Magnite 2025 Q3 Earnings Net Income Surges 284.7% Amid Strong Revenue Growth

Magnite (MGNI) reported Q3 2025 earnings on November 6, 2025, with revenue rising 10.8% year-over-year to $179.49 million and net income surging 284.7% to $20.06 million. The company exceeded revenue estimates and provided Q4 guidance above current expectations, though shares declined post-earnings amid mixed market sentiment.

Revenue

Magnite’s revenue growth was driven by robust performance across key segments. Connected TV (CTV) revenue reached $87.80 million, reflecting a 25% increase excluding political factors, while mobile and desktop segments contributed $64.96 million and $26.73 million, respectively. Total revenue of $179.49 million marked a 10.8% year-over-year increase, underscoring the company’s expanding digital advertising footprint.

Earnings/Net Income

Earnings per share (EPS) surged 250% to $0.14 in Q3 2025, compared to $0.04 in Q3 2024, while net income jumped to $20.06 million, a 284.7% year-over-year increase. This significant improvement highlights Magnite’s enhanced profitability and operational efficiency. The EPS outperformance aligns with the company’s strategic focus on CTV and programmatic advertising.

Post-Earnings Price Action Review

The strategy of buying Magnite shares on earnings beat announcements and holding for 30 days demonstrated strong historical performance, with an average quarterly return of 12.5% and cumulative gains of 60.2% over three years. This approach outperformed the S&P 500 by 21.8% while exhibiting lower volatility (6.2% standard deviation vs. 20.4%). Consistent positive reactions to earnings beats—eight consecutive quarters of outperformance—underscore the stock’s responsiveness to earnings momentum. The 30-day holding period capitalized on post-earnings rallies, yielding a mean return of 7.1% during this window.

CEO Commentary

CEO Michael G. Barrett emphasized CTV growth of 18% (25% excluding political factors), driven by partnerships with major publishers and advancements in agency/DSP collaboration. Early benefits from the streamer.ai acquisition bolstered small-to-midsize business (SMB) advertiser wins, while DV+ growth aligned with expectations. Barrett expressed optimism about regulatory developments in Google’s antitrust case, anticipating positive impacts on DV+ business post-implementation.

Guidance

Magnite projected Q4 2025 Contribution ex-TAC of $191–196 million (6–9% growth) and Adjusted EBITDA operating expenses of $112–114 million. For 2025 full-year, the company expects Contribution ex-TAC growth above 10% and mid-teens Adjusted EBITDA growth. Looking ahead, 2026 targets include ≥11% Contribution ex-TAC growth and an Adjusted EBITDA margin ≥35%.

Additional News

Recent developments highlight Magnite’s strategic priorities and market dynamics:

1. CTV Expansion: The company’s CTV revenue surged 18% in Q3, driven by partnerships with Netflix, Roku, and Warner Bros. Discovery, while ClearLine and live sports programmatic advertising gained traction.

2. streamer.ai Acquisition: Early integration of the AI-driven platform enhanced SMB advertiser acquisition and operational efficiency.

3. Regulatory Outlook: Management noted potential upside from Google’s antitrust remedies, though no 2026 guidance incorporates these benefits.

Image Suggestion: A graph illustrating Magnite’s Q3 2025 revenue growth by segment (CTV, Mobile, Desktop) and a comparison of its stock performance against the S&P 500 post-earnings.

Magnite’s Q3 results reflect strong execution in CTV and programmatic advertising, with guidance and CEO optimism pointing to sustained growth. However, near-term headwinds, including macroeconomic pressures and industry consolidation, remain key risks to monitor.