Corrected: Magnite Q3 revenue beats, driven by political ad spends

Magnite

04/11/2026 22:19

Corrects third Result Drivers bullet to specify that FY political spend, not political revenue, is expected to be nearly 3x initial forecast

Overview
US sell-side ad tech firm's Q3 revenue rose 14%, beating analyst expectations
Adjusted EPS and adjusted EBITDA for Q3 both beat analyst expectations
Growth driven by 39% yr/yr increase in CTV contribution ex-TAC

Outlook
Magnite sees Q4 2026 Contribution ex-TAC between $227 mln and $233 mln
Company raises 2026 Contribution ex-TAC growth outlook to about 17%, up from 13%-14%
Magnite expects 2027 top-line growth over 15% excluding political, or 10% on reported basis

Result Drivers
CTV GROWTH - Co said 39% yr/yr increase in contribution ex-TAC from connected TV (CTV) was a key driver of results
OPERATING LEVERAGE - Co said strong top-line execution led to 46% yr/yr growth in adjusted EBITDA with a 42% margin
POLITICAL AD SPEND - Co said political revenue, mostly in CTV, outperformed expectations and FY political spend is now expected to be nearly three times initial forecast

Company press release: ID:nGNX8Rl5X0

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$204.2 mln
$190.16 mln (13 Analysts)
Q3 Adjusted EPS
Beat
$0.33
$0.30 (8 Analysts)
Q3 Net Income
 
$34 mln
 
Q3 Adjusted EBITDA
Beat
$83.4 mln
$70.01 mln (15 Analysts)
Q3 Adjusted EBITDA Margin
 
42%
 
Q3 Gross Profit
 
$140.2 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the advertising & marketing peer group is "buy"
Wall Street's median 12-month price target for Magnite, Inc. is $28.50, about 27.6% above its November 3 closing price of $22.34
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)