Magnite (MGNI) Q3 2026 Earnings Call: Q&A Summary

Q: Shyam Patil of Susquehanna asked what gives management confidence in the 25% long-term CTV growth rate and how meaningful partnerships with walled gardens like Pinterest and OpenAI will be.

A: Michael Barrett, CEO, stated that the 25% CTV growth rate is approximately double the industry growth rate and is attainable given their market position and client base. He noted that partnerships with companies having established ad businesses, such as Pinterest and OpenAI, tend to deliver gains rather quickly.

Q: Matt Swanson of RBC Capital Markets asked about the environment outside of political spend and whether mobile app and streaming formats are seeing demand dislocation from display.

A: Michael Barrett, CEO, explained that the environment absent political is very strong and anchored by SpringServe positioning. He noted that attractive CTV price points and more brand-friendly mobile app publishing are drawing dollars away from open web display.

Q: Jason Kreyer of Craig-Hallum asked how Agentic workflows are evolving and whether open web referral and search traffic pressures are impacting DV+.

A: Michael Barrett, CEO, noted that Agentic workflows are currently a year of exploration with tools utilized about fifty-fifty through direct tools versus orchestration layers. He added that DV+ is being supported by deep penetration into commerce media and mobile apps despite open web headwinds.

Q: Daniel Kurnos of StoneX asked about programmatic execution in live sports and the next leg of international growth for CTV.

A: Michael Barrett, CEO, stated that live sports transactions are now mainstream and operating smoothly on their platform. He added that international CTV growth remains healthy as incoming streaming services rely heavily on programmatic-first models.

Q: Laura Martin of Needham asked how AI is being used internally to lower costs and accelerate product velocity, and how AI labs fit into advertising demand.

A: Michael Barrett, CEO, responded that internal use of AI tools has significantly collapsed product development timelines and accelerated innovation. He added that advertising spend from AI labs is a growing category contributing to revenue growth.

Q: Barton Crockett of Rosenblatt asked for confirmation on the OpenAI deal and an update on antitrust remedies timing.

A: Michael Barrett, CEO, confirmed they are working with OpenAI as an SSP piping demand into advertising inventory, while noting they are still awaiting the final ruling from Judge Brinkema regarding Google remedies.

Q: Tyler DiMatteo of BTIG asked how to think about the organic growth potential of the DV+ business moving forward.

A: Brian Gephart, CFO, stated that they think about the DV+ business as being roughly flat to modest low single-digit growth, balancing display challenges with green shoot areas like mobile in-app, commerce media, and audio.

Q: Ethan Widell of B. Riley asked about the scale of live sports contribution and the drivers behind adjusted EBITDA operating expenses coming in below guidance.

A: Michael Barrett, CEO, stated that live sports represent a significant chunk of platform media growing rapidly, while Brian Gephart, CFO, attributed the expense favorability primarily to continued efficiency gains in the cloud from on-prem investments.

Q: Shweta Khajuria of Wolfe Research asked how to model CTV incrementality for next year and what signals to look for regarding ad tech case benefits.

A: Michael Barrett, CEO, stated that CTV growth durability is supported by unmaximized deals lighting up in 2027. Regarding the ad tech case, he pointed to freed AdWords demand and ad server interactions as key signals once the final ruling is issued.

Q: Tim Nollen of SSR asked if ClearLine direct connections drive more share of business, improve publisher performance, and help take rates.

A: Michael Barrett, CEO, affirmed that ClearLine operates exclusively on Magnite, drives more spend and working media to publishers efficiently, and generates incremental ex-TAC through direct fees charged for the buying tool.