Magnite, Inc.

What they do

Magnite provides software for publishers of CTV channels, apps and websites to manage and monetize ad inventory, and for buyers such as advertisers, agencies, trading desks and DSPs to purchase that inventory. It operates a transparent independent marketplace connecting the two sides and processes trillions of ad requests per month. The SpringServe CTV platform handles programmatic and direct-sold CTV inventory, and ClearLine gives buyers direct access to premium CTV inventory with curation tools.

Revenue drivers

• CTV — Contribution ex-TAC from CTV was $97.1 million in Q2 2026, up 36% year-over-year, and is the company's growth engine, anchored by the SpringServe platform.
• DV+ — Contribution ex-TAC from DV+ was $92.5 million in Q2 2026, up 2% year-over-year, comparable in size to CTV and returning to growth.
• Omni-channel marketplace — The platform monetizes display, video and other formats across web, mobile and CTV for publishers, with buyers paying through auctions and direct deals; revenue is recognized net of traffic acquisition costs in contribution ex-TAC terms.

Recent performance

Q2 2026 revenue was $192.8 million, up 11% year-over-year, and contribution ex-TAC was $189.6 million, up 17% and above the high end of guidance. CTV contribution ex-TAC grew 36% to $97.1 million and DV+ grew 2% to $92.5 million, both above guidance. Net income was $19.4 million, or $0.13 per diluted share, versus $11.1 million, or $0.08, in Q2 2025. Adjusted EBITDA rose 30% to $70.6 million, a 37% margin, and operating cash flow was $57.4 million.

Strategy

Management is prioritizing CTV growth through the next-generation SpringServe platform, which combines prior platform features and functionalities and launched in April 2025. It is also investing in 'agentic' product launches intended to position Magnite as infrastructure between supply and demand. Full-year 2026 expectations were raised for contribution ex-TAC growth, Adjusted EBITDA growth and margin, and free cash flow growth. The company continues supply path optimization efforts with buyers and develops identity and data capabilities.

Risks

• Advertising demand sensitivity — Revenue depends on overall advertising demand, and macroeconomic challenges could reduce advertiser spending and directly pressure results.
• Competition from walled gardens — Magnite competes with larger, better-resourced companies, and buyers and sellers may shift spending or inventory to competing sources or direct integrations.
• CTV growth dependence — CTV spend on the platform may grow more slowly than expected, growth may occur through platforms Magnite cannot access, or access to CTV inventory may not be maintained on acceptable terms.
• AI-driven traffic shift — AI advancements may reduce search referral traffic for open web display publishers, lowering the web display inventory monetized through Magnite's platform, and AI is also reshaping competitive dynamics.

Outlook

For Q3 2026, management expects total contribution ex-TAC of $188 million to $192 million, CTV contribution ex-TAC of $98 million to $100 million, DV+ contribution ex-TAC of $90 million to $92 million, and Adjusted EBITDA operating expenses of $119 million to $121 million. For full-year 2026, the company raised total contribution ex-TAC growth guidance to 13% to 14%, Adjusted EBITDA growth to greater than 20%, Adjusted EBITDA margin to at least 37%, and free cash flow growth to the high 40% range.