Magnite Inc. (NASDAQ: MGNI), the largest independent sell-side advertising company, has announced impressive financial results for the third quarter ending September 30, 2025. The company’s performance highlights continued growth, particularly in Connected TV (CTV) advertising, showcasing its resilience and competitiveness in the evolving digital advertising landscape.

1. Q3 2025 Financial Highlights

Magnite reported a revenue of $179.5 million, marking an 11% increase year-over-year. This growth is indicative of the company’s ability to capitalize on the rising demand for digital advertising solutions.

Contribution ex-TAC (Total Advertising Costs) stood at $166.8 million, reflecting a 12% year-over-year increase and exceeding the guidance range of $161 to $165 million. Notably, when excluding political advertising, this contribution surged by 16%.

The Contribution ex-TAC attributable to CTV reached $75.8 million, an impressive 18% growth year-over-year (25% excluding political), surpassing the expected range of $71 to $73 million.

DV+ (Dynamic Video) also showed robust performance with a Contribution ex-TAC of $90.9 million, up 7% year-over-year and aligning with the guidance of $90 to $92 million.

In terms of profitability, Magnite recorded a net income of $20.1 million, translating to $0.13 per diluted share. This represents a significant increase from the $5.2 million or $0.04 per diluted share reported in Q3 2024.

Other notable metrics include:

Adjusted EBITDA of $57.2 million, up 13% year-over-year, maintaining a stable 34% Adjusted EBITDA margin.

Non-GAAP earnings per share increased to $0.20, compared to $0.17 for the same quarter in the previous year.

Operating cash flow reached $39.1 million, indicating healthy cash generation.

2. Q4 2025 Outlook

Looking ahead, Magnite provided optimistic guidance for the fourth quarter of 2025. The company anticipates:

Total Contribution ex-TAC to range between $191 million and $196 million, reflecting growth of 6% to 9% (or 13% to 16% excluding political).

Contribution ex-TAC from CTV expected to be between $87 million and $89 million, indicating growth of 12% to 14% (or 23% to 25% excluding political).

A projected Adjusted EBITDA operating expense range of $112 million to $114 million.

3. Full-Year 2025 and 2026 Expectations

For the full year of 2025, Magnite continues to forecast:

Total Contribution ex-TAC growth above 10%, with mid-teens growth expected when excluding political advertising.

Adjusted EBITDA is anticipated to grow in the mid-teens percentage, with an increasing margin expansion of approximately 180 basis points.

For 2026, the company expects at least 11% growth in total Contribution ex-TAC and an Adjusted EBITDA margin of at least 35%.

4. CEO Commentary

Michael G. Barrett, CEO of Magnite, expressed enthusiasm over the company’s performance, particularly in CTV. He stated, “Magnite once again exceeded total top-line expectations, delivering an exceptional CTV result, with growth of 18%, or 25% excluding political. Our CTV success is being driven by our largest publisher partners and strong agency and DSP momentum.” Barrett noted that the acquisition of streamer.ai is already yielding benefits, especially among small and medium-sized business (SMB) advertisers, enhancing Magnite's competitive edge.

He also highlighted the positive outlook surrounding the Google remedies hearings, anticipating beneficial impacts on the DV+ business once the remedies are implemented.

5. Conclusion

Magnite's Q3 2025 results underscore its robust growth trajectory and strategic positioning within the digital advertising market. With strong performance in CTV and positive forward guidance, the company appears well-equipped to navigate the dynamic landscape of advertising, making it a notable player to watch in the coming quarters.

Original press release