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Magnite Q3 revenue beats, driven by political ad spends

By Reuters News


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 is now expected to be nearly three times initial forecast


Company press release:


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


Reuters Recommended Reads

  • Nov 2 - Roku Q3 revenue beats estimates on advertising, subscription growth

  • Nov 4 - Digital ad firm Taboola's Q3 revenue misses estimates

  • Nov 4 - AI shopping agents could threaten Amazon and Walmart's ad business


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.)

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