MAGNITE, INC. (MGNI): Results of Operations and Financial Condition
MAGNITE, INC. (MGNI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Magnite Reports Second Quarter 2026 Results Contribution ex-TAC (1) Grows 17% Year-Over-Year Contribution ex-TAC (1) from CTV Grows 36% Year-Over-Year Adjusted EBITDA (1) Grows 30% Year-Over-Year Adjusted EBITDA Margin (2) of 37% in Second Quarter NEW YORK, August 5,
How this was made
The 30-second read
Why it matters
The filing provides concrete Q2 performance versus guidance ranges and updates Q3 and full-year expectations for Contribution ex-TAC, CTV and DV+ contributions, Adjusted EBITDA growth, margin, and free cash flow growth.
Market read
A company-specific earnings and guidance update with explicit quantitative targets typically drives near-term estimate revisions and positioning.
What to watch
Traders should watch the gap between Q3 Contribution ex-TAC ranges and full-year margin targets, since operating expense guidance (Adjusted EBITDA operating expenses) constrains upside if costs re-accelerate.
Magnite Reports Second Quarter 2026 Results Contribution ex-TAC Grows 17% Year-Over-Year; Contribution ex-TAC from CTV Grows 36% Year-Over-Year; Adjusted EBITDA Grows 30% Year-Over-Year; Adjusted EBITDA Margin of 37% in Second Quarter
Q2 revenue, Contribution ex-TAC, net income, Adjusted EBITDA, and non-GAAP earnings per share all increased year-over-year. CTV Contribution ex-TAC grew 36%, Adjusted EBITDA margin reached 37%, and the company raised its full-year Contribution ex-TAC growth, Adjusted EBITDA growth, margin, and free cash flow growth expectations.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $192.8 million | – | 11% |
| Gross profitGAAP | $130.8 million | – | 21% |
| Contribution ex-TACnon-GAAP | $189.6 million | – | 17% |
| Net incomeGAAP | $19.4 million | – | 75% |
| Adjusted EBITDAnon-GAAP | $70.6 million | – | 30% |
| Adjusted EBITDA marginnon-GAAP | 37% | – | 3.0 ppt |
| Basic earnings per shareGAAP | $0.14 | – | 75% |
| Diluted earnings per shareGAAP | $0.13 | – | 63% |
| Non-GAAP earnings per sharenon-GAAP | $0.26 | – | 30% |
| Operating cash flowother | $57.4 million | – | – |
| Revenue, six months ended June 30GAAP | $357.2 million | – | 9% |
| Gross profit, six months ended June 30GAAP | $234.7 million | – | 17% |
| Contribution ex-TAC, six months ended June 30non-GAAP | $350.5 million | – | 14% |
| Net income, six months ended June 30GAAP | $23.8 million | – | NM |
| Adjusted EBITDA, six months ended June 30non-GAAP | $113.5 million | – | 24% |
| Adjusted EBITDA margin, six months ended June 30non-GAAP | 32% | – | 2 ppt |
| Basic earnings per share, six months ended June 30GAAP | $0.17 | – | NM |
| Diluted earnings per share, six months ended June 30GAAP | $0.16 | – | NM |
| Non-GAAP earnings per share, six months ended June 30non-GAAP | $0.39 | – | 22% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| CTVOutperformance in CTV was broad-based across leading publisher partners and anchored by the strategic differentiation of SpringServe. | Contribution ex-TAC of $97.1 million | – | 36% |
| DV+Return to growth in DV+. | Contribution ex-TAC of $92.5 million | – | 2% |
Q3 2026 and Full-Year 2026 outlook
- Operating expensesAdjusted EBITDA operating expenses to be between $119 million and $121 million
- NoteQ3 2026 total Contribution ex-TAC to be between $188 million and $192 million
- NoteQ3 2026 Contribution ex-TAC attributable to CTV to be between $98 million and $100 million
- NoteQ3 2026 Contribution ex-TAC attributable to DV+ to be between $90 million and $92 million
- NoteFull-Year 2026 total Contribution ex-TAC growth to be between 13% and 14%, up from at least 11%
- NoteFull-Year 2026 Adjusted EBITDA percentage growth to be greater than 20% from the mid-teens
- NoteFull-Year 2026 Adjusted EBITDA margin to be at least 37% from at least 35.5%
- NoteFull-Year 2026 free cash flow growth to be in the high 40% range from the mid 30% range
What drove it
- Revenue increased 11% year-over-year to $192.8 million.
- Contribution ex-TAC increased 17% year-over-year to $189.6 million.
- CTV Contribution ex-TAC increased 36% year-over-year to $97.1 million.
- DV+ Contribution ex-TAC increased 2% year-over-year to $92.5 million.
- Adjusted EBITDA increased 30% year-over-year to $70.6 million, with a 37% Adjusted EBITDA margin.
- The company cited broad-based CTV momentum across leading publisher partners, SpringServe differentiation, and an ongoing shift toward programmatic streaming.
Concerns
- DV+ Contribution ex-TAC grew 2% year-over-year, materially below CTV growth of 36%.
- Q3 guidance includes Contribution ex-TAC attributable to DV+ of between $90 million and $92 million, compared with $92.5 million reported for Q2 2026.
- The filing does not provide GAAP operating income, gross margin, cash, debt, capital expenditures, net interest expense, or an actual free cash flow amount.
What to watch
- Q3 2026 total Contribution ex-TAC guidance of between $188 million and $192 million.
- Q3 2026 CTV Contribution ex-TAC guidance of between $98 million and $100 million.
- Q3 2026 DV+ Contribution ex-TAC guidance of between $90 million and $92 million.
- Q3 2026 Adjusted EBITDA operating expenses guidance of between $119 million and $121 million.
- Delivery against raised full-year Contribution ex-TAC growth guidance of between 13% and 14%, Adjusted EBITDA percentage growth of greater than 20%, Adjusted EBITDA margin of at least 37%, and free cash flow growth in the high 40% range.
Balance sheet and cash flow
- Operating cash flow of $57.4 million.
- Free cash flow is defined as operating cash flow (Adjusted EBITDA less capital expenditures) less net interest expense.
Analysis
Magnite reported a strong second quarter ended June 30, 2026. Revenue was $192.8 million, up 11% year-over-year, while gross profit increased 21% to $130.8 million. Contribution ex-TAC, a non-GAAP measure, rose 17% to $189.6 million. The company stated that total Contribution ex-TAC exceeded the high end of its guidance range of $177 to $181 million.
CTV was the principal growth driver. CTV Contribution ex-TAC was $97.1 million, up 36% year-over-year and above the high end of the guidance range of $90 to $92 million. DV+ Contribution ex-TAC was $92.5 million, up 2% year-over-year and above the high end of its guidance range of $87 to $89 million. Management characterized DV+ as returning to growth, while citing broad-based CTV momentum across leading publisher partners and SpringServe differentiation.
Profitability improved meaningfully. Net income was $19.4 million, or $0.13 per diluted share, compared with net income of $11.1 million, or $0.08 per share, in Q2 2025. Adjusted EBITDA increased 30% to $70.6 million and Adjusted EBITDA margin increased to 37% from 34%. Non-GAAP earnings per share increased to $0.26 from $0.20. Operating cash flow, defined by the company as Adjusted EBITDA less capital expenditures, was $57.4 million.
For the first six months of 2026, revenue was $357.2 million, up 9%, Contribution ex-TAC was $350.5 million, up 14%, and Adjusted EBITDA was $113.5 million, up 24%. The six-month Adjusted EBITDA margin was 32%, compared with 30% in the prior-year period. Net income for the six-month period was $23.8 million, compared with $1.5 million, while non-GAAP earnings per share rose to $0.39 from $0.32.
The outlook calls for Q3 total Contribution ex-TAC of between $188 million and $192 million, including CTV of between $98 million and $100 million and DV+ of between $90 million and $92 million. Magnite raised its full-year 2026 expectations for Contribution ex-TAC growth to between 13% and 14%, Adjusted EBITDA percentage growth to greater than 20%, Adjusted EBITDA margin to at least 37%, and free cash flow growth to the high 40% range. The key reported contrast remains the faster CTV growth rate relative to DV+, and the filing does not provide actual free cash flow, capital expenditures, net interest expense, or balance-sheet amounts.
Management, verbatim
We significantly beat consensus expectations on both the top and bottom line in the second quarter, driven by outperformance in CTV—which grew 36% year-over-year—and a return to growth in DV+. Our CTV momentum continues to be broad-based across leading publisher partners and anchored by the strategic differentiation of SpringServe. On the bottom line, we delivered 30% Adjusted EBITDA growth with a 37% margin. Given this strong execution and ongoing shift toward programmatic streaming, we are also raising both our full-year top-line and margin expectations. Furthermore, we are pleased with our agentic product launches and partner support, and view these as a great future tailwind. We are uniquely positioned between supply and demand, and with our agentic offerings we believe we will benefit from serving as vital infrastructure for the future of digital advertising.
Michael G. Barrett, CEO of Magnite
Not in the filing
stated, not guessed- GAAP operating income for Q2 2026 and the six months ended June 30, 2026
- Gross margin for Q2 2026 and the six months ended June 30, 2026
- Capital expenditures
- Actual free cash flow
- Net interest expense
- Cash and cash equivalents
- Debt
- Capital returns, including share repurchases and dividends
- Q2 2026 cash flow comparison periods
- Prior-quarter comparisons for reported Q2 metrics
- Revenue guidance for Q3 2026 and full-year 2026
- GAAP operating expense guidance
- Tax-rate guidance
- Prior-release outlook section for formal actual-versus-prior-guidance comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This SEC 8-K includes Magnite’s Q2 2026 results (Item 2.02) and the accompanying earnings release exhibit.
Ticker impact
Magnite reported Q2 2026 results and raised full-year expectations, including higher Contribution ex-TAC growth and Adjusted EBITDA margin targets.
Likely positive bias for the stock on the guidance raise, with follow-through dependent on Q3 execution versus the new Contribution ex-TAC and CTV/DV+ ranges.
The filing discloses specific Q2 beats versus the guidance ranges and provides explicit Q3 and full-year quantitative targets, which are direct inputs to earnings models and near-term positioning.
Market effects
Signals strength in programmatic streaming and CTV monetization, potentially improving sentiment toward independent sell-side ad tech peers.
Primarily US-listed ad-tech sentiment; limited direct regional spillover beyond US growth expectations.
CTV and programmatic trends are global, but the disclosure is company-specific with no new cross-border regulatory or macro trigger.
Counterpoint
Guidance raises may already be partially priced; investors may scrutinize whether DV+ growth is only modest and whether margin sustainability depends on TAC and mix.
Key entities
- companyMagnite, Inc.
NASDAQ-listed independent sell-side advertising company reporting Q2 2026 results and raising guidance.
- personMichael G. Barrett
CEO quoted on execution drivers, including CTV outperformance and agentic product launches.
