Magnite (MGNI)
NASDAQ:MGNI
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Magnite
(NASDAQ:MGNI)
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Rating:69Neutral
Price Target:
$15.50
▲(13.06% Upside)
Action:Downgraded
Date:05/09/26
The score is driven primarily by improving fundamentals (stronger profitability and a much healthier balance sheet) and an upbeat earnings call with raised margin and free-cash-flow targets led by CTV strength. Offsetting these positives are weak recent cash-flow trends and a very high P/E valuation, with technicals supportive short term but still weak versus the long-term trend.
Positive Factors
Balance sheet strength
Material deleveraging and a sizable equity base give Magnite durable financial flexibility. Low debt-to-equity (~0.09) supports continued investment in CTV/product development, opportunistic buybacks or future M&A, and a buffer versus ad-market cyclicality, improving multi-quarter resilience.
Negative Factors
Weakened cash generation
A large drop in operating and free cash flow signals weaker cash-conversion and potential working-capital or timing issues. Over multiple quarters this reduces internal funding for capex, M&A, or buybacks and raises sensitivity to any margin or revenue setbacks despite positive FCF remaining.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Material deleveraging and a sizable equity base give Magnite durable financial flexibility. Low debt-to-equity (~0.09) supports continued investment in CTV/product development, opportunistic buybacks or future M&A, and a buffer versus ad-market cyclicality, improving multi-quarter resilience.
Read all positive factors
Magnite Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyMagnite (MGNI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.98B
Dividend YieldN/A
Average Volume (3M)1.82M
Price to Earnings (P/E)96.6
Beta (1Y)1.78
Revenue Growth7.10%
EPS Growth404.29%
CountryUS
Employees905
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)1.11
Shares Outstanding143,215,000
10 Day Avg. Volume1,819,263
30 Day Avg. Volume1,818,617
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)2.51
Price to Sales (P/S)3.24
P/FCF Ratio13.97
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue2.66
Enterprise Value/Gross Profit4.19
Enterprise Value/Ebitda12.80
Forecast
1Y Price Target
$22.83Price Target Upside66.55% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)1.04
Revenue Forecast (FY)$745.80M
Magnite Business Overview & Revenue Model
Company Description
Magnite, Inc. operates an independent sell-side advertising platform in the United States and internationally. The company's platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate ...
How the Company Makes Money
Magnite primarily makes money by taking a fee from transactions executed on its platform when publishers’ advertising inventory is bought and sold programmatically. In practice, when an advertiser (often via an agency trading desk or demand-side p...
Magnite Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial progress driven by a robust CTV ramp, double-digit contribution ex-TAC growth, margin expansion, and durability in key customer relationships. Management highlighted durable cost efficiencies (cloud and AI), a disciplined capital allocation plan (debt paydown and buybacks), and raised full-year margin and free-cash-flow targets. Offsetting risks include ongoing DV+ decline, vertical-specific macro weakness (automotive, technology), a large quarter-over-quarter cash reduction from debt repayment and repurchases, uncertainty around timing of Google AdTech remedies, and a planned CFO transition. On balance, the positive growth, profitability, and strategic momentum notably outweigh the moderate risks discussed.Positive Updates
Top-line Revenue Growth
Total revenue for Q1 was $164 million, up 6% year-over-year.
Negative Updates
DV+ Decline and Ongoing Reallocation
DV+ contribution ex-TAC declined 5% year-over-year to $79 million in Q1 and is guided to decline 4% to 2% in Q2, reflecting continued budget reallocation toward CTV and softness in open-web display.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-line Revenue Growth
Total revenue for Q1 was $164 million, up 6% year-over-year.
Read all positive updates
Company Guidance
Guidance: For Q2 management expects contribution ex‑TAC of $177–181M (growth +9% to +12%), with CTV contribution ex‑TAC of $90–92M (+26% to +29%) and DV+ contribution ex‑TAC of $87–89M (down 4% to 2%); they expect Adjusted EBITDA operating expenses of $115–117M implying an Adjusted EBITDA margin of ~34%–36%. For full‑year 2026 they reaffirm at least +11% contribution ex‑TAC growth, mid‑teens Adjusted EBITDA percentage growth, raise Adjusted EBITDA margin to at least 35.5% (from >35%), raise free cash flow growth to the mid‑30% range (from >30%), and reaffirm CapEx of ~ $60M; guidance excludes any potential upside from Google AdTech remedies.Magnite Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 722.55M | 713.95M | 668.17M | 619.71M | 577.07M | 468.41M |
| Gross Profit | 458.32M | 447.33M | 409.33M | 209.80M | 269.90M | 266.75M |
| EBITDA | 150.13M | 155.95M | 112.03M | 115.64M | 109.72M | 71.75M |
| Net Income | 158.66M | 144.61M | 22.79M | -159.18M | -130.32M | 65.00K |
Balance Sheet | ||||||
| Total Assets | 2.95B | 3.16B | 2.85B | 2.69B | 2.71B | 2.71B |
| Cash, Cash Equivalents and Short-Term Investments | 184.65M | 553.36M | 483.22M | 326.22M | 326.25M | 230.40M |
| Total Debt | 82.45M | 278.69M | 608.81M | 606.65M | 813.86M | 809.25M |
| Total Liabilities | 2.03B | 2.24B | 2.09B | 1.99B | 1.92B | 1.83B |
| Stockholders Equity | 917.91M | 922.35M | 768.22M | 701.68M | 791.30M | 880.76M |
Cash Flow | ||||||
| Free Cash Flow | 43.74M | 165.63M | 202.39M | 187.60M | 148.15M | 97.46M |
| Operating Cash Flow | 112.84M | 236.17M | 235.20M | 214.37M | 192.55M | 126.59M |
| Investing Cash Flow | -88.69M | -92.77M | -47.50M | -37.38M | -65.15M | -691.00M |
| Financing Cash Flow | -270.71M | -75.08M | -28.90M | -177.84M | -30.17M | 678.05M |
Magnite Technical Analysis
Neutral
13.71
Price Trends
12.37
Positive
13.88
Negative
17.58
Negative
Market Momentum
0.15
Negative
66.65
Neutral
91.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGNI, the sentiment is Neutral. The current price of 13.71 is above the 20-day moving average (MA) of 12.25, above the 50-day MA of 12.37, and below the 200-day MA of 17.58, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 66.65 is Neutral, neither overbought nor oversold. The STOCH value of 91.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MGNI.
Magnite Risk Analysis
Magnite disclosed 59 risk factors in its most recent earnings report. Magnite reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Magnite Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.98B | 96.63 | 18.57% | ― | 7.10% | 404.29% | |
62 Neutral | $1.50B | 17.72 | 2.62% | ― | -1.81% | -35.73% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $811.59M | 28.87 | 10.24% | ― | -0.43% | -15.84% | |
55 Neutral | $1.50B | -30.40 | 2.52% | ― | 4.48% | 868.83% | |
48 Neutral | $1.22B | -6.00 | 2.74% | ― | -12.49% | 38.34% |
* Communication Services Sector Average
MGNI
Magnite
13.82
-2.49
-15.27%
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STGW
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CRTO
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16.20
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Magnite Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Magnite Announces CFO Retirement and Leadership Transition Plan
Neutral
Apr 20, 2026
On April 20, 2026, Magnite announced that longtime Chief Financial Officer David Day plans to retire, with a transition agreement keeping him in the CFO role through September 30, 2026 and then as a non‑executive advisor until May 31, 2027. ...
Executive/Board Changes
Magnite Announces Transition of Chief Product Officer Role
Neutral
Apr 10, 2026
Magnite, Inc., a leading sell-side platform in the digital advertising technology sector, announced a leadership change affecting its product organization in early April 2026. The company, which supports programmatic advertising across connected T...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.