Contribution ex-TAC(1) Grows 20% Year-Over-Year
Contribution ex-TAC(1) from CTV Grows 39% Year-Over-Year
Adjusted EBITDA(1) Grows 46% Year-Over-Year
Adjusted EBITDA Margin(2) of 42% in Third Quarter
NEW YORK, Nov. 04, 2026 (GLOBE NEWSWIRE) — Magnite (NASDAQ: MGNI), the largest independent sell-side advertising company, today reported its results of operations for the quarter ended September 30, 2026.
Q3 2026 Highlights:
Revenue of $204.2 million, up 14% year-over-yearContribution ex-TAC(1) of $200.6 million, up 20% year-over-year, exceeded the high end of the guidance range of $188 to $192 millionContribution ex-TAC(1) attributable to CTV of $105.4 million, up 39% year-over-year, exceeded the high end of the guidance range of $98 to $100 millionContribution ex-TAC(1) attributable to DV+ of $95.3 million, up 5% year-over-year, exceeded high end of the guidance range of $90 to $92 millionNet income of $34.0 million, or $0.23 per diluted share, a 70% increase compared to a net income of $20.1 million, or $0.13 per diluted share for Q3 2025Adjusted EBITDA(1) of $83.4 million, up 46% year-over-year, representing a 42% Adjusted EBITDA margin(2), compared to Adjusted EBITDA(1) of $57.2 million or a 34% margin in Q3 2025Non-GAAP earnings per share(1) of $0.33, compared to non-GAAP earnings per share(1) of $0.20 for Q3 2025Operating cash flow(3) of $68.0 million
Q4 2026 Expectations:
Total Contribution ex-TAC(1) to be between $227 million and $233 millionContribution ex-TAC(1) attributable to CTV to be between $124 million and $127 millionContribution ex-TAC(1) attributable to DV+ to be between $103 million and $106 millionAdjusted EBITDA operating expenses(4) to be between $125 million and $127 million
Full-Year 2026 Expectations:
Raising total Contribution ex-TAC(1) growth to be approximately 17%, up from 13% to 14%Raising Adjusted EBITDA(1) percentage growth to be approximately 30%, from greater than 20%Raising Adjusted EBITDA margin(2) to be approximately 38.5%, from at least 37%Raising free cash flow(5) growth to be above 60%, from the high 40% range
Full-Year 2027 Expectations:
Top-line growth, excluding political, accelerating over 2026Total top-line growth of over 15%, excluding political and not including upside from Google remedies, or 10% on a total reported basisAdjusted EBITDA margin(2) of at least 38.5%
“We delivered a very strong quarter, with the top line growing 20%, driven by CTV growing 39% and DV+ growing 5%, both significantly exceeding expectations. We outperformed political revenue expectations, mostly in CTV, and now expect full-year political spend to be nearly three times our initial forecast. CTV momentum remains broad-based, and the business now represents 53% of total contribution ex-TAC. Strong top-line execution translated into outstanding operating leverage, generating 46% Adjusted EBITDA growth with a 42% margin, prompting us to once again raise our full-year outlook across all key performance metrics,” said Michael G. Barrett, CEO of Magnite.
Magnite Third Quarter 2026 Results Summary
(in millions, except per share amounts and percentages)
Three Months Ended Nine Months Ended September 30, 2026 September 30, 2025 Change
Favorable/ (Unfavorable) September 30, 2026 September 30, 2025 Change
Favorable/ (Unfavorable)Revenue$204.2 $179.5 14% $561.4 $508.6 10%Gross profit$140.2 $110.1 27% $374.9 $311.5 20%Contribution ex-TAC(1)$200.6 $166.8 20% $551.1 $474.6 16%Net income$34.0 $20.1 70% $57.8 $21.6 168%Adjusted EBITDA(1)$83.4 $57.2 46% $196.8 $148.4 33%Adjusted EBITDA margin(2)42% 34% 8.0 ppt 36% 31% 5 pptBasic earnings per share$0.24 $0.14 71% $0.40 $0.15 167%Diluted earnings per share$0.23 $0.13 77% $0.39 $0.14 179%Non-GAAP earnings per share(1)$0.33 $0.20 65% $0.72 $0.52 38%
Footnotes:(1)
Contribution ex-TAC, Adjusted EBITDA, and non-GAAP earnings per share are non-GAAP financial measures. Please see the discussion in the section called “Non-GAAP Financial Measures” and the reconciliations included at the end of this press release.(2)
Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Contribution ex-TAC.(3)
Operating cash flow is calculated as Adjusted EBITDA less capital expenditures.(4)
Adjusted EBITDA operating expenses is calculated as Contribution ex-TAC less Adjusted EBITDA.(5)
Free cash flow is defined as operating cash flow (Adjusted EBITDA less capital expenditures) less net interest expense.
Third Quarter 2026 Results Conference Call and Webcast:
The Company will host a conference call on November 4, 2026 at 1:30 PM (PT) / 4:30 PM (ET) to discuss the results for its third quarter of 2026.
Live conference call Toll free number:(844) 875-6911 (for domestic callers)Direct dial number:(412) 902-6511 (for international callers)Passcode:Ask to join the Magnite conference callSimultaneous audio webcast:http://investor.magnite.com under “Events and Presentations” Conference call replay Toll free number:(855) 669-9658 (for domestic callers)Direct dial number:(412) 317-0088 (for international callers)Passcode:1468027Webcast link:http://investor.magnite.com under “Events and Presentations”
About Magnite
We’re Magnite (NASDAQ: MGNI), the world’s largest independent sell-side advertising company. Publishers use our technology to monetize their content across all screens and formats including CTV, online video, display, and audio. The world’s leading agencies and brands trust our platform to access brand-safe, high-quality ad inventory and execute billions of advertising transactions each month. Anchored in bustling New York City, sunny Los Angeles, mile high Denver, historic London, colorful Singapore, and down under in Sydney, Magnite has offices across North America, EMEA, LATAM, and APAC.
Forward-Looking Statements:
This press release and management’s prepared remarks during the conference call referred to above include, and management’s answers to questions during the conference call may include, forward-looking statements, including statements based upon or relating to our expectations, assumptions, estimates, and projections. In some cases, you can identify forward-looking statements by terms such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “anticipate,” “estimate,” “predict,” “potential,” “plan” or the negative of these terms, and similar expressions. Forward-looking statements may include, but are not limited to, statements concerning the Company’s guidance or expectations with respect to future financial performance; acquisitions by the Company, or the anticipated benefits thereof; macroeconomic conditions or concerns related thereto; the growth of ad-supported programmatic connected television (“CTV”); our ability to use and collect data to provide our offerings; the scope and duration of client relationships; the fees we may charge in the future; key strategic objectives; anticipated benefits of new offerings; business mix; sales growth; benefits from supply path optimization; our ability to adapt to advancements in artificial intelligence (“AI”); the development of identity solutions; client utilization of our offerings; the impact of requests for discounts, rebates, or other fee concessions; our competitive differentiation; our market share and leadership position in the industry; market conditions, trends, and opportunities; the effects of regulatory developments or antitrust rulings on competitive dynamics in our industry; our litigation against Google LLC, or the anticipated benefits thereof; certain statements regarding future operational performance measures; and other statements that are not historical facts. These statements are not guarantees of future performance; they reflect our current views with respect to future events and are based on assumptions and estimates and subject to known and unknown risks, uncertainties and other factors that may cause our actual results, outcomes, performance or achievements, or the timing thereof, to be materially different from expectations or results projected or implied by forward-looking statements.
We discuss many of these risks, uncertainties, and additional factors that could cause actual results, outcomes, or timing thereof, to differ materially from those anticipated by our forward-looking statements under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in this press release and in other filings we have made and will make from time to time with the Securities and Exchange Commission, or SEC, including our Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent filings. These forward-looking statements represent our estimates and assumptions only as of the date of the report in which they are included. Unless required by federal securities laws, we assume no obligation to update any of these forward-looking statements, or to update the reasons actual results or outcomes could differ materially from those anticipated, to reflect circumstances or events that occur after the statements are made. Without limiting the foregoing, any guidance we may provide will generally be given only in connection with quarterly and annual earnings announcements, without interim updates, and we may appear at industry conferences or make other public statements without disclosing material nonpublic information in our possession. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. Investors should read this press release and the documents that we reference in this press release and have filed or will file with the SEC completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.
Non-GAAP Financial Measures and Operational Measures:
In addition to our GAAP results, we review certain non-GAAP financial measures to help us evaluate our business on a consistent basis, measure our performance, identify trends affecting our business, establish budgets, measure the effectiveness of investments in our technology and development and sales and marketing, and assess our operational efficiencies. These non-GAAP financial measures include Contribution ex-TAC, Adjusted EBITDA, Non-GAAP Income, and Non-GAAP Earnings per share, each of which is discussed below.
These non-GAAP financial measures are not intended to be considered in isolation from, as substitutes for, or as superior to, the corresponding financial measures prepared in accordance with GAAP. You are encouraged to evaluate these adjustments, and review the reconciliation of these non-GAAP financial measures to their most comparable GAAP measures, and the reasons we consider them appropriate. It is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies. See “Reconciliation of Revenue to Gross Profit to Contribution ex-TAC,” “Reconciliation of net income to Adjusted EBITDA,” “Reconciliation of net income to non-GAAP income,” and “Reconciliation of GAAP earnings per share to non-GAAP earnings per share” included as part of this press release.
We do not provide a reconciliation of our non-GAAP financial expectations for Contribution ex-TAC and Adjusted EBITDA, or a forecast of the most comparable GAAP measures, because the amount and timing of many future charges that impact these measures (such as amortization of future acquired intangible assets, acquisition-related charges, foreign exchange (gain) loss, net, stock-based compensation, impairment charges, provision for income taxes, and our future revenue mix), which could be material, are variable, uncertain, or out of our control and therefore cannot be reasonably predicted without unreasonable effort, if at all. In addition, we believe such reconciliations or forecasts could imply a degree of precision that might be confusing or misleading to investors.
Contribution ex-TAC:
Contribution ex-TAC is calculated as gross profit plus cost of revenue, excluding traffic acquisition cost (“TAC”). Traffic acquisition cost, a component of cost of revenue, represents what we must pay sellers for the sale of advertising inventory through our platform for revenue reported on a gross basis. Contribution ex-TAC is a non-GAAP financial measure that is most comparable to gross profit. We believe Contribution ex-TAC is a useful measure in facilitating a consistent comparison against our core business without considering the impact of traffic acquisition costs related to revenue reported on a gross basis.
Adjusted EBITDA:
We define Adjusted EBITDA as net income adjusted to exclude stock-based compensation expense, depreciation and amortization, including amortization of acquired intangible assets, impairment charges, interest income or expense, provision for income taxes, and certain cash and non-cash based income or expenses that we do not consider indicative of our core operating performance, including, but not limited to foreign exchange gains and losses, acquisition, severance costs and other related items, gains or losses on extinguishment of debt, other debt refinancing expenses, certain litigation expenses, and non-operational real estate and other expenses (income), net. We believe Adjusted EBITDA is useful to investors in evaluating our performance for the following reasons:
Adjusted EBITDA is widely used by investors and securities analysts to measure a company’s performance without regard to items such as those we exclude in calculating this measure, which can vary substantially from company to company depending upon their financing, capital structures, and the method by which assets were acquired.Our management uses Adjusted EBITDA in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of performance and the effectiveness of our business strategies, and in communications with our board of directors concerning our performance. Adjusted EBITDA is also used as a metric for determining payment of cash incentive compensation.Adjusted EBITDA provides a measure of consistency and comparability with our past performance that many investors find useful, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.
Although Adjusted EBITDA is frequently used by investors and securities analysts in their evaluations of companies, Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results of operations as reported under GAAP. These limitations include:
Stock-based compensation is a non-cash charge and will remain an element of our long-term incentive compensation package, although we exclude it as an expense when evaluating our ongoing operating performance for a particular period.Depreciation and amortization are non-cash charges, and the assets being depreciated or amortized will often have to be replaced in the future, but Adjusted EBITDA does not reflect any cash requirements for these replacements.Impairment charges are non-cash charges related to goodwill, intangible assets and/or long-lived assets.Adjusted EBITDA does not reflect certain cash and non-cash charges related to acquisition and related items, such as amortization of acquired intangible assets, merger, acquisition, or restructuring related severance costs, certain transaction expenses, and changes in the fair value of contingent consideration.Adjusted EBITDA does not reflect cash and non-cash charges related to interest income and interest expense and certain financing transactions such as gains or losses on extinguishment of debt or other debt refinancing expenses.Adjusted EBITDA does not reflect cash requirements for income taxes and the cash impact of other income or expense.Adjusted EBITDA does not reflect litigation expenses for specific proceedings.Adjusted EBITDA does not reflect certain non-operational real estate and other (income) and expense, net.Adjusted EBITDA does not reflect changes in our working capital needs, capital expenditures, or contractual commitments.Other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.
Our Adjusted EBITDA is influenced by fluctuations in our revenue, cost of revenue, and the timing and amounts of the cost of our operations. Adjusted EBITDA should not be considered as an alternative to net income, income from operations, or any other measure of financial performance calculated and presented in accordance with GAAP.
Non-GAAP Income and Non-GAAP Earnings per Share:
We define non-GAAP earnings per share as non-GAAP income divided by non-GAAP weighted-average shares outstanding. Non-GAAP income is equal to net income excluding stock-based compensation, cash and non-cash based merger, acquisition, and restructuring costs, which consist primarily of professional service fees associated with merger and acquisition activities, cash-based employee termination costs, and other restructuring activities, including facility closures, relocation costs, contract termination costs, and impairment costs of abandoned technology associated with restructuring activities, amortization of acquired intangible assets, gains or losses on extinguishment of debt, certain litigation expense, non-operational real estate and other expenses or income, foreign currency gains and losses, interest expense associated with Convertible Senior Notes, other debt refinance expenses, and the tax impact of these items. In periods in which we have non-GAAP income, non-GAAP weighted-average shares outstanding used to calculate non-GAAP earnings per share includes the impact of potentially dilutive shares. Potentially dilutive shares consist of stock options, restricted stock units, performance stock units, and potential shares issued under the Employee Stock Purchase Plan, each computed using the treasury stock method, and the impact of shares that would be issuable assuming conversion of all of the Convertible Senior Notes, calculated under the if-converted method. We believe non-GAAP earnings per share is useful to investors in evaluating our ongoing operational performance and our trends on a per share basis, and also facilitates comparison of our financial results on a per share basis with other companies, many of which present a similar non-GAAP measure. However, a potential limitation of our use of non-GAAP earnings per share is that other companies may define non-GAAP earnings per share differently, which may make comparison difficult. This measure may also exclude expenses that may have a material impact on our reported financial results. Non-GAAP earnings per share is a performance measure and should not be used as a measure of liquidity. Because of these limitations, we also consider the comparable GAAP measure of net income.
Investor Relations Contact
Nick Kormeluk
(949) 500-0003
nkormeluk@magnite.com
Media Contact
Charlstie Veith
(516) 300-3569
press@magnite.com
MAGNITE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
September 30, 2026 December 31, 2025ASSETS Current assets: Cash and cash equivalents$392,862 $553,362 Accounts receivable, net 1,432,233 1,301,955 Prepaid expenses and other current assets 27,123 26,261 TOTAL CURRENT ASSETS 1,852,218 1,881,578 Property and equipment, net 117,466 108,546 Right-of-use lease assets 58,994 66,611 Internal use software development costs, net 33,159 28,799 Intangible assets, net 5,822 12,445 Goodwill 983,902 983,902 Other assets, non-current 85,217 82,494 TOTAL ASSETS$3,136,778 $3,164,375 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued expenses$1,738,299 $1,607,664 Lease liabilities, current 21,558 20,163 Debt, current, net of debt issuance costs 3,632 208,447 Other current liabilities 20,446 5,462 TOTAL CURRENT LIABILITIES 1,783,935 1,841,736 Debt, non-current, net of debt discount and issuance costs 346,318 347,665 Lease liabilities, non-current 40,436 50,085 Other liabilities, non-current 4,404 2,539 TOTAL LIABILITIES 2,175,093 2,242,025 STOCKHOLDERS’ EQUITY Common stock 2 2 Additional paid-in capital 1,421,637 1,440,358 Accumulated other comprehensive loss (1,181) (1,451)Accumulated deficit (458,773) (516,559)TOTAL STOCKHOLDERS’ EQUITY 961,685 922,350 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$3,136,778 $3,164,375
MAGNITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended September 30,
2026 September 30,
2025 September 30,
2026 September 30,
2025Revenue$204,196 $179,494 $561,390 $508,597 Expenses (1)(2): Cost of revenue 64,016 69,356 186,462 197,108 Sales and marketing 42,063 40,348 135,151 130,777 Technology and development 21,366 20,198 70,674 64,073 General and administrative 26,211 24,551 79,622 71,003 Total expenses 153,656 154,453 471,909 462,961 Income from operations 50,540 25,041 89,481 45,636 Other (income) expense: Interest expense, net 4,818 4,668 15,689 14,916 Foreign exchange (gain) loss, net 499 (416) 129 6,745 Loss on extinguishment of debt — — — 2,152 Other income (353) (154) (1,191) (730)Total other expense, net 4,964 4,098 14,627 23,083 Income before income taxes 45,576 20,943 74,854 22,553 Provision for income taxes 11,571 885 17,068 990 Net income$34,005 $20,058 $57,786 $21,563 Earnings per share: Basic$0.24 $0.14 $0.40 $0.15 Diluted$0.23 $0.13 $0.39 $0.14 Weighted average shares used to compute earnings per share: Basic 143,502 143,009 143,355 142,176 Diluted 150,805 153,166 149,554 150,516
(1) Stock-based compensation expense included in our expenses was as follows:
Three Months Ended Nine Months EndedSeptember 30,
2026 September 30,
2025 September 30,
2026 September 30,
2025Cost of revenue$612 $479 $1,900 $1,586Sales and marketing 7,637 7,777 24,448 25,369Technology and development 3,086 3,959 12,351 12,801General and administrative 5,159 5,829 17,106 19,055Total stock-based compensation expense$16,494 $18,044 $55,805 $58,811
(2) Depreciation and amortization expense included in our expenses was as follows:
Three Months Ended Nine Months Ended September 30,
2026 September 30,
2025 September 30,
2026 September 30,
2025Cost of revenue$13,680 $12,088 $42,059 $36,312Sales and marketing 90 91 287 3,424Technology and development 127 79 379 215General and administrative 47 50 141 168Total depreciation and amortization expense$13,944 $12,308 $42,866 $40,119
MAGNITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Nine Months Ended September 30, 2026 September 30, 2025OPERATING ACTIVITIES: Net income$57,786 $21,563 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 42,866 40,119 Stock-based compensation 55,805 58,811 Loss on extinguishment of debt — 2,152 Amortization of debt discount and issuance costs 2,038 2,752 Non-cash lease expense (637) (1,633)Deferred income taxes (1,161) (1,347)Unrealized foreign currency (gain) loss, net (3,108) 4,356 Other items, net (332) 619 Changes in operating assets and liabilities: Accounts receivable (130,611) (16,319)Prepaid expenses and other assets (3,092) (7,407)Accounts payable and accrued expenses 131,311 9,880 Other liabilities 17,887 (5,835)Net cash provided by operating activities 168,752 107,711 INVESTING ACTIVITIES: Purchases of property and equipment (31,444) (45,131)Capitalized internal use software development costs (12,657) (10,148)Mergers and acquisitions, net of indemnification claims holdback — (8,100)Other investing activities — (362)Net cash used in investing activities (44,101) (63,741)FINANCING ACTIVITIES: Proceeds from the Term Loan B Facility refinancing and repricing activities, net of debt discount — 92,622 Repayment of the Term Loan B Facility from refinancing and repricing activities — (92,622)Proceeds from the Revolving Credit Facility 60,000 — Repayment of the Revolving Credit Facility (60,000) — Payment for debt issuance costs — (159)Repayment of the Term Loan B Facility (2,724) (1,816)Repayment of Convertible Senior Notes (205,067) — Proceeds from exercise of stock options 6,793 2,972 Proceeds from issuance of common stock under employee stock purchase plan 2,387 2,111 Purchase of treasury stock (55,559) (22,880)Taxes paid related to net share settlement (30,203) (27,268)Payment of indemnification claims holdback (1,000) — Net cash used in financing activities (285,373) (47,040)EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 222 1,977 CHANGE IN CASH AND CASH EQUIVALENTS (160,500) (1,093)CASH AND CASH EQUIVALENTS — Beginning of period 553,362 483,220 CASH AND CASH EQUIVALENTS — End of period$392,862 $482,127
MAGNITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS—(Continued)
(In thousands)
(unaudited)
Nine Months EndedSUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION:September 30, 2026 September 30, 2025Cash paid for income taxes$5,409 $2,836Cash paid for interest$19,064 $21,674Capitalized assets financed by accounts payable and accrued expenses and other liabilities$3,306 $6,969Capitalized stock-based compensation$2,056 $1,539Operating lease right-of-use assets obtained in exchange for operating lease liabilities$18,639 $31,032Operating lease right-of-use assets reduction and corresponding non-cash adjustment to operating lease liabilities$8,549 $2,140Non-cash financing activity related to Amendment No. 2 to the 2024 Credit Agreement$— $270,555Purchase consideration – indemnification claims holdback$— $2,000
MAGNITE, INC.
CALCULATION OF BASIC AND DILUTED EARNINGS PER SHARE
(In thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended September 30,
2026 September 30,
2025 September 30,
2026 September 30,
2025 Basic Earnings Per Share: Net income$34,005 $20,058 $57,786 $21,563Weighted-average common shares outstanding used to compute basic earnings per share 143,502 143,009 143,355 142,176Basic earnings per share$0.24 $0.14 $0.40 $0.15 Diluted Earnings Per Share: Net income$34,005 $20,058 $57,786 $21,563Add back: Interest expense, Convertible Senior Notes, net of tax — — 253 —Net income used to calculate diluted earnings per share$34,005 $20,058 $58,039 $21,563 Weighted-average common shares outstanding used to compute basic earnings per share 143,502 143,009 143,355 142,176Dilutive effect of weighted-average restricted stock units 4,415 6,124 2,862 4,887Dilutive effect of weighted-average common stock options 1,625 2,412 1,635 2,153Dilutive effect of weighted-average performance stock units 1,166 1,569 783 1,260Dilutive effect of weighted-average Employee Stock Purchase Plan shares 97 52 49 40Dilutive effect of weighted-average convertible notes — — 870 —Weighted-average shares used to compute diluted earnings per share 150,805 153,166 149,554 150,516Diluted earnings per share$0.23 $0.13 $0.39 $0.14
MAGNITE, INC.RECONCILIATION OF REVENUE TO GROSS PROFIT TO CONTRIBUTION EX-TAC(In thousands)(unaudited) Three Months Ended Nine Months Ended September 30,
2026 September 30,
2025 September 30,
2026 September 30,
2025Revenue$204,196 $179,494 $561,390 $508,597Less: Cost of revenue 64,016 69,356 186,462 197,108Gross Profit 140,180 110,138 374,928 311,489Add back: Cost of revenue, excluding TAC 60,448 56,641 176,199 163,094Contribution ex-TAC$200,628 $166,779 $551,127 $474,583
MAGNITE, INC.RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA(In thousands)(unaudited) Three Months Ended Nine Months Ended September 30,
2026 September 30,
2025 September 30,
2026 September 30,
2025Net income$34,005 $20,058 $57,786 $21,563Add back (deduct): Stock-based compensation expense 16,494 18,044 55,805 58,811Depreciation and amortization expense, excluding amortization of acquired intangible assets 12,446 10,067 36,243 27,605Amortization of acquired intangibles 1,498 2,241 6,623 12,514Merger, acquisition, and restructuring costs, excluding stock-based compensation expense — 162 1,755 162Interest expense, net 4,818 4,668 15,689 14,916Provision for income taxes 11,571 885 17,068 990Foreign exchange (gain) loss, net 499 (416) 129 6,745Loss on extinguishment of debt — — — 2,152Other debt refinancing expense — — — 967Litigation expense (1) 1,999 527 3,815 1,043Non-operational real estate and other expense, net 26 935 1,904 894Adjusted EBITDA$83,356 $57,171 $196,817 $148,362 (1) Litigation expense includes professional and legal expenses related to the Google Action and defense costs relating to class action privacy litigation. For additional information, see the “Regulatory Developments and Google Litigation” section and Part II, Item 1. “Legal Proceedings” within our Quarterly Report on Form 10-Q for the period ended September 30, 2026.
MAGNITE, INC.RECONCILIATION OF NET INCOME TO NON-GAAP INCOME(In thousands)(unaudited) Three Months Ended Nine Months Ended September 30,
2026 September 30,
2025 September 30,
2026 September 30,
2025Net income$34,005 $20,058 $57,786 $21,563 Add back (deduct): Stock-based compensation expense 16,494 18,044 55,805 58,811 Merger, acquisition, and restructuring costs, including amortization of acquired intangibles and excluding stock-based compensation expense 1,498 2,403 8,378 12,676 Foreign exchange (gain) loss, net 499 (416) 129 6,745 Loss on extinguishment of debt — — — 2,152 Other debt refinancing expense — — — 967 Litigation expense (1) 1,999 527 3,815 1,043 Non-operational real estate and other expense, net 26 935 1,904 894 Interest expense, Convertible Senior Notes — 421 359 1,264 Tax effect of Non-GAAP adjustments (2) (5,221) (10,078) (20,734) (25,974)Non-GAAP income$49,300 $31,894 $107,442 $80,141 (1) Litigation expense includes professional and legal expenses related to the Google Action and defense costs relating to class action privacy litigation. For additional information, see the “Regulatory Developments and Google Litigation” section and Part II, Item 1. “Legal Proceedings” within our Quarterly Report on Form 10-Q for the period ended September 30, 2026.(2) Non-GAAP income includes the estimated tax impact from the reconciling items between net income and non-GAAP income.
MAGNITE, INC.
RECONCILIATION OF GAAP EARNINGS PER SHARE TO NON-GAAP EARNINGS PER SHARE
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended September 30,
2026 September 30,
2025 September 30,
2026 September 30,
2025GAAP earnings per share (1): Basic$0.24 $0.14 $0.40 $0.15Diluted$0.23 $0.13 $0.39 $0.14 Non-GAAP income (2)$49,300 $31,894 $107,442 $80,141Non-GAAP earnings per share$0.33 $0.20 $0.72 $0.52 Weighted-average shares used to compute basic earnings per share 143,502 143,009 143,355 142,176Dilutive effect of weighted-average common stock options, RSUs, and PSUs 7,206 10,105 5,280 8,300Dilutive effect of weighted-average ESPP shares 97 52 49 40Dilutive effect of weighted-average Convertible Senior Notes — 3,210 870 3,210Non-GAAP weighted-average shares outstanding 150,805 156,376 149,554 153,726 (1) Calculated as net income divided by basic and diluted weighted-average shares used to compute basic and diluted earnings per share as included in the condensed consolidated statement of operations.(2) Refer to reconciliation of net income to non-GAAP income.
MAGNITE, INC.
CONTRIBUTION EX-TAC BY CHANNEL
(In thousands)
(unaudited)
Contribution ex-TAC Three Months Ended Nine Months Ended September 30,
2026 September 30,
2025 September 30,
2026 September 30,
2025Channel: CTV$105,368 53% $75,847 45% $284,770 52% $210,615 44%Mobile 67,807 33% 64,428 39% 188,929 34% 186,208 40%Desktop 27,453 14% 26,504 16% 77,428 14% 77,760 16%Total$200,628 100% $166,779 100% $551,127 100% $474,583 100%
Source: GlobeNewswire