Nexxen International Ltd. (NASDAQ: NEXN) finished a share repurchase of 427,500 ordinary shares in November 2025, buying the shares at an average price of $7.11 each. The transaction lowered the company’s outstanding shares to 56,669,327 and left roughly $10.8 million of the current repurchase authorization unused as of November 30.
The company also announced on November 20 that it is seeking approval to launch a new ordinary share repurchase program of up to $40 million. The new program will commence after the current one ends and is subject to Israeli regulatory requirements—including a 30‑day creditor objection period—and lender consent, which could delay its activation.
Nexxen’s consistent share‑buyback activity signals management’s confidence that the stock is undervalued, especially after a 44% decline over the past six months and a trading price near its 52‑week low. The company’s strong balance sheet—more cash than debt and a free‑cash‑flow yield of 28%—provides the liquidity needed to fund the buybacks without compromising operational investments.
The company’s Q3 2025 earnings, released earlier in the year, showed a $4.2 million net profit, up 66.7% year‑over‑year but down 51.4% from the prior quarter, driven by a mix shift toward higher‑margin programmatic revenue. Contribution ex‑TAC rose 8% to $92.6 million, while adjusted EBITDA fell year‑over‑year, reflecting increased investment in AI and connected‑TV capabilities. Management noted that short‑term headwinds—softness in select channels and shifting customer spending—prompted a lower full‑year guidance, but the company remains confident in its long‑term growth prospects.
The new $40 million program is part of Nexxen’s broader capital‑allocation strategy, which has included a $50 million program completed in Q3 2025 and a $20 million program launched in the same quarter. By returning capital to shareholders, Nexxen aims to support its share price and enhance earnings per share, while maintaining a strong liquidity position to fund ongoing investments in generative AI and expanded CTV capabilities.
The announcement underscores the company’s belief that its valuation is attractive amid a broader market downturn, and it reflects management’s willingness to use excess cash to create shareholder value while navigating regulatory and lender constraints that could delay the new program’s execution.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.