AdTech and Martech Pivot: Data Products and AI Efficiency Drive 2025 Results
Nexxen and Riskified are leading a strategic shift toward high-margin data products and AI-driven operational efficiency to offset volatility in traditional CTV and hardware markets. As companies prioritize recurring revenue and automated fraud prevention, the industry is moving toward a leaner, data-centric model for 2026.
Key Takeaways
- Nexxen and Riskified are leading a strategic shift toward high-margin data products and AI-driven operational efficiency to offset volatility in traditional CTV and hardware markets.
- As companies prioritize recurring revenue and automated fraud prevention, the industry is moving toward a leaner, data-centric model for 2026.
Mentioned
Key Intelligence
Key Facts
- 1Nexxen reported a 51% year-over-year increase in revenue from Data Products despite a 19% drop in CTV revenue.
- 2Riskified achieved 65% annual revenue growth to $344.6M while reducing headcount by 3% through AI adoption.
- 3Stem, Inc. reached its first full year of positive adjusted EBITDA ($7M) by shifting 55% of revenue to software and services.
- 4Red Violet hit record quarterly revenue of $23.4M with an industry-leading 83% adjusted gross margin.
- 5Aware (AWRE) achieved ISO 30107 Level 3 certification for its Intelligent Liveness biometrics platform.
- 6Nexxen's contribution per active customer rose 7% to $563,000 as it shed smaller, low-margin accounts.
| Metric | ||
|---|---|---|
| Full-Year Revenue Growth | -1% (ex-political) | 65% |
| Key Growth Driver | Data Products (+51%) | AI-led Fraud Prevention |
| Adjusted EBITDA Margin | 35% | 18% (Q4) |
| Strategic Focus | Self-Service & Data | Global Expansion & AI Efficiency |
Who's Affected
Analysis
The final quarter of 2025 has revealed a decisive shift in the AdTech and Martech sectors, where the ability to monetize proprietary data and leverage AI for operational efficiency is now the primary differentiator between growth and stagnation. While traditional segments like Connected TV (CTV) faced headwinds due to shifting demand and the absence of political spend, companies that successfully pivoted toward high-margin data services and automated fraud prevention saw significant margin expansion. This transition is not merely a tactical adjustment but a fundamental re-engineering of the AdTech business model, moving away from volume-based media buying toward high-value intelligence and software-as-a-service (SaaS) structures.
Nexxen’s performance serves as a primary case study for this evolution. Despite a 19% decline in CTV revenue—impacted by a major DSP customer and the cyclical drop in political advertising—the company reported a staggering 51% year-over-year increase in contribution from its data products. This suggests that while the 'pipes' of advertising are becoming commoditized, the 'intelligence' fueling those pipes remains in high demand. CEO Ofer Druker’s strategy to focus on self-service and high-value data indicates a move toward a more resilient, tech-heavy revenue mix. By discontinuing smaller, less profitable customer relationships, Nexxen improved its contribution per active customer by 7%, signaling a prioritization of quality over quantity that is becoming an industry standard.
The company reported 65% year-over-year revenue growth, reaching $344.6 million for the full year.
In the Martech and fraud prevention space, Riskified demonstrated the explosive potential of AI-driven scale. The company reported 65% year-over-year revenue growth, reaching $344.6 million for the full year. Crucially, Riskified achieved this growth while reducing its headcount by 3%, a move management explicitly attributed to the adoption of AI and machine learning. This 'efficiency alpha'—the ability to grow revenue while shrinking the workforce through automation—is a trend that is likely to accelerate across the AdTech ecosystem. Riskified’s expansion into the APAC and EMEA regions, which grew by 53% and 18% respectively, further highlights the global demand for sophisticated, AI-led merchant protection as e-commerce complexity increases.
What to Watch
The theme of 'software-ification' extended beyond pure-play AdTech into adjacent sectors like energy management and identity verification. Stem, Inc. reported that software and services now account for over 55% of its total revenue, a strategic shift that led to the company’s first full-year of positive adjusted EBITDA. Similarly, Red Violet achieved record quarterly revenue with an 83% adjusted gross margin, driven by its IDI and FOREWARN data platforms. These results underscore a broader market trend: the most successful 'tech' companies in 2026 will be those that treat hardware or media as a Trojan horse for high-margin, recurring software and data subscriptions.
However, the quarter was not without its challenges. The identity and biometrics firm Aware saw a slight revenue dip as it transitioned away from perpetual software licenses toward more predictable maintenance and service models. Meanwhile, MicroVision and Wallbox struggled with legacy hardware dependencies and shifting market incentives, leading to restructuring and asset impairments. These divergent paths suggest that the market is increasingly punishing companies that remain tethered to low-margin hardware or volatile transactional models. Looking ahead to 2026, the focus for AdTech and Martech leaders will be on deepening data moats and refining AI models to ensure that growth is not just achieved, but is also increasingly profitable and automated.
Cite This Page
"AdTech and Martech Pivot: Data Products and AI Efficiency Drive 2025 Results." Marketing Intelligence Brief, March 5, 2026. https://getmarketingbrief.com/story/adtech-martech-earnings-analysis-q4-2025
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