Magnite Raises 2026 Contribution Growth to About 17%

The Tip Desk · November 11, 2026 · 3 min read

Contribution ex-TAC reached $200.6 million in the third quarter, 20% above a year earlier and above the top of the $188 million to $192 million range the company had set.

Magnite (MGNI), the largest independent sell-side advertising company, reported third-quarter contribution ex-TAC of $200.6 million, 20% above a year earlier, a pace that accelerated from 17% growth in the second quarter and 10% in the first.

The result exceeded the high end of the $188 million to $192 million range the company had set for the quarter. Revenue was $204.2 million, up 14% from $179.5 million a year earlier, also faster than the 11% increase in the second quarter and 6% in the first.

Connected television remained the engine. Contribution ex-TAC attributable to CTV was $105.4 million, up 39% year-over-year, above the $98 million to $100 million guide. That growth rate stepped up from 36% in the second quarter and 30% in the first. CTV now accounted for 53% of total contribution ex-TAC, versus 45% a year earlier. Mobile contributed $67.8 million, or 33%, and desktop $27.5 million, or 14%.

DV+ contribution ex-TAC was $95.3 million, up 5% year-over-year and above the $90 million to $92 million range. Growth had been 2% in the second quarter and a 5% decline in the first. Chief executive Michael G. Barrett said the company outperformed political revenue expectations, mostly in CTV, and now expects full-year political spend to be nearly three times its initial forecast. He said CTV momentum remains broad-based.

Operating leverage widened with the top line. Adjusted EBITDA was $83.4 million, up 46% year-over-year, for a 42% Adjusted EBITDA margin, compared with 30% growth and a 37% margin in the second quarter and 16% growth and a 27% margin in the first. Gross profit was $140.2 million, up 27% year-over-year. Net income was $34.0 million, or $0.23 a share, compared with $20.1 million, or $0.13 a share, in the third quarter of 2025. Non-GAAP earnings were $0.33 a share, versus $0.20 a year earlier. Operating cash flow was $68.0 million.

Barrett said the quarter’s top-line execution translated into operating leverage and prompted another raise of the full-year outlook across key metrics.

For the fourth quarter of 2026, Magnite expects total contribution ex-TAC of $227 million to $233 million, CTV contribution ex-TAC of $124 million to $127 million, DV+ contribution ex-TAC of $103 million to $106 million, and Adjusted EBITDA operating expenses of $125 million to $127 million.

The company raised full-year 2026 contribution ex-TAC growth to approximately 17%, from 13% to 14%. It raised Adjusted EBITDA percentage growth to approximately 30%, from greater than 20%, and the Adjusted EBITDA margin to approximately 38.5%, from at least 37%. Free cash flow growth is now expected to be above 60%, from the high 40% range.

For 2027, Magnite said it expects top-line growth excluding political to accelerate over 2026, total top-line growth of over 15% excluding political and not including upside from Google remedies, or 10% on a total reported basis, and an Adjusted EBITDA margin of at least 38.5%.