Executive Summary

MGNI delivered a clean top-line and margin beat: revenue $173.3M (+6% y/y) vs S&P Global consensus ~$157.2M*, and non-GAAP EPS $0.20 vs ~$0.17*; Adjusted EBITDA $54.4M (+22% y/y) with 34% margin (vs 30% y/y) .
Strength was broad-based: Contribution ex-TAC (CxT) rose 10% to $162.0M, above guidance ($154–$160M), led by DV+ upside ($90.4M, +8% y/y) and CTV at the high end ($71.5M, +14% y/y; +15% ex-political) .
Guidance: Q3 CxT $161–$165M; CTV $71–$73M; DV+ $90–$92M; Adjusted EBITDA OpEx $109–$111M. Reinstated FY25 outlook: CxT growth >10% (mid-teens ex-political), mid-teens EBITDA growth, and margin expansion raised to ≥150 bps (from ≥100 bps) with FCF growth high-teens to 20% .
Strategic execution tailwinds: deepening CTV partnerships (e.g., Roku, Netflix, LG, WBD, Paramount), SMB entry to CTV via specialized DSPs, live sports traction (FanDuel), curation momentum, and ongoing cloud/on‑prem efficiency gains underpinning margins .

*Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

Beat across revenue, CxT, and EBITDA: revenue $173.3M (+6% y/y); CxT $162.0M (+10% y/y), above $154–$160M; Adjusted EBITDA $54.4M (+22% y/y) with margin rising to 34% from 30% .
Segment performance: CTV CxT $71.5M (+14% y/y; +15% ex-political), at the high end; DV+ $90.4M (+8% y/y), above $84–$88M, marking 20 consecutive quarters of growth .
Management tone confident on growth drivers: “growth was fueled by new and expanded partnerships, entry of SMB advertisers, our critical role in buyer marketplaces and success in live sports” (CEO) ; “Adjusted EBITDA operating expenses…better than we expected” (CFO) with lower cloud costs contributing .

What Went Wrong

FX headwind and other below-the-line items: foreign exchange loss $4.9M (vs $0.5M loss y/y) and net interest $5.1M weighed on below-the-line; total other expense rose to $9.9M (vs $6.0M y/y) .
Macro caution persists: management cited “continued uncertainty related to the macro environment,” including tariff-related pressures, even as trends stabilized enough to reinstate FY guide .
Pricing backdrop: CTV CPMs have recalibrated lower amid surging supply though mix and programmatic adoption mitigate take-rate risk; management sees more programmatic and demand-led fees supporting economics .

Financial Results

Headline P&L vs Prior Year/Quarter and Estimates

Metric	Q2 2024	Q1 2025	Q2 2025	Vs PY	Vs PQ	Vs Estimates
Revenue ($M)	$162.9	$155.8	$173.3	+6%	+11%	$157.2* → beat by ~$16.1M
Contribution ex-TAC ($M)	$146.8	$145.8	$162.0	+10%	+11%	N/A
Adjusted EBITDA ($M)	$44.7	$36.8	$54.4	+22%	+48%	N/A
Adjusted EBITDA Margin (%)	30%	25%	34%	+400 bps	+900 bps	N/A
GAAP Diluted EPS	$(0.01)	$(0.07)	$0.08	+$0.09	+$0.15	N/A
Non-GAAP EPS	$0.14	$0.12	$0.20	+$0.06	+$0.08	$0.17* → beat by ~$0.03

*Values retrieved from S&P Global.

Channel Breakdown – Contribution ex-TAC

Channel	Q2 2024 ($M, %)	Q1 2025 ($M, %)	Q2 2025 ($M, %)
CTV	$62.95, 43%	$63.23, 43%	$71.54, 44%
Mobile	$57.71, 39%	$58.01, 40%	$63.77, 39%
Desktop	$26.10, 18%	$24.62, 17%	$26.64, 17%
Total CxT	$146.76, 100%	$145.85, 100%	$161.96, 100%

Additional KPIs and Cash/Balance

Operating cash flow: $33.9M in Q2 (EBITDA – capex) .
Adjusted EBITDA operating expenses (management view): ~$108M in Q2, better than expected .
Cash & cash equivalents: $426.0M at 6/30/25 .
Net income: $11.1M vs $(1.1)M in Q2 2024 .

Non‑GAAP methodology: Non‑GAAP EPS excludes stock‑based comp, amortization of acquired intangibles, FX, debt items and tax effects; see reconciliations for details .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Contribution ex-TAC ($M)	Q3 2025	N/A	$161–$165	New
CTV CxT ($M)	Q3 2025	N/A	$71–$73; +10–13% y/y (17–20% ex‑political)	New
DV+ CxT ($M)	Q3 2025	N/A	$90–$92; +6–8% y/y	New
Adjusted EBITDA OpEx ($M)	Q3 2025	N/A	$109–$111	New
Total CxT Growth	FY 2025	>10% (2/26 guide)	>10%; reinstated	Maintained
Total CxT Growth ex-political	FY 2025	Mid‑teens (2/26)	Mid‑teens; reinstated	Maintained
Adjusted EBITDA Growth	FY 2025	Mid‑teens (2/26)	Mid‑teens; reinstated	Maintained
Adjusted EBITDA Margin Expansion	FY 2025	≥100 bps (2/26)	≥150 bps	Raised
Free Cash Flow Growth	FY 2025	High‑teens to 20% (2/26)	High‑teens to 20%	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 and Q1’25)	Current Period (Q2’25)	Trend
AI/Technology	Launched gen‑AI in Curator; AI for content classification; efficiency gains lowering unit cloud costs; exploring on‑prem shift .	Expanded ML traffic shaping; AI audience discovery adding 3P data; launching LLM to auto‑categorize CTV context .	Increasing productization and efficiency impact
Supply path optimization & DSPs	Positioning vs OpenPath; diversity of demand; Amazon DSP partnership growing; SPO a tailwind .	“DSPs rapidly consolidating spend” to a few platforms; MGNI benefits; Amazon a key partner on DSP and publisher sides .	Strengthening SPO relationships
Live sports	Q4 live sports growth; new partners incl. FIFA, Sky NZ .	Continued momentum; FanDuel Sports Network scaling impressions with SpringServe ; programmatic share rising in live sports .	Building
SMB advertisers in CTV	Early narrative; price normalization enabling SMB entry .	SMB entry “exploding” via specialized DSPs (e.g., Mountain, TV Scientific); MGNI to supply premium CTV via SpringServe .	Accelerating
Google antitrust	Liability ruling seen as transformative; remedies in Sept; potential sizable share shift; high EBITDA flow‑through .	DOJ seeking structural/behavioral remedies; possible earlier behavioral implementation during appeal; management preparing .	Increasing focus; 2026 potential
Cost efficiency & CapEx	Unit cloud costs down; hybrid cloud/on‑prem strategy; 2025 CapEx ~$60M for efficiency .	Q2 OpEx favorability from lower cloud costs and personnel timing; still investing in engineering & sales; margin gains seen as sustainable in part .	Ongoing leverage

Management Commentary

Strategy and demand drivers: “Our CTV business continued to produce strong results driven by new and expanding partnerships, positive SMB trends, growth in agency marketplaces and programmatic growth in live sports.” (CEO) .
DV+ momentum and upside: “We saw stronger than market growth in DV+ due to several product enhancements and momentum from a number of recent deals… majority of the favorability…was driven by lower cloud computing costs and other employee related expenses.” (CFO) .
AI roadmap: “We’re in the process of launching an LLM that uses AI to automatically categorize CTV inventory into contextual segments, making it more addressable and driving increased campaign reach and monetization.” (CEO) .
Antitrust remedies: “We are highly encouraged by the court’s ruling…and believe any remedy that results in a more level playing field will be highly beneficial… it is very possible that market share could begin to shift away from Google as soon as early 2026.” (CEO) .
Netflix & Amazon: “We maintain…they could be one of our biggest clients on a run rate basis” (Netflix) ; “We are thrilled [Amazon] chose us to help monetize their owned inventory on their Fire platform.” .

Q&A Highlights

Google antitrust timing and magnitude: Management sees realistic potential for behavioral remedies during appeal, enabling earlier impact; estimates suggest every 1% share shift could add ~$50M annual CxT with ~90%+ EBITDA/FCF flow‑through given fixed processing exposure .
Margin durability: Part of Q2 OpEx beat is sustainable (cloud efficiency), with some timing effects expected to reverse; incremental investments in ClearLine, Curator, Live Sports to continue; early innings for tech stack cost-down and on‑prem shift .
CTV economics and CPMs: CPMs normalized lower as supply surged (OEMs, ad tiers), but more programmatic and MGNI-sourced demand support fee economics; mix not pressuring take rate materially .
SMB and live sports: SMB advertiser entry into CTV is gaining momentum, supported by specialized DSPs; programmatic share in live sports growing, with FanDuel Sports Network showing scaled activation on SpringServe .
Curation and data: Curator onboarding ~50 new curators since Q2 start; AI-powered audience discovery and data storefront economics provide incremental revenue and higher CPMs .

Estimates Context

Metric (Q2 2025)	S&P Global Consensus	Actual	Surprise
Revenue ($M)	$157.2*	$173.3	+$16.1 (~+10%)
EPS (Non‑GAAP)	$0.17*	$0.20	+$0.03 (~+18%)

Notes: Consensus values retrieved from S&P Global. Management also beat internal guidance on CxT ($162.0M vs $154–$160M) and delivered CTV at the high end; DV+ exceeded guide .

Implications: Street models will likely need to lift CxT, EBITDA, and margin trajectories for H2 given reinstated FY25 outlook and raised margin expansion target (≥150 bps) .

Key Takeaways for Investors

Clean beat and raised confidence: Revenue and EPS beat consensus, with EBITDA margin up 400 bps y/y; FY25 guidance reinstated and margin expansion target raised to ≥150 bps—supporting a higher quality earnings trajectory .
CTV still the growth engine: CTV CxT +14% y/y (15% ex-political), sustained by partnerships (Netflix, Roku, LG, WBD, Paramount) and SMB adoption; MGNI’s integrated SpringServe architecture is a differentiated moat .
DV+ momentum and structural optionality: DV+ +8% y/y with product and partner wins; any DOJ remedy in Google ad tech could unlock high‑margin share gains beginning as early as 2026 .
Efficiency backdrop supports margins: Cloud cost reductions and hybrid on‑prem strategy lowered OpEx; further gains expected as the mix shifts and scale rises .
Near-term setup: Q3 guide implies continued growth in both CTV and DV+ despite macro caution; live sports and curation should add incremental volume/mix benefits .
Actionable catalysts: Continued partner disclosures (live sports, agency marketplaces), AI feature rollouts (LLM contextualization), DOJ remedy milestones (Sept commencement), and quarterly progress on CxT/EBITDA margins could drive sentiment .
Watch items: Macro/tariff headwinds, FX volatility and any renewed pressure on DV+ CPMs; monitor net interest/FX line and the timing of on‑prem capex benefits .

Supporting Disclosures and Additional Press Releases

Dentsu EMEA partnership expands agency marketplace reach with SpringServe .
FanDuel Sports Network scales live sports monetization on SpringServe (+25% y/y impressions) .
Integration of Anoki ContextIQ and subsequent Future Today deployment enhances scene-level contextual targeting and planning tools in CTV .

All figures and statements are sourced from Magnite’s Q2 2025 8-K and press release, Q2 2025 earnings call transcript, and referenced press releases unless otherwise noted.

MAGNITE, INC. (MGNI)·Q2 2025 Earnings Summary