumulated 
                                      comprehensive 
                     Share    Share      income      Retained 
                    capital  premium     (loss)      Earnings   Total 
                    -------  -------  -------------  --------  -------- 
                                       USD thousands 
                    --------------------------------------------------- 
 
Balance as of 
 January 1, 2023        413  400,507        (5,801)   156,496   551,615 
Total 
comprehensive 
income (loss) for 
the year 
    Loss for the 
     year                 -        -              -  (21,487)  (21,487) 
    Other 
    comprehensive 
    income: 
    Foreign 
     currency 
     translation          -        -          2,126         -     2,126 
    Foreign 
     currency 
     translation 
     for 
     subsidiary 
     sold                 -        -          1,234         -     1,234 
                    -------  -------  -------------  --------  -------- 
 
Total 
 comprehensive 
 income (loss) for 
 the year                 -        -          3,360  (21,487)  (18,127) 
                    -------  -------  -------------  --------  -------- 
 
Transactions with 
owners, recognized 
directly in 
equity 
    Own shares 
     acquired           (8)  (9,306)              -         -   (9,314) 
    Share based 
     compensation         -   19,141              -         -    19,141 
    Exercise of 
     share 
     options             12      221              -         -       233 
                    -------  -------  -------------  --------  -------- 
 
Balance as of 
 December 31, 
 2023                   417  410,563        (2,441)   135,009   543,548 
                    =======  =======  =============  ========  ======== 
 
 
 
                                        Accumulated 
                                       comprehensive 
                     Share    Share       income      Retained 
                    capital   premium     (loss)      Earnings   Total 
                    -------  --------  -------------  --------  -------- 
                                       USD thousands 
                    ---------------------------------------------------- 
 
Balance as of 
 January 1, 2024        417   410,563        (2,441)   135,009   543,548 
 
Total 
comprehensive 
income (loss) for 
the year 
    Profit for the 
     year                 -         -              -    35,437    35,437 
    Other 
    comprehensive 
    loss: 
    Foreign 
     currency 
     translation          -         -           (35)         -      (35) 
 
Total 
comprehensive 
income (loss) for 
the year                  -         -           (35)    35,437    35,402 
                    -------  --------  -------------  --------  -------- 
 
Transactions with 
owners, recognized 
directly in 
equity 
    Own shares 
     acquired          (49)  (61,690)              -         -  (61,739) 
    Share based 
     compensation         -    12,510              -         -    12,510 
    Exercise of 
     share 
     options              9     1,124              -         -     1,133 
 
Balance as of 
 December 31, 
 2024                   377   362,507        (2,476)   170,446   530,854 
                    =======  ========  =============  ========  ======== 
 
 
 
                                         Accumulated 
                                        comprehensive 
                     Share     Share       income      Retained 
                    capital   premium      (loss)      Earnings    Total 
                    -------  ---------  -------------  --------  --------- 
                    USD thousands 
                    ------------------------------------------------------ 
 
Balance as of 
 January 1, 2025        377    362,507        (2,476)   170,446    530,854 
 
Total 
comprehensive 
income for the 
year 
    Profit for the 
     year                 -          -              -    25,043     25,043 
    Other 
    comprehensive 
    income: 
    Foreign 
     currency 
     translation          -          -          2,824         -      2,824 
 
Total 
comprehensive 
income for the 
year                      -          -          2,824    25,043     27,867 
                    -------  ---------  -------------  --------  --------- 
 
Transactions with 
owners, recognized 
directly in 
equity 
    Own shares 
     acquired          (62)  (100,784)              -         -  (100,846) 
    Share based 
     compensation         -     16,353              -         -     16,353 
    Exercise of 
     share 
     options              9        434              -         -        443 
 
Balance as of 
 December 31, 
 2025                   324    278,510            348   195,489    474,671 
                    =======  =========  =============  ========  ========= 
 
 
 
                 CONSOLIDATED STATEMENTS OF CASH FLOWS 
                                (Audited) 
 
                                                    Year ended 
                                                    December 31 
                                          ------------------------------ 
                                            2025       2024       2023 
                                          ---------  ---------  -------- 
                                                  USD thousands 
                                          ------------------------------ 
CASH FLOWS FROM OPERATING ACTIVITIES: 
  Profit (loss) for the year                 25,043     35,437  (21,487) 
  Adjustments for: 
      Depreciation and amortization          63,124     58,676    78,285 
      Net financing expense (income)        (5,082)      1,965     1,699 
      Loss from disposals of fixed and 
       intangible assets                          -          -         2 
      Loss (income) on leases 
       modification                           (151)         10       119 
      Loss and revaluation on sale of 
       business unit                              -         16     1,765 
      Remeasurement of net investment in 
       a finance lease                          195      1,488         - 
      Share-based compensation and 
       restricted shares                     18,048     11,460    19,169 
      Tax expense                            12,216      3,095     2,503 
      Change in trade and other 
       receivables                           21,931   (14,458)    30,603 
      Change in trade and other payables   (21,311)     57,671  (43,077) 
      Change in employee benefits             (103)         63       (1) 
      Income taxes received                   5,225        704       352 
      Income taxes paid                    (11,417)    (5,512)   (8,721) 
      Interest received                       4,416      6,595     8,016 
      Interest paid                         (2,025)    (6,375)   (8,486) 
                                          ---------  ---------  -------- 
 
  Net cash provided by operating 
   activities                               110,109    150,835    60,741 
                                          ---------  ---------  -------- 
 
CASH FLOWS FROM INVESTING ACTIVITIES 
  Change in pledged deposits, net             (276)        390     1,498 
  Payments on finance lease receivable        1,246      1,824     1,112 
  Repayment of debt investment                  103         95        51 
  Acquisition of fixed assets              (12,118)    (7,742)   (4,495) 
  Acquisition and capitalization of 
   intangible assets                       (17,577)   (15,779)  (15,126) 
  Investment in shares                     (20,000)          -         - 
 
  Net cash used in investing activities    (48,622)   (21,212)  (16,960) 
                                          ---------  ---------  -------- 
 
CASH FLOWS FROM FINANCING ACTIVITIES 
  Acquisition of own shares               (101,702)   (60,735)   (9,518) 
  Proceeds from exercise of share 
   options                                      443      1,133       233 
  Leases repayment                         (16,265)   (15,142)  (17,262) 
  Repayment of long-term debt                     -  (100,000)         - 
 
   Net cash used in financing activities  (117,524)  (174,744)  (26,547) 
                                          ---------  ---------  -------- 
 
  Net increase (decrease) in cash and 
   cash equivalents                        (56,037)   (45,121)    17,234 
                                          ---------  ---------  -------- 
 
CASH AND CASH EQUIVALENTS AS OF THE 
 BEGINNING OF YEAR                          187,068    234,308   217,500 
EFFECT OF EXCHANGE RATE FLUCTUATIONS ON 
 CASH AND CASH EQUIVALENTS                    2,277    (2,119)     (426) 
                                          ---------  ---------  -------- 
 
CASH AND CASH EQUIVALENTS AS OF THE END 
 OF YEAR                                    133,308    187,068   234,308 
                                          =========  =========  ======== 
 

(END) Dow Jones Newswires

March 04, 2026 07:30 ET (12:30 GMT)

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