Magnite (MGNI) AI Stock Analysis

• Market Cap: $2.17B
• Dividend Yield: N/A
• Average Volume (3M): 3.14M
• Price to Earnings (P/E): 40.0
• Beta (1Y): 1.91
• Revenue Growth: 6.27%
• EPS Growth: 226.16%
• Country: US
• Employees: 905
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.20
• Shares Outstanding: 143,647,870
• 10 Day Avg. Volume: 4,256,018
• 30 Day Avg. Volume: 3,135,925
• PEG Ratio: -0.86
• Price to Book (P/B): 2.91
• Price to Sales (P/S): 3.35
• P/FCF Ratio: 11.06
• Enterprise Value/Market Cap: 1.60
• Enterprise Value/Revenue: 4.95
• Enterprise Value/Gross Profit: 7.95
• Enterprise Value/Ebitda: 23.09
• 1Y Price Target: $27.91
• Price Target Upside: 91.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $16.00 ▲(9.89% Upside)

Magnite's strong financial performance and positive earnings call sentiment are significant strengths, driving the overall score. However, technical indicators suggest bearish momentum, and the stock's high valuation presents risks. The absence of a dividend yield further impacts its attractiveness.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong demand and effective strategy execution, supporting long-term growth prospects.

CTV and DV+ Growth

Growth in CTV and DV+ segments reflects successful product adoption and positions Magnite well in the expanding digital ad market.

AI and Technology Advancements

AI advancements enhance competitive positioning by improving ad targeting and efficiency, driving future revenue opportunities.

Negative Factors

Moderate Leverage

Moderate leverage can limit financial flexibility and increase risk, especially if cash flow volatility persists.

Tariff-Related Pressures

Tariff pressures could impact cost structures and margins, posing a risk to profitability if not managed effectively.

Uncertain Macro Environment

Macroeconomic uncertainties can lead to reduced ad spend, affecting revenue growth and financial performance.

Magnite Business Overview & Revenue Model

Company Description

Magnite (MGNI) is a leading independent sell-side advertising platform that specializes in programmatic advertising and digital media solutions. The company operates primarily in the ad tech sector, providing tools and services that enable publishers to monetize their digital inventory across various channels, including display, video, and audio. Magnite's core offerings include a comprehensive supply-side platform (SSP) that helps publishers maximize revenue from their advertising space through automated transactions with advertisers and agencies.

How the Company Makes Money

Magnite generates revenue primarily through its supply-side platform, where it charges publishers a percentage of the advertising revenue generated through its system. This model, known as a revenue share, allows Magnite to earn a portion of the earnings from each ad transaction facilitated on its platform. Additionally, the company also benefits from fees associated with programmatic advertising solutions, including data management and analytics services. Key revenue streams include direct partnerships with publishers and demand-side platforms (DSPs), which enable Magnite to facilitate ad sales and optimize inventory in real-time. Significant partnerships with major publishers and advertisers enhance its market position, driving increased transaction volumes and revenue growth. The company also explores opportunities in emerging digital advertising formats and technologies, contributing to its long-term profitability.

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

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

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

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	170.88M	202.39M	176.98M	148.15M	97.46M	-34.02M
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	83.17M	-28.90M	-177.84M	-30.17M	678.05M	7.35M

Magnite Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 14.56 is below the 20-day moving average (MA) of 17.92, below the 50-day MA of 20.62, and below the 200-day MA of 18.34, indicating a bearish trend. The MACD of -1.37 indicates Positive momentum. The RSI at 27.65 is Positive, neither overbought nor oversold. The STOCH value of 20.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MGNI.

Magnite Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRTO	78 Outperform	$1.13B	7.19	15.37%	―	0.32%	69.78%
IAS	78 Outperform	$1.72B	36.71	4.48%	―	15.51%	39.60%
MGNI	68 Neutral	$2.17B	40.04	7.56%	―	6.27%	226.16%
QNST	65 Neutral	$863.99M	191.84	4.55%	―	43.12%	―
ZD	63 Neutral	$1.34B	13.19	6.26%	―	5.70%	97.88%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
STGW	59 Neutral	$1.22B	62.84	3.80%	―	6.76%	1841.46%

Magnite Corporate Events

Magnite, Inc. Earnings Call Highlights Strong CTV Growth

The recent earnings call for Magnite, Inc. painted a largely positive picture, underscored by strong performance in connected TV (CTV) growth, strategic partnerships, and technological advancements. Despite these achievements, the company acknowledged challenges such as macroeconomic pressures and changes in Trade Desk software, which have impacted certain areas of their business.

Magnite, Inc. Reports Strong Q3 2025 Financial Results

Magnite, Inc. is the world’s largest independent sell-side advertising company, providing technology for publishers to monetize content across various formats including CTV, online video, display, and audio. The company operates globally with offices in key cities such as New York, Los Angeles, and London.

Magnite Files Lawsuit Against Google for Antitrust Violations

On September 16, 2025, Magnite filed a lawsuit against Google in the U.S. District Court for the Eastern District of Virginia. The lawsuit seeks financial damages and other remedies following a court ruling in April 2025 that found Google engaged in anticompetitive practices in the ad tech markets. Magnite claims that Google’s dominance has hindered industry growth and innovation, impacting publishers, advertisers, and independent companies like Magnite. The lawsuit highlights Google’s exclusionary tactics that favored its own services, depriving competitors of fair opportunities.

The most recent analyst rating on (MGNI) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Magnite stock, see the MGNI Stock Forecast page.

Magnite Expands Lease with Zillow for Growth

On August 31, 2025, Magnite, Inc., a Delaware corporation, entered into a First Amendment to its Sublease with Zillow Group, Inc. This amendment, effective November 1, 2025, expands the leased premises to include the entire 8th floor, in addition to the previously leased 9th floor. This expansion reflects Magnite’s growth and potential increased operational capacity.

The most recent analyst rating on (MGNI) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Magnite stock, see the MGNI Stock Forecast page.

Magnite, Inc. Shines in Q2 Earnings Call

Magnite, Inc. Reports Strong Quarter with Positive Growth and Strategic Advancements

Magnite, Inc. Reports Strong Q2 2025 Growth

Magnite, Inc. is the world’s largest independent sell-side advertising company, providing technology for publishers to monetize content across various formats, including CTV, online video, display, and audio, with a global presence in key markets like North America, EMEA, LATAM, and APAC.