Key Highlights

  • Connected TV Contribution ex-TAC rose 39% to USD 105.4 million in the third quarter, against USD 75.8 million a year earlier, and CTV is about 53% of the total (calculated).
  • Third-quarter Revenue grew 14% to USD 204.2 million, while Net Income climbed 70% to USD 34.0 million, or USD 0.23 per diluted share, versus USD 0.13 a year ago.
  • Adjusted EBITDA, a non-GAAP measure, increased 46% to USD 83.4 million from USD 57.2 million, and income from operations more than doubled to USD 50.5 million.
  • Cash and equivalents stood at USD 392.9 million on September 30, 2026, after Magnite (NASDAQ:MGNI) repaid USD 205.1 million of convertible notes in March and bought back USD 55.1 million of stock.

CTV Drives a 14% Revenue Gain in the Third Quarter

Magnite (NASDAQ:MGNI) disclosed results for the quarter ended September 30, 2026 in its 10-Q filed on November 4, 2026. Revenue was USD 204.2 million, up USD 24.7 million from USD 179.5 million, with CTV revenue up 24% and mobile up 5%, including more political advertising. Magnite runs a Sell-Side Advertising platform that lets publishers and streaming owners sell digital ad inventory to buyers. Contribution ex-TAC, a non-GAAP measure that strips out traffic Acquisition costs paid to sellers on gross-reported deals, rose 20% to USD 200.6 million. CTV grew 39% in that measure, mobile 5% and desktop 4%. The gap between CTV revenue growth of 24% and Contribution ex-TAC growth of 39% reflects a lower share of gross-reported transactions.

Operating Income Doubles as Cost of Revenue Falls 8%

Cost of revenue fell 8% to USD 64.0 million because traffic acquisition costs dropped USD 9.1 million as less revenue was reported gross. Total expenses were USD 153.7 million against USD 154.5 million, so income from operations rose 102% to USD 50.5 million. The tax provision jumped to USD 11.6 million from USD 0.9 million, which is why net income grew 70% rather than faster. Over nine months, revenue was USD 561.4 million, up 10%, net income was USD 57.8 million against USD 21.6 million, and Operating Cash Flow was USD 168.8 million versus USD 107.7 million. The filing says full-year 2026 revenue should increase and that CTV should be the largest growth driver, though it gives no numeric guidance.

Google Remedies Ruling and the Risks Around Open-Web Display

The filing says the court issued its remedies opinion in September 2026 in the Google ad technology antitrust case, mandating behavioral remedies and a six-year independent compliance monitor. Google has said it intends to appeal, and timing remains subject to final judgment. Magnite filed its own damages suit against Google on September 16, 2025, and litigation expense of USD 2.0 million was added back in the quarter's adjusted EBITDA. The company also flags that AI is cutting search referral traffic, which could shrink open-web display inventory, and that tariffs or Inflation could weigh on ad budgets. The 2026 repurchase plan has USD 144.9 million of capacity left, and the company holds USD 357.7 million of term Loan principal.

Where Things Stand

CTV is the reason. Contribution ex-TAC in that channel grew 39% to USD 105.4 million, and it fed through to Operating Income of USD 50.5 million and net income of USD 34.0 million. Magnite (NASDAQ:MGNI) still sees open-web display facing AI-driven traffic shifts, and its tax bill rose sharply, so net income grew more slowly than operating income. Next markers are the final judgment and any appeal in the Google case, the fourth-quarter political advertising comparison and further use of the USD 144.9 million buyback capacity. The filing gives no stock price reaction or consensus comparison.