Magnite Inc. reported fourth‑quarter and full‑year 2025 financial results on February 25 2026, showing total revenue of $205.4 million, up 6% from $194.0 million in Q4 2024. Contribution ex‑TAC rose 8% to $195.1 million, while CTV contribution ex‑TAC increased 20% to $93.6 million, a 32% jump when political spend is excluded. Adjusted EBITDA margin expanded to 43% from 42% in the prior year, and non‑GAAP earnings per share were $0.34, slightly below consensus estimates of $0.35–$0.36, whereas GAAP diluted EPS reached $0.80, buoyed by a one‑time $90 million tax benefit.
The results also reveal a shift in the company’s business mix. The DV+ segment declined 1% year‑over‑year but grew 4% when political spend is excluded, reflecting a budget reallocation toward CTV. CTV now accounts for more than 50% of the company’s contribution ex‑TAC, underscoring the accelerating shift of advertising dollars into connected television.
Magnite announced a new $200 million share‑repurchase program, authorizing the board to repurchase common stock through February 29 2028. CEO Michael G. Barrett said, "We are extremely pleased to see a significant inflection in the growth of the programmatic CTV market, evidenced by our 32% top‑line growth excluding political, in the fourth quarter, as well as strength into Q1. We are witnessing spend shift into CTV from various areas of digital advertising, including from DV+. Magnite has the core technology, partnerships, trust, and team to emerge as the most valued player in CTV, which now in Q1 makes up more than 50% of our business." CFO David L. Day added, "Following the repayment of our convert, we plan to be more aggressive with share repurchases, given our future expected significant and consistent free cash flow generation."
Management guided for 2026 with at least 11% total contribution ex‑TAC growth, mid‑teens adjusted EBITDA growth, an adjusted EBITDA margin above 35%, and free cash flow growth above 30%. These targets signal confidence in continued CTV momentum and disciplined cost management, while also acknowledging the need to sustain margin expansion amid competitive pressures in the DV+ space.
The earnings miss on non‑GAAP EPS reflects modest margin pressure from higher operating costs and the impact of a one‑time tax benefit on GAAP figures. Nevertheless, the company’s strong CTV performance, expanding margin, and robust free‑cash‑flow outlook reinforce its position as the largest independent sell‑side platform in a market that is increasingly favoring connected television. The share‑repurchase program further demonstrates management’s commitment to returning value to shareholders as the company continues to generate significant cash flow.
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