Top-line Revenue Growth
Total revenue for Q1 was $164 million, up 6% year-over-year.
Magnite
· MGNI
May 6th, 2026
Summary
- Earnings Call Date:
- 2026-05-06
- Change Since:
- +36.59%
- Next Earnings Date:
- 2026-08-12
Earnings Call Sentiment
PositiveThe call conveyed strong operational and financial progress driven by a robust CTV ramp, double-digit contribution ex-TAC growth, margin expansion, and durability in key customer relationships. Management highlighted durable cost efficiencies (cloud and AI), a disciplined capital allocation plan (debt paydown and buybacks), and raised full-year margin and free-cash-flow targets. Offsetting risks include ongoing DV+ decline, vertical-specific macro weakness (automotive, technology), a large quarter-over-quarter cash reduction from debt repayment and repurchases, uncertainty around timing of Google AdTech remedies, and a planned CFO transition. On balance, the positive growth, profitability, and strategic momentum notably outweigh the moderate risks discussed.
Company Guidance
Guidance: For Q2 management expects contribution ex‑TAC of $177–181M (growth +9% to +12%), with CTV contribution ex‑TAC of $90–92M (+26% to +29%) and DV+ contribution ex‑TAC of $87–89M (down 4% to 2%); they expect Adjusted EBITDA operating expenses of $115–117M implying an Adjusted EBITDA margin of ~34%–36%. For full‑year 2026 they reaffirm at least +11% contribution ex‑TAC growth, mid‑teens Adjusted EBITDA percentage growth, raise Adjusted EBITDA margin to at least 35.5% (from >35%), raise free cash flow growth to the mid‑30% range (from >30%), and reaffirm CapEx of ~ $60M; guidance excludes any potential upside from Google AdTech remedies.
Strong Contribution ex-TAC Performance
Total contribution ex-TAC was $161 million, up 10% year-over-year and at the high end of guidance.
CTV Acceleration and Mix
CTV contribution ex-TAC grew 30% year-over-year to $82 million and represented 51% of total contribution ex-TAC, continuing momentum from 2025.
Profitability and Margin Expansion
Adjusted EBITDA was $43 million, up 16% year-over-year, with Adjusted EBITDA margin of 27% (vs. 25% a year ago); Adjusted EBITDA exceeded consensus by $5 million.
Earnings and EPS Improvement
Net income was $4 million versus a net loss of $10 million in Q1 2025. GAAP diluted EPS was $0.03 vs. a loss of $0.07, and non-GAAP EPS was $0.13 vs. $0.02 year-over-year.
Operational Efficiency Gains
Operating expenses (including cost of revenue) were $157 million, flat year-over-year, with cost improvements driven by cloud savings and early AI-related productivity gains; Q1 OpEx was $4 million better than guide.
Strong Customer and Demand Signals
Top 10 accounts grew in the mid-30% range year-over-year; the rest of the customer base grew in the mid-20s. Mobile in-app grew 8% year-over-year. Commerce media footprint grew to 21 partners with 13 deployed.
Balance Sheet and Capital Allocation Actions
Convertible debt of $250 million was repaid; net leverage was 0.7x. The company repurchased/withheld >2.2 million shares for ~$29 million and has ~$186 million remaining under repurchase authorization; management plans to return ~50% of free cash flow to shareholders.
Reaffirmed and Raised Full-Year Targets
Management reaffirmed full-year contribution ex-TAC growth of at least 11%, raised Adjusted EBITDA margin target to at least 35.5% (from >35%), and raised free cash flow growth to mid-30%.
Product and Strategic Momentum
SpringServe positioned as a differentiated unified CTV ad-serving/mediation/monetization platform; SpringServe Streamr (creative/SMB tooling) driving CTV adoption; ClearLine and AI initiatives accelerating automation and yield optimization.
Event & Live Sports Traction
Live sports monetization showing early traction, including >80% year-over-year revenue growth from March Madness; World Cup and other sports expected to be incremental catalysts.
Operator
Good day, and welcome to the Magnite, Inc. First Quarter 2026 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, one on a touch-tone phone. To withdraw your question, please note this event is being recorded. I would now like to turn the conference over to Nick Kormeluk, Investor Relations.
Please go ahead.
Nick Kormeluk
Thank you, Operator, and good afternoon, everyone. Welcome to Magnite, Inc.'s First Quarter 2026 Earnings Conference Call. As a reminder, this conference call is being recorded. Joining me on the call today are Michael G. Barrett, CEO, and David L. Day, our CFO. We have posted financial highlight slides on our Investor Relations website to accompany today's presentation. Before we get started, I will remind you that our prepared remarks and answers to questions will include information that might be considered forward-looking statements, including, but not limited to, statements concerning our anticipated financial performance and strategy, including the potential impacts of macroeconomic factors on our business.
These statements are not guarantees of future performance. They reflect our current views with respect to future events and are based on assumptions and estimates and subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially diffe...
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