Magnite (MGNI) Q4 2025 earnings summary

Executive summary

• Q4 and full-year 2025 exceeded expectations, with CTV surpassing DV+ as the majority of business and driving strong growth, supported by a structural shift toward streaming and broad-based adoption across major partners.

• AI integration and automation are enhancing efficiency and throughput, positioning the company as foundational in the evolving advertising ecosystem.

• Q4 2025 revenue rose 6% year-over-year to $205.4 million, with full-year revenue up 7% to $714.0 million.

• Net income for Q4 2025 was $123.1 million, up from $36.4 million, benefiting from a $90 million one-time tax benefit.

• Announced a new $200 million share repurchase program, following $79.2 million in repurchases during 2025.

Financial highlights

• Q4 2025 total revenue was $205.4 million, up 6% year-over-year; contribution ex-TAC was $195.1 million, up 8% (16% ex-political).

• CTV contribution ex-TAC grew 20% year-over-year (32% ex-political), reaching $93.6 million and 48% of total Q4 contribution ex-TAC.

• DV+ contribution ex-TAC was $101 million, down 1% (up 4% ex-political), below guidance due to budget shifts to CTV.

• Adjusted EBITDA for Q4 was $83.8 million (43% margin); full year Adjusted EBITDA was $232.1 million (34.7% margin), up 18% from 2024.

• Non-GAAP EPS for Q4 was $0.34, flat year-over-year; full-year non-GAAP EPS was $0.87, up 23%.

Outlook and guidance

• Q1 2026 contribution ex-TAC expected at $157–$161 million (8–10% growth), with CTV at $81–$83 million (28–31% growth), surpassing 50% of total for the first time.

• DV+ expected to decline 6–8% in Q1.

• Full year 2026 guidance: contribution ex-TAC growth of at least 11%, Adjusted EBITDA growth in mid-teens, margin above 35%, free cash flow growth over 30%, CapEx ~$60 million.

• No significant increase in cash taxes expected for the next few years.

• Q1 2026 Adjusted EBITDA operating expenses projected at ~$122 million.