Key Highlights

  • In the third quarter, the connected TV line of Contribution ex-TAC climbed 39% to USD 105.4 million, up from USD 75.8 million, and that channel now makes up roughly 53% of the total (calculated).
  • Revenue advanced 14% to USD 204.2 million from USD 179.5 million, and Net Income rose 70% to USD 34.0 million, or USD 0.23 per diluted share, against USD 0.13 a year earlier.
  • Non-GAAP adjusted EBITDA expanded by 46%, reaching USD 83.4 million compared with USD 57.2 million, while Operating Income of USD 50.5 million was more than twice the prior level.
  • At the end of September, cash and equivalents totaled USD 392.9 million, after Magnite (NASDAQ:MGNI) retired USD 205.1 million of convertible notes in March and bought back USD 55.1 million of its shares.

Connected TV Carries Third-Quarter Growth

Magnite (NASDAQ:MGNI) filed its 10-Q on November 4, 2026, covering the quarter that ended September 30. Top-line Revenue reached USD 204.2 million, a USD 24.7 million step up from USD 179.5 million, with connected TV revenue rising 24% and mobile 5%, the latter helped by political advertising. The company runs a Sell-Side platform for publishers and streaming operators. Its Contribution ex-TAC measure, a non-GAAP figure that removes traffic Acquisition costs paid to sellers on deals reported gross, grew 20% to USD 200.6 million. Inside that measure, CTV expanded 39%, mobile 5% and desktop 4%. The gap between the 24% CTV revenue growth and the 39% gain in the measure stems from a smaller portion of transactions being booked gross.

Lower Traffic Acquisition Costs Double Operating Income

Cost of revenue dropped 8% to USD 64.0 million, since traffic acquisition costs fell by USD 9.1 million as less inventory was recorded on a gross basis. Overall expenses eased to USD 153.7 million from USD 154.5 million, which pushed income from operations up 102% to USD 50.5 million. A larger tax provision of USD 11.6 million, versus USD 0.9 million, is why net income rose 70% rather than faster. For the first nine months, revenue reached USD 561.4 million, a 10% gain, while net income was USD 57.8 million against USD 21.6 million and Operating Cash Flow totaled USD 168.8 million compared with USD 107.7 million. The 10-Q anticipates that full-year 2026 revenue and Contribution ex-TAC will rise, with CTV as the principal driver, but it provides no numeric guidance.

Google Remedies Ruling and Open-Web Display Risks

A court issued its remedies opinion in September 2026 in the search giant's ad technology antitrust matter, imposing behavioral remedies and a six-year independent compliance monitor. The defendant has signaled it will appeal, and timing hinges on final judgment. Magnite brought its own damages lawsuit against the search giant on September 16, 2025, and USD 2.0 million of related litigation expense was excluded from adjusted EBITDA. Management also warns that AI-driven declines in search referrals could erode open-web display inventory, while tariffs and Inflation might squeeze advertiser budgets.

Where Things Stand

Mostly connected TV. Its Contribution ex-TAC grew 39% to USD 105.4 million, and that lift helped push operating profit to USD 50.5 million and net Earnings to USD 34.0 million. Magnite (NASDAQ:MGNI) still faces AI-driven shifts in open-web display traffic, and its tax bill rose sharply, which is why net income lagged operating income. The next markers are the final judgment and any appeal in the search giant's ad technology case, the fourth-quarter political Advertising comparison, and how much of the USD 144.9 million buyback capacity gets used. The filing contains no share price reaction and no consensus comparison.