Magnite Raises 2026 Outlook as Q3 CTV Contribution Jumps 39%

Magnite (NASDAQ: MGNI) reported stronger third-quarter 2026 earnings as rapid growth in connected television advertising lifted Contribution ex-TAC above guidance, while higher profitability prompted the ad-tech company to raise its full-year growth, margin and free-cash-flow outlooks.

For the quarter ended Sept. 30, revenue increased 14% year over year to $204.2 million, while gross profit rose 27% to $140.2 million. Contribution ex-TAC, a non-GAAP measure that excludes traffic acquisition costs associated with revenue reported on a gross basis, grew 20% to $200.6 million. That result exceeded Magnite’s guidance range of $188 million to $192 million.

Net income climbed 70% to $34.0 million from $20.1 million a year earlier. Diluted earnings per share rose to $0.23 from $0.13, while non-GAAP earnings per share increased to $0.33 from $0.20.

Adjusted EBITDA advanced 46% to $83.4 million. The corresponding margin, calculated against Contribution ex-TAC, expanded to 42% from 34% in the third quarter of 2025. Magnite’s company-defined operating cash flow, which equals Adjusted EBITDA less capital expenditures and excludes working-capital changes, was $68.0 million, compared with $39.1 million a year earlier.

CTV becomes a larger share of the business

Connected television was the main growth driver. CTV Contribution ex-TAC increased 39% to $105.4 million, surpassing the company’s $98 million-to-$100 million guidance range. CTV accounted for 53% of total Contribution ex-TAC, up from 45% a year earlier.

Contribution ex-TAC from DV+, which includes Magnite’s other digital channels, rose 5% to $95.3 million and exceeded guidance of $90 million to $92 million. By channel, mobile Contribution ex-TAC increased to $67.8 million from $64.4 million, while desktop rose to $27.5 million from $26.5 million.

U.S. revenue increased to $151.7 million from $134.7 million, representing 74% of total revenue. International revenue rose to $52.5 million from $44.8 million and accounted for the remaining 26%.

Magnite highlighted several recent commercial developments. Walmart Connect launched Connect Select using Magnite as a supply-side platform partner for CTV and omnichannel inventory. Samsung Ads selected Magnite’s SpringServe platform for automated buying and ad decisioning across global home-screen placements, while LG Ad Solutions extended its exclusive SpringServe ad-serving agreement for three years and expanded it to support agentic buying of LG home-screen inventory. Pinterest also selected Magnite as its primary supply-side platform for global programmatic deals.

The presentation additionally noted that a court had ordered behavioral remedies in the Google ad-tech case, including measures related to auction fairness and access to AdWords demand for six years. Magnite’s outlook does not include potential upside from those remedies.

Full-year outlook raised

For the fourth quarter, Magnite expects total Contribution ex-TAC of $227 million to $233 million. The company projects CTV Contribution ex-TAC of $124 million to $127 million and DV+ Contribution ex-TAC of $103 million to $106 million. Adjusted EBITDA operating expenses, defined as Contribution ex-TAC less Adjusted EBITDA, are expected to range from $125 million to $127 million.

Magnite raised its full-year 2026 outlook for Contribution ex-TAC growth to approximately 17%, compared with its previous range of 13% to 14%. It now expects Adjusted EBITDA to grow approximately 30%, versus its earlier forecast of more than 20%, and projects an Adjusted EBITDA margin of about 38.5%, up from a prior expectation of at least 37%.

The company also expects free cash flow growth above 60%, compared with its previous forecast in the high-40% range. Magnite defines free cash flow as its company-defined operating cash flow less net interest expense. Capital expenditures are still expected to be approximately $60 million.

For 2027, management expects top-line growth excluding political advertising to accelerate from 2026. It forecasts growth above 15% excluding political advertising and any benefit from the Google remedies, or 10% on a total reported basis. Magnite expects an Adjusted EBITDA margin of at least 38.5%.

Magnite ended the quarter with $392.9 million of cash and equivalents and $350.0 million of debt, resulting in net cash of $42.9 million. At the end of 2025, it had $553.4 million in cash, $556.1 million in debt and net debt of $2.8 million.

The company cautioned that its forecasts remain subject to macroeconomic conditions, changes in data collection and use, advances in artificial intelligence, regulatory and antitrust developments, client relationships, pricing pressure and the outcome or benefits of litigation involving Google. Magnite also does not provide GAAP reconciliations for its non-GAAP forecasts because several future charges and revenue-mix effects cannot be reasonably predicted.