Magnite (MGNI)
NASDAQ:MGNI
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Magnite
(NASDAQ:MGNI)
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Rating:67Neutral
Price Target:
$13.00
▼(-5.18% Downside)
Action:ReiteratedDate:02/26/26
The score is driven primarily by improving financial fundamentals (profitability step-up, debt reduction, and solid free cash flow) and a positive earnings outlook with clear 2026 growth/margin/FCF targets and buybacks. These are partially offset by weak technicals (below major moving averages with negative MACD) and a growth-leaning valuation (P/E ~31.8) that increases sensitivity to execution—especially given DV+ softness and prior earnings volatility.
Positive Factors
Improved cash generation
Consistent positive operating cash flow and sizeable free cash flow provide durable internal funding for buybacks, debt paydown, and targeted CTV investments. Strong cash generation reduces reliance on external financing and supports the company's capital return policy and strategic execution over the next few years.
Negative Factors
DV+ underperformance and mix risk
Weakness in DV+ reduces revenue diversification and increases sensitivity to shifts in advertiser budgets toward CTV. Persistent DV+ softness can compress overall take rates and slow contribution growth if advertisers reallocate spend long term, making growth more dependent on sustained CTV gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
Consistent positive operating cash flow and sizeable free cash flow provide durable internal funding for buybacks, debt paydown, and targeted CTV investments. Strong cash generation reduces reliance on external financing and supports the company's capital return policy and strategic execution over the next few years.
Read all positive factors
Magnite (MGNI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.91B
Dividend YieldN/A
Average Volume (3M)1.80M
Price to Earnings (P/E)16.0
Beta (1Y)1.76
Revenue Growth6.27%
EPS Growth226.16%
CountryUS
Employees905
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.34
Shares Outstanding144,364,360
10 Day Avg. Volume1,570,749
30 Day Avg. Volume1,795,879
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 Cap0.89
Enterprise Value/Revenue2.39
Enterprise Value/Gross Profit3.81
Enterprise Value/Ebitda10.93
Forecast
1Y Price Target
$24.11Price Target Upside75.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)1.03
Revenue Forecast (FY)$744.12M
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 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 Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized strong and accelerating CTV momentum (32% ex-political Q4 growth, CTV now majority of business), above-consensus results, robust EBITDA expansion, improving cash and a shareholder-friendly capital allocation plan. Key challenges include DV+ weakness (below guidance and expected Q1 declines), vertical softness (auto, tech, food & beverage), higher near-term OpEx as the company invests in CTV, limited near-term monetization from AI/agentic initiatives, and uncertainty around timing/impact of AdTech remedies. On balance the positives (sustained CTV strength, margin expansion, cash generation, buybacks and clear 2026 targets) outweigh the near-term headwinds and uncertainties.Positive Updates
CTV Rapid Acceleration and Majority Mix
CTV contribution ex-TAC grew 32% year-over-year in Q4 excluding political (20% including political) and reached 48% of total contribution ex-TAC for Q4. Management stated CTV is now larger than DV+, making streaming the majority of the business.
Negative Updates
DV+ Underperformance and Continued Pressure
DV+ contribution ex-TAC was down 1% in Q4 (or up 4% excluding political) and came in below guidance. Management expects DV+ contribution ex-TAC to decline 6%–8% in Q1 2026, driven by budget reallocation into CTV.
Read all updates
Q4-2025 Updates
Positive
Negative
CTV Rapid Acceleration and Majority Mix
CTV contribution ex-TAC grew 32% year-over-year in Q4 excluding political (20% including political) and reached 48% of total contribution ex-TAC for Q4. Management stated CTV is now larger than DV+, making streaming the majority of the business.
Read all positive updates
Company Guidance
Magnite guided Q1 2026 contribution ex‑TAC of $157–161 million (growth of 8%–10% YoY), with CTV contribution ex‑TAC of $81–83 million (growth of 28%–31% YoY and surpassing 50% of total) and DV+ contribution ex‑TAC of $76–78 million (down 6%–8% YoY); adjusted EBITDA operating expenses are expected to be ~ $122 million, implying an adjusted EBITDA margin above 23% (Q1 is seasonally the lowest‑margin quarter). For full‑year 2026 management expects total contribution ex‑TAC growth of at least 11%, adjusted EBITDA percentage growth in the mid‑teens, an adjusted EBITDA margin greater than 35%, free cash flow growth >30%, and CapEx of ~ $60 million (down from 2025); guidance excludes any potential upside from Google AdTech remedies. They also said they don’t expect significant increases in cash taxes for the next few years, plan to retire the remaining $205 million convertible note this quarter, and signaled a capital return policy targeting roughly 50% of future free cash flow to buybacks under a new $200 million repurchase authorization.Magnite Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 713.95M | 668.17M | 619.71M | 577.07M | 468.41M |
| Gross Profit | 447.33M | 409.33M | 209.80M | 269.90M | 266.75M |
| EBITDA | 155.95M | 112.03M | 115.64M | 109.72M | 71.75M |
| Net Income | 144.61M | 22.79M | -159.18M | -130.32M | 65.00K |
Balance Sheet | |||||
| Total Assets | 3.16B | 2.85B | 2.69B | 2.71B | 2.71B |
| Cash, Cash Equivalents and Short-Term Investments | 553.36M | 483.22M | 326.22M | 326.25M | 230.40M |
| Total Debt | 278.69M | 608.81M | 606.65M | 813.86M | 809.25M |
| Total Liabilities | 2.24B | 2.09B | 1.99B | 1.92B | 1.83B |
| Stockholders Equity | 922.35M | 768.22M | 701.68M | 791.30M | 880.76M |
Cash Flow | |||||
| Free Cash Flow | 165.63M | 202.39M | 187.60M | 148.15M | 97.46M |
| Operating Cash Flow | 236.17M | 235.20M | 214.37M | 192.55M | 126.59M |
| Investing Cash Flow | -92.77M | -47.50M | -37.38M | -65.15M | -691.00M |
| Financing Cash Flow | -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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.91B | 16.00 | 17.85% | ― | 6.27% | 226.16% | |
67 Neutral | $990.81M | 5.65 | 13.04% | ― | 0.32% | 69.78% | |
63 Neutral | $1.78B | 928.67 | 2.62% | ― | 5.70% | 97.88% | |
62 Neutral | $1.69B | 37.07 | 4.42% | ― | 6.76% | 1841.46% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | $1.20B | -2.59 | 2.74% | ― | -29.67% | 30.13% |
* Communication Services Sector Average
MGNI
Magnite
13.71
2.70
24.52%
CCO
Clear Channel Outdoor
2.38
1.43
150.26%
ZD
Ziff Davis
47.55
16.60
53.63%
STGW
Stagwell
7.28
2.06
39.46%
CRTO
Criteo SA
19.48
-10.12
-34.19%
Magnite Corporate Events
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.