Magnite (NASDAQ:MGNI) Releases Earnings Results, Misses Estimates By $0.01 EPS

Magnite (NASDAQ:MGNI) posted its quarterly earnings results on Wednesday. The company reported $0.34 EPS for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.01), FiscalAI reports. Magnite had a return on equity of 8.74% and a net margin of 8.25%.During the same quarter last year, the firm earned $0.34 earnings per share. Magnite’s revenue for the quarter was up 5.9% on a year-over-year basis.

Here are the key takeaways from Magnite’s conference call:

• Q4 showed a sharp acceleration in streaming: CTV contribution ex‑TAC grew 32% ex‑political, CTV reached 48% of Q4 contribution ex‑TAC and is now larger than DV+, with management guiding CTV to surpass 50% in Q1 — a major structural tailwind for the company.
• DV+ softened — Q4 DV+ contribution ex‑TAC was down 1% (up 4% ex‑political) and management expects TV+ (DV+) to decline 6%–8% in Q1 as budgets reallocate into CTV, pressuring that legacy segment near term.
• Strong profitability and capital return plans: Q4 Adjusted EBITDA was $84M (43% margin), full‑year Adjusted EBITDA +18%, cash $553M, converts to be paid at maturity, and a new $200M two‑year share repurchase authorization with a target to return ~50% of free cash flow to buybacks.
• Technical leadership in an AI/agentic future: Magnite embedded an AdCP seller agent in SpringServe and ran an industry‑first agent‑to‑agent campaign, arguing AI will increase reliance on scaled sell‑side infrastructure and benefit Magnite’s platform and data assets.
• Regulatory upside remains an uncertain catalyst: management expects potential Google ad‑tech remedies could reallocate share (~$50M contribution ex‑TAC per 1% share gain), but timing and outcome are unknown.

Magnite Stock Performance

Shares of MGNI traded up $0.27 on Wednesday, reaching $11.97. 3,765,081 shares of the company’s stock traded hands, compared to its average volume of 2,277,003. The stock’s 50 day simple moving average is $14.46 and its two-hundred day simple moving average is $17.75. The stock has a market cap of $1.72 billion, a PE ratio of 25.43, a PEG ratio of 0.64 and a beta of 2.39. Magnite has a 52-week low of $8.22 and a 52-week high of $26.65. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.43.

Analyst Ratings Changes

A number of brokerages have commented on MGNI. Weiss Ratings restated a “hold (c)” rating on shares of Magnite in a research note on Thursday, January 22nd. Wall Street Zen downgraded shares of Magnite from a “buy” rating to a “hold” rating in a research report on Saturday, November 8th. Benchmark reaffirmed a “buy” rating on shares of Magnite in a research report on Monday, January 12th. Rosenblatt Securities reiterated a “buy” rating and set a $39.00 price target on shares of Magnite in a research note on Thursday, November 6th. Finally, Wells Fargo & Company dropped their target price on Magnite from $22.00 to $20.00 and set an “equal weight” rating on the stock in a report on Friday, November 7th. Eight analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, Magnite has an average rating of “Moderate Buy” and a consensus price target of $27.00.

Insider Activity

In other Magnite news, insider Adam Lee Soroca sold 21,529 shares of the firm’s stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $12.00, for a total value of $258,348.00. Following the completion of the sale, the insider directly owned 388,425 shares of the company’s stock, valued at $4,661,100. This trade represents a 5.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. 3.80% of the stock is currently owned by corporate insiders.

Institutional Trading of Magnite

A number of hedge funds have recently made changes to their positions in MGNI. Pillsbury Lake Capital LLC purchased a new stake in Magnite during the fourth quarter valued at about $9,473,000. Wellington Management Group LLP lifted its holdings in Magnite by 67.7% in the 4th quarter. Wellington Management Group LLP now owns 8,629,238 shares of the company’s stock worth $140,053,000 after buying an additional 3,484,689 shares during the period. Ophir Asset Management Pty Ltd bought a new stake in Magnite in the fourth quarter valued at $38,695,000. Man Group plc bought a new stake in shares of Magnite during the 4th quarter valued at about $5,056,000. Finally, Engineers Gate Manager LP purchased a new position in shares of Magnite during the 4th quarter worth approximately $668,000. 73.40% of the stock is owned by institutional investors.

About Magnite

Magnite, Inc (NASDAQ: MGNI) operates as an independent sell-side advertising platform that enables publishers and digital media owners to monetize their inventory through programmatic advertising. Formed in 2020 through the merger of Rubicon Project and Telaria, Magnite combines technologies for desktop, mobile, connected television (CTV) and digital out-of-home (DOOH) ad exchanges. The company provides an end-to-end solution designed to help media owners optimize yield across open marketplaces, private marketplaces and programmatic guaranteed deals.

At the core of Magnite’s offering is its supply-side platform (SSP), which connects publishers’ ad impressions to demand-side platforms (DSPs) through real-time bidding (RTB).