Skip to content
    MGNI
    Earnings call· Jun 2026(Q2 FY26)

    MAGNITE Q2 FY26 earnings call MGNI

    Aug 5, 2026 Source

    Executive summary

    Magnite Q2 FY26 — Strong CTV Growth and Raised Full-Year Outlook

    Magnite delivered an outstanding second quarter, significantly exceeding expectations with strong CTV growth and a return to growth for DV+. The company raised its full-year outlook for contribution ex-TAC, adjusted EBITDA, and free cash flow, driven by broad-based momentum and strategic advancements in AI orchestration and supply-side audience enablement. CFO David Day announced his retirement, marking the end of a significant tenure.

    Highlights

    5

    • Total contribution ex-TAC exceeded consensus by approximately $10 million.

    • CTV contribution ex-TAC grew 36% year-over-year.

    • DV+ contribution ex-TAC returned to growth, increasing 2%.

    • Adjusted EBITDA grew 30% year-over-year to $71 million, reflecting a 37% margin.

    • Full-year contribution ex-TAC growth raised to 13%-14% from at least 11% previously.

    Concerns

    3

    • Automotive vertical remains depressed, though it has returned to growth.

    • DV+ contribution ex-TAC guidance for Q3 FY26 is flat to up 1% (negative 1% to up 1%).

    • Full-year estimates include conservatism due to potential macroeconomic risks such as stubborn inflation, volatile energy prices, and geopolitical challenges.

    Guidance & targets

    9
    CategoryTargetConfidence
    Q3 FY26 Contribution ex-TAC
    $188M-$192M
    high materiality
    High
    Q3 FY26 CTV Contribution ex-TAC
    $98M-$100M
    high materiality
    High
    Q3 FY26 DV+ Contribution ex-TAC
    $90M-$92M
    medium materiality
    High
    Q3 FY26 Adjusted EBITDA Operating Expenses
    $119M-$121M
    medium materiality
    High
    Full Year 2026 Total Contribution ex-TAC Growth
    13%-14%
    high materiality
    High
    Full Year 2026 Adjusted EBITDA Percentage Growth
    greater than 20%
    high materiality
    High
    Full Year 2026 Adjusted EBITDA Margin
    at least 37%
    high materiality
    High
    Full Year 2026 Free Cash Flow Growth
    high 40% range
    high materiality
    High
    Full Year 2026 CapEx
    approximately $60M
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    CTV
    Exceeded guide of $90M-$92M. Represented 51% of total contribution ex-TAC. Top 10 CTV accounts grew mid-to high 40% range YoY. Driven by programmatic adoption and international expansion.
    Contribution ex-TAC: $97M
    		—36%——
    DV+
    Exceeded top end of guidance range. Mobile in-app grew 17% YoY.
    Contribution ex-TAC: $93M
    		—2%——
    Mobile In-App (within DV+)
    Mobile in-app growth.
    		—17%——

    Operational metrics

    11
    Total contribution ex-TAC
    $190Mup 17%
    Q2 FY26

    Exceeded consensus by approximately $10 million.

    Adjusted EBITDA operating expense
    $119Mincrease from $108M in the same period last year
    Q2 FY26

    Similar drivers as total operating expenses, primarily increased personnel costs, higher tech stack-related expenses, and higher facility expenses.

    Net interest expense
    $6M
    Q2 FY26
    Net leverage
    0.1x
    Q2 FY26

    At quarter end.

    Shares repurchased
    2.1M
    Q2 FY26

    Shares repurchased or withheld.

    Shares repurchased year-to-date
    4.4M
    YTD Q2 FY26

    Shares repurchased or withheld year-to-date through Q2.

    Remaining repurchase authorization
    $165M
    Q2 FY26

    Remaining available under current repurchase authorization.

    Contribution ex-TAC mix
    51% CTV, 35% mobile, 14% desktop
    Q2 FY26
    AI-enabled transaction volume
    handful of millions of dollars
    YTD Q2 FY26

    Early stages of AI adoption, expected to be much bigger next year.

    Managed service business (CTV)
    2%70% down
    Q2 FY26

    Represents 2% of CTV business, down from 9% a year ago, and is 70% down. This decline is the sole driver of the disparity between CTV revenue and contribution ex-TAC growth.

    Cost savings from load balancer
    $20,000
    daily

    Savings achieved by building own load balancer instead of using Amazon's.

    Industry KPIs

    8
    MetricValueDetails
    Total revenue$193MUSD
    Net income EPS$19M (Net income), $0.13 (GAAP EPS), $0.26 (Non-GAAP EPS)USD
    Adjusted EBITDA$71MUSD
    CAPEX capital program$13MUSD
    Total operating expenses$162MUSD
    Cash marketable securities$333MUSD
    Ai product feature adoption21partners
    Free cash flow operating cash flow$57MUSD

    Product announcements

    1
    ProductTypeDetails
    Magnite Orchestrationlaunch

    Deals & partnerships

    2
    SamsungSamsung selected SpringServe to power ad serving for its premium smart TV home screen inventory and to open this inventory to programmatic buying for the first time.

    Samsung selected SpringServe to power ad serving for its premium smart TV home screen inventory, reaching hundreds of millions of smart TVs globally, and to open this inventory to programmatic buying for the first time through Magnite's DSP ecosystem.

    WPPWPP expanded ad formats in its media supply hub enabled on SpringServe to include Pause ads and validated Magnite's ability to seamlessly pair CTV ad formats with WPP's open audience segments via ClearLine.

    WPP has expanded ad formats in its media supply hub enabled on SpringServe to include Pause ads and has validated Magnite's ability to seamlessly pair CTV ad formats with WPP's open audience segments via ClearLine through a custom real-time data integration.

    Risks & headwinds

    2
    Macroeconomic factorsRemainder of FY26

    Not explicitly quantified, but cited as reason for "somewhat conservative" estimates.

    Mitigation: Conservative guidance for the remainder of the year to properly capture potential macro risk.

    Automotive vertical depressionOngoing

    Remains depressed, though it has returned to growth.

    Mitigation: Not explicitly stated, but implies diversification across other strong verticals like health and fitness, technology, and finance.

    What to watch in Q3 FY26

    5

    CTV growth rate (programmatic portion)

    Next quarter (Q3 FY26) and beyond
    Current36% YoY (overall CTV), "even faster" for programmatic portion
    TargetContinued outperformance of market growth (multiples of industry growth rate)

    Why it matters

    CTV is the defining growth story; sustained high growth indicates continued market share gains and programmatic adoption.

    Our stated goal has always been to outpace the market in terms of growth when it relates to CTV. And presently, by any estimate, we're 2x, 2.5x, 3x the market growth rate. Is that sustainable? I think you'll have ups and downs on that. But we fully believe that looking out several years, that a 25% growth rate for CTV is something that we not only aspire to, but we think is achievable.

    Q&A highlights

    6

    What are the primary factors contributing to the mid-to high 40% growth in top 10 CTV accounts (increased supply, higher take rates, etc.)?

    Michael Barrett attributed growth to increased programmatic adoption by buyers and media owners, and publishers' willingness to accept Magnite-driven programmatic demand, which carries different take rates.

    “I would see generally in 2 buckets. One is just greater adoption of programmatic. It just becomes table stakes in the upfronts to be able to offer buyers the option to buy programmatically. ... And then the second bucket is a willingness to have, instead of publisher-led programmatic, publisher-sold programmatic Magnite demand, Magnite able to come in and bring demand from DSPs that they don't have relationships with, advertisers that these premium publishers haven't had relationships with.”

    asked by Matthew Swanson · answered by Michael Barrett

    2 min read6 chapters

    Detailed Narrative

    01

    Strong CTV Performance and Market Inflection

    CTV represented 51% of total contribution ex-TAC in Q2 FY26, growing 36% year-over-year, significantly exceeding expectations. This growth was broad-based across major media owners like Disney, ESPN, Netflix, and Roku, with top 10 CTV accounts accelerating to mid-to high 40% growth. Management believes the market has reached an inflection point where programmatic is becoming the preferred method for transacting streaming television advertising.

    02

    DV+ Trajectory and Mobile In-App Growth

    The DV+ segment returned to growth, increasing 2% year-over-year, also surpassing the high end of guidance. Mobile in-app, a key component of DV+, demonstrated strong performance with 17% year-over-year growth. This indicates Magnite is expanding its market share, driven by deeper DSP integrations, new publisher onboarding, and its SDK strategy.

    03

    SpringServe as CTV Operating System

    SpringServe is highlighted as a primary differentiator, evolving from an ad server into an intelligent control layer for premium streaming. It combines ad serving, mediation, monetization, demand facilitation, and data enablement, increasingly enhanced by agentic tools. Recent wins include Samsung selecting SpringServe to power ad serving for its smart TV home screen inventory and WPP expanding ad formats in its media supply hub.

    04

    Supply-Side Audience Enablement

    The company notes a structural trend where audience enablement and decisioning are shifting from the buy side to the supply side. This is driven by publishers and buyers having access to richer first-party data, commerce signals, and AI. Commerce media is a compelling application, with 21 partners actively using Magnite to activate first-party data across owned and operated inventory and the open internet, including a partnership with Walmart Connect.

    05

    AI Orchestration for Agentic Advertising

    Magnite introduced Magnite Orchestration, positioning it as a critical infrastructure layer for agentic advertising. This layer enables various agents from publishers, marketers, and data providers to work together in a trusted environment. Disney Advertising, Spectrum Reach, Kepler, MiQ, Publicis Media Exchange, Dentsu, and DIRECTV are already collaborating with components of Magnite's AI suite, validating the agentic advertising model.

    06

    David Day's Retirement and Financial Leadership

    CFO David Day announced his retirement at the end of September after over 13 years of service. He was recognized for his exceptional leadership, guiding Magnite through transformational acquisitions, industry changes, and significant growth. He also built a deep and talented finance organization, ensuring a strong foundation for his successor.

    AI-generated summary of the company’s earnings call. Not investment advice.