Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Insights - Magnite's shares fell 18.5% following the release of its earnings report, despite reporting a revenue of $179.5 million, which is a 10.8% year-on-year increase and slightly above the consensus estimate of $178 million [1] - The adjusted earnings per share were $0.20, meeting analyst expectations, while adjusted EBITDA was $57.17 million, exceeding estimates by 7.7% [1] - The operating margin improved significantly to 14% from 9.3% in the same quarter last year, indicating strong operational performance [1] Market Reaction - The volatility of Magnite's shares is notable, with 37 moves greater than 5% in the past year, indicating that the recent earnings report had a significant impact on market perception [3] - The broader market, particularly the tech-heavy Nasdaq, experienced a decline of approximately 1.4%, influenced by profit-taking and concerns over high valuations in AI-related stocks [4] - Leadership at Goldman Sachs and Morgan Stanley suggested a potential correction in equity markets over the next couple of years, viewing this as a healthy feature of a long-term bull market [5] Stock Performance - Year-to-date, Magnite's stock is down 9.8%, trading at $14.52 per share, which is 45.2% below its 52-week high of $26.52 from August 2025 [6] - An investment of $1,000 in Magnite's shares five years ago would now be worth $1,279, reflecting a modest growth over the long term [6]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Core Insights - Magnite reported quarterly earnings of $0.20 per share, matching the Zacks Consensus Estimate and showing an increase from $0.17 per share a year ago [1] - The company achieved revenues of $166.78 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 2.33% and up from $149.43 million year-over-year [2] - Magnite's stock has increased by approximately 5.1% since the beginning of the year, while the S&P 500 has gained 15.1% [3] Earnings Performance - The company has surpassed consensus EPS estimates two out of the last four quarters [1] - Magnite has topped consensus revenue estimates three times over the last four quarters [2] Future Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3] - Current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $196.79 million, and for the current fiscal year, it is $0.88 on revenues of $667.07 million [7] Industry Context - The Internet - Software industry, to which Magnite belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Data and Key Metrics Changes - Q3 2025 total revenue was $179 million, an increase of 11% from Q3 2024 [19] - Contribution ex TAC was $167 million, up 12%, exceeding guidance [19] - Adjusted EBITDA grew 13% to $57 million, resulting in a margin of 34% [21][19] - Net income for the quarter was $20 million, compared to $5 million in Q3 2024 [21] - GAAP earnings per diluted share were $0.13, up from $0.04 in Q3 2024 [21] Business Line Data and Key Metrics Changes - CTV contribution ex TAC was $76 million, up 18% year-over-year or 25% excluding political [19][21] - DV+ contribution ex TAC was $91 million, an increase of 7% or 10% excluding political [20][21] - The contribution ex TAC mix for Q3 was 45% CTV, 39% mobile, and 16% desktop [20] Market Data and Key Metrics Changes - Health and fitness, shopping, and technology were the strongest-performing categories, while automotive was one of the weakest [20] - Ad spend from top holding companies grew nearly 20% in Q3 year-over-year [9] Company Strategy and Development Direction - The company is focusing on expanding its CTV business and enhancing its technology offerings, including AI integration [8][15] - Plans to integrate AI assistance and workflows into Clear Line, powered by the acquisition of Streamer.ai [8][15] - The company is optimistic about growth opportunities with major partners like Netflix and Roku [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential from the Google Ad Tech trial, indicating that any market share shift could significantly benefit the company [17][18] - The company anticipates contribution ex TAC growth for 2026 to be at least 11%, with a focus on maintaining margin expansion [27][39] Other Important Information - The company has a cash balance of $482 million at the end of Q3, up from $426 million at the end of Q2 [22] - Capital expenditures for Q4 are expected to be approximately $23 million, with a full-year estimate of $80 million [23][26] Q&A Session Summary Question: Impact of The Trade Desk's changes on Magnite - Management noted that they have worked with major buyers to reconnect Magnite as a preferred supply path and believe the impact has been limited to DV+ [30] Question: Growth of DV+ with Amazon - Management confirmed strong spend from leading DSPs, particularly Amazon, and highlighted the importance of partnerships in driving growth [33] Question: AI integration and its impact - Management discussed the integration of AI technologies and the potential for increased efficiency and monetization through new products [15][36] Question: Google Ad Tech case updates - Management remains optimistic about the outcomes of the case and believes it presents a generational opportunity for the company [39] Question: CTV market dynamics and CPM trends - Management indicated stability in CTV CPMs and does not foresee significant downward pressure on revenues from lower-cost ad units [42] Question: CapEx and employee growth - Management explained that the increase in CapEx is aimed at securing data center space and enhancing technology capabilities, while also planning to add personnel to support growth initiatives [44]

Q3 2025 Financial Performance - Contribution ex-TAC reached $166.8 million, a 12% increase year-over-year[16] - CTV Contribution ex-TAC was $75.8 million, up 18% year-over-year[16] - DV+ Contribution ex-TAC was $90.9 million, a 7% increase year-over-year[16] - Net income was $20.1 million, or $0.13 per diluted share, compared to $5.2 million, or $0.04 per diluted share in Q3 2024[16] - Adjusted EBITDA was $57.2 million, a 13% increase year-over-year, with a 34% Adjusted EBITDA margin[16] - Non-GAAP earnings per share were $0.20, compared to $0.17 for Q3 2024[16] Q4 2025 Guidance - Total Contribution ex-TAC is projected to be between $191 million and $196 million, representing growth of 6% to 9%[19] - CTV Contribution ex-TAC is expected to be between $87 million and $89 million, representing growth of 12% to 14%[19] - DV+ Contribution ex-TAC is anticipated to be between $104 million and $107 million, representing growth of 2% to 5%[19] Full-Year Expectations - The company continues to expect total Contribution ex-TAC growth above 10%[22] - The company expects mid-teens percentage growth of Adjusted EBITDA[22]

Business Overview - The company is the world's largest independent omni-channel sell-side advertising platform, processing trillions of ad requests per month[115]. - The company operates globally with established presences in North America, Australia, and Europe, and is developing its presence in Asia and South America[119]. - The shift towards digital advertising is expected to continue, with a growing percentage of advertising dollars being spent through digital channels[121]. Revenue Growth - The company anticipates that CTV will be a significant driver of revenue growth for the foreseeable future[124]. - Revenue for the three months ended September 30, 2025, increased by $17.5 million, or 11%, compared to the same period in 2024, driven by growth in CTV and mobile revenue[151]. - Revenue for the nine months ended September 30, 2025, increased by $34.4 million, or 7%, compared to the same period in 2024, with CTV and mobile revenue contributing $16.2 million and $15.2 million, respectively[152]. - The company expects revenue growth for the full year 2025, with CTV and mobile being the primary growth drivers[156]. Financial Performance - Income from operations for the three months ended September 30, 2025, increased by 66% to $25.0 million compared to $15.1 million in the prior year[149]. - Revenue for the three months ended September 30, 2025, was $179,494 thousand, an increase of 11% compared to $162,003 thousand for the same period in 2024[175]. - Gross profit for the three months ended September 30, 2025, was $110,138 thousand, reflecting an 11% increase from $99,459 thousand in the prior year[175]. - Contribution ex-TAC for the three months ended September 30, 2025, was $166,779 thousand, up 12% from $149,428 thousand in the same period last year[175]. - Net income for the three months ended September 30, 2025, was $20,058 thousand, a significant increase of 285% compared to $5,214 thousand in the prior year[175]. - Adjusted EBITDA for the three months ended September 30, 2025, was $57,171 thousand, representing a 13% increase from $50,564 thousand in the same period of 2024[175]. - For the three months ended September 30, 2025, Adjusted EBITDA increased by $6.6 million to $57.2 million compared to the prior year period[185]. - For the nine months ended September 30, 2025, Adjusted EBITDA increased by $28.0 million to $148.4 million compared to the prior year period[185]. Expenses - Cost of revenue for the three months ended September 30, 2025, increased by $6.8 million, or 11%, primarily due to a $5.6 million increase in cloud hosting, data center, and bandwidth expenses[157]. - Cost of revenue for the nine months ended September 30, 2025, increased by $6.1 million, or 3%, with significant increases in software costs and personnel costs, partially offset by a decrease in traffic acquisition costs[158]. - Sales and marketing expenses for the three months ended September 30, 2025, increased by $0.8 million, or 2%, mainly due to a $2.6 million increase in personnel costs[160]. - Sales and marketing expenses for the nine months ended September 30, 2025, increased by $5.3 million, or 4%, primarily driven by an $8.3 million increase in personnel costs[161]. - Technology and development expenses decreased by $8.9 million, or 12%, for the nine months ended September 30, 2025, primarily due to decreases in software and personnel costs[163]. - General and administrative expenses decreased by $2.8 million, or 4%, for the nine months ended September 30, 2025, mainly due to decreases in refinancing expenses and facilities-related costs[166]. Legal and Regulatory - The U.S. District Court ruled that Google violated federal antitrust laws, which is expected to positively impact the company's business prospects[132]. - The company filed a lawsuit against Google seeking damages for alleged anticompetitive conduct, which could improve its market share in open-web display[134]. Market Challenges - Macroeconomic challenges such as inflation and trade wars may negatively impact ad budgets and slow ad spend growth through the company's platform[135]. Strategic Initiatives - The introduction of the next generation SpringServe CTV platform is expected to enhance connections for buyers and streamline workflows for sellers[124]. - The company is investing in the development of identity and audience solutions to adapt to the decreased reliance on third-party cookies[127]. - Supply Path Optimization efforts are expected to deepen relationships with buyers and increase revenue opportunities for seller clients[129]. Cash Flow and Liquidity - As of September 30, 2025, the company had cash and cash equivalents of $482.1 million, with $69.1 million held in foreign currency[186]. - For the nine months ended September 30, 2025, net cash provided by operating activities was $107.7 million, down from $120.5 million in the prior year[203]. - Cash flows used in investing activities for the nine months ended September 30, 2025, were $63.7 million, compared to $40.7 million in the prior year[205]. - Cash outflows from financing activities for the nine months ended September 30, 2025, were $47.0 million, up from $19.4 million in the prior year[207]. - The company expects to meet its liquidity requirements for at least the next twelve months from existing cash and cash equivalents and cash generated from operations[192]. Debt and Obligations - The balance of the Convertible Senior Notes was $204.5 million as of September 30, 2025, maturing in March 2026[193]. - Total future lease obligations and other non-cancelable agreements as of September 30, 2025 amount to approximately $1,019.8 million[211]. - The company has a principal commitment of $205.1 million under Convertible Senior Notes due in 2026[211]. - The company has non-cancelable obligations under a cloud-managed services agreement with minimum spend amounts over three years[213]. - The company has no outstanding borrowings under the 2024 Revolving Credit Facility as of September 30, 2025[222]. Foreign Exchange and Interest Rate Risks - An immediate 10% adverse change in foreign exchange rates would result in a foreign currency loss of approximately $8.2 million as of September 30, 2025[226]. - The annualized impact to interest expense for each 100 basis points increase above the SOFR Floor on the 2024 Term Loan B Facility is approximately $3.6 million[223]. - Interest expense, net decreased by $2.2 million for the three months ended September 30, 2025, compared to the prior year, primarily due to refinancing[168]. - Foreign exchange (gain) loss, net changed by $3.4 million for the three months ended September 30, 2025, compared to the prior year, influenced by currency exchange rate movements[169]. Other Income and Expenses - Other income decreased by $1.2 million for the three months ended September 30, 2025, due to lower rental income from real estate leases[171].

Revenue and Growth - Revenue for Q3 2025 was $179.5 million, an 11% increase year-over-year[6] - Contribution ex-TAC for Q3 2025 was $166.8 million, up 12% year-over-year, exceeding guidance of $161 to $165 million[6] - Contribution ex-TAC attributable to CTV was $75.8 million, an 18% increase year-over-year, exceeding guidance of $71 to $73 million[6] - Full-Year 2025 expectations for total Contribution ex-TAC are between $191 million and $196 million, representing growth of 6% to 9%[6] - Contribution ex-TAC attributable to CTV for Q4 2025 is expected to be between $87 million and $89 million, representing growth of 12% to 14%[6] - The company anticipates total Contribution ex-TAC growth above 10%, or mid-teens excluding political[6] - The company reported a total of $508,597 thousand in revenue for the nine months ended September 30, 2025, compared to $474,202 thousand for the same period in 2024, reflecting a growth of 7.3%[30] - Revenue for the nine months ended September 30, 2025, increased to $508,597,000, up 7.3% from $474,202,000 in the same period of 2024[37] Profitability - Net income for Q3 2025 was $20.1 million, compared to $5.2 million in Q3 2024, representing a 285% increase[8] - Adjusted EBITDA for Q3 2025 was $57.2 million, up 13% year-over-year, with a margin of 34%[6] - Adjusted EBITDA for the three months ended September 30, 2025, was influenced by revenue of $179,494 thousand, a 10.2% increase from $162,003 thousand in the same period of 2024[30] - Net income for the three months ended September 30, 2025, was $20,058 thousand, compared to $5,214 thousand for the same period in 2024, representing a significant increase[30] - Non-GAAP income for the nine months ended September 30, 2025, was $80,141,000, compared to $55,011,000 in the same period of 2024, reflecting a 45.6% increase[42] - Basic earnings per share for the three months ended September 30, 2025, was $0.14, compared to $0.04 for the same period in 2024[30] - Basic earnings per share for the nine months ended September 30, 2025, was $0.15, compared to a loss of $0.10 per share in the same period of 2024[36] - Non-GAAP earnings per share for the three months ended September 30, 2025, was $0.20, compared to $0.17 in the same period of 2024[44] Expenses and Liabilities - Total expenses for the three months ended September 30, 2025, were $154,453 thousand, an increase from $146,880 thousand in the same period of 2024[30] - Stock-based compensation expense for the three months ended September 30, 2025, was $18,044 thousand, slightly down from $18,670 thousand in the same period of 2024[31] - Total liabilities as of September 30, 2025, were $2,112,739 thousand, compared to $2,086,550 thousand as of December 31, 2024[28] Assets and Cash Flow - Total current assets as of September 30, 2025, were $1,725,514 thousand, up from $1,703,180 thousand as of December 31, 2024[28] - Cash and cash equivalents as of September 30, 2025, were $482,127 thousand, compared to $483,220 thousand as of December 31, 2024[28] - The company’s total assets as of September 30, 2025, were $2,920,693 thousand, an increase from $2,854,768 thousand as of December 31, 2024[28] - Cash provided by operating activities for the nine months ended September 30, 2025, was $107,711,000, down from $120,504,000 in the same period of 2024[34] - Net cash used in investing activities for the nine months ended September 30, 2025, was $63,741,000, compared to $40,669,000 in the same period of 2024, indicating increased investment[34] - Cash paid for interest decreased to $21,674,000 for the nine months ended September 30, 2025, from $28,748,000 in the same period of 2024, showing improved interest management[35] Shareholder Information - The weighted-average shares used to compute basic earnings per share increased to 143,009,000 for the three months ended September 30, 2025, from 141,270,000 in 2024[44] - The dilutive effect of weighted-average common stock options, RSUs, and PSUs was 10,105,000 for the three months ended September 30, 2025[44] - For the three months ended September 30, 2025, GAAP diluted earnings per share increased to $0.13 compared to $0.04 for the same period in 2024[44] Channel Performance - Contribution ex-TAC from CTV for the three months ended September 30, 2025, was $75,847,000, accounting for 45% of total contribution, compared to 43% in the same period of 2024[46] - Mobile channel contribution ex-TAC for the three months ended September 30, 2025, was $64,428,000, representing 40% of total contribution, consistent with the previous year[46] - Desktop channel contribution ex-TAC for the three months ended September 30, 2025, was $26,504,000, maintaining a 17% share of total contribution[46] - Total contribution ex-TAC for the nine months ended September 30, 2025, reached $474,583,000, a 11.2% increase from $426,744,000 in 2024[46] Strategic Initiatives - The acquisition of streamer.ai is expected to provide early benefits, particularly among SMB advertisers[5] - Adjusted EBITDA margin is expected to expand by approximately 180 basis points[6]

Core Insights - Magnite reported a revenue of $179.5 million for Q3 2025, representing an 11% year-over-year increase, and exceeded guidance expectations [5][7] - Contribution ex-TAC reached $166.8 million, up 12% year-over-year, with a notable 18% growth in CTV contributions [5][4] - The company anticipates continued growth in the upcoming quarters, with expectations for total Contribution ex-TAC to be between $191 million and $196 million [5][4] Q3 2025 Highlights - Revenue of $179.5 million, up 11% from $162.0 million in Q3 2024 [7] - Contribution ex-TAC of $166.8 million, up 12% year-over-year, exceeding guidance [5][7] - Net income of $20.1 million, a significant increase from $5.2 million in Q3 2024 [5][7] - Adjusted EBITDA of $57.2 million, up 13% year-over-year, maintaining a 34% margin [5][7] Q4 2025 Expectations - Total Contribution ex-TAC expected to grow between 6% to 9%, or 13% to 16% excluding political contributions [5] - Contribution ex-TAC from CTV projected to be between $87 million and $89 million, indicating a growth of 12% to 14% [5] - Adjusted EBITDA margin expected to expand to approximately 35% [5] Full-Year 2025 Expectations - The company expects total Contribution ex-TAC growth above 10%, with mid-teens growth excluding political contributions [5] - Adjusted EBITDA is anticipated to grow in the mid-teens percentage range [5] Financial Performance Summary - For the nine months ended September 30, 2025, revenue totaled $508.6 million, up 7% from $474.2 million in the same period of 2024 [7] - Contribution ex-TAC for the nine months reached $474.6 million, an 11% increase year-over-year [7] - Non-GAAP earnings per share for Q3 2025 were $0.20, compared to $0.17 in Q3 2024 [5][7]

Core Insights - Maestria Partners LLC sold approximately 293,146 shares of Magnite, valued at an estimated $6.92 million, as disclosed in a SEC filing on October 31, 2025 [1][2] - Following the sale, Maestria holds about 1.14 million shares of Magnite, valued at $24.85 million, representing 7.86% of its $316.35 million U.S. equity portfolio [2][3] Company Overview - Magnite, Inc. is a leading sell-side advertising technology provider, enabling publishers to monetize digital inventory across various channels [5][6] - The company operates an independent advertising platform for digital media publishers, generating revenue by facilitating digital advertising transactions [6] Financial Metrics - As of October 30, 2025, Magnite's share price was $17.31, with a market capitalization of $2.58 billion [4] - The company reported a revenue of $685.07 million and a net income of $43.13 million for the trailing twelve months (TTM) [4] Performance Analysis - Magnite shares have increased by 141% over the past three years, with a compound annual growth rate (CAGR) of 34.2%, outperforming the S&P 500 by 21.30 percentage points [3][9] - The stock reached a 52-week high of $26.52 during Q3 2025, but has since declined approximately 33% following an antitrust ruling favoring Google [9][10]