| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 39 | 21.4x | 17.8x | Bottom tier | |
Growth | 69 | 8.3% | 7.1% | Top tier | |
Quality | 89 | 13.4% | 4.5% | Top tier | |
Safety | 74 | 0.6x | 2.6x | Top tier | |
Capital Return | 88 | — | 2.12% | Top tier | |
Momentum | 79 | -8.3% | 2.9% | Top tier | |
Sentiment | 38 | 7 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Magnite operates as an advertising technology infrastructure platform connecting content publishers with buyers, with an increasing focus on connected TV advertising CTV. The SpringServe platform combines ad serving, mediation, and yield optimization, while ClearLine gives buyers direct access to premium CTV inventory; the company generates revenue by facilitating advertising transactions and providing monetization and demand management tools to publishers across CTV and the DV+ segment.
In Q2 FY2026, sales reached $192.823 million and adjusted earnings per share were $0.26, with the results exceeding market expectations according to an August 6, 2026 news report. CTV activity grew 36% year over year, and DV+ returned to growth, causing the stock to rise 11.2% following the results announcement and research firms to raise their price targets.
The latest EDGAR filings available for Q1 FY2026 show revenue of $164.4 million, gross profit of $104.0 million, net income of $4.4 million, and earnings per share of $0.03; this equates to a gross profit margin of approximately 63.3% and a net margin of approximately 2.7%. Contribution ex-TAC reached $161 million, including $82 million from CTV and $79 million from DV+, while the mix was distributed as 51% CTV, 34% mobile, and 15% desktop, and the adjusted EBITDA margin increased to 27% from 25% in Q1 FY2025.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average target of $26.5 and a narrow range of $25 to $27, while the average is only approximately 1.2% above the 52-week range high of $26.19; this limits the margin of safety if CTV results or margins fall short of expectations. On August 6, 2026, BTIG raised its target from $20 to $27 with a Buy rating, while Rosenblatt raised its target to $40, reflecting a positive revaluation following Q2 FY2026 sales of $192.823 million and adjusted earnings per share of $0.26, but the wide 52-week range of $10.82 to $26.19 illustrates the stock's sensitivity to changes in growth expectations.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
The main driver is CTV, which represented 51% of contribution ex-TAC in Q1 FY2026. Its contribution rose 30% to $82 million in that quarter, and the segment then recorded growth of 36% in Q2 FY2026. Management links this performance to the SpringServe platform and expanded work with Netflix, Paramount, Roku, Warner Bros. Discovery, and others.
DV+ contribution ex-TAC declined 5% to $79 million in Q1 FY2026. Q2 FY2026 guidance expected a decline of between 2% and 4%, but the results news published on August 6, 2026 reported that the segment had returned to growth. Supporting elements come from mobile applications, which grew 8% in Q1 FY2026, in addition to audio, commerce media, and online video.
Magnite uses artificial intelligence for dynamic pricing, demand optimization, inventory evaluation, and campaign execution, and also employs it within ClearLine to simplify activation, organization, and optimization. Management said on May 6, 2026 that early productivity gains helped reduce expenses, alongside optimized cloud spending. However, it expected only modest revenue from these initiatives in FY2026 and anticipated that the revenue impact would become clearer in FY2027.
Management describes SpringServe as a unified operating layer for CTV advertising that combines ad serving, mediation, yield optimization, and ad experience management. SpringServe Streamr enables small and medium-sized businesses to create, measure, and purchase television advertisements through the Magnite platform and reach premium streaming publishers. During the May 6, 2026 call, management said that Streamr was expanding rapidly and that its benefits had begun to be reflected in CTV growth.
The cash balance was $185 million at the end of Q1 FY2026 after repaying $250 million of convertible debt. The company recorded operating cash flow, according to its definition based on adjusted EBITDA less capital expenditures, of $23 million, with capital expenditures of $20 million and net leverage of 0.7 times. It also spent approximately $29 million to repurchase or reserve more than 2.2 million shares, with $186 million remaining available under the authorization through February 2028.
The main operating risks are the continued contraction of open-web display advertising, as DV+ declined by 5% in Q1 FY2026. Pressure also emerged in automotive and technology related to tariffs, supply chains, and economic uncertainty, alongside the possibility that AI-powered agents could reshape the roles of advertising intermediaries. In addition, CFO David L. Day will retire on September 30, 2026, and the consensus analyst target range is narrow at between $25 and $27 compared with the 52-week high of $26.19.
