Magnite (MGNI) Q4 2025 earnings summary

Executive summary

• Q4 and full-year 2025 exceeded expectations, driven by strong CTV growth and a structural shift toward streaming, with CTV now representing the majority of the business for the first time.

• Net income for Q4 2025 was $123.1 million, up from $36.4 million, aided by a $90 million one-time tax benefit from the release of a valuation allowance on deferred tax assets.

• Adjusted EBITDA for Q4 2025 was $83.8 million (43% margin), up 9% year-over-year; full-year Adjusted EBITDA was $232.1 million (34.7% margin), up 18%.

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

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

Financial highlights

• Q4 2025 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% to $93.6 million, representing 48% of total.

• DV+ contribution ex-TAC declined 1% (up 4% ex-political) to $101 million.

• Full-year 2025 contribution ex-TAC was $669.6 million, up 10% (14% ex-political); Adjusted EBITDA was $232.1 million (34.7% margin), up 18%.

• Cash balance at year-end was $553.4 million; net leverage reduced to zero.

• Non-GAAP EPS for Q4 2025 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.

• DV+ expected to decline 6–8% in Q1 2026.

• 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.