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Magnite 2025 Q2 Earnings Profitability Returns with 1133.3% Net Income Surge
Generated by AI AgentAinvest Earnings Report Digest
Thursday, Aug 7, 2025 4:45 am ET2min read
Aime SummaryMagnite (NASDAQ: MGNI) delivered a strong Q2 2025 earnings report, surpassing expectations with a net income of $11.14 million (EPS of $0.08), reversing from a net loss of $1.08 million (EPS of $-0.01) in the prior-year period. The company also reported revenue growth of 6.4% to $173.33 million and reaffirmed its full-year 2025 guidance.
Magnite reported total revenue of $173.33 million in Q2 2025, reflecting a 6.4% year-over-year increase from $162.88 million in Q2 2024. The revenue was driven by growth across all key segments, with Connected TV (CTV) contributing the largest share at $82.40 million. Mobile revenue reached $64.17 million, while Desktop revenue totaled $26.76 million. This broad-based growth underscores the company's strong performance across digital advertising platforms.
The company returned to profitability, reporting net income of $11.14 million, or $0.08 per share, in Q2 2025. This marked a dramatic turnaround from a net loss of $1.08 million, or $0.01 per share, in the same period in 2024, representing a 1133.3% improvement in net income. Additionally, achieved a 900.0% increase in earnings per share. These results highlight the company's effective cost management and revenue generation strategies.
Magnite’s stock has experienced a decline in the short term, with a 0.66% drop during the latest trading day, a 1.45% decline during the most recent full trading week, and a 7.45% decrease month-to-date.
A historical analysis of Magnite’s post-earnings price action reveals that buying shares after a revenue increase quarter-over-quarter and holding for 30 days has historically delivered significant returns. This strategy generated a 197.08% return over the past three years, outperforming the benchmark return of 48.58% by an excess of 148.50%. The strategy also showed a compound annual growth rate (CAGR) of 45.63% and a maximum drawdown of 0.00%, illustrating strong risk-adjusted returns with minimal downside.
CEO Michael G. Barrett expressed confidence in the company’s growth trajectory, emphasizing the outperformance of Q2 2025 guidance, particularly from DV+. He expects an acceleration in CTV and DV+ growth for the remainder of 2025, driven by new partnerships, the entry of small and medium-sized business (SMB) advertisers, and success in live sports. For DV+, the CEO noted improvements from progress in the partner and product areas. Despite macroeconomic uncertainties, he remains optimistic about the company’s performance in the second half of the year.
Magnite provided updated guidance for Q3 2025, projecting Total Contribution ex-TAC between $161 million and $165 million, with CTV between $71 million and $73 million and DV+ between $90 million and $92 million. The company also expects Adjusted EBITDA operating expenses to range between $109 million and $111 million. Magnite reaffirmed its full-year 2025 guidance, including Total Contribution ex-TAC growth above 10%, mid-teens Adjusted EBITDA growth, at least 150 basis points of margin expansion, and high-teens to 20% free cash flow growth.
Additional News
Magnite’s recent Q2 2025 earnings report included several key highlights. The company reported Contribution ex-TAC of $162.0 million, up 10% year-over-year, exceeding the guidance range of $154 to $160 million. Contribution ex-TAC from CTV reached $71.5 million, growing 14% year-over-year. Contribution ex-TAC from DV+ totaled $90.4 million, marking 20 consecutive quarters of growth and surpassing the guidance of $84 to $88 million.
Additionally, Magnite reported Adjusted EBITDA of $54.4 million, representing a 22% year-over-year increase and a 34% Adjusted EBITDA margin. Non-GAAP earnings per share improved to $0.20, compared to $0.14 in Q2 2024. The company also reported operating cash flow of $33.9 million.
Looking ahead, Magnite is hosting a conference call on August 6, 2025, to discuss its Q2 2025 results in detail. This event provides investors and analysts with an opportunity to gain further insights into the company’s performance and strategic outlook.
Magnite reported total revenue of $173.33 million in Q2 2025, reflecting a 6.4% year-over-year increase from $162.88 million in Q2 2024. The revenue was driven by growth across all key segments, with Connected TV (CTV) contributing the largest share at $82.40 million. Mobile revenue reached $64.17 million, while Desktop revenue totaled $26.76 million. This broad-based growth underscores the company's strong performance across digital advertising platforms.
The company returned to profitability, reporting net income of $11.14 million, or $0.08 per share, in Q2 2025. This marked a dramatic turnaround from a net loss of $1.08 million, or $0.01 per share, in the same period in 2024, representing a 1133.3% improvement in net income. Additionally, achieved a 900.0% increase in earnings per share. These results highlight the company's effective cost management and revenue generation strategies.
Magnite’s stock has experienced a decline in the short term, with a 0.66% drop during the latest trading day, a 1.45% decline during the most recent full trading week, and a 7.45% decrease month-to-date.
A historical analysis of Magnite’s post-earnings price action reveals that buying shares after a revenue increase quarter-over-quarter and holding for 30 days has historically delivered significant returns. This strategy generated a 197.08% return over the past three years, outperforming the benchmark return of 48.58% by an excess of 148.50%. The strategy also showed a compound annual growth rate (CAGR) of 45.63% and a maximum drawdown of 0.00%, illustrating strong risk-adjusted returns with minimal downside.
CEO Michael G. Barrett expressed confidence in the company’s growth trajectory, emphasizing the outperformance of Q2 2025 guidance, particularly from DV+. He expects an acceleration in CTV and DV+ growth for the remainder of 2025, driven by new partnerships, the entry of small and medium-sized business (SMB) advertisers, and success in live sports. For DV+, the CEO noted improvements from progress in the partner and product areas. Despite macroeconomic uncertainties, he remains optimistic about the company’s performance in the second half of the year.
Magnite provided updated guidance for Q3 2025, projecting Total Contribution ex-TAC between $161 million and $165 million, with CTV between $71 million and $73 million and DV+ between $90 million and $92 million. The company also expects Adjusted EBITDA operating expenses to range between $109 million and $111 million. Magnite reaffirmed its full-year 2025 guidance, including Total Contribution ex-TAC growth above 10%, mid-teens Adjusted EBITDA growth, at least 150 basis points of margin expansion, and high-teens to 20% free cash flow growth.
Additional News
Magnite’s recent Q2 2025 earnings report included several key highlights. The company reported Contribution ex-TAC of $162.0 million, up 10% year-over-year, exceeding the guidance range of $154 to $160 million. Contribution ex-TAC from CTV reached $71.5 million, growing 14% year-over-year. Contribution ex-TAC from DV+ totaled $90.4 million, marking 20 consecutive quarters of growth and surpassing the guidance of $84 to $88 million.
Additionally, Magnite reported Adjusted EBITDA of $54.4 million, representing a 22% year-over-year increase and a 34% Adjusted EBITDA margin. Non-GAAP earnings per share improved to $0.20, compared to $0.14 in Q2 2024. The company also reported operating cash flow of $33.9 million.
Looking ahead, Magnite is hosting a conference call on August 6, 2025, to discuss its Q2 2025 results in detail. This event provides investors and analysts with an opportunity to gain further insights into the company’s performance and strategic outlook.
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