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Dec 31, 2025
Magnite Q4 2025 Earnings Report
Magnite reported its fourth quarter 2025 financial results, showing growth in CTV and a significant one-time tax benefit.
Key Takeaways
Magnite delivered a solid Q4 2025 with revenue growing 6% and Contribution ex-TAC increasing 8% year-over-year. The company saw a major inflection in the programmatic CTV market, which grew 32% excluding political spend. Net income was significantly boosted by a $90 million one-time tax benefit related to the release of a valuation allowance.
Revenue reached $205.4 million, up 6% year-over-year, while Contribution ex-TAC grew 8% to $195.1 million.
CTV Contribution ex-TAC grew 20% (32% excluding political), now representing nearly 50% of the business.
Net income of $123.1 million was heavily influenced by a $90 million one-time tax benefit.
The Board approved a new $200 million share repurchase program effective through February 2028.
Revenue by Segment
Forward Guidance
Magnite expects continued growth in 2026, particularly in CTV, with total Contribution ex-TAC growth of at least 11%.
Positive Outlook
- Total Contribution ex-TAC growth of at least 11% for FY 2026.
- Adjusted EBITDA percentage growth expected in the mid-teens.
- Adjusted EBITDA margin targeted to be greater than 35%.
- Free cash flow growth projected to be greater than 30%.
- CTV expected to make up more than 50% of the business in Q1 2026.
Challenges Ahead
- Q1 2026 DV+ Contribution ex-TAC expected to be between $76-$78 million, showing a shift in spend to CTV.
- Capex of approximately $60 million planned for FY 2026.
- Adjusted EBITDA operating expenses expected to be $122 million in Q1 2026.
- DV+ Contribution ex-TAC decreased 1% year-over-year in Q4 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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