Magnite Q3 revenue beats, driven by political ad spends
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
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(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.)