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

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

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

MGNI traded up $0.45 during midday trading on Wednesday, reaching $22.79. The company’s stock had a trading volume of 3,204,384 shares, compared to its average volume of 1,930,902. The stock has a market cap of $3.27 billion, a P/E ratio of 20.91, a PEG ratio of 0.73 and a beta of 2.44. The company has a fifty day simple moving average of $23.90 and a 200 day simple moving average of $17.72. The company has a current ratio of 1.02, a quick ratio of 1.03 and a debt-to-equity ratio of 0.37. Magnite has a twelve month low of $10.82 and a twelve month high of $26.84.

Analysts Set New Price Targets

Several research firms recently weighed in on MGNI. Susquehanna boosted their target price on Magnite from $22.00 to $30.00 and gave the stock a “positive” rating in a report on Thursday, August 6th. Rosenblatt Securities reiterated a “buy” rating and set a $40.00 price target on shares of Magnite in a report on Friday, October 2nd. Weiss Ratings upgraded Magnite from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, October 23rd. Craig Hallum reissued a “buy” rating and issued a $32.00 price target on shares of Magnite in a research report on Thursday, September 17th. Finally, Benchmark boosted their price objective on shares of Magnite from $30.00 to $33.00 and gave the stock a “buy” rating in a research note on Thursday, August 6th. Eleven equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, Magnite currently has a consensus rating of “Moderate Buy” and an average price target of $29.36.

Insider Buying and Selling

In related news, insider Katie Evans sold 32,285 shares of the business’s stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $23.63, for a total transaction of $762,894.55. Following the transaction, the insider owned 466,897 shares of the company’s stock, valued at approximately $11,032,776.11. The trade was a 6.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sean Buckley sold 67,179 shares of the company’s stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $24.49, for a total transaction of $1,645,213.71. Following the transaction, the insider owned 315,805 shares of the company’s stock, valued at approximately $7,734,064.45. The trade was a 17.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 680,259 shares of company stock worth $15,993,244. 3.20% of the stock is currently owned by company insiders.

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.