Welcome to Nexen's second quarter earnings call. At this time, participants are in a listen-only mode with a question-and-answer session to follow at the end of the presentation. This call is being recorded and a replay will be made available on Nexen's Investor Relations website. I will now hand the call over to Billy Eckhart, Vice President of Investor Relations, for introductions and the reading of the Safe Harbor Statement. Billy, please go ahead.

Thank you, Operator.

Good morning, everyone, and welcome to Nexen's second quarter earnings call. During today's call, we will discuss our financial and operating results for the three and six months ended June 30th, 2026, as well as our forward-looking guidance. With us on today's call are Ofer Druker, Nexen's chief executive officer, and Teghi Niri, the company's chief financial officer. This morning, we issued a press release, which you can access on our IR website at investors.dexon.com. During today's call, we will make forward-looking statements. All statements other than statements of historical facts may be deemed forward-looking. We advise caution in relying on them. These statements include, without limitation, statements and projections regarding our anticipated future financial and operating performance, market opportunity, growth prospects, strategy, and financial outlook. They also include, without limitation, statements regarding our partnerships and anticipated benefits related to those partnerships, as well as expected benefits from our growth initiatives and platform investments. In addition, we may provide forward-looking views on macroeconomic and industry conditions and other statements regarding the expected development, performance, market share, or competitive position of our products and services. All forward-looking statements are based on information available to us as of the date of this call. These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those implied by these statements. These include, among other things, unexpected changes in our business or macroeconomic or industry conditions. More detailed information about these risk factors and additional risk factors are set forth in our filings with the U.S. Securities and Exchange Commission, including, but not limited to, those listed in the section entitled Risk Factors in our most recent annual report on Form 20-F. Necton does not intend to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Additionally, the company's press release and management statements during this call will include discussions of certain measures and financial information in IFRS and non-IFRS We refer you to the company's press release for additional details, including definitions of non-IFRS items and reconciliations of IFRS to non-IFRS results. At this time, it is my pleasure to introduce Ofer Druker, CEO of Nexen. Ofer, please go ahead.

Thanks, Billy. Q2 was another strong quarter as we delivered record results well ahead of consensus estimates highlighted by our best CTV revenue quarter in company history. Our outperformance enables us to raise our full-year contribution, XTAC, and programmatic revenue guidance for the third time this year and reflects continued execution against our long-term strategy. The investments we have made across the major elements of our platform, alongside our enhanced AI capabilities and tighter, sharper, go-to-market approach, are improving execution. These investments are translating into stronger adoption, accelerating spend ramp, and growing platform usage by clients and partners. We have continued to onboard a growing number of enterprise customers, and as they scale, spend, and adapt more solutions, we believe they will support our growth in the second half and over the coming years. We are also strengthening our CTV leadership through our growing strategic commercial initiative and innovations like Nexen TV Home Screen. At the same time, we have continued to expand in AI-resilient channels, such as mobile in-app, reinforcing several long-term growth drivers. As AI reshared programmatic advertising, we believe differentiation will be driven not simply by AI capabilities, but by the strength of the integrated platform on which those capabilities are built and the core platform elements that power them, including proprietary data, exclusive media assets, and open, interoperable technology. Those are areas where Nexen has built a durable competitive advantage through both our differentiated products and integrated end-to-end platform strategy, enabling us to innovate across the programmatic value chain. While many view AI as mainly an efficiency tool, we are using AI primarily to drive growth by delivering stronger outcomes and expanding the benefits customers can realize from our platform. We strongly believe that Next.ai can represent a meaningful long-term strategic growth engine for Nexen, not just a productivity in answer. Over the last several quarters, we have made significant strides in our enterprise go-to market execution while enhancing our DSP's full-funded performance, usability, and integration with Next.ai. The investments we have made are helping us attract enterprise customers with large, more recurring budgets and fueling deeper platform-wide engagement. In Q2, we announced our new DSP UI and enhanced NextAI DSP assistance, both of which are seeing growing usage across our enterprise customer base while improving performance and efficiency. Customers are also benefiting from our DSP's tighter integration with Nexen Discovery, our proprietary audience insights and segmentation solution. This deeper integration is helping customers identify and activate new audiences using differentiated insights to expand, reach, and drive stronger outcomes. We also significantly enhance our first-party data onboarding capabilities, enabling advertisers to move audiences from uploads to activation within 24 hours. Alongside our enhanced unified identity graph, these innovations simplify activation, strengthen intelligence, improve effectiveness, and accelerate campaign execution. Built upon our DSP's direct integration with Nexen Discovery, our proprietary data assets, and our SSP premium media supply, these enhancements are strengthening an already differentiated enterprise value proposition. They are delivering even stronger results and driving customer adoption across more of our end-to-end solutions. For example, after initially onboarding as a DSP customer, Toyota expanded to leverage our data capabilities, Nexen Discovery, and our media supply, generating approximately 2.7 times the return on ad spend and a 62% reduction in cost per vehicle sold. Supported by growing adoption and elevation, enterprise spend increased by over 25% year over year in Q2, and our pipeline remains strong. Additionally, the number of advertisers activated through enterprise customers increased from less than 400 in Q2 2025 to over 750 in Q2 2026, with each leveraging more than one solution across our platform. Our CTV momentum continues in Q2 as we deliver CTV revenue growth of 33% year-over-year, with year-over-year momentum carrying into Q3. Growth was broad-based as customers continue to increase spend across our integrated CTV technology solutions, exclusive TV data assets, and premium media. As enterprise customers continue scaling spend and new publishers on board, we believe we are well-positioned to expand our CTV revenue footprint over the long term. Momentum behind Nexen TV home screen, our industry-first programmatic smart TV home screen ad activation solution also continues to build. We expect Nexen TV home screen to begin contributing more meaningfully to revenues in Q4 with contribution ramping throughout 2027, supported by a strong pipeline across demand and OEM partners. Looking ahead, we are also continuing to expand our performance-based CTV capabilities, which we believe can further support our long-term CTV revenue growth opportunity. Beyond CTV, we're also continuing to benefit from execution against our mobile in-app strategy, which helps drive significant year-over-year mobile revenue growth in Q2, with year-over-year momentum continuing into Q3. Our SDK integration with Unity and others have strengthened our position in this AI resilient channel, expanding monetization opportunities across our platform. We continue to believe mobile in-app will remain a durable long-term growth driver. Beyond improving our platform today, we are also positioning Nexen for the next evolution of programmatic advertising, where AI agents increasingly help advertisers and agencies plan and execute campaigns. We believe Next.ai represents a core differentiator built on the advantages of our end-to-end platform, proprietary data, premium media assets, and audience intelligence. Today, Next.ai is already helping drive stronger customer outcomes, accelerating adoption, and beginning to contribute to revenue growth. And we believe its value will continue to expand over time. Our initial focus with XAI has been on expanding its in-platform adjuncting capabilities across the campaign lifecycle. We already have agents assisting customers with reporting, audience research, QA, and troubleshooting. And we plan to introduce additional agents supporting media planning, audience creation, optimization, and advanced creative automation soon. As these capabilities continue to mature, we believe they will further support growing enterprise and publishers' engagements. During Q2, we also announced NextAI interoperability, which will enable our AI agents to connect with external AI agents through open standards, such as MCP and agent-to-agent interoperability. This will allow advertisers and agencies to access Nexen's data, audience intelligence, and activation capabilities directly from the AI tools and environments they already use. We believe interoperability will become more and more important as enterprises build out their own AI ecosystems. Our strategy is to ensure that whether campaigns are run on Nexen or through our customers' own AI assistance, we remain a trusted source of data, intelligence and campaign execution across those workflows, as well as an integral part of our partners' AI infrastructure. Additionally, we are continuing to expand our dedicated AI teams to increase our focus on accelerating product innovation. Today, AI supports approximately 95% of our software development efforts, enabling our teams to deliver new capabilities faster while enhancing efficiency and supporting long-term operating leverage. We expect these benefits to continue scaling into late 2026 and beyond. In closing, we are continuing to execute against our strategy while investing in the priorities we believe matters most. Accelerating enterprise adoption, growing our CTV leadership, deepening our mobile in-app footprints, enhancing our data capabilities, and advancing our AI leadership through expanded NextAI products and solutions. Together, we believe these investments are strengthening our competitive position while creating several durable long-term growth drivers. In H2, we expect to continue executing strongly and to also generate incremental revenues around the U.S. mid-term elections, which are expected to represent a strong political advertising cycle. To support our next phase of growth, we have also made important enhancement to our leadership team. Chance Johnson, our former Chief Commercial Officer, has been promoted to President of Nexen. Chance will focus on strengthening Nexen's relationship with strategic clients and partners by better demonstrating how the company-connected, robust, and differentiated full-platform capabilities can uniquely position them for success in the market. Cara Fuccinelli, formerly our Chief Customer Officer, has assumed the role of Chief Commercial Officer and will continue managing the company's enterprise offering. Finally, Ken Su, formerly Nexen Chief Strategy Officer, has assumed the role of Chief Business Officer, continued to position the company to capitalize on growth opportunities across its exchange business, particularly within mobile, in-app, and CTV. Chance, Cara, and Ken's leadership role strengthen our commercial organization, unify execution, and position us to accelerate growth across our core drivers, including enterprise, CTV, and mobile. I have the utmost confidence in each of them. As CEO, I will continue focusing on excellent short-term execution and long-term strategy while supporting our leadership team as we execute against that strategy. With that, I will turn the call to Sagi.

Thank you, Ofer. Our momentum from Q1 extended into Q2 as we once again generated record results that exceeded Wall Street contenders fueled by continued discipline and execution across our core programmatic growth drivers. In Q2, we delivered contribution XTAC of $97.8 million, a Q2 record reflecting an 11% year-over-year increase. Programmatic revenue was $95.2 million, up 12% year-over-year, also representing a Q2 record. Our outperformance in the quarter was driven by strengths within CTV mobile data products and displays supported by growth across our entertainment, automotive, and health verticals. In contrast, contribution extracts from desktop and our non-programmatic business lines declined year over year, and we observed softness within our travel verticals. During Q2, we initiated a strategic wind-down of our non-programmatic influencer marketing business, Rhythm Influence. The wind-down resulted in restructuring expenses in the quarter, but we do not expect it to have a material impact on contribution X-TAC or adjusted EBITDA in H2. We are continuing to evaluate strategic options for our remaining non-programmatic business line to further improve our business mix and sharpen our programmatic focus. Growth in the quarter was highlighted by CTV as we delivered all-time record quarterly CTV revenue of $37.8 million, up 33% year-over-year, and that year-over-year momentum has continued to this point in Q3. CTV revenue growth was broad-based across our platform and not concentrated in any one particular area of the business. Mobile revenue increased 23% year-over-year in Q2, driven by execution against our mobile enough strategy, and that year-over-year strength has also continued into Q3. Contribution extracts from data products, TMPs, and display increased 46%, 23%, and 18% year-over-year, respectively, while desktop revenue declined by 13%. Adjusted EBITDA for Q2 came in ahead of Wall Street's consensus at $27.6 million, representing a 28% margin as a percentage of contribution extracts. The year-over-year change in adjusted EBITDA primarily reflects increased investment across AI, data, infrastructure, go-to-market execution, and platform capabilities to support the company's long-term growth opportunities. We remain confident in our ability to expand margins over time through execution against our end-to-end enterprise strategy, NextAI-driven operational efficiencies, and deep-deplanned cost management. In Q2, we generated $61.3 million of operating cash flow, compared to $17.4 million in Q2 2025. Our cash and cash equivalents increased significantly quarter over quarter to $132 million as of June 30, reflecting strong operating performance as well as the collection of receivables outstanding at the end of Q1. We continue to maintain a debt-free balance sheet with an additional $50 million of available capacity under our revolving trade stability. Non-IFRS diluted earnings per share was $0.23 in Q2 compared to $0.29 in Q2 2025. On capital allocation, we did not re-purchase any shares during Q2. We prioritized maintaining financial flexibility while evaluating disciplined M&A opportunities alongside opportunities to deploy capital across our long-term strategic priorities, including continuing investment in AI, data, platform capabilities, and go-to-market execution. Next, then, adds authorization to initiate a new repurchase program of up to $40 million. We also expect to complete our additional $15 million investment in B during Q3, bringing our total investment to $60 million and our equity ownership stake to approximately 6%. Additionally, we are continuing to evaluate disciplined strategic opportunities that can further strengthen our mobile in-app, PTV data and AI capabilities, and accelerate long-term programmatic revenue growth. Turning to our outlook, we are raising our full-year 2026 Contribution-X-TAC and Programmatic Revenue Guidance, last provided on June 16th. We now expect contribution X-TAC in the range of $388 million to $402 million, up from our previous guidance of $385 million to $400 million, representing approximately 12% year-over-release growth at the midpoint. Programmatic revenue is now expected in the range of $380 to $393 million, up from our previous guidance of $377 to $391 million, representing approximately 13% year-over-year growth at the midpoint. This reflects our fair top-line guidance raised this year. Since issuing the initial full-year guidance in March, we've increased the midpoint of our contribution extra growth estimates from approximately eight percent to approximately 12 percent and the midpoint of our programmatic revenue growth estimates from approximately 10 percent to approximately 13 percent we are reaffirming our full year 2026 adjusted data guidance which we continue to respect in the range of 122 to 132 million dollars representing approximately 10% year-over-year growth and a 32% margin on a contribution ex-tax basis at the midpoint. Our reaffirmed adjusted EBITDA guidance primarily reflects our expectation to continue investing across our strategic growth initiatives and platform capabilities in H2. Our outperformance in Q2 and long-stage continued momentum into Q3 and increased visibility into to the reminder of the year, enable us to increase our contribution, stack and programmatic revenue guidance. We're seeing continued year-over-year momentum across our core drivers to this point in Q3 and believe growth in the back half will be driven by accelerating enterprise customer engagement, growing end-to-end utilization and continued strength within CTV mobile and data products. We continue to believe Nexen TV on screen will further support our long-term end-to-end CTV revenue opportunity, with initial meaningful contribution expected in Q4 and increasing throughout 2027 and beyond. Additionally, we expect incremental contribution extract benefits in H2 around the U.S. mid-term election cycle. To support our growth drivers, we will continue investing in AI, data, infrastructure, go-to-market execution, and our CTV and mobile in-off capabilities to enhance performance, capitalize on the revenue opportunities ahead and extend long-term operating leverage. In summary, we believe Nexten is well-positioned not only for the second half, but also for leadership in the next generation of programmatic advertising, supported by our strong financial position, improving business mix, and accelerating growth profiles. We are continuing to execute while building upon the advantages of our end-to-end platform and doubling down on our most compelling growth opportunities across enterprise, TTV, mobile Linux, data, and AI. Through disciplined execution and continued investment across our platform and highest priority growth engine, we believe Nexen is coised to deliver sustainable, profitable growth while creating long-term value for both customers and shareholders. As always, we thank our shareholders, employees, and partners for their support. Operator, we'll now take questions.

At this time, if you would like to ask a question, press star, followed by the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Your first question comes from Jason Cryer with Craig Hallam.

Thank you, guys. Pretty impressive growth in connected TV, particularly, you know, taking into consideration the turnaround that you guys have orchestrated there over the last couple of quarters. Can you just talk about what's driven that turnaround or the primary, you know, growth drivers in connected TV? And then what is your view of the durability of those growth rates?

Thank you, Craig. It's all fair. And I agree. I think that we see growth across all elements of our company, but it's really meaningful to see the growth over the CTV year over year. And it's coming from a few things that we've done lately, but most of that is better execution in generally speaking, meaning bringing more sales, more demand sources into the mix. We said, we spoke about the growth of our enterprise solution and we are incentivizing our clients that are using our enterprise solution to buy on our properties of the CTV so we see growth also from that direction coming in and lately we also issue new initiatives around data and the native CTV ads that we on screen that we basically launch programmatically that's bringing a lot of interest it's still not kicking in in revenue but it's bringing interest and people are more open to work with us and bring their starting to move spend to our direction and on the other side I think that our media team is doing a great job managing our managing the relationship with our partners on the CTV front bringing new clients and new partners into the mix and all of that together we see growth coming in and when you look at the numbers not just percentage we see that it's it's massive and it's growing and of course it's super important and we'll keep with the emphasizing, emphasize on that.

Thanks, Ofer. I got a follow-up for Sigeas, wanted to ask about operating expenses on the outlook there. You know, we've seen accelerating growth over the last couple of quarters. That's been paired with just a little bit of contraction on EBITDA margins. I know you've made some investments there, but he has talked about, you know, the outlook for OpEx and thus the outlook for EBITDA margin expansion in the coming Thanks, Jason.

I think that what we are seeing is like kind of intentional strategic growth investment. And as Ofer mentioned, it's all around. It's around AI, data, infrastructure, platform capabilities, enterprise go-to-market, strategic partnerships, and other. Of course, it's affecting our cost structure in 2026. I think that on the long-term EBITDA objective, it's still unchanged, and as we disclosed it in our analyst day a couple of months ago, it's still on the long-term we are aiming to get to the 40%. In 2026, our guidance is reflecting 32% on adjusted EBITDA margin, which is a little least 1% less than what we had in 2025. I think that we are seeing that the intentional investment is fruitful and we are doing right and we are taking the more market share. Going into 2027, although it's a little bit initial, we are seeing that some efficiencies that we already put in place in the last couple of months and ahead of us and reflecting 2026 not materially and to some extent is going to be much more material in 2027. and we feel that we can reach 34% EBITDA margin already in 2027. So I think it's like a transformational year around investment in our cost structure, but it soon will show the right fruit and scale the expansion of our margin. All right, got it.

Thank you. Allow me just to say one more sentence, Greg. I think that the investment is shown in the growth. We are growing at midpoint for the full year, according to our basically guidance, around 13% year over year, which is in our eyes, it's a very good event. And of course the growth that you just mentioned on CTV and the growth that we are reporting on in-app, in mobile in-app, all of that is coming also from investment. And together with AI that we put a lot of resources and attention to that, but we can discuss it. It's bringing a lot of fruits already, and we believe that it will be the foundation of the company in the next couple of years.

Thank you.

Your next question is from Matt Swanson with RBC Capital Markets.

Hey, guys. This is Simran on from Matt Swanson. Congrats on the quarter. So for my first question, you framed Next.ai as a growth engine and not just a productivity enhancer. Can you walk through the specific mechanism of how AI will help drive incremental revenue today versus improving internal efficiency?

Of course. In general, of course, AI for a long time until now, the last 18 or so months brought mostly efficiency, but lately we integrated very deeply into our product and we see that basically it's creating two things. First of all, when people are testing our platform, basically, together with AI, they are getting much better outcome from the campaigns that they are running with us. And not just in efficiency, but also in general outcomes that they are basically running. And it's basically driving them to move more of their budget to us. Most of the companies in our industry are not working with one provider, they are working with a few. But if someone of these providers is generating better results, of course, they will shift their budget from other providers to this provider, which is in this case us, because of the results that we are driving and we see growth that is coming from better performance of our platforms thanks to AI. The second thing is basically when people are pitching our technology and product and platform to clients, new clients, and they are showing the importance, not just of efficiency, which is there also, of course, but also of the outcomes that they can generate, it's helping us to onboard more clients on our platform and getting them to run, as I mentioned, more budget with us, which is basically generating growth. And I think that also the AI is open to us better monetization of our own platform. In general, we believe that the power of the AI or next AI is not coming just from the AI, but also of the fundamental platform that is based on and working with and integrated in. And we feel that we have a very big advantage because we are end-to-end and it's driving better results for the people and the clients that are basically utilizing our platform together with AI tools.

Okay, got it. That's helpful. And then in the quarter, it looks like enterprise spend is growing nicely, and you have customers using more than one solution.

Is that primarily driven by go-to-market execution, or is it more of the newer products that are resonating with customers, and just more broadly, what's been working well that's been helping drive this adoption so I think that it's starting with better go-to-market that we implemented in the last 12 months or so it comes with a great talent and better training to the people that we got and they they learn how to basically package it and present it better that people will understand the value of the of the platform of the full platform that we can offer, as we indicated with the results that we already mentioned in my script. But in general, I think that this is the one, the go-to market. The second thing is that basically, as I mentioned before, people are running on a few platforms, and when they see that one of the platforms is delivering to them, better results, they are shifting more and more spend. In this case, we see agencies or clients that are running more, Clients moving more lines of business to us, and agencies moving more products, more of their customers to run on our platform because of the results, and also, I'm sure, because of the efficiency. But altogether, we see growth in the number of customers that we are running on our enterprise solution, which is, of course, encouraging. As we indicated in the call, this is the foundation of our growth in the future. So it's super important that people will learn, understand what is the value, get better outcomes, and shift budget to us in order to grow their business. And we are making everything that we can, of course, in order to deliver to them the best outcome in the condition and the efficiency that they need in order to run their business.

Great. Thanks, guys. Congrats again.

Thank you.

Your next question comes from Andrew Maruk with Raymond James.

Hi, thanks for taking my questions. Maybe first, this was the first quarter in quite a while where you haven't bought back shares. So maybe two questions on that. First, what were some of the specific signals you're seeing out of your product efforts so far that's giving you the confidence that internal reinvestment is the right move? And then second, what types of M&A opportunities are raising your interest right now, as you cited in your prepared remarks?

Okay. Thank you for your question. I think that it's a combination of a few things what you just said. First of all, self-investment doesn't show sometimes a risk in showing an opportunity, meaning we believe and we show, we basically demonstrated that the extra investment that we made in the past 12 months in our own business basically generated for us better results as we indicated the growth of year over year according to our guidance of 13% on the programmatic level, which is for us considered meaningful and good results. So we see that when we are investing back in our business and grow our operation, we are driving better growth to the company, which is a good signal. The second thing about buyback, we acquired in the last few years about 40% of our company We invested about $250 million. And we believe that we are not removing this tool from the table and we feel that we need to look at it and examine this opportunity again, how we can basically utilize it, but side by side with that, in parallel to that, we are looking also at opportunities to make acquisition that will not be massive, will not create a disruption to the business that we are running now, but can touch points and increase the capabilities in certain areas, in the areas of growth, meaning some of them around CTV, some of them around in-app mobile and of course the AI that can basically provide us additional advantages in this field and we have the cash we have no debt we are generating cash so we are looking at all the opportunities and all the tools the variety of tools that we have in front of us many acquisition as I mentioned right now continuing buyback and of course keep investing in our itself which is already delivering very good results great thank you if they can uh maybe sneak in one more we've heard the automotive vertical as being a drag for some of your peers and and that vertical just kind of being generally soft on an industry basis in your remarks you cited it as a growth vertical you had a case study there in your remarks as well so i guess what were some of the reasons why you're able to beat the general industry trend of softness there thank you of course hey I think that I think that they all the industry and especially car industry also they know what they are looking for the strike they're very good the KPIs that they are trying to achieve when they are running their campaigns and budgets I think that we are able to serve them well I think that again when you're talking an overall slowdown it's a we are still a part of this industry and we are able to satisfy some of the needs and we are growing the interaction and success with these providers but I think that it's probably what people are reporting about is normally about like a general macroeconomics or or taxation that was happened in the beginning of the year and basically slow down some of this some of this but as I mentioned in our case studies we see we generate great success with these clients and we are working out in order to bring more clients to our platform in order to utilize the success and the and the platform that we created here that can drive them amazing results efficiency and save resources when they are basically trying to get new clients great thank you thank you your next question is from laura martin with needham and company uh good morning this is um

I'm Dan calling, talking for Laura. But CTV revenue hit an all-time record, and it's representing 40% of programmatic revenue. I'm curious as to how much of this acceleration is driven by native home screen ad units and the ACR data integration through the Vita partnership versus CoreStream inventory. And then kind of as a follow-up to that, what does the pricing CPM environment look like heading into the second half of 26? Thanks and congratulations.

Of course, thank you, Dan. So, when we are looking at our CTV, the good news is this growth is without most of the elements that you just indicated, meaning it's still…I strongly believe, we strongly believe in what we built here about the CTV on screen because of a few reasons, and I will elaborate to the people that may be less aware of that, but there is like hundreds of millions of TV TV sets in the world they are already showing us on their platform when you are launching the TV but until now it was not programmatic we were the first to basically enable this day OEMs to run a programmatic programmatic advertising on the screens and we are working very hard with Vida with others in order to basically providing this capability in order to run programmatically on their TV screen. Since there are hundreds of millions of TVs outside, the volume of the media is huge. And this is a very unique media because it's encouraging engagement. It's getting a lot of attention when the user is launching his TV because you are there, you're in front of him. And if you are putting the right ad at the right time, there is a very good chance that the outcome will be good. And first result that we show already shows very good traction to that, but it's still early in our revenue. It's not like contributing this growth. This growth is coming from initiative, business initiative, growth in our business, as I mentioned before, and I feel that the next wave of growth will come from a few things. First of all, is the native edge. The second thing is the increased activity on business initiatives that we are doing now around so many projects and things that we are working with our clients and partners in order to drive and the third element is also the data so for the last few years we are carrying the flag of data because we put it there in front of the advertisers its importance in order to create audiences build segmentation measure the results and so on and we feel that now it's coming like more and more evidence to to all the industry that is super important including to our clients is driving more spend coming to our platform overall not just to to Vida but across the board what we see is that the way that we are basically utilizing the data on our platform is helping is helping us to generate better results and people are again like to spend where they it's working for them so they are moving to to us. So I feel that while we show great results in Q2, it's still without this initiative of Nexen on screen native that is going to kick in mostly in Q4 but mainly in 2027 and forward and the rest of the initiatives that we see are supporting the growing and generating better and better outcome also at the CTV front, and we are getting a lot of interest from advertisers, agencies, publishers, in order to increase the work around our CTV activity because it's working very well for them and, of course, for us.

Thank you.

Your next question is from Tyler DiMatteo with BTIG.

Great. Morning. Thank you for taking the question. Over a quick question on the CTV industry today and some of the dynamics. I just am curious to hear your take on the competitive dynamics in CTV and maybe what you guys are seeing when you're going to market and winning customers and just what that looks like and maybe how that's changed.

And then secondarily, broadly speaking, on the programmatic side, I guess what inning do you think that we are in in terms of programmatic adoption with a lot of the customers that you're speaking to and just broadly some of the the newer customer wins that you're having so thank you for the question first of all Tyler from the CTV of course it's like it's the CTV is becoming like the center stage together and it's connected and getting more closer and more connected also to mobile in-app that's why we invested also in this field because we learned that and And both of them are, again, sorry for jumping back, but it's like these two elements for us is bringing a lot of capability to utilize data that we got and we are harvesting in order to basically better target, better create audiences with our clients and generate results of these two platforms, which are super important for us and represent the big majority of our revenue today. So, I think that CTV players, CTV companies are looking to increase their revenues in a way that is unique, that they will be able to maintain or grow their CPM levels thanks to utilizing data layers on top of their media and making it like a smarter for the clients to buy. And when we are talking about the native ads that I mentioned before with the OEM, the the major OEMs when we look at them. Of course, they have huge amount of media, huge amount of user base that they can better monetize with programmatic activity. And we are hoping and we are doing our best. And we are, as I mentioned, we're the first to launch this product and it's already active, still not in major volumes that is influencing our numbers, but it's working. So all these elements I think show that OEMs are open To generate more revenue channels from their properties, from their investment that they made, and they are open, of course, to this programmatic sales. And when we are looking at the market going forward, I think that it will just evolve. And I think that CTV is becoming, again, more and more central point for people to target, to try and get for advertisers to get the attention of their user base, a potential user base, and also to generate outcomes, as we see. this is also why it's important to utilize the data in order to generate measurement and to show and to demonstrate to the clients that basically their efforts are bringing fruits or how to improve their campaigns in order to generate fruits so I think that it's maturity its growth and it's a main interest of this industry that it will grow and we see the big mobile in-app providers and advertisers are now looking also on the CTV in order to utilize this media in order to generate and increase the reach and get more results from their campaign. So in general I think that the CTV when I'm looking at that is moving ahead with maturity with technology with generating not just a not just eyeballs but also results and this is very encouraging of course.

Thanks for that Ofer, I appreciate it.

Thank Your next question is from Barton Crockett with Rosenblatt.

Okay thanks for taking the question. I guess a couple of things.

One is could you talk through in little bit more detail how you were able to raise your contribution extract outlook but not raise the EBITDA you know what is it that you're spending more on than you anticipated before you saw this revenue come in that would be the first question okay so as we mentioned of course in most cases you need first to invest in order to to grow your business but apart from that and Sagi maybe can elaborate more, the ratio between the dollar and the new shekel where we have about 25% of our employees is helping us also from a profitability point of view. But again, we believe that in order to generate growth, you need to invest. And we invested, I think, and the good news is that we didn't just invest, but we also saw that we are generating growth together with that. in parallel to that which is a very good sign and we see that the growth is coming in areas that you know we wanted to that to grow like CTV in at mobile a contribution X tech when it's going by 30% over here on on the on as I mentioned on the yearly basis according to our guidance it's very promising and we have some factors that everything else like the ratio between the dollar and the the study can provide like a little bit more color but and this is of course things that they cannot control we can we can adjust some of our activity in order to deal with it but we cannot control that and in general I feel that this investment is the right thing in order to grow the business to take market share and in parallel to that we are working in order to optimize our our operation in order to get to a point that the growth will over will basically compensate on the on the EBITDA side.

Sagi, can you give us a little bit more colors about the FX?

Sure, yes. I think on top of what Ofer just mentioned, I don't know, like around 20 percent of our employees are in Israel outside of the U.S. and because of the FX Edwin fluctuation, we got heard from our infrastructure around end count mainly, also around, let's say, on a half-year basis, it's somewhere around $2.5 million that we are like, cost us more without really changing anything.

Okay, so that's the bulk of the delta there. All right, and the second thing that I was curious about is, you know, you guys continue to talk about saving some, you know, having opportunities for M&A, saving some capacity for that. You know, you've been saying that for some time. I was wondering if you could give us an update on to what degree are you actually engaged in discussions around M&A or is this still just a general look-see as opposed to discussion and your appetite to kind of add debt to support acquisitions given that you're now debt-free but presumably have some capacity.

So I didn't understand the last sentence what you what you meant by that can you clarify?

Yeah I mean you're talking about interest in acquisitions are you actually in discussions with entities or is this just a general you know thought maybe we could do something without about anything specific happening.

Okay, so I got it now, thank you. What we did until now, we basically sourced, first of all, the areas that we feel that we can use, as I mentioned, not a major acquisition, but an acquisition that can add to us capabilities and enhance our capabilities for the future, mainly around a product that is related to the to the activities that we want to build we we generally basically source the places that all the areas that we want to make this investment we made already like some short list of companies that can be like a potential target for this acquisition and and I believe that in the next six to nine months we will make a move on that it's not happening overnight and we feel that this is the right time, which is about four years after we made the last acquisition of Amobi, and the integration and the consolidation and then the rebranded took a lot of our attention, and now we are in a very good position with execution and results, and we don't want to make an acquisition that will create a disruption. So we are looking at an acquisition that will mainly touch locally some of our business units and will enable us to increase our capabilities. But we will be able to share more in the next six to nine months, I guess. I estimate.

Your next question is from Brianna Diaz with Citizens.

Thanks so much for taking my question. So just on Nexen home screen, you highlighted Nexen home screen as a meaningful contributor beginning in 4Q with an acceleration through 2027. Can you just talk about the size of this opportunity and the visibility you have into this early demand that gives you confidence in that outlook?

Of course. Thank you, Brianna, for this question. We are working here in both ways. First of all, we proved the capability to run what we wanted to do, so basically to run different formats programmatically on the home screen with everything that is attached to that like targeting measurement of course counting and all that and we already start running campaigns with leading companies globally that are happy with the results that they are generating or on this on this format that we are running we basically engage with the big DSP like you saw the activity that we sign with the trade desk, but we are also in engagement with other companies like we already notified, and we are working with them on integration. We need to understand that the technical integration, while it's taking time, it's the first move. Then the teams need to educate their clients about what this media can bring to them, why they should utilize it, what is the importance of that, and all of that is of course taking time. Then we are talking about also of our clients, that we are educating them about the benefit of running this type of ads on this type of media. And again, it's a process. It's not overnight. From the other side, we are talking to other OEMs, not just Vida and the names that we mentioned, but also other companies in order to show them how they can basically utilize We are getting good response on that. but again, it's like every integration and it takes time for them to basically integrate it into their systems. And when even we have cases that it's ready and it's working, it will take time to move major budgets into this mix because of all the points that I said about the demand side. So we believe that in Q4, we see already a pipeline and we believe that in 2027, it will become like more and more mainstream, that people will utilize this capabilities and will direct some of their spend to native ads on CTV, on home screen, which we believe that we deliver a very good platform for that. And it will become meaningful mostly in 2027, during probably the second half of the year, because of the size of our activity is very meaningful on CTV, of course.

Got it. And if I can just squeeze one other question in. Just following up on the prior question understood FX, but on investments overall, where are the three top areas where you're investing in today?

And then as you look ahead in 2027, are those the same three areas or is there a potential for that to shift given a potential acquisition over the next six to nine months? okay so we don't see we don't think that it will change next year we already in August so we don't think that it's like will change the focus of where we are investing we are investing in AI being we like when we are when we understand that something will become like massive and major in this industry you need to put effort in that you need to bring talent into that you need to shift talent into that and that's what exactly what we are doing with ai so we are basically shifting more and more resources into building it and showing rewards as i mentioned before i think that we'll keep doing that in 2027 also in infrastructure that we are investing in order to increase our capabilities and growth that is also based of course of your capability of bandwidth QPS and stuff like that that we are doing and it's related also to efforts and investments in manpower and the last point is of course in the organization itself to increase the meat management when when it's needed to increase the efficiency and the ability to move fast when we recognize the good opportunity and we are investing in these areas it's not coming in a conjunction to what I said about acquisitions I think that it's a complementary to them and I think that the points that we are invested in this year will also serve us the next year and we will keep investing in them but we believe as I mentioned that the growth of revenues will basically compensate on the on this transition here that we are investing more than we usually do in order to generate growth.

Thank you so much.

Thank you.

Your final question is from Nat Schindler with Scotiabank.

Hi, this is Steve from Nat Schindler. So just one question here. So enterprise engagement, end-to-end platform utilization, and AI adoption were highlighted repeatedly in the press release. So my question is, what metrics or milestones should investors watch over the next 12 months to determine whether those initiatives are translating into durable share gains and not simply stronger near-term spending trends?

All right, Nate, of course. I think that the investors and analysts should look at the results at the end of the day, overall net revenue growth, which is the purpose of this investment. And when we are looking at this, what you mentioned, end-to-end investment is true. We see that when clients are running on our more than one site, meaning more than one of our platforms, not just the DSP, but also using our DMP and connected to our media properties, they are generating much better results. It's growing our revenues. It's building more connectivity and more loyalty with these clients. And I feel that the major, you know, the major test is revenue. And we are happy that we see, that we show and demonstrate that we are able to grow 13% year over year on the programmatic level that, as I mentioned, we feel that it's meaningful, showing growth. And of course, growth around the CTV that is very meaningful, 32% on relatively big number of revenue per quarter that is showing that we are on the right spot. So we need to keep growing and we need to keep investing in order to generate this type of growth. And we believe that, as we mentioned, this year is a transition and we will see the additional growth coming next year. And most of the time, you need, first of all, to build a foundation, invest more in order to generate additional revenues in the near-term future and not, as you mentioned, long-term and over time.

Great. Thank you.

There are no further questions at this time. I'll now turn the call back over to Mr. Drucker for any closing remarks.

Thank you. So I just want to thank our clients, partners, shareholders, and, of course, our employees for a great effort in bringing their talent and their energy in order to drive these great results that we reported today. and we really strongly believe in what we created and the future of the company. With the trends that we recognize in the market, we feel that we invested in the right strategy, technology, and product marketing, meaning how we are basically demonstrating it to the market, and we are hoping to keep demonstrating like we basically were able to do this quarter and into the near future and the long term. So thank you everyone for your support and thank you again.

Ladies and gentlemen, this concludes today's conference call. Thank you for joining. You may now disconnect.