Key financial results
- Total contribution ex-TAC for the third quarter was $201 million and exceeded expectations by over $10 million.
Total contribution ex-TAC for the third quarter was $201 million and exceeded expectations by over $10 million.
- Total revenue for Q3 was $204 million, up 14% from Q3 2025.
Total revenue for Q3 was $204 million, up 14% from Q3 2025.
- Adjusted EBITDA grew 46% year-over-year to $83 million, reflecting a margin of 42% compared to 34% in Q3 last year.
Adjusted EBITDA grew 46% year-over-year to $83 million, reflecting a margin of 42% compared to 34% in Q3 last year.
- GAAP earnings per diluted share were $0.23 for the third quarter of 2026 compared to earnings of $0.13 for the third quarter of 2025.
GAAP earnings per diluted share were $0.23 for the third quarter of 2026 compared to earnings of $0.13 for the third quarter of 2025.
- Non-GAAP earnings per share for the third quarter of 2026 were $0.33 compared to $0.20 in Q3 last year.
Non-GAAP earnings per share for the third quarter of 2026 were $0.33 compared to $0.20 in Q3 last year.
- Operating cash flow, defined as adjusted EBITDA less CapEx, was $68 million.
Operating cash flow, which we define as adjusted EBITDA less CapEx, was $68 million.
Business segment results
- CTV: CTV contribution ex-TAC was $105 million, up 39% year-over-year, exceeding expectations by $6 million.
- DV+: DV+ contribution ex-TAC was $95 million, an increase of 5% from the third quarter last year, exceeding expectations by $4 million.
DV+ contribution ex-TAC was $95 million, an increase of 5% from the third quarter last year
- Mobile: Mobile in-app grew 17% year-over-year in Q3 and now represents approximately 35% of the DV+ business.
Mobile in-app continues to be a primary contributor, growing 17% year-over-year in Q3 and now represents approximately 35% of the DV+ business.
- Political: Political contribution ex-TAC came in at approximately $12 million in Q3, with more than 3/4 of it benefiting the CTV business.
Political was a big contributor and far exceeded our expectations, coming in at approximately $12 million in Q3 with more than 3/4 of it benefiting the CTV business.
- Mix: Contribution ex-TAC mix for Q3 was 53% CTV, 33% mobile, and 14% desktop.
Our contribution ex-TAC mix for Q3 was 53% CTV, 33% mobile and 14% desktop.
Capital allocation
- During the third quarter, the company repurchased or withheld nearly 1.2 million shares for approximately $29 million.
During the third quarter, we repurchased or withheld nearly 1.2 million shares for approximately $29 million.
- Year-to-date through the third quarter, the company repurchased or withheld approximately 5.5 million shares for about $86 million.
Year-to-date through the third quarter, we repurchased or withheld approximately 5.5 million shares for about $86 million.
- As of quarter end, $145 million remained available under the current repurchase authorization.
As of quarter end, $145 million remained available under our current repurchase authorization, which is effective through February of 2028.
- The company successfully repriced its $358 million Term Loan B and $175 million revolver, reducing the term loan interest margin by 50 basis points to term SOFR plus 2.5%.
As we announced last month, we successfully repriced our $358 million Term Loan B and $175 million revolver.
Industry trends and dynamics
- The CTV market has reached an inflection point as programmatic rapidly becomes the desired way to transact on streaming television.
The CTV market has reached an important inflection point as programmatic is rapidly becoming the desired way to transact on streaming television.
- Outside of political, retail and financial services were the strongest performing verticals, while automotive grew modestly.
From a vertical perspective, outside of political, retail and financial services were the strongest performing categories. The automotive category continued to grow modestly.
- Audience enablement and decisioning are moving toward the supply side.
audience enablement and decisioning are moving toward the supply side, and we believe Magnite is leading that transition.
Competitive landscape
- Magnite secured a 3-year extension and expansion with LG Ad Solutions, deepening preferred programmatic partnership and exclusive ad serving via SpringServe.
LG Ad Solutions signed a 3 year extension and expansion, deepening our preferred programmatic partnership
- Pinterest selected Magnite as its primary supply-side platform for the global launch of programmatic deals.
Pinterest announced the global launch of programmatic deals, selecting Magnite as their primary supply side platform.
- HP TV+ selected Magnite as its primary video ad server and programmatic technology partner.
HP TV+ selected Magnite as its primary video ad server and programmatic technology partner.
Macroeconomic environment
- Management noted that macroeconomic factors and global advertising conditions continue to influence open web advertising, though commerce media and mobile app growth help offset challenges.
Growth opportunities and strategies
- Political contribution ex-TAC is now expected to be over $40 million for 2026, driven by record midterm spending, CTV maturity, and expanded offerings like ClearLine.
In total, we are now expecting political contribution ex-TAC to be over $40 million for 2026 versus the $15 million previously projected.
- Approximately 20% of political ad spend flowed through the ClearLine buying tool.
Approximately 20% of our political ad spend flowed through ClearLine
- The company continues to develop agentic AI tools for both buyers and sellers, alongside an orchestration layer.
Financial guidance and outlook
- For the fourth quarter, contribution ex-TAC is expected to be between $227 million and $233 million.
For the fourth quarter, we expect contribution ex-TAC to be in the range of $227 million to $233 million
- For the fourth quarter, CTV contribution ex-TAC is expected to be between $124 million and $127 million, and DV+ between $103 million and $106 million.
- For full year 2026, total contribution ex-TAC growth is raised to approximately 17%.
For the full year 2026, we are raising total contribution ex-TAC growth to be approximately 17%
- For 2027, top line growth excluding political is expected to accelerate over 2026, exceeding 15% or over 10% on a reported basis.
We expect top line growth, excluding political, of over 15% or over 10% on a reported basis.
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $204 million | up 14% from Q3 2025 |
| Contribution ex-TAC | $201 million | up 20% year-over-year |
| CTV Contribution ex-TAC | $105 million | up 39% year-over-year |
| DV+ Contribution ex-TAC | $95 million | an increase of 5% from the third quarter last year |
| Adjusted EBITDA | $83 million | grew 46% year-over-year |
| GAAP Earnings Per Diluted Share | $0.23 | compared to $0.13 for the third quarter of 2025 |
How management sounded
Positive (+45 on our -100 to +100 scale). Management expressed strong confidence following a significant top and bottom-line outperformance and raised full-year guidance across key metrics. Management sounded more upbeat than on 62% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- The final order and implementation timeline from Judge Brinkema regarding Google remedies.
- The post-election recovery and rebound of advertising spend outside of political campaigns.
- The ramp-up and revenue contribution of newer partnerships including OpenAI and Pinterest.
Earlier calls
- Q2 2026 (Aug 5, 2026), tone Positive: Magnite reported an outstanding second quarter with contribution ex-TAC up 17% to $190 million and raised its full year outlook.
