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Magnite
(NASDAQ:MGNI)
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Rating:77Outperform
Price Target:
$23.00
▲(67.76% Upside)
Action:Reiterated
Date:06/17/26
The score is driven by improving profitability and balance-sheet strength alongside upbeat guidance and raised margin/free-cash-flow targets from the latest earnings call. The main offsets are the recent TTM free-cash-flow step-down and technically overextended momentum (high RSI/Stoch), while valuation looks reasonable but lacks dividend support.
Positive Factors
Balance Sheet Strength
Very low leverage (debt-to-equity ~0.09) and sizable equity provide Magnite durable financial flexibility to fund strategic investments, repay liabilities, and continue disciplined capital returns. This balance-sheet strength supports resilience through ad-market cycles and preserves optionality.
Negative Factors
Weakened Cash Generation
A sharp decline in operating cash flow and free cash flow reduces conversion of earnings to liquidity, which can constrain capital allocation flexibility. If working-capital or timing dynamics persist, funding buybacks, debt paydown, or reinvestment could be pressured despite solid reported margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low leverage (debt-to-equity ~0.09) and sizable equity provide Magnite durable financial flexibility to fund strategic investments, repay liabilities, and continue disciplined capital returns. This balance-sheet strength supports resilience through ad-market cycles and preserves optionality.
Read all positive factors
Magnite Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue by region (for example U.S., EMEA, APAC) to show where Magnite earns most of its fees and where it is expanding. Heavy concentration in one market can mean greater exposure to local ad cycles and regulation, while growth abroad points to diversification and new revenue pools.
Breaks down revenue by region (for example U.S., EMEA, APAC) to show where Magnite earns most of its fees and where it is expanding. Heavy concentration in one market can mean greater exposure to local ad cycles and regulation, while growth abroad points to diversification and new revenue pools.
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The Fly
The FlyMagnite (MGNI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.92B
Dividend YieldN/A
Average Volume (3M)3.21M
Price to Earnings (P/E)18.2
Beta (1Y)1.70
Revenue Growth7.10%
EPS Growth404.29%
CountryUS
Employees971
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)1.11
Shares Outstanding143,215,000
10 Day Avg. Volume2,533,524
30 Day Avg. Volume3,205,238
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 Cap0.98
Enterprise Value/Revenue3.95
Enterprise Value/Gross Profit6.23
Enterprise Value/Ebitda18.46
Forecast
1Y Price Target
$23.25Price Target Upside69.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.06
Revenue Forecast (FY)$745.92M
Magnite Business Overview & Revenue Model
Company Description
Magnite, Inc. manages an independent, global platform dedicated to the digital advertising marketplace. This sophisticated system furnishes publishers—entities controlling digital content such as connected TV channels, mobile applications, and web...
How the Company Makes Money
Magnite makes money primarily by facilitating programmatic advertising transactions for publishers and other media owners and earning revenue tied to the media spend that flows through its platform. Its core revenue stream is platform-based fees (...
Magnite Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 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 | 154.80M | 143.22M | 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 | 429.67M | 626.36M | 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 | 36.40M | 165.63M | 202.39M | 176.98M | 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
Positive
13.71
Price Trends
16.25
Positive
14.46
Positive
15.20
Positive
Market Momentum
1.29
Positive
65.11
Neutral
52.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGNI, the sentiment is Positive. The current price of 13.71 is below the 20-day moving average (MA) of 19.38, below the 50-day MA of 16.25, and below the 200-day MA of 15.20, indicating a bullish trend. The MACD of 1.29 indicates Positive momentum. The RSI at 65.11 is Neutral, neither overbought nor oversold. The STOCH value of 52.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.92B | 18.22 | 18.57% | ― | 7.10% | 404.29% | |
69 Neutral | $1.12B | 10.32 | 10.17% | ― | -0.43% | -15.84% | |
63 Neutral | $1.91B | 45.72 | 2.55% | ― | -1.81% | -35.73% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $1.88B | 101.74 | 2.52% | ― | 4.48% | 868.83% | |
50 Neutral | $1.23B | -5.89 | 5.99% | ― | -12.49% | 38.34% |
* Communication Services Sector Average
MGNI
Magnite
20.49
-3.56
-14.80%
CCO
Clear Channel Outdoor
2.40
1.17
95.12%
ZD
Ziff Davis
52.10
21.22
68.72%
STGW
Stagwell
7.59
2.69
54.90%
CRTO
Criteo SA
22.60
-0.90
-3.83%
Magnite Corporate Events
Executive/Board ChangesShareholder Meetings
Magnite Shareholders Approve Directors, Auditor and Executive Pay
Positive
Jun 11, 2026
At Magnite’s 2026 annual meeting of stockholders held on June 8, 2026, shareholders elected three Class III directors — Paul Caine, Doug Knopper, and David Pearson — to serve until the 2029 annual meeting, reinforcing continuity ...
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. ...
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.