Magnite (MGNI) AI Stock Analysis

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Magnite

(NASDAQ:MGNI)

Select Model

Neutral 68 (OpenAI - 4o)

Rating:68Neutral

Price Target:

$16.00

▲(4.58% Upside)

Magnite's strong financial performance and positive earnings call outlook are offset by technical indicators suggesting bearish momentum and a high P/E ratio indicating overvaluation. The legal proceedings against Google add an element of risk.

Positive Factors

Strategic Partnerships

Expanding partnerships with industry leaders enhance Magnite's market reach and competitive positioning, fostering sustainable revenue growth.

AI and Technology Integration

AI integration and tech enhancements improve operational efficiency and product offerings, strengthening Magnite's competitive edge in ad tech.

Live Scheduler Introduction

The Live Scheduler product expands Magnite's service offerings, providing new revenue opportunities by capitalizing on live event advertising.

Negative Factors

Legal Uncertainty

Legal proceedings against Google could lead to operational disruptions and impact Magnite's strategic partnerships and market dynamics.

Macroeconomic Pressures

Macroeconomic challenges in key sectors may dampen advertising spend, affecting Magnite's revenue growth and market performance.

CapEx Increase

Increased CapEx for data centers could strain cash flow and reduce financial flexibility, impacting short-term profitability and investment capacity.

Magnite (MGNI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.20B

Dividend YieldN/A

Average Volume (3M)2.01M

Price to Earnings (P/E)40.6

Beta (1Y)1.81

Revenue Growth6.27%

EPS Growth226.16%

CountryUS

Employees905

SectorCommunication Services

Sector Strength97

IndustryAdvertising Agencies

Share Statistics

EPS (TTM)0.20

Shares Outstanding143,647,870

10 Day Avg. Volume1,888,060

30 Day Avg. Volume2,006,807

Financial Highlights & Ratios

PEG Ratio-0.86

Price to Book (P/B)2.91

Price to Sales (P/S)3.35

P/FCF Ratio11.06

Enterprise Value/Market Cap1.58

Enterprise Value/Revenue4.95

Enterprise Value/Gross Profit7.95

Enterprise Value/Ebitda23.09

Forecast

1Y Price Target

$28.11

Price Target Upside83.73% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering10

EPS Forecast (FY)1.14

Revenue Forecast (FY)$741.51M

Magnite Business Overview & Revenue Model

Company DescriptionMagnite, 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 CTV channels, applications, websites, and other digital media properties, to manage and monetize their inventory; and provides applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory. It markets its technology solutions to buyers and sellers through a sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.

How the Company Makes MoneyMagnite generates revenue primarily through transaction fees and commissions from the programmatic advertising campaigns run on its platform. The company charges publishers a percentage of the ad revenue generated from ads sold through its platform, which includes both direct and programmatic sales. Additionally, Magnite offers various value-added services such as analytics and reporting, which can also contribute to its revenue. Significant partnerships with major publishers and advertisers further enhance its revenue potential, as they leverage Magnite's technology to maximize their advertising yield and reach. The company's business model is supported by the growing shift towards programmatic advertising, which continues to gain traction in the digital marketing landscape.

Magnite Key Performance Indicators (KPIs)

Any

Revenue by Geography

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.

Chart InsightsMagnite's U.S. revenue shows a steady upward trajectory, with notable growth in the latter half of 2025, driven by strategic partnerships in the CTV space. International revenue is also rising, albeit at a slower pace. The earnings call highlights strong performance in CTV and DV+, with technological advancements and partnerships boosting growth. Despite tariff pressures and CTV measurement challenges, Magnite's strategic positioning and AI integration suggest robust future potential, particularly as market dynamics shift post-Google antitrust ruling.

Data provided by:

The Fly

Magnite Earnings Call Summary

Earnings Call Date:Nov 05, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Mar 04, 2026

Earnings Call Sentiment Positive

The earnings call presented a positive outlook driven by strong performance in CTV growth, strategic partnerships, and technological advancements. However, certain challenges such as macroeconomic pressures and Trade Desk changes were acknowledged.

Q3-2025 Updates

Positive Updates

Strong CTV Growth

CTV contribution ex-TAC grew 18% year-over-year, or 25% excluding political contributions, exceeding top-end guidance.

Record Adjusted EBITDA

Adjusted EBITDA was $57 million, representing a 34% margin and a 13% increase year-over-year.

Robust Partnerships Expansion

Magnite's partnerships with major players like Netflix, Roku, Warner Bros. Discovery, and others have expanded, contributing to growth.

AI and Technology Integration

Integration of AI through Streamer acquisition and ClearLine enhancements, aiming to streamline processes and increase efficiency.

Increased Cash Position

Cash balance increased to $482 million from $426 million at the end of the second quarter.

Negative Updates

Impact of Trade Desk Software Change

A software change by Trade Desk impacted DV+ performance, affecting all SSPs and leading to a softer DV+ guide.

Macroeconomic Pressures

Additional drop in vertical spend in automotive and weaknesses in technology and home and garden sectors noted.

CapEx Increase

Capital expenditures expected to increase to $80 million for the year, with significant investments in new data center build-outs.

Company Guidance

In the Magnite Q3 2025 earnings call, the company reported strong financial performance, exceeding total top-line expectations with a contribution ex-TAC growth of 18% in CTV, or 25% excluding political factors. Adjusted EBITDA reached $57 million, resulting in a 34% margin. Magnite's notable growth was driven by partnerships with major industry players like LG, NBCU, Netflix, Roku, Vizio, Walmart, and Warner Bros. Discovery. The company highlighted its strategic initiatives, such as the integration of AI technologies from their Streamer acquisition and enhancements to their ClearLine product. Guidance for Q4 2025 anticipates contribution ex-TAC between $191 million and $196 million, with CTV growth projected at 12% to 14% and DV+ growth at 2% to 5%, adjusted for political contributions. Magnite also discussed its ongoing focus on optimizing its hybrid infrastructure and managing its operational expenses efficiently. For 2026, the company expects at least 11% growth in contribution ex-TAC, with CapEx projected at $60 million, while also preparing for potential impacts from the Google Ad tech trial outcomes.

Magnite Financial Statement Overview

Summary

Magnite has demonstrated strong revenue and profit growth, with improved margins and cash flow generation. The balance sheet shows moderate leverage, but historical fluctuations in profitability and cash flow pose potential risks. Overall, the company is on a positive trajectory.

Income Statement

Positive

Magnite has shown consistent revenue growth, with a TTM revenue growth rate of 2.55%. The gross profit margin has improved to 62.33% in the TTM, indicating strong cost management. Net profit margin has increased to 6.30%, reflecting improved profitability. However, past periods showed volatility with negative net margins, which poses a risk.

Balance Sheet

Positive

The company's debt-to-equity ratio is 0.81, which is reasonable but indicates a moderate level of leverage. Return on equity has improved to 5.74% in the TTM, showing better utilization of equity. The equity ratio is stable, suggesting a balanced capital structure. However, historical fluctuations in equity and debt levels could pose risks.

Cash Flow

Positive

Magnite's free cash flow has grown significantly by 89.2% in the TTM, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 0.13, indicating efficient cash conversion. The free cash flow to net income ratio is 0.75, showing a healthy cash position. Past cash flow volatility remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	702.57M	668.17M	619.71M	577.07M	468.41M	221.63M
Gross Profit	437.67M	409.33M	209.80M	269.90M	266.75M	143.88M
EBITDA	150.66M	112.03M	115.64M	109.72M	71.75M	12.57M
Net Income	57.97M	22.79M	-159.18M	-130.32M	65.00K	-53.43M
Balance Sheet
Total Assets	2.92B	2.85B	2.69B	2.71B	2.71B	938.96M
Cash, Cash Equivalents and Short-Term Investments	482.13M	483.22M	326.22M	326.25M	230.40M	117.68M
Total Debt	625.22M	608.81M	606.65M	813.86M	809.25M	42.09M
Total Liabilities	2.11B	2.09B	1.99B	1.92B	1.83B	557.35M
Stockholders Equity	807.95M	768.22M	701.68M	791.30M	880.76M	381.61M
Cash Flow
Free Cash Flow	164.51M	202.39M	187.60M	148.15M	97.46M	-26.36M
Operating Cash Flow	222.41M	235.20M	214.37M	192.55M	126.59M	-12.06M
Investing Cash Flow	-70.57M	-47.50M	-37.38M	-65.15M	-691.00M	32.64M
Financing Cash Flow	-56.50M	-28.90M	-177.84M	-30.17M	678.05M	7.35M

Magnite Technical Analysis

Technical Analysis Sentiment

Negative

Last Price15.30

Price Trends

50DMA

15.50

Negative

100DMA

18.63

Negative

200DMA

18.23

Negative

Market Momentum

MACD

0.05

Positive

RSI

38.15

Neutral

STOCH

18.39

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGNI, the sentiment is Negative. The current price of 15.3 is below the 20-day moving average (MA) of 16.41, below the 50-day MA of 15.50, and below the 200-day MA of 18.23, indicating a bearish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 38.15 is Neutral, neither overbought nor oversold. The STOCH value of 18.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MGNI.

Magnite Risk Analysis

Magnite disclosed 58 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

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRTO	76 Outperform	$1.08B	6.89	15.37%	―	0.32%	69.78%
ZD	69 Neutral	$1.43B	14.69	6.26%	―	5.70%	97.88%
MGNI	68 Neutral	$2.20B	40.58	7.56%	―	6.27%	226.16%
STGW	65 Neutral	$1.41B	72.88	3.80%	―	6.76%	1841.46%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CCO	57 Neutral	$994.61M	-11.04	―	―	-29.67%	30.13%

* Communication Services Sector Average

Performance Comparison

MGNI

Magnite

15.30

0.16

1.06%

CCO

Clear Channel Outdoor

2.00

0.54

36.99%

Ziff Davis

36.29

-17.76

-32.86%

STGW

Stagwell

5.59

-0.73

-11.55%

CRTO

Criteo SA

20.52

-16.96

-45.25%

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.Date of analysis: Dec 09, 2025