Executive Summary

Q3 2025 revenue was $179.5M (+11% y/y), with total Contribution ex-TAC of $166.8M (+12% y/y), both exceeding guidance; CTV Contribution ex-TAC grew 18% y/y (+25% ex-political) and beat guidance, while DV+ grew 7% y/y and landed within guidance .
GAAP diluted EPS was $0.13 vs. $0.04 a year ago, and non-GAAP EPS was $0.20; Adjusted EBITDA was $57.2M (+13% y/y) with a 34% margin, matching last year’s margin despite higher scale .
Management guided Q4 2025 Contribution ex-TAC to $191–$196M (6–9% y/y, or 13–16% ex-political) and CTV to $87–$89M (12–14% y/y, or 23–25% ex-political); FY25 expectations reiterated with stronger margin expansion (~180 bps) and FY26 outlook targeting ≥11% Contribution ex-TAC growth and ≥35% Adjusted EBITDA margin .
Call catalysts: outsized CTV momentum with large publishers, ClearLine adoption, early benefits from Streamer.ai, agency buyer marketplaces, and live sports; near-term DV+ headwinds tied to a top DSP feature change, and October weakness in automotive/tech/home & garden verticals .

What Went Well and What Went Wrong

What Went Well

CTV strength and beat: “CTV contribution ex TAC growing 18% and 25%, excluding political… driven by our largest publisher partners… ClearLine adoption… positive SMB trends, and programmatic expansion in live sports” .
Product/customer traction: “ClearLine continues to gain momentum with over 30 clients… plans to integrate AI assistance and agentic workflows… powered… by Streamer.ai” and early client wins (ITV, Wolt) .
Agency SPO and marketplaces: “Ad spend from top holdcos grew nearly 20% in Q3 y/y… powered buyer marketplaces allow agencies to connect directly with publishers” .

What Went Wrong

DV+ near-term pressure: A top DSP software change prioritized OpenPath, impacting DV+; management expects most impact already occurred and is working with buyers to mitigate .
Vertical softness: October saw additional drop in automotive and some weakness in technology and home & garden; some budget shift from online video to CTV given more competitive CPMs .
Higher operating expenses tied to growth investments: Adjusted EBITDA operating expense was $110M in Q3 (up vs. prior year), with increased personnel, cloud and data center costs to support CTV scale and features .

Financial Results

Core P&L and Contribution ex-TAC

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Millions)	$162.0	$173.3	$179.5
Net Income ($USD Millions)	$5.2	$11.1	$20.1
Diluted EPS (GAAP, $)	$0.04	$0.08	$0.13
Non-GAAP EPS ($)	$0.17	$0.20	$0.20
Adjusted EBITDA ($USD Millions)	$50.6	$54.4	$57.2
Adjusted EBITDA Margin (%)	34%	34%	34%
Contribution ex-TAC ($USD Millions)	$149.4	$162.0	$166.8

Notes: Magnite calculates Adjusted EBITDA margin as Adjusted EBITDA divided by Contribution ex-TAC .

Estimates vs. Actuals (Q3 2025)

Metric	Consensus	Actual	Surprise
Revenue ($USD Millions)	$164.17*	$179.49	+$15.32M (Beat)
Primary EPS ($)	$0.195*	$0.20	+$0.005 (Beat)
EBITDA ($USD Millions)	$53.10*	$37.35*	-$15.75M (Miss)

Values marked with * retrieved from S&P Global. EBITDA figure from S&P Global may not be directly comparable to company-reported Adjusted EBITDA; Magnite reports Adjusted EBITDA of $57.2M .

Segment/Channel Mix (Contribution ex-TAC)

Channel	Q3 2024 ($M / %)	Q2 2025 ($M / %)	Q3 2025 ($M / %)
CTV	$64.4 / 43%	$71.5 / 44%	$75.8 / 45%
Mobile	$59.3 / 40%	$63.8 / 39%	$64.4 / 39%
Desktop	$25.7 / 17%	$26.6 / 17%	$26.5 / 16%
Total	$149.4 / 100%	$162.0 / 100%	$166.8 / 100%

KPIs and Balance Sheet Highlights

KPI	Q2 2025	Q3 2025
Operating Cash Flow ($M)	$33.9	$39.1
CapEx ($M)	$33.3 (sum of PPE + capitalized software)	$18.0 (CFO remark)
Adjusted EBITDA OpEx ($M)	—	$110.0
Cash & Cash Equivalents ($M)	$426.0	$482.1
Net Leverage (x)	0.6x	0.3x
Share Repurchases YTD ($M)	—	~$50.0
Convertible Notes Maturity	—	$205M due March; plan to repay in cash

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Contribution ex-TAC (Total)	Q4 2025	—	$191–$196M (6–9% y/y; 13–16% ex-political)	New guide
Contribution ex-TAC (CTV)	Q4 2025	—	$87–$89M (12–14% y/y; 23–25% ex-political)	New guide
Contribution ex-TAC (DV+)	Q4 2025	—	$104–$107M (2–5% y/y; 7–10% ex-political)	New guide
Adjusted EBITDA OpEx	Q4 2025	—	$112–$114M	New guide
Contribution ex-TAC (Total)	Q3 2025	$161–$165M (set in Q2 release)	Actual $166.8M	Beat vs. guide
Contribution ex-TAC (CTV)	Q3 2025	$71–$73M	Actual $75.8M	Beat vs. guide
Contribution ex-TAC (DV+)	Q3 2025	$90–$92M	Actual $90.9M	In-line
FY 2025 Contribution ex-TAC growth	FY 2025	Above 10%; mid-teens ex-political	Continue to expect above 10%; mid-teens ex-political	Maintained
FY 2025 Adj. EBITDA growth	FY 2025	Mid-teens	Mid-teens	Maintained
FY 2025 Adj. EBITDA margin expansion	FY 2025	≥150 bps	~180 bps	Raised
FY 2025 CapEx	FY 2025	—	~$80M (raised)	New/raised
FY 2026 Contribution ex-TAC growth	FY 2026	—	≥11%	New
FY 2026 Adj. EBITDA margin	FY 2026	—	≥35%	New
FY 2026 CapEx	FY 2026	—	~$60M	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
AI/Agentic workflows	Integrated Anoki ContextIQ; cautious macro due to tariffs ; reinstated FY25 expectations and highlighted product progress	ClearLine to integrate AI assistance and agentic workflows; Streamer.ai acquisition; adoption by ITV and Wolt; MCP integration summary	Accelerating productization and client wins
Agency SPO/Buyer marketplaces	Dentsu expands partnership; SPO messaging	Holdco spend up ~20% y/y; Magnite-powered buyer marketplaces central to growth	Strengthening
Live Sports Programmatic	FanDuel Sports Network scales live sports monetization	Contributions from Disney NFL/college football, MLB, WNBA; Live Stream Accelerator (LSA) gaining global use	Broadening supply and adoption
Netflix/CTV adoption	Q1 noted Netflix global programmatic rollout	Supported expansion to all ad-supported markets; ramp pacing going well	Positive ramp
DSP ecosystem changes	—	TTD OpenPath default prioritization pressuring DV+ near term; expected mitigation with buyer reconnections	Near-term headwind, manageable
Google DOJ Ad Tech case	Q1 applauded ruling; potential remedies as early as next year	Encouraged by remedies hearings; potential behavioral remedies to impact 2H26; Magnite filed its own lawsuit seeking damages	Structural tailwind potential over medium term
Infrastructure/CapEx	—	+$20M CapEx for new data centers (Ashburn, Santa Clara); hybrid infra optimization to shift volume on-prem and expand capacity	Investments for scale and efficiency

Management Commentary

“Our CTV success is being driven by our largest publisher partners and strong agency and DSP momentum. ClearLine, buyer marketplaces, and live sports remain bright spots… We are also seeing early benefits from our Streamer.ai acquisition… supporting new business wins, particularly among SMB advertisers” — Michael Barrett, CEO .
“Adjusted EBITDA was solid as well, growing 13% to $57 million… Total revenue for Q3 was $179 million, up 11%… CTV contribution ex TAC was $76 million… DV+ was $91 million… Our contribution ex TAC mix for Q3 was 45% CTV, 39% mobile, and 16% desktop” — David Day, CFO .
“In late Q3, Trade Desk made a software change… prioritized OpenPath… We project impact for Q4 in that kind of softer DV+ guide… We feel confident… that will mitigate any negative financial impact in out quarters” — Michael Barrett .
“We decided to increase our CapEx investment by $20 million… new data center buildouts… We now expect CapEx for Q4 and the full year to be approximately $23 million and $80 million, respectively… Net leverage… 0.3x” — David Day .

Q&A Highlights

TTD OpenPath impact and Magnite’s mitigation via agency/buyer reconnections; support for cleaning up resellers in the ecosystem; Magnite positioned as principal with direct publisher relationships .
SMB and Streamer.ai strategy: enable partners (media owners, agencies, DSPs) to bring SMBs into CTV; Magnite not chasing SMBs directly but ensuring spend flows through its rails .
Agentic world (ADCP/MCP): sell-side assets become more valuable; ClearLine first to integrate MCP; AI agents to automate setup/adjustment and surface insights .
Live sports programmatic adoption: accelerating, with premium inventory beyond second-tier; Disney partnership highlighted; LSA differentiator .
2026 outlook conservatism and Google remedies timing: potential behavioral remedies late 2026; FY26 guide excludes any market share gains from remedies .

Estimates Context

Revenue and EPS beat: Magnite’s Q3 revenue of $179.49M vs. S&P Global consensus $164.17M*; non-GAAP EPS of $0.20 vs. consensus $0.195* — significant top-line beat and slight EPS beat .
EBITDA comparability: S&P Global EBITDA consensus $53.10M* vs. S&P Global “actual” $37.35M*; company-reported Adjusted EBITDA was $57.2M — note definitional differences; street models should align definitions when benchmarking .
Implications: Street models likely raise CTV trajectory and total Contribution ex-TAC for Q4/FY25, while adjusting DV+ near-term growth to reflect DSP change and vertical softness; maintain margin expectations with increased FY25 CapEx .

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Magnite posted a broad-based beat led by CTV and exceeded Q3 guidance on total and CTV Contribution ex-TAC; DV+ remained resilient despite ecosystem changes .
Guidance implies a strong Q4 exit rate (ex-political), reinforcing FY25 double-digit Contribution ex-TAC growth and higher margin expansion; FY26 targets ≥35% Adjusted EBITDA margin signal operating leverage .
Strategic moats: ClearLine curation+activation, SpringServe mediation, agency buyer marketplaces, and live sports are increasingly central to growth and differentiation .
Near-term watch items: TTD OpenPath impact on DV+, vertical demand in auto/tech/home & garden, and budget shifts from online video to CTV; management is actively mitigating via buyer relationships .
Medium-term optionality: Google DOJ remedies could drive share gains beginning in 2H26; Magnite’s own lawsuit adds potential outcomes; not in current guide, but high-flow-through if realized .
Execution investments in data centers (hybrid infra optimization) and AI/agentic tooling should expand capacity, lower unit costs, and enable scale without proportional opex growth .
Position sizing: Strength in CTV and margin trajectory support a constructive intermediate outlook; monitor Q4 DV+ trends and capex pace for confirmation of FY26 ≥35% margin path .

Additional Relevant Press Releases (Q3 2025)

ClearLine evolution to unify curation and activation with plans to integrate AI assistance and agentic workflows; endorsements from LG Ad Solutions and Warner Bros. Discovery .
ITN + Magnite launch local linear TV private marketplace, bringing local linear TV inventory programmatically via ClearLine (geo/daypart/program targeting, auto-bidding, dashboards) .
Case study: Nissan and Infobip achieved a 200% engagement lift with an AI-driven WhatsApp campaign (branding/innovation relevance; not directly financial) .

Appendix: Q4/FY25/FY26 Guidance Detail

Q4 2025: Contribution ex-TAC $191–$196M; CTV $87–$89M; DV+ $104–$107M; Adjusted EBITDA OpEx $112–$114M .
FY 2025: Contribution ex-TAC growth above 10% (mid-teens ex-political); mid-teens Adjusted EBITDA growth; margin expansion ~180 bps; CapEx ~$80M .
FY 2026: Contribution ex-TAC growth ≥11%; Adjusted EBITDA margin ≥35%; CapEx ~$60M .

MAGNITE, INC. (MGNI)·Q3 2025 Earnings Summary