Magnite — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue was $204.2 million for the quarter, a 14% increase year-over-year compared to $179.5 million in Q3 2025.
• Contribution ex-TAC reached $200.6 million, up 20% year-over-year from $166.8 million.
• Net income was $34.0 million ($0.23 per diluted share), a 70% increase compared to $20.1 million ($0.13 per diluted share) in Q3 2025.
• Adjusted EBITDA was $83.4 million, up 46% year-over-year from $57.2 million, representing a 42% margin compared to 34% in Q3 2025.
• Non-GAAP earnings per share were $0.33, compared to $0.20 in Q3 2025.
• Operating cash flow was $68.0 million.
• Gross profit was $140.2 million, up 27% year-over-year.
• For the nine months ended September 30, 2026, revenue was $561.4 million (up 10%), Contribution ex-TAC was $551.1 million (up 16%), and Adjusted EBITDA was $196.8 million (up 33%).

Guidance and Future Outlook:

• Q4 2026 Total Contribution ex-TAC is expected to be between $227 million and $233 million.
• Q4 2026 Contribution ex-TAC attributable to CTV is expected to be between $124 million and $127 million.
• Q4 2026 Contribution ex-TAC attributable to DV+ is expected to be between $103 million and $106 million.
• Q4 2026 Adjusted EBITDA operating expenses are expected to be between $125 million and $127 million.
• Full-Year 2026 Total Contribution ex-TAC growth is raised to approximately 17%, up from the previous 13% to 14% range.
• Full-Year 2026 Adjusted EBITDA percentage growth is raised to approximately 30%, up from greater than 20%.
• Full-Year 2026 Adjusted EBITDA margin is raised to approximately 38.5%, up from at least 37%.
• Full-Year 2026 Free cash flow growth is raised to above 60%, up from the high 40% range.
• Full-Year 2027 Top-line growth, excluding political, is expected to accelerate over 2026.
• Full-Year 2027 Total top-line growth is expected to be over 15%, excluding political and not including upside from Google remedies, or 10% on a total reported basis.
• Full-Year 2027 Adjusted EBITDA margin is expected to be at least 38.5%.

Business Segments and Product Lines:

• Contribution ex-TAC attributable to CTV was $105.4 million, up 39% year-over-year, exceeding the guidance high end of $100 million.
• Contribution ex-TAC attributable to DV+ was $95.3 million, up 5% year-over-year, exceeding the guidance high end of $92 million.
• CTV represented 53% of total contribution ex-TAC in the quarter.
• CTV growth was described as broad-based.
• Political revenue expectations were exceeded, mostly in CTV, with full-year political spend expected to be nearly three times the initial forecast.

Market and Competitive Landscape:

• Magnite is identified as the largest independent sell-side advertising company.
• The company expects upside from Google remedies to be excluded from its 2027 top-line growth guidance.
• The company is engaged in litigation against Google LLC.

Risks and Challenges:

• The press release includes standard forward-looking statement disclaimers regarding risks, uncertainties, and factors that could cause actual results to differ materially from expectations, including macroeconomic conditions, regulatory developments, antitrust rulings, and litigation outcomes.
• Litigation expense includes professional and legal expenses related to the Google Action and defense costs relating to class action privacy litigation.

Management Commentary and Tone:

• Michael G. Barrett, CEO, described the quarter as "very strong," citing top-line growth driven by CTV and DV+ significantly exceeding expectations.
• Management noted that strong top-line execution translated into outstanding operating leverage, generating 46% Adjusted EBITDA growth.
• Management expressed confidence in the business momentum, prompting the raising of full-year outlook across all key performance metrics.

Other Key Points:

• The company repaid $205.067 million in Convertible Senior Notes during the nine months ended September 30, 2026.
• The company purchased $55.559 million of treasury stock during the nine months ended September 30, 2026.
• Cash and cash equivalents were $392.862 million as of September 30, 2026, down from $553.362 million at December 31, 2025.
• Total debt decreased from $556.112 million (current and non-current combined) at December 31, 2025, to $349.950 million at September 30, 2026.
• The company hosted a conference call on November 4, 2026, to discuss results.