Q: You framed Next.ai as a growth engine and not just a productivity enhancer. Can you walk through the specific mechanisms of how AI will help drive incremental revenue today versus improving internal efficiency? A: Ofer Druker, CEO: AI is creating two things. First, when people test our platform with AI, they get much better campaign outcomes, driving them to move more budget to us. Second, when we teach new clients about our technology, showing the outcomes they can generate, it helps us onboard more clients and get them to run more budget with us. The power of NextAI comes from the fundamental end-to-end platform it's built on, which is a big advantage.

Q: How much of the CTV acceleration is driven by native home screen ad units and ACR data integration through the Vizio partnership versus core stream inventory? What does the pricing CPM environment look like heading into the second half of '26? A: Ofer Druker, CEO: The growth is without most of the elements you indicated. Nexxen TV Home Screen is still early in revenue and not contributing to this growth. The growth is coming from business initiatives and data utilization. The next wave of growth will come from native ads, increased business initiatives, and data. We are the first to enable OEMs to run programmatic advertising on TV home screens, and while it's working, it will kick in mostly in Q4 and mainly in 2027.

Q: Could you talk through in a little bit more detail how you were able to raise your contribution ex-TAC outlook but not raise the EBITDA? What is it that you're spending more on than you anticipated? A: Ofer Druker, CEO & Sigi Niri, CFO: We need to invest first to grow the business. The FX ratio between the dollar and the new shekel, where about 20% of our employees are in Israel, is also a factor. On a half-year basis, FX fluctuations cost us around $2.5 million without changing anything. We believe this investment is the right thing to grow the business and take market share, and we are working to optimize operations so growth will compensate on the EBITDA side.

Q: You highlighted Nexxen Home Screen as a meaningful contributor beginning in 4Q with acceleration through 2027. Can you talk about the size of this opportunity and the visibility you have into early demand? A: Ofer Druker, CEO: We proved the capability to run different formats programmatically on the home screen with targeting, measurement, and counting. We are already running campaigns with leading companies globally. We signed with The Trade Desk and are working with other DSPs on integration. We are also talking to other OEMs beyond Vizio. We believe in Q4 we will see a pipeline, and in 2027 it will become more mainstream, with meaningful contribution mostly in the second half of the year.

Q: This was the first quarter in a while where you haven't bought back shares. What signals are giving you confidence that internal reinvestment is the right move, and what types of M&A opportunities are raising your interest? A: Ofer Druker, CEO: The extra investment we made in the past 12 months generated better results, demonstrated by our 13% programmatic growth guidance. We are not removing buyback from the table, but we are also looking at acquisitions that will not be massive or disruptive but can increase capabilities in growth areas like CTV, in-app mobile, and AI. We have the cash, no debt, and are generating cash, so we are looking at all opportunities.

Q: We've heard the automotive vertical as being a drag for some peers. In your remarks, you cited it as a growth vertical. What are the reasons you're able to beat the general industry trend of softness there? A: Ofer Druker, CEO: The car industry knows what they are looking for with good KPIs, and we are able to serve them well. While there is an overall slowdown, we are able to satisfy some needs and grow interaction with these providers. As shown in our case studies, we generate great success with these clients and are working hard to bring more clients to our platform to utilize our success.

Q: What metrics or milestones should investors watch over the next 12 months to determine whether enterprise engagement and AI adoption are translating into durable share gains? A: Ofer Druker, CEO: Investors should look at overall net revenue growth, which is the purpose of this investment. When clients run on more than one of our platforms, it grows revenues and builds loyalty. The major test is revenue. We are happy to demonstrate 13% year-over-year growth on the programmatic level and 32% growth on CTV, showing we are on the right track. This year is a transition, and we will see additional growth next year.

Q: On operating expenses and the outlook, we've seen accelerating growth paired with a little bit of contraction on EBITDA margins. Can you talk about the outlook for OpEx and EBITDA margin expansion in the coming quarters? A: Sigi Niri, CFO: We are seeing intentional strategic growth investment around AI, data, infrastructure, platform capabilities, and enterprise go-to-market. The long-term EBITDA objective is unchanged at 40%. In 2026, our guidance reflects a 32% adjusted EBITDA margin, about 1% less than 2025. Going into 2027, we see efficiencies already put in place, and we feel we can reach a 34% EBITDA margin in 2027.

Q: On enterprise spend, is the growth primarily driven by go-to-market execution or newer products resonating with customers? A: Ofer Druker, CEO: It starts with better go-to-market implemented in the last 12 months, with great talent and better training. People understand the value of the full platform. When clients see one platform delivering better results, they shift more spend. We see agencies moving more

For the complete transcript of the earnings call, please refer to the full earnings call transcript .