Magnite (NASDAQ:MGNI) Announces Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Magnite (NASDAQ:MGNI) issued its quarterly earnings results on Wednesday. The company reported $0.33 earnings per share for the quarter, topping analysts’ consensus estimates of $0.29 by $0.04, FiscalAI reports. Magnite had a net margin of 23.58% and a return on equity of 11.04%. The firm had revenue of $204.20 million during the quarter, compared to analysts’ expectations of $190.19 million. During the same quarter in the prior year, the business earned $0.20 EPS. Magnite’s quarterly revenue was up 22.4% compared to the same quarter last year.

Here are the key takeaways from Magnite’s conference call:

• Magnite reported Q3 contribution ex-TAC of $201 million, up 20%, and adjusted EBITDA of $83 million, up 46%, with a 42% margin. It raised 2026 growth, EBITDA margin, and free cash flow outlooks, and expects 2027 revenue growth excluding political spending to exceed 15%.
• CTV contribution ex-TAC rose 39% to $105 million and made up 53% of the quarter’s total. Management cited broad partner growth and expects a 25% long-term CTV growth rate, while noting this is an expectation rather than a guarantee.
• Political contribution ex-TAC is now expected to exceed $40 million in 2026, up from $15 million previously, with Q4 spend expected to exceed Q3. The unusually strong election cycle is a significant near-term tailwind, but political spending is inherently cyclical.
• Operating leverage and cost discipline boosted profitability: adjusted EBITDA margin expanded to 42% from 34% a year earlier, while streaming cost per billion ad requests fell more than 50% year over year. The company also reported $393 million in cash and negative 0.2x leverage.
• DV+ grew 5% in Q3, but management expects only 2%–4% growth in Q4 and characterized the business’s overall organic potential as flat to low-single-digit growth. It cited ongoing pressure on open-web traffic, partly offset by mobile in-app and commerce media.

Magnite Stock Performance

Magnite stock traded down $0.19 during trading hours on Friday, reaching $27.33. 2,690,471 shares of the stock were exchanged, compared to its average volume of 2,515,127. Magnite has a 52-week low of $10.82 and a 52-week high of $28.17. The stock has a market cap of $3.92 billion, a P/E ratio of 22.97, a P/E/G ratio of 0.75 and a beta of 2.44. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.03 and a current ratio of 1.02. The firm’s 50 day moving average is $23.98 and its 200 day moving average is $17.79.

Insiders Place Their Bets

In other news, CTO David Buonasera sold 1,165 shares of the business’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $24.00, for a total transaction of $27,960.00. Following the transaction, the chief technology officer directly owned 245,155 shares in the company, valued at $5,883,720. The trade was a 0.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Katie Evans sold 13,997 shares of the stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $24.00, for a total transaction of $335,928.00. Following the transaction, the insider directly owned 441,800 shares of the company’s stock, valued at $10,603,200. This represents a 3.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 254,126 shares of company stock valued at $6,161,335. Corporate insiders own 3.20% of the company’s stock.

Analyst Ratings Changes

MGNI has been the subject of a number of research reports. Susquehanna upped their target price on shares of Magnite from $30.00 to $35.00 and gave the company a “positive” rating in a report on Thursday. Evercore reissued an “outperform” rating and set a $25.00 price target on shares of Magnite in a report on Thursday, August 6th. Needham & Company LLC boosted their price target on Magnite from $25.00 to $30.00 and gave the company a “buy” rating in a research report on Thursday, September 3rd. Weiss Ratings raised Magnite from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, October 23rd. Finally, BTIG Research reaffirmed a “buy” rating and set a $27.00 price objective on shares of Magnite in a research report on Wednesday, September 9th. Eleven investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat, Magnite presently has an average rating of “Moderate Buy” and a consensus target price of $30.45.

Key Magnite News

Here are the key news stories impacting Magnite this week:

• Positive Sentiment: Q3 results beat expectations. Revenue was $204.2 million, while adjusted EPS was $0.33, ahead of consensus. Contribution ex-TAC—a key measure of the company’s underlying advertising business—rose 20% year over year to $200.6 million. Magnite Q3 results
• Positive Sentiment: CTV was a standout growth engine. CTV contribution ex-TAC climbed 39% to $105.4 million, beating the company’s guidance range. DV+ contribution also exceeded guidance, growing 5%. Coverage cited CTV strength and a political-advertising surge as factors behind the quarter. Three takeaways for long-term investors
• Positive Sentiment: Management raised its outlook. Magnite lifted its 2026 contribution ex-TAC growth forecast to about 17% and expects adjusted EBITDA growth of about 30%, a margin of about 38.5% and free-cash-flow growth above 60%. For 2027, it forecast more than 15% top-line growth excluding political advertising and an adjusted EBITDA margin of at least 38.5%. Magnite raises outlook
• Positive Sentiment: RBC raised its price target to $30 from $27 and maintained an Outperform rating, signaling continued analyst confidence. RBC price-target update
• Neutral Sentiment: Wells Fargo also raised its target, from $22 to $23, but kept an Equal Weight rating; its target remains below the recently cited share price, suggesting a more cautious view of valuation. Wells Fargo recommendations

Magnite Company Profile

Magnite, Inc operates an independent omnichannel sell-side advertising platform that helps publishers and digital media owners monetize their content while enabling advertisers to reach audiences across multiple channels. Its platform supports the buying and selling of digital advertising inventory through automated auctions and direct transactions.

The company’s solutions serve connected television and streaming video, online display and mobile advertising, audio, and digital out-of-home media.