Magnite’s third quarter saw revenue growth that outpaced Wall Street’s expectations, but the market responded negatively to the results. Management attributed the quarter’s performance to continued strength in Connected TV (CTV), specifically citing growth from large publisher partners and the expansion of agency-powered marketplaces. CEO Michael Barrett pointed to “significant traction with agency marketplaces, ClearLine adoption, positive SMB trends and programmatic expansion in live sports” as key drivers. Despite these positives, management acknowledged that sector headwinds and recent changes by major demand-side platforms influenced the overall outcome.
Is now the time to buy MGNI? Find out in our full research report (it’s free for active Edge members).
Magnite (MGNI) Q3 CY2025 Highlights:
- Revenue: $179.5 million vs analyst estimates of $178 million (10.8% year-on-year growth, 0.9% beat)
- Adjusted EPS: $0.20 vs analyst estimates of $0.20 (in line)
- Adjusted EBITDA: $57.17 million vs analyst estimates of $53.1 million (31.9% margin, 7.7% beat)
- Operating Margin: 14%, up from 9.3% in the same quarter last year
- Market Capitalization: $2.12 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Magnite’s Q3 Earnings Call
-
Shyam Patil (Susquehanna) asked about the impact of The Trade Desk’s OpenPath changes on Magnite. CEO Michael Barrett acknowledged direct effects on DV+ but emphasized reconnection efforts with major buyers to limit ongoing impact.
-
Daniel Kurnos (The Benchmark Company) questioned Magnite’s value proposition amid DSP partner shifts and the ramp in SMB demand. Barrett highlighted strong relationships with Amazon and the strategic importance of the Streamer acquisition for AI-driven SMB solutions.
-
Jason Kreyer (Craig-Hallum) inquired about Magnite’s evolving role in an agentic, AI-powered ad ecosystem. Barrett described increased importance for supply-side platforms in audience creation and data management, particularly as industry protocols evolve.
-
Laura Martin (Needham) asked if lower-cost CTV ad units could pressure Magnite’s CPMs and about the rationale behind both higher CapEx and headcount. Barrett observed stable CPM bands by inventory type, while Day explained that infrastructure and talent investments serve different strategic objectives.
-
Barton Crockett (Rosenblatt) questioned the potential for regulatory remedies in the Google ad tech case to benefit Magnite in 2026. Barrett noted positive expectations for behavioral remedies and their timely implementation, though outcomes are not yet included in company forecasts.
Catalysts in Upcoming Quarters
Looking ahead, our team will be monitoring (1) the continued ramp of CTV partnerships and the adoption of ClearLine enhancements, (2) the company’s ability to drive operational efficiency through hybrid infrastructure investments, and (3) any regulatory or competitive developments related to Google and major DSPs that could shift market share. Progress in SMB and agency marketplace adoption will also be important indicators of growth trajectory.
Magnite currently trades at $14.78, down from $17.17 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
