Magnite Reports Third Quarter 2026 Results

CTV accounted for 53% of contribution ex-TAC, while Magnite expects full-year political spend nearly three times its initial forecast.

Rhea-AI Summary

Magnite (NASDAQ: MGNI) reported third-quarter 2026 revenue of $204.2 million, increasing 14% from the same quarter last year. Contribution ex-TAC, a non-GAAP measure excluding traffic acquisition costs, rose 20% to $200.6 million. Connected TV (CTV) contribution grew 39% to $105.4 million; DV+ grew 5% to $95.3 million. Both exceeded guidance.

Net income rose 70% to $34.0 million, with diluted earnings of $0.23 per share versus $0.13. Adjusted EBITDA, an adjusted earnings measure, increased 46% to $83.4 million, with a 42% margin versus 34%. Magnite raised its 2026 outlook to approximately 17% contribution ex-TAC growth, approximately 30% adjusted EBITDA growth and above 60% free cash flow growth. It expects fourth-quarter contribution ex-TAC of $227 million to $233 million. For 2027, it expects top-line growth above 15% excluding political advertising, or 10% on a total reported basis.

29 points · 1 major

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0 major · 4 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.2026 contribution ex-TAC growth outlook raised to approximately 17% from 13% to 14%.
• Moderate pointQ3 revenue rose 14% year over year to $204.2 million.
• Moderate pointQ3 contribution ex-TAC rose 20% to $200.6 million, exceeding guidance of $188 million to $192 million.
• Moderate pointQ3 CTV contribution ex-TAC rose 39% to $105.4 million, exceeding guidance of $98 million to $100 million.
• Moderate pointQ3 net income rose 70% to $34.0 million, versus $20.1 million a year earlier.
• Moderate pointQ3 adjusted EBITDA rose 46% to $83.4 million; margin increased to 42% from 34%.
• Moderate pointQ3 gross profit increased 27% year over year to $140.2 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 contribution ex-TAC expected at $227 million to $233 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2027 top-line growth expected above 15% excluding political, excluding Google-remedy upside, or 10% total reported.

20 minor points

• Minor pointQ3 DV+ contribution ex-TAC rose 5% to $95.3 million, exceeding guidance of $90 million to $92 million.
• Minor pointQ3 diluted earnings increased to $0.23 per share from $0.13 a year earlier.
• Minor pointQ3 non-GAAP earnings increased to $0.33 per share from $0.20 a year earlier.
• Minor pointQ3 operating cash flow, defined as adjusted EBITDA less capital expenditures, was $68.0 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA growth outlook raised to approximately 30% from greater than 20%.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA margin outlook raised to approximately 38.5% from at least 37%.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 free cash flow growth outlook raised to above 60% from the high 40% range.
• Minor point. Forward-looking: it has not happened yet and may not happen.Q4 CTV contribution ex-TAC expected at $124 million to $127 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Q4 DV+ contribution ex-TAC expected at $103 million to $106 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.2027 adjusted EBITDA margin expected at at least 38.5%.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year political spend now expected at nearly three times Magnite's initial forecast.
• Minor pointNine-month revenue rose 10% year over year to $561.4 million.
• Minor pointNine-month gross profit rose 20% year over year to $374.9 million.
• Minor pointNine-month contribution ex-TAC rose 16% year over year to $551.1 million.
• Minor pointNine-month net income rose 168% year over year to $57.8 million.
• Minor pointNine-month diluted earnings rose to $0.39 per share from $0.14 a year earlier.
• Minor pointNine-month adjusted EBITDA rose 33% to $196.8 million; margin increased to 36% from 31%.
• Minor pointNine-month non-GAAP earnings rose to $0.72 per share from $0.52 a year earlier.
• Minor pointCurrent debt, net of issuance costs, fell to $3.632 million from $208.447 million at December 31, 2025.
• Minor pointNon-current debt, net of discounts and issuance costs, fell to $346.318 million from $347.665 million at year-end.

Negative

• Moderate pointCash and equivalents fell to $392.862 million from $553.362 million at December 31, 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.Q4 adjusted EBITDA operating expenses expected at $125 million to $127 million.
• Minor pointQ3 sales and marketing expenses rose to $42.063 million from $40.348 million a year earlier.
• Minor pointQ3 technology and development expenses rose to $21.366 million from $20.198 million a year earlier.

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Key Figures

Revenue: $204.2 million, up 14% year-over-year Contribution ex-TAC: $200.6 million, up 20% year-over-year CTV Contribution ex-TAC: $105.4 million, up 39% year-over-year +5 more

Revenue

$204.2 million, up 14% year-over-year

Q3 2026

Contribution ex-TAC

$200.6 million, up 20% year-over-year

Q3 2026; exceeded the $188 million to $192 million guidance range

CTV Contribution ex-TAC

$105.4 million, up 39% year-over-year

Q3 2026; exceeded the $98 million to $100 million guidance range

Net income

$34.0 million, up 70%

Q3 2026 versus Q3 2025

Adjusted EBITDA

$83.4 million, up 46%; 42% margin

Q3 2026

Q4 Contribution ex-TAC outlook

$227 million to $233 million

Q4 2026 expectation

FY26 Contribution ex-TAC growth outlook

Approximately 17%, raised from 13% to 14%

Full-year 2026

FY26 free cash flow growth outlook

Above 60%, raised from the high 40% range

Full-year 2026

Previous Earnings Reports

2 past events · Latest: Aug 05

Same Type 2 events

1. Aug 05

   Q2 2026 earnings

   24h Move

   +17.7%

   Reported contribution growth, higher CTV contribution and raised full-year outlook.

2. Nov 05

   Q3 2025 earnings

   24h Move

   -13.1%

   Reported year-over-year revenue and contribution growth, positive net income and higher adjusted EBITDA.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

traffic acquisition cost, non-gaap financial measure, convertible senior notes, restricted stock units, +1 more

5 terms

traffic acquisition cost financial

"Traffic acquisition cost, a component of cost of revenue"

Traffic acquisition cost is the money a digital business spends to bring users or visitors to its site or app through third-party channels like advertising networks, search platforms, or affiliate partners. It matters to investors because it directly affects how much a company must pay to grow—similar to paying tolls or shelf fees to attract shoppers—and influences profit margins, growth efficiency and the sustainability of customer acquisition over time.

non-gaap financial measure financial

"Contribution ex-TAC is a non-GAAP financial measure"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

convertible senior notes financial

"interest expense associated with Convertible Senior Notes"

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

restricted stock units financial

"Potentially dilutive shares consist of stock options, restricted stock units"

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

free cash flow financial

"Free cash flow is defined as operating cash flow"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

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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, Nov. 04, 2026 (GLOBE NEWSWIRE) -- Magnite (NASDAQ: MGNI), the largest independent sell-side advertising company, today reported its results of operations for the quarter ended September 30, 2026.

Q3 2026 Highlights:

• Revenue of $204.2 million, up 14% year-over-year
• Contribution ex-TAC⁽¹⁾ of $200.6 million, up 20% year-over-year, exceeded the high end of the guidance range of $188 to $192 million
• Contribution ex-TAC⁽¹⁾ attributable to CTV of $105.4 million, up 39% year-over-year, exceeded the high end of the guidance range of $98 to $100 million
• Contribution ex-TAC⁽¹⁾ attributable to DV+ of $95.3 million, up 5% year-over-year, exceeded high end of the guidance range of $90 to $92 million
• Net income of $34.0 million, or $0.23 per diluted share, a 70% increase compared to a net income of $20.1 million, or $0.13 per diluted share for Q3 2025
• Adjusted EBITDA⁽¹⁾ of $83.4 million, up 46% year-over-year, representing a 42% Adjusted EBITDA margin⁽²⁾, compared to Adjusted EBITDA⁽¹⁾ of $57.2 million or a 34% margin in Q3 2025
• Non-GAAP earnings per share⁽¹⁾ of $0.33, compared to non-GAAP earnings per share⁽¹⁾ of $0.20 for Q3 2025
• Operating cash flow⁽³⁾ of $68.0 million
  
  

Q4 2026 Expectations:

• Total Contribution ex-TAC⁽¹⁾ to be between $227 million and $233 million
• Contribution ex-TAC⁽¹⁾ attributable to CTV to be between $124 million and $127 million
• Contribution ex-TAC⁽¹⁾ attributable to DV+ to be between $103 million and $106 million
• Adjusted EBITDA operating expenses⁽⁴⁾ to be between $125 million and $127 million
  
  

Full-Year 2026 Expectations:

• Raising total Contribution ex-TAC⁽¹⁾ growth to be approximately 17%, up from 13% to 14%
• Raising Adjusted EBITDA⁽¹⁾ percentage growth to be approximately 30%, from greater than 20%
• Raising Adjusted EBITDA margin⁽²⁾ to be approximately 38.5%, from at least 37%
• Raising free cash flow⁽⁵⁾ growth to be above 60%, from the high 40% range
  
  

Full-Year 2027 Expectations:

• Top-line growth, excluding political, accelerating over 2026
• Total top-line growth of over 15%, excluding political and not including upside from Google remedies, or 10% on a total reported basis
• Adjusted EBITDA margin⁽²⁾ of at least 38.5% 
  
  

“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,” said Michael G. Barrett, CEO of Magnite.

Magnite Third Quarter 2026 Results Summary
(in millions, except per share amounts and percentages)
	Three Months Ended						Nine Months Ended
	September 30, 2026		September 30, 2025		Change Favorable/ (Unfavorable)		September 30, 2026		September 30, 2025		Change Favorable/ (Unfavorable)
Revenue	$204.2		$179.5		14%		$561.4		$508.6		10%
Gross profit	$140.2		$110.1		27%		$374.9		$311.5		20%
Contribution ex-TAC(1)	$200.6		$166.8		20%		$551.1		$474.6		16%
Net income	$34.0		$20.1		70%		$57.8		$21.6		168%
Adjusted EBITDA(1)	$83.4		$57.2		46%		$196.8		$148.4		33%
Adjusted EBITDA margin(2)	42%		34%		8.0 ppt		36%		31%		5 ppt
Basic earnings per share	$0.24		$0.14		71%		$0.40		$0.15		167%
Diluted earnings per share	$0.23		$0.13		77%		$0.39		$0.14		179%
Non-GAAP earnings per share(1)	$0.33		$0.20		65%		$0.72		$0.52		38%

Footnotes:
(1)		Contribution ex-TAC, Adjusted EBITDA, and non-GAAP earnings per share are non-GAAP financial measures. Please see the discussion in the section called "Non-GAAP Financial Measures" and the reconciliations included at the end of this press release.
(2)		Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Contribution ex-TAC.
(3)		Operating cash flow is calculated as Adjusted EBITDA less capital expenditures.
(4)		Adjusted EBITDA operating expenses is calculated as Contribution ex-TAC less Adjusted EBITDA.
(5)		Free cash flow is defined as operating cash flow (Adjusted EBITDA less capital expenditures) less net interest expense.

Third Quarter 2026 Results Conference Call and Webcast:

The Company will host a conference call on November 4, 2026 at 1:30 PM (PT) / 4:30 PM (ET) to discuss the results for its third quarter of 2026.

Live conference call
Toll free number:	(844) 875-6911 (for domestic callers)
Direct dial number:	(412) 902-6511 (for international callers)
Passcode:	Ask to join the Magnite conference call
Simultaneous audio webcast:	http://investor.magnite.com under "Events and Presentations"
Conference call replay
Toll free number:	(855) 669-9658 (for domestic callers)
Direct dial number:	(412) 317-0088 (for international callers)
Passcode:	1468027
Webcast link:	http://investor.magnite.com under "Events and Presentations"

About Magnite
We’re Magnite (NASDAQ: MGNI), the world’s largest independent sell-side advertising company. Publishers use our technology to monetize their content across all screens and formats including CTV, online video, display, and audio. The world's leading agencies and brands trust our platform to access brand-safe, high-quality ad inventory and execute billions of advertising transactions each month. Anchored in bustling New York City, sunny Los Angeles, mile high Denver, historic London, colorful Singapore, and down under in Sydney, Magnite has offices across North America, EMEA, LATAM, and APAC.

Forward-Looking Statements:
This press release and management's prepared remarks during the conference call referred to above include, and management's answers to questions during the conference call may include, forward-looking statements, including statements based upon or relating to our expectations, assumptions, estimates, and projections. In some cases, you can identify forward-looking statements by terms such as "may," "might," "will," "objective," "intend," "should," "could," "can," "would," "expect," "believe," "design," "anticipate," "estimate," "predict," "potential," "plan" or the negative of these terms, and similar expressions. Forward-looking statements may include, but are not limited to, statements concerning the Company’s guidance or expectations with respect to future financial performance; acquisitions by the Company, or the anticipated benefits thereof; macroeconomic conditions or concerns related thereto; the growth of ad-supported programmatic connected television ("CTV"); our ability to use and collect data to provide our offerings; the scope and duration of client relationships; the fees we may charge in the future; key strategic objectives; anticipated benefits of new offerings; business mix; sales growth; benefits from supply path optimization; our ability to adapt to advancements in artificial intelligence ("AI"); the development of identity solutions; client utilization of our offerings; the impact of requests for discounts, rebates, or other fee concessions; our competitive differentiation; our market share and leadership position in the industry; market conditions, trends, and opportunities; the effects of regulatory developments or antitrust rulings on competitive dynamics in our industry; our litigation against Google LLC, or the anticipated benefits thereof; certain statements regarding future operational performance measures; and other statements that are not historical facts. These statements are not guarantees of future performance; they reflect our current views with respect to future events and are based on assumptions and estimates and subject to known and unknown risks, uncertainties and other factors that may cause our actual results, outcomes, performance or achievements, or the timing thereof, to be materially different from expectations or results projected or implied by forward-looking statements.

We discuss many of these risks, uncertainties, and additional factors that could cause actual results, outcomes, or timing thereof, to differ materially from those anticipated by our forward-looking statements under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere in this press release and in other filings we have made and will make from time to time with the Securities and Exchange Commission, or SEC, including our Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent filings. These forward-looking statements represent our estimates and assumptions only as of the date of the report in which they are included. Unless required by federal securities laws, we assume no obligation to update any of these forward-looking statements, or to update the reasons actual results or outcomes could differ materially from those anticipated, to reflect circumstances or events that occur after the statements are made. Without limiting the foregoing, any guidance we may provide will generally be given only in connection with quarterly and annual earnings announcements, without interim updates, and we may appear at industry conferences or make other public statements without disclosing material nonpublic information in our possession. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. Investors should read this press release and the documents that we reference in this press release and have filed or will file with the SEC completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

Non-GAAP Financial Measures and Operational Measures:

In addition to our GAAP results, we review certain non-GAAP financial measures to help us evaluate our business on a consistent basis, measure our performance, identify trends affecting our business, establish budgets, measure the effectiveness of investments in our technology and development and sales and marketing, and assess our operational efficiencies. These non-GAAP financial measures include Contribution ex-TAC, Adjusted EBITDA, Non-GAAP Income, and Non-GAAP Earnings per share, each of which is discussed below.

These non-GAAP financial measures are not intended to be considered in isolation from, as substitutes for, or as superior to, the corresponding financial measures prepared in accordance with GAAP. You are encouraged to evaluate these adjustments, and review the reconciliation of these non-GAAP financial measures to their most comparable GAAP measures, and the reasons we consider them appropriate. It is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies. See "Reconciliation of Revenue to Gross Profit to Contribution ex-TAC," "Reconciliation of net income to Adjusted EBITDA," "Reconciliation of net income to non-GAAP income," and "Reconciliation of GAAP earnings per share to non-GAAP earnings per share" included as part of this press release.

We do not provide a reconciliation of our non-GAAP financial expectations for Contribution ex-TAC and Adjusted EBITDA, or a forecast of the most comparable GAAP measures, because the amount and timing of many future charges that impact these measures (such as amortization of future acquired intangible assets, acquisition-related charges, foreign exchange (gain) loss, net, stock-based compensation, impairment charges, provision for income taxes, and our future revenue mix), which could be material, are variable, uncertain, or out of our control and therefore cannot be reasonably predicted without unreasonable effort, if at all. In addition, we believe such reconciliations or forecasts could imply a degree of precision that might be confusing or misleading to investors.

Contribution ex-TAC:

Contribution ex-TAC is calculated as gross profit plus cost of revenue, excluding traffic acquisition cost ("TAC"). Traffic acquisition cost, a component of cost of revenue, represents what we must pay sellers for the sale of advertising inventory through our platform for revenue reported on a gross basis. Contribution ex-TAC is a non-GAAP financial measure that is most comparable to gross profit. We believe Contribution ex-TAC is a useful measure in facilitating a consistent comparison against our core business without considering the impact of traffic acquisition costs related to revenue reported on a gross basis.

Adjusted EBITDA:

We define Adjusted EBITDA as net income adjusted to exclude stock-based compensation expense, depreciation and amortization, including amortization of acquired intangible assets, impairment charges, interest income or expense, provision for income taxes, and certain cash and non-cash based income or expenses that we do not consider indicative of our core operating performance, including, but not limited to foreign exchange gains and losses, acquisition, severance costs and other related items, gains or losses on extinguishment of debt, other debt refinancing expenses, certain litigation expenses, and non-operational real estate and other expenses (income), net. We believe Adjusted EBITDA is useful to investors in evaluating our performance for the following reasons:

• Adjusted EBITDA is widely used by investors and securities analysts to measure a company’s performance without regard to items such as those we exclude in calculating this measure, which can vary substantially from company to company depending upon their financing, capital structures, and the method by which assets were acquired.
• Our management uses Adjusted EBITDA in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of performance and the effectiveness of our business strategies, and in communications with our board of directors concerning our performance. Adjusted EBITDA is also used as a metric for determining payment of cash incentive compensation.
• Adjusted EBITDA provides a measure of consistency and comparability with our past performance that many investors find useful, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.
  
  

Although Adjusted EBITDA is frequently used by investors and securities analysts in their evaluations of companies, Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results of operations as reported under GAAP. These limitations include:

• Stock-based compensation is a non-cash charge and will remain an element of our long-term incentive compensation package, although we exclude it as an expense when evaluating our ongoing operating performance for a particular period.
• Depreciation and amortization are non-cash charges, and the assets being depreciated or amortized will often have to be replaced in the future, but Adjusted EBITDA does not reflect any cash requirements for these replacements.
• Impairment charges are non-cash charges related to goodwill, intangible assets and/or long-lived assets.
• Adjusted EBITDA does not reflect certain cash and non-cash charges related to acquisition and related items, such as amortization of acquired intangible assets, merger, acquisition, or restructuring related severance costs, certain transaction expenses, and changes in the fair value of contingent consideration.
• Adjusted EBITDA does not reflect cash and non-cash charges related to interest income and interest expense and certain financing transactions such as gains or losses on extinguishment of debt or other debt refinancing expenses.
• Adjusted EBITDA does not reflect cash requirements for income taxes and the cash impact of other income or expense.
• Adjusted EBITDA does not reflect litigation expenses for specific proceedings.
• Adjusted EBITDA does not reflect certain non-operational real estate and other (income) and expense, net.
• Adjusted EBITDA does not reflect changes in our working capital needs, capital expenditures, or contractual commitments.
• Other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.
  
  

Our Adjusted EBITDA is influenced by fluctuations in our revenue, cost of revenue, and the timing and amounts of the cost of our operations. Adjusted EBITDA should not be considered as an alternative to net income, income from operations, or any other measure of financial performance calculated and presented in accordance with GAAP.

Non-GAAP Income and Non-GAAP Earnings per Share:

We define non-GAAP earnings per share as non-GAAP income divided by non-GAAP weighted-average shares outstanding. Non-GAAP income is equal to net income excluding stock-based compensation, cash and non-cash based merger, acquisition, and restructuring costs, which consist primarily of professional service fees associated with merger and acquisition activities, cash-based employee termination costs, and other restructuring activities, including facility closures, relocation costs, contract termination costs, and impairment costs of abandoned technology associated with restructuring activities, amortization of acquired intangible assets, gains or losses on extinguishment of debt, certain litigation expense, non-operational real estate and other expenses or income, foreign currency gains and losses, interest expense associated with Convertible Senior Notes, other debt refinance expenses, and the tax impact of these items. In periods in which we have non-GAAP income, non-GAAP weighted-average shares outstanding used to calculate non-GAAP earnings per share includes the impact of potentially dilutive shares. Potentially dilutive shares consist of stock options, restricted stock units, performance stock units, and potential shares issued under the Employee Stock Purchase Plan, each computed using the treasury stock method, and the impact of shares that would be issuable assuming conversion of all of the Convertible Senior Notes, calculated under the if-converted method. We believe non-GAAP earnings per share is useful to investors in evaluating our ongoing operational performance and our trends on a per share basis, and also facilitates comparison of our financial results on a per share basis with other companies, many of which present a similar non-GAAP measure. However, a potential limitation of our use of non-GAAP earnings per share is that other companies may define non-GAAP earnings per share differently, which may make comparison difficult. This measure may also exclude expenses that may have a material impact on our reported financial results. Non-GAAP earnings per share is a performance measure and should not be used as a measure of liquidity. Because of these limitations, we also consider the comparable GAAP measure of net income.

Investor Relations Contact
Nick Kormeluk
(949) 500-0003
nkormeluk@magnite.com

Media Contact
Charlstie Veith
(516) 300-3569
press@magnite.com

MAGNITE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
	September 30, 2026				December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	392,862			$	553,362
Accounts receivable, net		1,432,233				1,301,955
Prepaid expenses and other current assets		27,123				26,261
TOTAL CURRENT ASSETS		1,852,218				1,881,578
Property and equipment, net		117,466				108,546
Right-of-use lease assets		58,994				66,611
Internal use software development costs, net		33,159				28,799
Intangible assets, net		5,822				12,445
Goodwill		983,902				983,902
Other assets, non-current		85,217				82,494
TOTAL ASSETS	$	3,136,778			$	3,164,375
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	1,738,299			$	1,607,664
Lease liabilities, current		21,558				20,163
Debt, current, net of debt issuance costs		3,632				208,447
Other current liabilities		20,446				5,462
TOTAL CURRENT LIABILITIES		1,783,935				1,841,736
Debt, non-current, net of debt discount and issuance costs		346,318				347,665
Lease liabilities, non-current		40,436				50,085
Other liabilities, non-current		4,404				2,539
TOTAL LIABILITIES		2,175,093				2,242,025
STOCKHOLDERS' EQUITY
Common stock		2				2
Additional paid-in capital		1,421,637				1,440,358
Accumulated other comprehensive loss		(1,181	)			(1,451	)
Accumulated deficit		(458,773	)			(516,559	)
TOTAL STOCKHOLDERS' EQUITY		961,685				922,350
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	3,136,778			$	3,164,375

MAGNITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
	Three Months Ended								Nine Months Ended
	September 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
Revenue	$	204,196			$	179,494			$	561,390			$	508,597
Expenses (1)(2):
Cost of revenue		64,016				69,356				186,462				197,108
Sales and marketing		42,063				40,348				135,151				130,777
Technology and development		21,366				20,198				70,674				64,073
General and administrative		26,211				24,551				79,622				71,003
Total expenses		153,656				154,453				471,909				462,961
Income from operations		50,540				25,041				89,481				45,636
Other (income) expense:
Interest expense, net		4,818				4,668				15,689				14,916
Foreign exchange (gain) loss, net		499				(416	)			129				6,745
Loss on extinguishment of debt		—				—				—				2,152
Other income		(353	)			(154	)			(1,191	)			(730	)
Total other expense, net		4,964				4,098				14,627				23,083
Income before income taxes		45,576				20,943				74,854				22,553
Provision for income taxes		11,571				885				17,068				990
Net income	$	34,005			$	20,058			$	57,786			$	21,563
Earnings per share:
Basic	$	0.24			$	0.14			$	0.40			$	0.15
Diluted	$	0.23			$	0.13			$	0.39			$	0.14
Weighted average shares used to compute earnings per share:
Basic		143,502				143,009				143,355				142,176
Diluted		150,805				153,166				149,554				150,516

⁽¹⁾ Stock-based compensation expense included in our expenses was as follows:

	Three Months Ended						Nine Months Ended
	September 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
Cost of revenue	$	612		$	479		$	1,900		$	1,586
Sales and marketing		7,637			7,777			24,448			25,369
Technology and development		3,086			3,959			12,351			12,801
General and administrative		5,159			5,829			17,106			19,055
Total stock-based compensation expense	$	16,494		$	18,044		$	55,805		$	58,811

⁽²⁾ Depreciation and amortization expense included in our expenses was as follows:

	Three Months Ended						Nine Months Ended
	September 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
Cost of revenue	$	13,680		$	12,088		$	42,059		$	36,312
Sales and marketing		90			91			287			3,424
Technology and development		127			79			379			215
General and administrative		47			50			141			168
Total depreciation and amortization expense	$	13,944		$	12,308		$	42,866		$	40,119

MAGNITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
	Nine Months Ended
	September 30, 2026				September 30, 2025
OPERATING ACTIVITIES:
Net income	$	57,786			$	21,563
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		42,866				40,119
Stock-based compensation		55,805				58,811
Loss on extinguishment of debt		—				2,152
Amortization of debt discount and issuance costs		2,038				2,752
Non-cash lease expense		(637	)			(1,633	)
Deferred income taxes		(1,161	)			(1,347	)
Unrealized foreign currency (gain) loss, net		(3,108	)			4,356
Other items, net		(332	)			619
Changes in operating assets and liabilities:
Accounts receivable		(130,611	)			(16,319	)
Prepaid expenses and other assets		(3,092	)			(7,407	)
Accounts payable and accrued expenses		131,311				9,880
Other liabilities		17,887				(5,835	)
Net cash provided by operating activities		168,752				107,711
INVESTING ACTIVITIES:
Purchases of property and equipment		(31,444	)			(45,131	)
Capitalized internal use software development costs		(12,657	)			(10,148	)
Mergers and acquisitions, net of indemnification claims holdback		—				(8,100	)
Other investing activities		—				(362	)
Net cash used in investing activities		(44,101	)			(63,741	)
FINANCING ACTIVITIES:
Proceeds from the Term Loan B Facility refinancing and repricing activities, net of debt discount		—				92,622
Repayment of the Term Loan B Facility from refinancing and repricing activities		—				(92,622	)
Proceeds from the Revolving Credit Facility		60,000				—
Repayment of the Revolving Credit Facility		(60,000	)			—
Payment for debt issuance costs		—				(159	)
Repayment of the Term Loan B Facility		(2,724	)			(1,816	)
Repayment of Convertible Senior Notes		(205,067	)			—
Proceeds from exercise of stock options		6,793				2,972
Proceeds from issuance of common stock under employee stock purchase plan		2,387				2,111
Purchase of treasury stock		(55,559	)			(22,880	)
Taxes paid related to net share settlement		(30,203	)			(27,268	)
Payment of indemnification claims holdback		(1,000	)			—
Net cash used in financing activities		(285,373	)			(47,040	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		222				1,977
CHANGE IN CASH AND CASH EQUIVALENTS		(160,500	)			(1,093	)
CASH AND CASH EQUIVALENTS — Beginning of period		553,362				483,220
CASH AND CASH EQUIVALENTS — End of period	$	392,862			$	482,127

MAGNITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS—(Continued)
(In thousands)
(unaudited)
	Nine Months Ended
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION:	September 30, 2026			September 30, 2025
Cash paid for income taxes	$	5,409		$	2,836
Cash paid for interest	$	19,064		$	21,674
Capitalized assets financed by accounts payable and accrued expenses and other liabilities	$	3,306		$	6,969
Capitalized stock-based compensation	$	2,056		$	1,539
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$	18,639		$	31,032
Operating lease right-of-use assets reduction and corresponding non-cash adjustment to operating lease liabilities	$	8,549		$	2,140
Non-cash financing activity related to Amendment No. 2 to the 2024 Credit Agreement	$	—		$	270,555
Purchase consideration - indemnification claims holdback	$	—		$	2,000

MAGNITE, INC.
CALCULATION OF BASIC AND DILUTED EARNINGS PER SHARE
(In thousands, except per share data)
(unaudited)
	Three Months Ended						Nine Months Ended
	September 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
Basic Earnings Per Share:
Net income	$	34,005		$	20,058		$	57,786		$	21,563
Weighted-average common shares outstanding used to compute basic earnings per share		143,502			143,009			143,355			142,176
Basic earnings per share	$	0.24		$	0.14		$	0.40		$	0.15
Diluted Earnings Per Share:
Net income	$	34,005		$	20,058		$	57,786		$	21,563
Add back:
Interest expense, Convertible Senior Notes, net of tax		—			—			253			—
Net income used to calculate diluted earnings per share	$	34,005		$	20,058		$	58,039		$	21,563
Weighted-average common shares outstanding used to compute basic earnings per share		143,502			143,009			143,355			142,176
Dilutive effect of weighted-average restricted stock units		4,415			6,124			2,862			4,887
Dilutive effect of weighted-average common stock options		1,625			2,412			1,635			2,153
Dilutive effect of weighted-average performance stock units		1,166			1,569			783			1,260
Dilutive effect of weighted-average Employee Stock Purchase Plan shares		97			52			49			40
Dilutive effect of weighted-average convertible notes		—			—			870			—
Weighted-average shares used to compute diluted earnings per share		150,805			153,166			149,554			150,516
Diluted earnings per share	$	0.23		$	0.13		$	0.39		$	0.14

MAGNITE, INC.
RECONCILIATION OF REVENUE TO GROSS PROFIT TO CONTRIBUTION EX-TAC
(In thousands)
(unaudited)
	Three Months Ended						Nine Months Ended
	September 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
Revenue	$	204,196		$	179,494		$	561,390		$	508,597
Less: Cost of revenue		64,016			69,356			186,462			197,108
Gross Profit		140,180			110,138			374,928			311,489
Add back: Cost of revenue, excluding TAC		60,448			56,641			176,199			163,094
Contribution ex-TAC	$	200,628		$	166,779		$	551,127		$	474,583

MAGNITE, INC.
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(In thousands)
(unaudited)
	Three Months Ended							Nine Months Ended
	September 30, 2026			September 30, 2025				September 30, 2026			September 30, 2025
Net income	$	34,005		$	20,058			$	57,786		$	21,563
Add back (deduct):
Stock-based compensation expense		16,494			18,044				55,805			58,811
Depreciation and amortization expense, excluding amortization of acquired intangible assets		12,446			10,067				36,243			27,605
Amortization of acquired intangibles		1,498			2,241				6,623			12,514
Merger, acquisition, and restructuring costs, excluding stock-based compensation expense		—			162				1,755			162
Interest expense, net		4,818			4,668				15,689			14,916
Provision for income taxes		11,571			885				17,068			990
Foreign exchange (gain) loss, net		499			(416	)			129			6,745
Loss on extinguishment of debt		—			—				—			2,152
Other debt refinancing expense		—			—				—			967
Litigation expense (1)		1,999			527				3,815			1,043
Non-operational real estate and other expense, net		26			935				1,904			894
Adjusted EBITDA	$	83,356		$	57,171			$	196,817		$	148,362
(1) Litigation expense includes professional and legal expenses related to the Google Action and defense costs relating to class action privacy litigation. For additional information, see the "Regulatory Developments and Google Litigation" section and Part II, Item 1. "Legal Proceedings" within our Quarterly Report on Form 10-Q for the period ended September 30, 2026.

MAGNITE, INC.
RECONCILIATION OF NET INCOME TO NON-GAAP INCOME
(In thousands)
(unaudited)
	Three Months Ended								Nine Months Ended
	September 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
Net income	$	34,005			$	20,058			$	57,786			$	21,563
Add back (deduct):
Stock-based compensation expense		16,494				18,044				55,805				58,811
Merger, acquisition, and restructuring costs, including amortization of acquired intangibles and excluding stock-based compensation expense		1,498				2,403				8,378				12,676
Foreign exchange (gain) loss, net		499				(416	)			129				6,745
Loss on extinguishment of debt		—				—				—				2,152
Other debt refinancing expense		—				—				—				967
Litigation expense (1)		1,999				527				3,815				1,043
Non-operational real estate and other expense, net		26				935				1,904				894
Interest expense, Convertible Senior Notes		—				421				359				1,264
Tax effect of Non-GAAP adjustments (2)		(5,221	)			(10,078	)			(20,734	)			(25,974	)
Non-GAAP income	$	49,300			$	31,894			$	107,442			$	80,141
(1) Litigation expense includes professional and legal expenses related to the Google Action and defense costs relating to class action privacy litigation. For additional information, see the "Regulatory Developments and Google Litigation" section and Part II, Item 1. "Legal Proceedings" within our Quarterly Report on Form 10-Q for the period ended September 30, 2026.
(2) Non-GAAP income includes the estimated tax impact from the reconciling items between net income and non-GAAP income.

MAGNITE, INC.
RECONCILIATION OF GAAP EARNINGS PER SHARE TO NON-GAAP EARNINGS PER SHARE
(In thousands, except per share amounts)
(unaudited)
	Three Months Ended						Nine Months Ended
	September 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
GAAP earnings per share (1):
Basic	$	0.24		$	0.14		$	0.40		$	0.15
Diluted	$	0.23		$	0.13		$	0.39		$	0.14
Non-GAAP income (2)	$	49,300		$	31,894		$	107,442		$	80,141
Non-GAAP earnings per share	$	0.33		$	0.20		$	0.72		$	0.52
Weighted-average shares used to compute basic earnings per share		143,502			143,009			143,355			142,176
Dilutive effect of weighted-average common stock options, RSUs, and PSUs		7,206			10,105			5,280			8,300
Dilutive effect of weighted-average ESPP shares		97			52			49			40
Dilutive effect of weighted-average Convertible Senior Notes		—			3,210			870			3,210
Non-GAAP weighted-average shares outstanding		150,805			156,376			149,554			153,726
(1) Calculated as net income divided by basic and diluted weighted-average shares used to compute basic and diluted earnings per share as included in the condensed consolidated statement of operations.
(2) Refer to reconciliation of net income to non-GAAP income.

MAGNITE, INC.
CONTRIBUTION EX-TAC BY CHANNEL
(In thousands)
(unaudited)
	Contribution ex-TAC
	Three Months Ended												Nine Months Ended
	September 30, 2026						September 30, 2025						September 30, 2026						September 30, 2025
Channel:
CTV	$	105,368		53	%		$	75,847		45	%		$	284,770		52	%		$	210,615		44	%
Mobile		67,807		33	%			64,428		39	%			188,929		34	%			186,208		40	%
Desktop		27,453		14	%			26,504		16	%			77,428		14	%			77,760		16	%
Total	$	200,628		100	%		$	166,779		100	%		$	551,127		100	%		$	474,583		100	%

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Magnite's third-quarter 2026 earnings results?

Magnite reported $204.2 million in revenue and $34.0 million in net income, up 14% and 70% year over year, respectively. Diluted earnings were $0.23 per share, compared with $0.13 a year earlier. Contribution ex-TAC increased 20% to $200.6 million.

What does Magnite expect for growth in 2027?

Magnite expects top-line growth above 15% excluding political advertising, without including upside from Google remedies, or 10% on a total reported basis. The company expects growth excluding political advertising to accelerate over 2026 and an adjusted EBITDA margin of at least 38.5%.

How does Magnite calculate adjusted EBITDA margin and free cash flow?

Magnite calculates adjusted EBITDA margin by dividing adjusted EBITDA by contribution ex-TAC, and free cash flow as adjusted EBITDA less capital expenditures and net interest expense. Its operating cash flow measure is adjusted EBITDA less capital expenditures.