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Magnite, Inc. (MGNI)
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Magnite (MGNI) AI Stock Analysis

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MGNI

Magnite

(NASDAQ:MGNI)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
$29.00
▲(42.23% Upside)
Magnite's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The technical indicators support a bullish outlook, although the high P/E ratio suggests caution regarding valuation. The company's strategic positioning and growth potential in key segments like CTV and DV+ are significant strengths, despite macroeconomic uncertainties.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.
New Partnerships
Strategic partnerships with major streamers enhance market position and expand revenue opportunities, driving sustainable growth.
AI and Technology Advancements
Investments in AI and technology enhance product offerings, improve efficiency, and provide a competitive edge in the ad tech industry.
Negative Factors
Decline in Free Cash Flow
Declining free cash flow growth can limit investment capacity and financial flexibility, potentially impacting future growth initiatives.
Moderate Leverage
Moderate leverage requires careful management to avoid financial strain, especially in uncertain macroeconomic conditions.
Uncertain Macro Environment
Economic uncertainties can impact ad spending and revenue growth, posing risks to financial performance and strategic plans.

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

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 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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Examines revenue from various business segments, providing insight into which areas are most profitable and where the company might focus future efforts.
Chart InsightsMagnite's revenue has shown a consistent upward trend, with notable growth in the Net Basis segment, particularly in Q4 2024. The latest earnings call highlights a robust performance in Connected TV and Display Video Plus, driven by strategic partnerships with industry giants. This aligns with the revenue growth trajectory, suggesting a strong rebound in ad spend. However, macroeconomic uncertainties and tariff impacts could pose risks to future growth. The upcoming launch of SpringServe and potential market share gains from the Google antitrust ruling present significant opportunities for Magnite.
Data provided by:Main Street Data

Magnite Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call presented a robust performance for Q2 2025, with significant growth in revenue, EBITDA, and key segments like CTV and DV+. The introduction of new partnerships and technology advancements further bolstered Magnite's market position. However, challenges such as tariff pressures and macroeconomic uncertainties were acknowledged. Overall, the highlights significantly outweigh the lowlights, pointing to a positive outlook.
Q2-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Q2 total revenue was $173 million, up 6% from Q2 2024. Contribution ex-TAC was $162 million, up 10%, exceeding the high end of guidance. Adjusted EBITDA grew 22% to $54 million, with a margin of 34%.
CTV and DV+ Growth
CTV contribution ex-TAC grew 14% year-over-year, reaching $72 million. DV+ contribution ex-TAC increased 8%, driven by new product functionality and early contributions from new partners.
New Partnerships and Expansions
Magnite deepened relationships with major streamers like Roku, Netflix, and Warner Bros. Discovery. New SMB-focused DSP partnerships and a growing relationship with Amazon were highlighted.
AI and Technology Advancements
Expanded AI capabilities, including AI-powered audience discovery and LLM for contextual segmentation. Enhanced CTV platform and continued cost efficiencies in cloud and on-premises infrastructure.
Positive Antitrust Ruling Against Google
Court ruling against Google's monopolistic practices expected to drive a fairer market, potentially increasing DV+ market share for Magnite.
Negative Updates
Tariff-Related Pressures
Ongoing tariff-related pressures were acknowledged, although the overall ad spend environment appeared more stable than feared.
Uncertain Macro Environment
Despite a stable Q2, there remains uncertainty in the macroeconomic environment affecting ad spend.
Company Guidance
In the Magnite Q2 2025 earnings call, the company reported exceeding its total top-line guidance with CTV contribution ex-TAC growing by 14% and DV+ by 8%. Adjusted EBITDA was $54 million, marking a 22% increase with a margin of 34%, up from 30% in the same quarter last year. Total revenue reached $173 million, up 6% from the previous year, with contribution ex-TAC at $162 million, a 10% increase. CTV contribution ex-TAC was $72 million, while DV+ was $90 million. Magnite's operating expenses decreased slightly to $151 million, contributing to net income of $11 million, compared to a net loss of $1 million in Q2 2024. They also reported strong cash reserves of $426 million, with net leverage stable at 0.6x. The company anticipates continued growth, especially in CTV and DV+ segments, and is optimistic about the potential market share shift resulting from the antitrust ruling against Google.

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
75
Positive
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
68
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue685.07M668.17M619.71M577.07M468.41M221.63M
Gross Profit426.99M409.33M209.80M269.90M266.75M143.88M
EBITDA137.13M112.03M115.64M109.72M71.40M12.57M
Net Income43.13M22.79M-159.18M-130.32M65.00K-53.43M
Balance Sheet
Total Assets2.93B2.85B2.69B2.71B2.71B938.96M
Cash, Cash Equivalents and Short-Term Investments426.00M483.22M326.22M326.25M230.40M117.68M
Total Debt619.21M608.81M606.65M813.86M809.25M42.09M
Total Liabilities2.16B2.09B1.99B1.92B1.83B557.35M
Stockholders Equity768.47M768.22M701.68M791.30M880.76M381.61M
Cash Flow
Free Cash Flow169.37M202.39M176.98M148.15M97.46M-34.02M
Operating Cash Flow227.13M235.20M214.37M192.55M126.59M-12.06M
Investing Cash Flow-58.20M-47.50M-37.38M-65.15M-691.00M32.64M
Financing Cash Flow-70.64M-28.90M-177.84M-30.17M678.05M7.35M

Magnite Technical Analysis

Technical Analysis Sentiment
Negative
Last Price20.39
Price Trends
50DMA
23.48
Negative
100DMA
21.43
Negative
200DMA
18.07
Positive
Market Momentum
MACD
-0.60
Positive
RSI
33.28
Neutral
STOCH
4.15
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 20.39 is below the 20-day moving average (MA) of 23.56, below the 50-day MA of 23.48, and above the 200-day MA of 18.07, indicating a neutral trend. The MACD of -0.60 indicates Positive momentum. The RSI at 33.28 is Neutral, neither overbought nor oversold. The STOCH value of 4.15 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
77
Outperform
$1.69B30.385.19%14.39%1946.11%
75
Outperform
$1.28B9.3012.54%-0.40%36.44%
74
Outperform
$1.59B26.723.59%5.94%-8.89%
71
Outperform
$3.17B77.485.82%5.52%
68
Neutral
$1.42B492.79-0.22%9.56%
65
Neutral
$888.12M197.191.93%78.27%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MGNI
Magnite
20.39
8.49
71.34%
ZD
Ziff Davis
38.81
-8.33
-17.67%
STGW
Stagwell
5.47
-1.67
-23.39%
QNST
Quinstreet
15.46
-4.01
-20.60%
CRTO
Criteo SA
22.18
-17.05
-43.46%
IAS
Integral Ad Science
10.18
-0.25
-2.40%

Magnite Corporate Events

Legal Proceedings
Magnite Files Lawsuit Against Google for Antitrust Violations
Negative
Sep 16, 2025

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.

Business Operations and Strategy
Magnite Expands Lease with Zillow for Growth
Positive
Sep 5, 2025

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.

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: Sep 20, 2025