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NEXN, Nexxen International Ltd.

Software asset-light Cyclical

Nexxen is a global, flexible advertising technology platform with deep expertise in data and advanced TV that provides advertisers, agencies, digital publishers, broadcasters, and others with technology and data solutions to plan, buy, manage, sell, and measure advertising across the digital advertising supply chain.

While supporting digital advertising efforts across formats and devices, Nexxen maintains a particular focus on some of the industry's fastest-growing segments, including Connected TV ("CTV"), Video, and data-driven solutions, supported by a global team of seasoned technologists and industry experts.

Publishers rely on advertising to support their businesses and brands, and advertisers use digital channels to reach targeted and measurable audiences to maximize effectiveness and returns.

Latest annual: FY2025 20-F · 1 ADS = 2 ordinary shares

NEXN · Nexxen International Ltd.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$365M

−0.2% YoY · 11% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $365M 5-yr avg $348M

Gross margin 85% 5-yr avg 82%

Operating margin 8.9% 5-yr avg 10.0%

ROIC 6% 5-yr avg 11%

Owner-earnings margin 27% 5-yr avg 31%

Free cash flow margin 27% 5-yr avg 31%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Gross margin has run about 81% and operating margin about 8.9% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. The margin is cyclical, swinging between −5.1% and 22% over the years, so the through-cycle figure carries more than any single year — and the balance sheet at the trough more than the peak. Read this kind of business on retention and the cost of growth. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median 6%, above 15% in 1 of 7 years). The steadier read is owner earnings: roughly 23% of revenue reaches owners as cash, consistently. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2019–2025

realized figures from each filing · older years to the left

2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMDec 2025
								Income statement
$326M	$212M	$342M	$335M	$332M	$365M	$365M	$365M	RevenueRevenue
43%	72%	79%	82%	81%	83%	85%	85%	Gross marginGross mgn
$4M	($6M)	$74M	$45M	($17M)	$41M	$32M	$32M	Operating incomeOp. inc.
1.2%	−2.8%	21.8%	13.3%	−5.1%	11.2%	8.9%	8.9%	Operating marginOp. mgn
$6M	$2M	$73M	$23M	($21M)	$35M	$25M	$25M	Net incomeNet inc.
—	—	-1%	46%	—	8%	33%	33%	Effective tax rateTax rate
								Cash flow & returns
$45M	$35M	$170M	$83M	$61M	$151M	$110M	$110M	Operating cash flowOp. cash
$32M	$45M	$40M	$43M	$78M	$59M	$63M	$63M	DepreciationDeprec.
$6M	($12M)	$57M	$18M	$4M	$57M	$22M	$22M	Working capital & otherWC & other
$1M	$594K	$3M	$6M	$4M	$8M	$12M	$12M	CapexCapex
0.3%	0.3%	1.0%	1.9%	1.4%	2.1%	3.3%	3.3%	Capex / revenueCapex/rev
$44M	$35M	$167M	$77M	$56M	$143M	$98M	$98M	Owner earningsOwner earn.
13.5%	16.3%	48.8%	22.8%	16.9%	39.2%	26.9%	26.9%	Owner earnings marginOE mgn
$44M	$35M	$167M	$77M	$56M	$143M	$98M	$98M	Free cash flowFCF
13.5%	16.3%	48.8%	22.8%	16.9%	39.2%	26.9%	26.9%	Free cash flow marginFCF mgn
$25M	$10M	$7M	$86M	$10M	$61M	$102M	—	BuybacksBuybacks
2%	-2%	36%	6%	-3%	11%	6%	6%	ROICROIC
2%	1%	13%	4%	-4%	7%	5%	5%	Return on equityROE
2%	1%	13%	4%	−4%	7%	5%	5%	Retained to equityRetained/eq
								Balance sheet
$79M	$97M	$368M	$218M	$234M	$187M	$133M	$133M	Cash & investmentsCash+inv
—	$154M	$165M	$220M	$202M	$218M	$196M	$196M	ReceivablesReceiv.
—	$154M	$165M	$220M	$202M	$218M	$196M	$196M	Operating working capitalOper. WC
—	$271M	$552M	$462M	$452M	$413M	$337M	$337M	Current assetsCur. assets
—	$185M	$221M	$281M	$229M	$286M	$262M	$262M	Current liabilitiesCur. liab.
—	1.5×	2.5×	1.6×	2.0×	1.4×	1.3×	1.3×	Current ratioCurr. ratio
—	—	$5M	$92M	—	—	—	$92M	GoodwillGoodwill
—	$535M	$803M	$956M	$905M	$841M	$756M	$756M	Total assetsAssets
—	—	$0	$99M	$99M	$0	—	$0	Total debtDebt
—	—	($368M)	($119M)	($135M)	($187M)	—	($133M)	Net debt / (cash)Net debt
3.6×	-3.2×	27.9×	9.7×	-1.7×	4.6×	14.7×	14.7×	Interest coverageInt. cov.
$301M	$329M	$572M	$552M	$544M	$531M	$475M	$475M	Shareholders’ equityEquity
								Per share
55.6M	67.0M	72.2M	75.0M	71.8M	69.0M	59.8M	59.8M	Shares out (diluted)Shares
$5.86	$3.16	$4.73	$4.47	$4.62	$5.30	$6.10	$6.10	Revenue / shareRev/sh
$0.11	$0.03	$1.01	$0.30	$-0.30	$0.51	$0.42	$0.42	EPS (diluted)EPS
$0.79	$0.52	$2.31	$1.02	$0.78	$2.07	$1.64	$1.64	Owner earnings / shareOE/sh
$0.79	$0.52	$2.31	$1.02	$0.78	$2.07	$1.64	$1.64	Free cash flow / shareFCF/sh
$0.02	$0.01	$0.05	$0.09	$0.06	$0.11	$0.20	$0.20	Cap. spending / shareCapex/sh
$5.41	$4.91	$7.92	$7.36	$7.57	$7.69	$7.94	$7.94	Book value / shareBVPS

Share counts before 2022 are restated ×1/2 for a stock split, so per-share figures sit on one basis.

Per-share growththe realized rate an owner's share compounded

	6-yr	5-yr
Revenue / share	+0.7%/yr	+14.0%/yr
Owner earnings / share	+12.9%/yr	+26.0%/yr
EPS	+24.6%/yr	+67.3%/yr
Capital spending / share	+48.2%/yr	+87.0%/yr
Book value / share	+6.6%/yr	+10.1%/yr

The record, charted

FY2019–2025

Each measure over its full record; the current point and the worst year marked. Share counts on the current split basis.

Share count

60Mpeak FY2022

ROIC

6%low FY2023

Gross margin

85%low FY2019

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$98Mowner earningsvs.$25Mnet incomelow FY2020

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2019FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $25M of profit into $98M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$25M

Owner earnings$98M · 27% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$25M	$35M	($21M)	$23M	$73M
Depreciation & amortizationnon-cash charge added back	+$63M	+$59M	+$78M	+$43M	+$40M
Working capital & othertiming of cash in and out, other non-cash items	+$22M	+$57M	+$4M	+$18M	+$57M
Cash from operations	$110M	$151M	$61M	$83M	$170M
Capital expenditurecash put back in to keep running and to grow	−$12M	−$8M	−$4M	−$6M	−$3M
Owner earnings	$98M	$143M	$56M	$77M	$167M
Owner-earnings marginowner earnings ÷ revenue	27%	39%	17%	23%	49%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 20-F · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 14.7×

Comfortable

Operating income $32M ÷ interest expense $2M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? +$133M

Net cash, debt-free

Cash $133M − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $133M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital 6%

Below average through the cycle

7-yr median, range -3%–36%; 6% latest = NOPAT $22M ÷ invested capital $341M

Industry peers: median 4%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 7 years (it ran 6% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 23%

High through the cycle

7-yr median margin, range 14%–49%; latest $98M = operating cash $110M − maintenance capex $12M

Industry peers: median 14%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 27% of revenue this year, a 23% median across 7 years.
Are earnings backed by cash? 4.40×

Cash-backed

Cash from ops $110M ÷ net income $25M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 104%

Returned more than it generated

Dividends + buybacks $102M ÷ Owner Earnings $98M

What this means
The company returned more than it generated: against $98M of Owner Earnings, $102M (104%) went back to shareholders, $0 dividends, $102M buybacks — the excess came from the balance sheet or borrowing, not the year's operations. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
Investing or harvesting? 0.19×

Harvesting

Capex $12M ÷ depreciation $63M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 1 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $365M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 1.29×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $0 vs $75M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Near

A profit every year (7-yr record) · 1 loss year

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Miss

Earnings +33% over the record · −52%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.23/share (latest year $0.44), the averaged base the calculator's gate runs on, and book value is $8.43/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2019–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 6 of 7

What this means
Lost money in 1 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 1 of 4 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 7% → 5% (3-yr avg ends)

In the filing’s words The margin has held, but the filing names price competition — the pressure is present even where the margin has absorbed it so far.

What this means
Through the cycle the operating margin held roughly steady — about 7% early, 5% lately, median 9%.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +21%/yr

What this means
Owner earnings grew about 21% a year over the record.
Worst year 2023 · −5.1% op. margin

What this means
Operations went underwater in 2023, understand why before trusting the good years.
How management talks about it Promotional

What this means
The record is compounding, but the filing leans on a promoter’s vocabulary rather than the per-share, return-on-capital terms an owner uses. The results back the talk here; the register is still worth noting.

Does AI threaten the moat?

Elevated contestability

The product is software or information, the very thing capable AI now produces more cheaply, so the moat is more contestable than the record alone implies.

In its own filing A competitive risk, new this year

Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.

“As competitors grow in scale, they may gain greater control over critical data, advanced AI-driven targeting capabilities, or proprietary ad-serving technologies, which could place us at a competitive disadvantage.”

AI has collapsed the cost of building a capable substitute for the very thing this business sells. When a credible alternative can be assembled for a fraction of the incumbent's price, it is pricing power that erodes first, not revenue tomorrow. The live question is whether the moat survives that, not whether it held in the past. Whether that question is answerable at all is yours to decide, against your own circle of competence.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of fiscal year-end, Dec 31, 2025

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$337M

Cash & short-term investments$133M
Receivables$196M
Other current assets$8M

Current liabilities$262M

Other current liabilities$262M

Current ratio1.29×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.29×stricter: inventory excluded

Cash ratio0.51×strictest: cash alone against what's due

Working capital$75Mthe cushion left after near-term bills

Deeper floors

Tangible book value$382Mequity stripped of goodwill & intangibles

Net current asset value$56MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$34M$34M of it operating leases

Deferred revenue$11Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2019–2025

Over the record, the business generated $655M of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$36M · 5%
Buybacks$299M · 46%
Retained (debt / cash)$320M · 49%

Returned to owners$299M
48% of the owner earnings the business produced over the span, $0 as dividends and $299M as buybacks.
Average price paid for buybacks—
Buybacks ran $299M over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count7.5%
The diluted count rose from 56M to 60M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Inverting the record

Invert: instead of why Nexxen International Ltd. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2019–2025.

1 of the 3 tests turned up something to look into; the other 2 came back clean.

Look hereDid the share count rise anyway?7.5%
Diluted shares grew 7.5% over 2019–2025, even as the company spent $299M on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.

And these came back clean

Is it less profitable than it was?
Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

Peers, Software

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
EVEREverQuote Inc.	$693M	94%	-3.7%	-34%	1%
ZIPZipRecruiter Inc.	$449M	89%	0.3%	10%	14%
GRNDGrindr Inc.	$440M	—	21.4%	22%	26%
NEXNNexxen International Ltd.	$365M	81%	8.9%	6%	23%
DSPViant Technology Inc.	$344M	46%	1.2%	-8%	13%
HSTMHealthStream Inc.	$304M	86%	5.8%	4%	18%
PUBMPubMatic Inc.	$283M	68%	7.5%	8%	25%
NXDRNextdoor Holdings Inc.	$258M	83%	-55.8%	-24%	-28%
Group median	—	83%	3.5%	5%	16%

The price

What a price has to assume.

What the price implies

reverse-DCF

Enter the US price, in dollars: the NYSE/Nasdaq quote you hold. Per the filing's own cover, “American Depositary Shares ("ADSs"), each of which represented two Ordinary”; Nexxen International Ltd. reports in USD, so every figure in this tool is stated per ADS so your dollar quote reconciles exactly. The record tables elsewhere on this page remain as filed.

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Nexxen International Ltd. has delivered.

Nexxen International Ltd.’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Nexxen International Ltd. earns about $83M on its 22.8% median owner-earnings margin. This year’s 26.9% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($83M) Net of stock comp

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25−0%/yr

Owner-earnings growth · ’19→’25+21%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $98M on 28M shares outstanding, per the 20-F cover, as of 2025-12-31; net cash $133M. The if-converted diluted count is 30M, 6% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh NEXN against another business →

Cite: Owner Scorecard, "Nexxen International Ltd. (NEXN), the owner's record," https://ownerscorecard.com/c/NEXN, data as of 2026-07-09.

Manual order: ← NEXA its page in the Manual NFGC →

Industry order: ← NET the Software chapter NICE →