Magnite (MGNI) AI Stock Analysis

• Market Cap: $3.61B
• Dividend Yield: N/A
• Average Volume (3M): 2.98M
• Price to Earnings (P/E): 86.8
• Beta (1Y): 1.81
• Revenue Growth: 5.52%
• EPS Growth: N/A
• Country: US
• Employees: 905
• Sector: Communication Services
• Sector Strength: 94
• Industry: Advertising Agencies
• EPS (TTM): 0.20
• Shares Outstanding: 142,399,300
• 10 Day Avg. Volume: 3,352,120
• 30 Day Avg. Volume: 2,981,479
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 5.50
• Enterprise Value/Gross Profit: 8.83
• Enterprise Value/Ebitda: 27.49
• 1Y Price Target: $27.81
• Price Target Upside: 16.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 72 Outperform
• Price Target: $28.00 ▲(17.20% Upside)

Magnite's strong financial performance and positive earnings call are the most significant factors driving the score. The technical analysis supports a bullish outlook, while recent corporate events further enhance the company's growth prospects. However, the high P/E ratio and lack of dividend yield weigh down the overall score, indicating potential valuation concerns.

Positive Factors

Revenue Growth

Consistent revenue growth demonstrates expanding market reach and product adoption, solidifying Magnite's position in the ad tech sector.

New Partnerships

Strengthening partnerships with major streamers enhances Magnite's market position and potential revenue streams, supporting long-term growth.

AI and Technology Advancements

Investments in AI and technology advancements improve operational efficiency and product offerings, driving competitive advantage in the ad tech industry.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth can limit Magnite's ability to invest in new opportunities and manage debt, potentially impacting long-term financial health.

Tariff-Related Pressures

Tariff-related pressures can increase costs and impact profitability, posing a risk to Magnite's margins and financial performance over time.

Uncertain Macro Environment

Macroeconomic uncertainties can lead to fluctuating ad spend, affecting Magnite's revenue stability and growth prospects in the near to medium term.

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 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 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 shows robust revenue growth and profitability, with strong gross and EBITDA margins. The balance sheet reflects moderate leverage and stable equity, while cash flow generation is adequate but requires attention to reverse the decline in free cash flow growth. Overall, the company is on a positive trajectory but should focus on enhancing cash flow and managing leverage.

Income Statement

Magnite has demonstrated strong revenue growth with a TTM increase of 1.55%. Gross profit margin improved to 62.33%, indicating efficient cost management. The net profit margin of 6.30% and EBIT margin of 11.48% reflect solid profitability, although there is room for improvement. The EBITDA margin of 20.02% shows healthy operational performance.

Balance Sheet

The debt-to-equity ratio of 0.81 indicates moderate leverage, which is manageable but should be monitored. Return on equity at 5.74% suggests moderate efficiency in generating returns from equity. The equity ratio of 26.25% shows a stable capital structure, though there is potential for strengthening equity.

Cash Flow

Operating cash flow remains strong, but free cash flow growth has declined by 30.35% in the TTM. The operating cash flow to net income ratio of 0.13 and free cash flow to net income ratio of 0.75 indicate adequate cash generation relative to net income, though improvements are needed to boost free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	685.07M	668.17M	619.71M	577.07M	468.41M	221.63M
Gross Profit	426.99M	409.33M	209.80M	269.90M	266.75M	143.88M
EBITDA	137.13M	112.03M	115.64M	109.72M	71.40M	12.57M
Net Income	43.13M	22.79M	-159.18M	-130.32M	65.00K	-53.43M
Balance Sheet
Total Assets	2.93B	2.85B	2.69B	2.71B	2.71B	938.96M
Cash, Cash Equivalents and Short-Term Investments	426.00M	483.22M	326.22M	326.25M	230.40M	117.68M
Total Debt	619.21M	608.81M	606.65M	813.86M	809.25M	42.09M
Total Liabilities	2.16B	2.09B	1.99B	1.92B	1.83B	557.35M
Stockholders Equity	768.47M	768.22M	701.68M	791.30M	880.76M	381.61M
Cash Flow
Free Cash Flow	169.37M	202.39M	176.98M	148.15M	97.46M	-34.02M
Operating Cash Flow	227.13M	235.20M	214.37M	192.55M	126.59M	-12.06M
Investing Cash Flow	-58.20M	-47.50M	-37.38M	-65.15M	-691.00M	32.64M
Financing Cash Flow	-70.64M	-28.90M	-177.84M	-30.17M	678.05M	7.35M

Magnite Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 23.89 is below the 20-day moving average (MA) of 24.34, above the 50-day MA of 23.67, and above the 200-day MA of 17.60, indicating a neutral trend. The MACD of 0.51 indicates Positive momentum. The RSI at 48.86 is Neutral, neither overbought nor oversold. The STOCH value of 37.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MGNI.

Magnite Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IAS	77 Outperform	$1.46B	25.51	5.52%	―	14.39%	1946.11%
CRTO	75 Outperform	$1.37B	9.70	12.79%	―	-0.40%	36.44%
ZD	74 Outperform	$1.58B	26.34	3.56%	―	5.94%	-8.89%
MGNI	72 Outperform	$3.61B	86.77	5.82%	―	5.52%	―
STGW	71 Outperform	$1.43B	621.59	-0.29%	―	6.50%	―
QNST	66 Neutral	$912.44M	201.79	2.04%	―	78.27%	―
Sector *	60 Neutral	$47.13B	4.38	-11.40%	4.21%	1.87%	-42.87%

Magnite Corporate Events

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.

Magnite Stockholders Approve Key Proposals at Annual Meeting

At the 2025 annual meeting of stockholders held on June 5, 2025, Magnite‘s stockholders voted on three proposals. The election of three Class II directors, the ratification of Deloitte & Touche LLP as the independent accounting firm, and the approval of executive compensation were all passed, indicating continued support for the company’s leadership and financial strategies.