Magnite (NASDAQ:MGNI) Releases Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Magnite (NASDAQ:MGNI) issued its quarterly earnings data on Wednesday. The company reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.29 by $0.04, FiscalAI reports. Magnite had a net margin of 22.49% and a return on equity of 9.33%. The company had revenue of $204.20 million for the quarter, compared to analyst estimates of $190.19 million. During the same period in the prior year, the firm earned $0.20 earnings per share. The company’s revenue was up 22.4% on a year-over-year basis.

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

Shares of NASDAQ:MGNI traded up $0.45 on Wednesday, reaching $22.79. 3,204,384 shares of the company’s stock were exchanged, compared to its average volume of 1,930,902. The company has a fifty day moving average of $23.90 and a 200-day moving average of $17.72. Magnite has a twelve month low of $10.82 and a twelve month high of $26.84. The company has a market capitalization of $3.27 billion, a price-to-earnings ratio of 40.62, a PEG ratio of 0.73 and a beta of 2.44. The company has a current ratio of 1.02, a quick ratio of 1.03 and a debt-to-equity ratio of 0.37.

Insider Activity at Magnite

In other news, insider Katie Evans sold 32,285 shares of Magnite stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $23.63, for a total value of $762,894.55. Following the completion of the sale, the insider directly owned 466,897 shares in the company, valued at approximately $11,032,776.11. The trade was a 6.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael G. Barrett sold 293,968 shares of the business’s stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $22.72, for a total value of $6,678,952.96. Following the completion of the sale, the chief executive officer owned 403,074 shares of the company’s stock, valued at approximately $9,157,841.28. This trade represents a 42.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 680,259 shares of company stock valued at $15,993,244. 3.20% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on MGNI. Susquehanna increased their target price on Magnite from $22.00 to $30.00 and gave the stock a “positive” rating in a research note on Thursday, August 6th. BTIG Research restated a “buy” rating and issued a $27.00 price target on shares of Magnite in a research note on Wednesday, September 9th. Royal Bank Of Canada boosted their price target on Magnite from $20.00 to $27.00 and gave the company an “outperform” rating in a research note on Thursday, August 6th. Weiss Ratings raised Magnite from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, October 23rd. Finally, Craig Hallum reiterated a “buy” rating and set a $32.00 price objective on shares of Magnite in a research report on Thursday, September 17th. Eleven analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, Magnite has an average rating of “Moderate Buy” and a consensus price target of $29.36.

About Magnite

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.