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1. Company Snapshot

1.a. Company Description

Magnite, Inc.operates an independent sell-side advertising platform in the United States and internationally.The company's platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties, to manage and monetize their inventory; and provides applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory.


It markets its technology solutions to buyers and sellers through a sales teams that operate from various locations.The company was formerly known as The Rubicon Project, Inc.and changed name to Magnite, Inc.


in July 2020.Magnite, Inc.was incorporated in 2007 and is headquartered in New York, New York.

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1.b. Last Insights on MGNI

Magnite's recent performance was negatively impacted by lackluster growth and a moderate guidance for 2025, as evident from its Q4 2024 earnings report. Despite strong topline growth, the company's guidance fell short of expectations, casting a shadow on its future prospects. The Mobile and Desktop segments remained flat, while the CTV segment showed strong growth, but this was not enough to offset the overall decline. Additionally, market volatility and a lack of investor confidence in the company's ability to meet its guidance further exacerbated the situation.

1.c. Company Highlights

2. Magnite's Q3 Earnings: Strong CTV Performance Drives Growth

Magnite reported a strong Q3 with total revenue of $179 million, up 11% from Q3 2024, and contribution ex-TAC of $167 million, up 12% year-over-year, exceeding the high end of the company's guidance range. Adjusted EBITDA was $57 million, resulting in a margin of 34%. Earnings per share (EPS) came in at $0.2, in line with analyst estimates. The company's cash balance at the end of Q3 was $482 million, an increase from $426 million at the end of the second quarter.

Publication Date: Nov -19

📋 Highlights
  • Strong Q3 Performance:: Revenue reached $179M (up 11% YoY), Contribution ex-TAC hit $167M (up 12%), and Adjusted EBITDA was $57M (34% margin).
  • CTV Growth Momentum:: CTV contribution ex-TAC grew 18% YoY ($76M) or 25% excluding political, driven by live sports (NFL, MLB, WNBA) and ClearLine adoption.
  • Strategic Client Acquisitions:: Post-Streamer.ai, secured ITV and Wolt as new clients, enhancing CTV ad serving and programmatic SPO capabilities.
  • Q4 Guidance Raised:: Expects Contribution ex-TAC of $191–196M (6–9% growth) and CTV contribution of $87–89M (12–14% growth), with cash balance up to $482M.
  • CapEx & Future Plans:: 2025 CapEx raised to $80M; 2026 plans include $60M CapEx for AI, live sports, and audience development, targeting 35% margin and 11%+ Contribution ex-TAC growth.

CTV Segment Performance

The CTV segment was a key driver of Magnite's growth, with contribution ex-TAC growing 18% year-over-year, or 25% excluding political. The company's performance in CTV was driven by growth from its largest publisher partners, significant traction with agency marketplaces, and positive SMB trends. New contributions from Disney's NFL and college football, as well as Major League Baseball in the WNBA, also contributed to the growth.

Guidance and Outlook

Magnite expects contribution ex-TAC to be in the range of $191 million to $196 million in Q4, representing growth of 6% to 9% or 13% to 16% excluding political. For 2026, the company estimates contribution ex-TAC growth of at least 11% without any potential market share gains from the Google Ad tech trial remedies. The company's guidance suggests continued growth momentum in CTV and DV+ segments.

Valuation and Metrics

With a P/E Ratio of 44.01 and an EV/EBITDA ratio of 15.28, Magnite's valuation suggests that the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 10.9%, which is slightly below the company's guided growth rate for 2026. The company's return on equity (ROE) is 5.74%, and return on invested capital (ROIC) is 4.7%, indicating a relatively modest return on capital. As Michael Barrett noted, "our business is performing well, particularly with our growth trends in CTV," which is expected to drive future growth.

Key Risks and Opportunities

The company's performance is subject to risks, including changes in the ad tech landscape, such as The Trade Desk's prioritization of OpenPath as a default path for supply, which affected Magnite's DV+ growth. However, the company has worked with major buyers to reconnect Magnite as a preferred supply path, mitigating the impact. Opportunities lie in the company's expanding partnerships, such as with Amazon, and its growing SMB market presence.

3. NewsRoom

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Is Magnite Stock a Buy or Sell After a Member of the Board of Directors Dumped 12,500 Shares?

Nov -23

Source: fool.com

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Roubaix Capital Sells Off 261K Magnite Shares in Full Exit: Should Investors Follow Suit?

Nov -13

Source: fool.com

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Why Magnite Stock Was Falling Today

Nov -06

Source: fool.com

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Magnite, Inc. (MGNI) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Magnite (MGNI) Q3 Earnings Match Estimates

Nov -06

Source: zacks.com

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Leading Adtech Stock Dumped by Major Backer, According to Recent Filing

Nov -02

Source: fool.com

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ITN and Magnite Empower Advertisers with Programmatic Access to Local Linear TV through New Private Marketplace

Oct -30

Source: prnewswire.com

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Magnite to Participate in Upcoming Financial Conferences

Oct -29

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.87%)

6. Segments

Connected Television

Expected Growth: 8%

Connected Television from Magnite, Inc. growth driven by increasing adoption of CTV devices, rising demand for targeted advertising, expansion of Magnite's platform capabilities, and growing partnerships with premium publishers and advertisers, resulting in an 8% growth rate.

Mobile

Expected Growth: 9%

Mobile segment growth driven by increasing mobile ad spend, rising adoption of 5G networks, and growing demand for mobile video and in-app advertising. Additionally, Magnite's mobile-first approach, expansion of mobile supply, and strategic partnerships with mobile app developers and publishers contribute to the 9% growth.

Desktop

Expected Growth: 5%

Magnite's Desktop segment growth is driven by increasing demand for premium ad inventory, expansion of its customer base, and strategic partnerships. Additionally, the shift towards header bidding and adoption of people-based marketing also contribute to growth. Furthermore, Magnite's focus on providing transparent and efficient ad transactions, as well as its ability to offer high-quality ad experiences, supports its growth momentum.

7. Detailed Products

CTV

Magnite's CTV (Connected TV) solution enables publishers to monetize their CTV inventory across various platforms and devices, providing a seamless and addressable ad experience for viewers.

Mobile

Magnite's Mobile solution helps publishers maximize their mobile ad revenue by providing a comprehensive platform for managing and optimizing mobile ad inventory.

Display

Magnite's Display solution provides publishers with a robust platform for managing and optimizing their display ad inventory across various formats and devices.

Video

Magnite's Video solution enables publishers to monetize their video content across various platforms and devices, providing a seamless and addressable ad experience for viewers.

Data

Magnite's Data solution provides publishers with a comprehensive platform for managing and optimizing their first-party data, enabling more effective targeting and monetization.

Supply Side Platform (SSP)

Magnite's SSP solution provides publishers with a robust platform for managing and optimizing their ad inventory across multiple demand sources.

8. Magnite, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Magnite, Inc. is medium due to the availability of alternative digital advertising platforms.

Bargaining Power Of Customers

The bargaining power of customers for Magnite, Inc. is low due to the company's strong relationships with its clients and the lack of buyer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Magnite, Inc. is medium due to the presence of multiple suppliers of digital advertising technology and services.

Threat Of New Entrants

The threat of new entrants for Magnite, Inc. is high due to the relatively low barriers to entry in the digital advertising industry and the presence of venture capital funding for startups.

Intensity Of Rivalry

The intensity of rivalry for Magnite, Inc. is high due to the highly competitive nature of the digital advertising industry and the presence of multiple established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 44.25%
Debt Cost 5.28%
Equity Weight 55.75%
Equity Cost 15.32%
WACC 10.88%
Leverage 79.38%

11. Quality Control: Magnite, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Integral Ad Science

A-Score: 4.8/10

Value: 4.3

Growth: 8.4

Quality: 7.8

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Magnite

A-Score: 4.3/10

Value: 2.6

Growth: 7.1

Quality: 5.3

Yield: 0.0

Momentum: 8.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Marchex

A-Score: 3.7/10

Value: 8.0

Growth: 2.6

Quality: 4.6

Yield: 0.0

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Clear Channel Outdoor

A-Score: 3.5/10

Value: 6.8

Growth: 2.8

Quality: 4.1

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Direct Digital Holdings

A-Score: 3.4/10

Value: 10.0

Growth: 3.0

Quality: 5.4

Yield: 0.0

Momentum: 1.5

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Fluent

A-Score: 2.7/10

Value: 8.6

Growth: 1.6

Quality: 2.2

Yield: 0.0

Momentum: 2.5

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.74$

Current Price

14.74$

Potential

-0.00%

Expected Cash-Flows