Magnite Reports Third Quarter 2026 Results
MAGNITE, INC. (MGNI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Magnite Reports Third Quarter 2026 Results Contribution ex-TAC (1) Grows 20% Year-Over-Year Contribution ex-TAC (1) from CTV Grows 39% Year-Over-Year Adjusted EBITDA (1) Grows 46% Year-Over-Year Adjusted EBITDA Margin (2) of 42% in Third Quarter NEW YORK, November 4,
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance are likely to attract buying interest, especially given the strong CTV growth.
Market read
The report provides fresh, material data that can influence Magnite's stock price and the broader ad‑tech sector.
What to watch
Potential regulatory scrutiny of programmatic advertising and competition from larger platforms.
Magnite Reports Third Quarter 2026 Results; Contribution ex-TAC Grows 20% Year-Over-Year and Adjusted EBITDA Grows 46% Year-Over-Year
Q3 revenue rose 14%, Contribution ex-TAC rose 20% and exceeded the high end of guidance, while Adjusted EBITDA rose 46% and net income increased 70%. The company also raised its full-year 2026 outlook across Contribution ex-TAC growth, Adjusted EBITDA growth, Adjusted EBITDA margin and free cash flow growth.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 RevenueGAAP | $204.2M | – | 14% |
| Nine months ended September 30, 2026 RevenueGAAP | $561.4M | – | 10% |
| Q3 2026 Gross profitGAAP | $140.2M | – | 27% |
| Nine months ended September 30, 2026 Gross profitGAAP | $374.9M | – | 20% |
| Q3 2026 Contribution ex-TACnon-GAAP | $200.6M | – | 20% |
| Nine months ended September 30, 2026 Contribution ex-TACnon-GAAP | $551.1M | – | 16% |
| Q3 2026 Total expensesGAAP | $153.7M | – | – |
| Q3 2026 Cost of revenueGAAP | $64M | – | – |
| Q3 2026 Sales and marketing expenseGAAP | $42.1M | – | – |
| Q3 2026 Technology and development expenseGAAP | $21.4M | – | – |
| Q3 2026 General and administrative expenseGAAP | $26.2M | – | – |
| Q3 2026 Income from operationsGAAP | $50.5M | – | – |
| Nine months ended September 30, 2026 Income from operationsGAAP | $89.5M | – | – |
| Q3 2026 Net incomeGAAP | $34M | – | 70% |
| Nine months ended September 30, 2026 Net incomeGAAP | $57.8M | – | 168% |
| Q3 2026 Basic earnings per shareGAAP | $0.24 | – | 71% |
| Q3 2026 Diluted earnings per shareGAAP | $0.23 | – | 77% |
| Nine months ended September 30, 2026 Basic earnings per shareGAAP | $0.40 | – | 167% |
| Nine months ended September 30, 2026 Diluted earnings per shareGAAP | $0.39 | – | 179% |
| Q3 2026 Non-GAAP earnings per sharenon-GAAP | $0.33 | – | 65% |
| Nine months ended September 30, 2026 Non-GAAP earnings per sharenon-GAAP | $0.72 | – | 38% |
| Q3 2026 Adjusted EBITDAnon-GAAP | $83.4M | – | 46% |
| Nine months ended September 30, 2026 Adjusted EBITDAnon-GAAP | $196.8M | – | 33% |
| Q3 2026 Adjusted EBITDA marginnon-GAAP | 42% | – | 8.0 ppt |
| Nine months ended September 30, 2026 Adjusted EBITDA marginnon-GAAP | 36% | – | 5 ppt |
| Q3 2026 Operating cash flownon-GAAP | $68M | – | – |
| Nine months ended September 30, 2026 Net cash provided by operating activitiesGAAP | $168.8M | – | – |
| Nine months ended September 30, 2026 Net cash used in investing activitiesGAAP | $44.1M | – | – |
| Nine months ended September 30, 2026 Net cash used in financing activitiesGAAP | $285.4M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q3 2026 CTV Contribution ex-TACCTV represented 53% of total Contribution ex-TAC. | $105.4M | – | 39% |
| Q3 2026 DV+ Contribution ex-TACDV+ exceeded the high end of its guidance range of $90 to $92 million. | $95.3M | – | 5% |
| Q3 2026 Mobile Contribution ex-TACMobile represented 33% of total Contribution ex-TAC. | $67.81M | – | – |
| Q3 2026 Desktop Contribution ex-TACDesktop represented 14% of total Contribution ex-TAC. | $27.45M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Q4 2026; Full-Year 2026; Full-Year 2027 outlook
- Operating expensesQ4 2026 Adjusted EBITDA operating expenses to be between $125 million and $127 million
- NoteQ4 2026 Total Contribution ex-TAC to be between $227 million and $233 million
- NoteQ4 2026 Contribution ex-TAC attributable to CTV to be between $124 million and $127 million
- NoteQ4 2026 Contribution ex-TAC attributable to DV+ to be between $103 million and $106 million
- NoteFull-Year 2026 Contribution ex-TAC growth to be approximately 17%, up from 13% to 14%
- NoteFull-Year 2026 Adjusted EBITDA percentage growth to be approximately 30%, from greater than 20%
- NoteFull-Year 2026 Adjusted EBITDA margin to be approximately 38.5%, from at least 37%
- NoteFull-Year 2026 free cash flow growth to be above 60%, from the high 40% range
- NoteFull-Year 2027 top-line growth, excluding political, accelerating over 2026
- NoteFull-Year 2027 total top-line growth of over 15%, excluding political and not including upside from Google remedies, or 10% on a total reported basis
- NoteFull-Year 2027 Adjusted EBITDA margin of at least 38.5%
Capital returns
- Purchase of treasury stock of $55,559 for the nine months ended September 30, 2026.
- Repayment of Convertible Senior Notes of $205,067 for the nine months ended September 30, 2026.
- Repayment of the Term Loan B Facility of $2,724 for the nine months ended September 30, 2026.
What drove it
- Contribution ex-TAC attributable to CTV grew 39% year-over-year to $105.4 million.
- Contribution ex-TAC attributable to DV+ grew 5% year-over-year to $95.3 million.
- The company outperformed political revenue expectations, mostly in CTV, and expects full-year political spend to be nearly three times its initial forecast.
- Adjusted EBITDA margin was 42% in Q3 2026, compared to 34% in Q3 2025.
- Q3 2026 gross profit increased 27% year-over-year to $140.2 million while total expenses were $153.7 million, compared to $154.5 million in Q3 2025.
Concerns
- Revenue growth was 14% in Q3 2026, below the 20% growth in Contribution ex-TAC.
- Q3 2026 provision for income taxes was $11.6 million, compared with $0.9 million in Q3 2025.
- Accounts receivable, net increased to $1,432,233 as of September 30, 2026 from $1,301,955 as of December 31, 2025.
- Litigation expense was $2.0 million in Q3 2026 and $3.8 million for the nine months ended September 30, 2026.
What to watch
- Execution against Q4 2026 Total Contribution ex-TAC guidance of $227 million to $233 million.
- Execution against Q4 2026 CTV Contribution ex-TAC guidance of $124 million to $127 million and DV+ guidance of $103 million to $106 million.
- Whether full-year 2026 Contribution ex-TAC growth reaches approximately 17% and Adjusted EBITDA margin reaches approximately 38.5%.
- The extent to which political spend, expected to be nearly three times the initial forecast, contributes to results.
- Full-Year 2027 total top-line growth of over 15%, excluding political and not including upside from Google remedies, or 10% on a total reported basis.
Balance sheet and cash flow
- Cash and cash equivalents were $392,862 as of September 30, 2026, compared with $553,362 as of December 31, 2025.
- Debt, current, net of debt issuance costs was $3,632 as of September 30, 2026; debt, non-current, net of debt discount and issuance costs was $346,318.
- Accounts receivable, net was $1,432,233 as of September 30, 2026, compared with $1,301,955 as of December 31, 2025.
- Net cash provided by operating activities was $168,752 for the nine months ended September 30, 2026, compared with $107,711 for the prior-year period.
- Purchases of property and equipment were $31,444 and capitalized internal use software development costs were $12,657 for the nine months ended September 30, 2026.
- Change in cash and cash equivalents was $(160,500) for the nine months ended September 30, 2026.
Analysis
Magnite reported Q3 2026 revenue of $204.2 million, up 14% year-over-year, while Contribution ex-TAC increased 20% to $200.6 million. Contribution ex-TAC exceeded the high end of the company’s $188 to $192 million guidance range. The gap between reported revenue growth and Contribution ex-TAC growth coincided with gross profit increasing 27% to $140.2 million.
CTV was the principal growth contributor. CTV Contribution ex-TAC was $105.4 million, up 39% year-over-year and above the $98 to $100 million guidance range. CTV represented 53% of total Contribution ex-TAC. DV+ Contribution ex-TAC was $95.3 million, up 5% and above its $90 to $92 million guidance range. Management attributed the result in part to political revenue outperformance, mostly in CTV, and said it now expects full-year political spend to be nearly three times its initial forecast.
Profitability improved materially. Adjusted EBITDA increased 46% to $83.4 million and Adjusted EBITDA margin increased to 42% from 34%. GAAP net income increased 70% to $34.0 million, and diluted GAAP earnings per share was $0.23 compared with $0.13. Q3 total expenses were $153.7 million versus $154.5 million in the prior-year quarter, while Q3 gross profit increased to $140.2 million from $110.1 million.
For the first nine months of 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%. Net cash provided by operating activities was $168.8 million, compared with $107.7 million in the prior-year period. Cash and cash equivalents were $392,862 at September 30, 2026, after repayment of $205,067 of Convertible Senior Notes and $55,559 of treasury-stock purchases during the nine-month period.
The company raised its full-year 2026 outlook to approximately 17% Contribution ex-TAC growth, approximately 30% Adjusted EBITDA growth, approximately 38.5% Adjusted EBITDA margin and free cash flow growth above 60%. Q4 guidance calls for Total Contribution ex-TAC of $227 million to $233 million, including CTV of $124 million to $127 million and DV+ of $103 million to $106 million. Its Full-Year 2027 expectations call for total top-line growth of over 15%, excluding political and not including upside from Google remedies, or 10% on a total reported basis, alongside an Adjusted EBITDA margin of at least 38.5%.
Management, verbatim
We delivered a very strong quarter, with the top line growing 20%, driven by CTV growing 39% and DV+ growing 5%, both significantly exceeding expectations. We outperformed political revenue expectations, mostly in CTV, and now expect full-year political spend to be nearly three times our initial forecast. CTV momentum remains broad-based, and the business now represents 53% of total contribution ex-TAC. Strong top-line execution translated into outstanding operating leverage, generating 46% Adjusted EBITDA growth with a 42% margin, prompting us to once again raise our full-year outlook across all key performance metrics.
Michael G. Barrett, CEO of Magnite
Not in the filing
stated, not guessed- GAAP gross margin for Q3 2026 and the nine months ended September 30, 2026 was not printed.
- Q3 2026 GAAP cash flow from operating activities was not printed; the release reports $68.0 million of operating cash flow calculated as Adjusted EBITDA less capital expenditures.
- Free cash flow amount for Q3 2026 and the nine months ended September 30, 2026 was not printed.
- Q3 2026 and nine-month tax rates were not printed.
- Prior-quarter comparisons were not printed for the reported operating metrics.
- Q4 2026 revenue guidance, GAAP gross-margin guidance and tax-rate guidance were not provided.
- No previous-release outlook document was provided, so no formal actual-versus-prior-guidance comparison is included.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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
Magnite is the largest independent sell‑side advertising company, reporting its quarterly results via an SEC 8‑K filing.
Ticker impact
Magnite reported Q3 2026 results with revenue up 14% YoY and raised full-year guidance across key metrics.
likely upside as raised guidance drives investor optimism
The company exceeded revenue and contribution expectations and explicitly raised its outlook, which typically supports a price rally.
Market effects
Strong ad-tech earnings may boost sentiment in the digital advertising sector.
Positive for U.S. tech stocks in the near term.
Reinforces demand for programmatic CTV advertising worldwide.
Counterpoint
If macro pressures on ad spend intensify, the raised guidance could be overly optimistic.
Key entities
- ExecutiveMichael G. Barrett
CEO of Magnite who commented on the results and raised guidance.
