Q3 FY2026
Filed Nov 4, 2026Magnite 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.