Nexxen (NEXN) Reduces 2025 Guidance After Earnings—Is Market Optimism Outpacing Programmatic Reality?

• Nexxen International Ltd. recently reported third quarter 2025 earnings, showing sales of US$94.79 million and net income of US$4.21 million, both compared to the same period last year.
• Despite increased year-to-date sales and improved nine-month net income, the company lowered its full-year 2025 financial guidance, highlighting shifts in its programmatic revenue outlook.
• We'll examine how Nexxen's reduced full-year earnings guidance alters the company's investment narrative and future business expectations.

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Nexxen International Investment Narrative Recap

Owning Nexxen International stock requires confidence in the company’s ability to leverage its exclusive data and programmatic advertising solutions, even as current industry headwinds slow expected near-term growth. Nexxen’s recent decision to lower its full-year 2025 financial guidance draws attention to softer programmatic revenue trends, a factor that now weighs more heavily on the most important short-term catalyst: expanding programmatic market share; it also re-emphasizes the ongoing risk of secular declines in some legacy business lines and potential for capital allocation missteps, though the impact is material mainly for short-term expectations.

Among recent announcements, the lowered full-year guidance directly addresses the latest financial results, linking the cautious outlook to updated programmatic growth forecasts. This remains the most relevant development because programmatic revenue growth is central to Nexxen’s investment story, both as a primary driver of future scale and as an indicator of competitive strength amid changing advertiser demands.

However, what many investors may not realize is that while Nexxen continues to tout its data partnerships, there remains a long-term risk that...

Read the full narrative on Nexxen International (it's free!)

Nexxen International is projected to achieve $473.9 million in revenue and $50.5 million in earnings by 2028. This outlook is based on an assumed annual revenue growth rate of 8.4% and represents a modest earnings increase of $0.8 million from current earnings of $49.7 million.

Uncover how Nexxen International's forecasts yield a $16.14 fair value, a 151% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value estimates for Nexxen range widely from US$10.64 to US$23.33 per share. As market participants weigh ongoing risks to legacy revenue streams, it’s clear that investor expectations for future performance can differ dramatically.

Explore 3 other fair value estimates on Nexxen International - why the stock might be worth just $10.64!

Build Your Own Nexxen International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Nexxen International research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Nexxen International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Nexxen International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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