Financial Data and Key Metrics Changes - Total revenue for Q2 was $173 million, up 6% from 2024, with contribution ex TAC at $162 million, an increase of 10% [24] - Adjusted EBITDA grew 22% year over year to $54 million, reflecting a margin of 34%, compared to 30% last year [27] - Net income was $11 million for the quarter, compared to a net loss of $1 million for 2024 [26] Business Line Data and Key Metrics Changes - CTV contribution ex TAC was $72 million, up 14% year over year, or 15% excluding political contributions [24] - DV plus contribution ex TAC was $90 million, an increase of 8% from the second quarter last year [24] - Contribution ex TAC mix for Q2 was 44% CTV, 39% mobile, and 17% desktop [25] Market Data and Key Metrics Changes - The strongest performing verticals were technology, health and fitness, and financial, while the auto sector was the weakest [25] - The company is seeing significant growth in the commerce media space, with new partnerships including Western Union and PayPal [13] Company Strategy and Development Direction - The company is focused on expanding its CTV business through new partnerships and technology enhancements, particularly in programmatic advertising [7][10] - There is a strong emphasis on AI integration within the company's products to enhance targeting and inventory categorization [17][18] - The company is preparing for potential market share shifts due to the antitrust ruling against Google, which could benefit its DBplus business significantly [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2025, expecting growth rates to accelerate, particularly in CTV [21] - The overall ad spend environment appears less volatile, allowing the company to reinstate its full-year guidance [23][30] - Management remains cautious but confident in navigating the current environment, with a focus on strategic investments in growth areas [31][32] Other Important Information - The company reported a cash balance of $426 million at the end of Q2, with net leverage remaining at 0.6x [28] - Capital expenditures for the year are expected to be approximately $60 million, with a focus on transitioning to on-premises infrastructure [31] Q&A Session Summary Question: Can you discuss the recent partnerships and market momentum? - Management highlighted strong traction in the marketplace, particularly in CTV, and noted a modular approach to product offerings that has been successful [35] Question: What is the potential impact of the Google antitrust case? - Management indicated that while the specifics of the remedies are uncertain, they believe any changes will create a more level playing field that could benefit Magnite significantly [36][70] Question: What is driving the reiteration of the prior guidance? - Management noted that the ad spend market has stabilized more than initially feared, allowing for a more optimistic outlook [40][41] Question: How is the company positioned regarding AI developments? - Management discussed the integration of AI capabilities to enhance inventory discovery and targeting, which is expected to drive revenue growth [102] Question: What are the expectations for live sports contributions? - Management acknowledged that while live sports are still in early stages, there is significant potential for growth as more events transition to programmatic sales [54]

Financial Data and Key Metrics Changes - Total revenue for Q2 was $173 million, up 6% from 2024 [24] - Contribution ex TAC was $162 million, up 10%, exceeding the high end of guidance [24] - Adjusted EBITDA was $54 million, growing 22% with a margin of 34% compared to 30% last year [28][23] - Net income was $11 million for the quarter compared to a net loss of $1 million for 2024 [27] Business Line Data and Key Metrics Changes - CTV contribution ex TAC was $72 million, up 14% year over year or 15% excluding political [24] - DV plus contribution ex TAC was $90 million, an increase of 8% from the second quarter last year [24] - Contribution ex TAC mix for Q2 was 44% CTV, 39% mobile, and 17% desktop [25] Market Data and Key Metrics Changes - Significant growth came from partnerships with Roku, Netflix, LG, Warner Bros. Discovery, and Paramount [7] - The SMB segment is expected to explode over the next three to five years, driven by specialized DSPs [10] - The company is seeing share gains in DV plus from some of the largest DSPs [13] Company Strategy and Development Direction - The company is focused on deepening partnerships with major agency HoldCo's and expanding its CTV technology [10][12] - Continued investment in live TV, Clearline, and Curation offerings is planned as these areas represent attractive growth opportunities [21] - The company is preparing for potential outcomes from the antitrust ruling against Google, which could shift market share [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic downsides were not as pronounced as initially feared, leading to stronger than expected growth [23] - The company expects growth rates to accelerate in the second half of 2025, particularly in CTV ex political [21] - Management remains cautious with Q3 and full year expectations but is optimistic about the overall ad spend environment stabilizing [30] Other Important Information - The company is developing AI capabilities as a core product focus, including audience discovery and inventory categorization [16][17] - The cash balance at the end of Q2 was $426 million, with plans to pay off convertible notes at maturity [29] - The company intends to continue its share repurchase program, with $88 million remaining [30] Q&A Session Summary Question: Can you discuss the broader momentum and new partnerships? - Management highlighted the traction in the marketplace, particularly in CTV, and the success of their modular product approach [36] Question: What is the base case regarding the Google antitrust case? - Management stated that it is difficult to predict outcomes until remedies are ruled by the judge, but they see merit in potential civil actions [37] Question: What is driving the reiteration of the prior guidance? - Management noted that the ad spend market has stabilized, leading to comfort in reiterating full year expectations [40][41] Question: How do you view the impact of AI on your business? - Management expressed confidence that AI tools will enhance inventory discovery and targeting, leading to increased revenue [102] Question: What is the outlook for live sports contribution? - Management indicated that while it is still early, they are optimistic about the potential contributions from live sports partnerships [53] Question: How is Magnite positioned with platform companies? - Management noted that there is a realization among platform owners that they are under-monetizing inventory without third-party demand [58] Question: What are the implications of the Google antitrust ruling? - Management believes that any remedies resulting in a more level playing field will be beneficial for their business and could shift market share [20][21]

Q2 2025 Financial Highlights - Contribution ex-TAC reached $162 million, a 10% increase year-over-year, exceeding the guidance of $154 to $160 million[16] - CTV Contribution ex-TAC was $71.5 million, up 14% year-over-year (15% excluding political), hitting the high end of the $70 to $72 million guidance[16] - DV+ Contribution ex-TAC amounted to $90.4 million, an 8% increase year-over-year, surpassing the $84 to $88 million guidance[16] - Adjusted EBITDA increased by 22% year-over-year to $54.4 million, resulting in a 34% Adjusted EBITDA margin, compared to $44.7 million and a 30% margin in Q2 2024[16] - Non-GAAP earnings per share increased to $0.20, compared to $0.14 for Q2 2024[16] Q3 2025 Guidance - Total Contribution ex-TAC is projected to be between $161 million and $165 million[19] - CTV Contribution ex-TAC is expected to range from $71 million to $73 million, representing a growth of 10% to 13% (or 17% to 20% excluding political)[19] - DV+ Contribution ex-TAC is anticipated to be between $90 million and $92 million, indicating a growth of 6% to 8%[19] 2025 Full-Year Expectations - Total Contribution ex-TAC growth is expected to be above 10%[22] - Excluding political factors, total Contribution ex-TAC growth is projected in the mid-teens[22] - Adjusted EBITDA is expected to grow in the mid-teens percentage[22] - Adjusted EBITDA margin expansion is anticipated to increase to at least 150 basis points, up from the previous 100 basis points[22]

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) Magnite's Q2 2025 performance exceeded guidance, driven by strong CTV and DV+ growth, achieving positive net income and an optimistic full-year outlook [Q2 2025 Performance Highlights](index=1&type=section&id=Q2%202025%20Performance%20Highlights) Magnite reported strong Q2 2025 results, exceeding guidance for total top-line and Adjusted EBITDA, with revenue growing 6% year-over-year and Contribution ex-TAC increasing 10% year-over-year, driven by robust performance in both CTV and DV+ segments, achieving positive net income and significant Adjusted EBITDA growth Q2 2025 Key Financial Highlights | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change | | :-------------------------- | :-------- | :-------- | :--------- | | Revenue | $173.3M | $162.9M | 6% | | Contribution ex-TAC | $162.0M | $146.8M | 10% | | CTV Contribution ex-TAC | $71.5M | | 14% | | DV+ Contribution ex-TAC | $90.4M | | 8% | | Net income (loss) | $11.1M | ($1.1M) | NM | | Adjusted EBITDA | $54.4M | $44.7M | 22% | | Adjusted EBITDA margin | 34% | 30% | 4 ppt | | Non-GAAP earnings per share | $0.20 | $0.14 | 43% | | Operating cash flow | $33.9M | | | - **DV+ Contribution ex-TAC** marked twenty consecutive quarters of growth[5](index=5&type=chunk) [Q3 2025 & Full-Year 2025 Outlook](index=1&type=section&id=Q3%202025%20%26%20Full-Year%202025%20Outlook) Magnite provided Q3 2025 guidance and reinstated its full-year 2025 expectations, anticipating continued strong growth in Contribution ex-TAC and Adjusted EBITDA, alongside an increased target for Adjusted EBITDA margin expansion and free cash flow growth Q3 2025 and Full-Year 2025 Expectations | Metric | Q3 2025 Guidance (in millions) | Full-Year 2025 Expectations | | :------------------------------------ | :----------------------- | :-------------------------- | | Total Contribution ex-TAC | $161M - $165M | Growth above 10% | | Total Contribution ex-TAC (ex-political) | | Mid-teens growth | | CTV Contribution ex-TAC | $71M - $73M | | | CTV Contribution ex-TAC (ex-political) | 17% - 20% growth | | | DV+ Contribution ex-TAC | $90M - $92M | | | Adjusted EBITDA operating expenses | $109M - $111M | | | Adjusted EBITDA growth | | Mid-teens percentage | | Adjusted EBITDA margin expansion | | At least 150 bps (from 100 bps) | | Free cash flow growth | | High-teens to 20% | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Michael G. Barrett highlighted exceeding Q2 guidance, particularly from DV+, and anticipates accelerated second-half 2025 growth in both CTV and DV+, noting CTV growth was fueled by new partnerships, SMB advertisers, buyer marketplaces, and live sports, while DV+ improvement is due to partner and product progress, with potential future benefits from antitrust rulings - CEO Michael G. Barrett stated, "We delivered total top-line results and Adjusted EBITDA that exceeded our guidance for the second quarter, with significant upside from **DV+**"[4](index=4&type=chunk) - Anticipates acceleration in second-half 2025 growth for both **CTV** and **DV+**, despite macro uncertainties[4](index=4&type=chunk) - **CTV growth** driven by new/expanded partnerships, entry of SMB advertisers, critical role in buyer marketplaces, and success in live sports[4](index=4&type=chunk) - **DV+ growth profile** is improving due to partner and product progress, even prior to benefits from any remedies resulting from the antitrust ruling against Google[4](index=4&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) This section outlines Magnite's business, forward-looking statements, and investor and media contact information [About Magnite](index=2&type=section&id=About%20Magnite) Magnite is the world's largest independent sell-side advertising company, enabling publishers to monetize content across various screens and formats, including CTV, online video, display, and audio, with its platform trusted by leading agencies and brands globally to access high-quality ad inventory and execute billions of advertising transactions monthly - Magnite (NASDAQ: MGNI) is the **world's largest independent sell-side advertising company**[2](index=2&type=chunk)[12](index=12&type=chunk) - Provides technology for publishers to monetize content across **CTV, online video, display, and audio**[12](index=12&type=chunk) - Operates globally with offices across North America, EMEA, LATAM, and APAC[12](index=12&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section provides a cautionary disclaimer regarding forward-looking statements, emphasizing that they are based on current expectations and are subject to known and unknown risks and uncertainties, advising investors that actual results may differ materially and to review SEC filings for detailed risk factors, with no obligation for the company to update these statements unless legally required - Forward-looking statements are based on expectations, assumptions, estimates, and projections, identifiable by terms such as "may," "will," "expect," and "believe"[13](index=13&type=chunk) - Statements cover future financial performance, acquisitions, macroeconomic conditions, growth of ad-supported programmatic CTV, data usage, client relationships, and regulatory impacts[13](index=13&type=chunk) - Actual results may differ materially due to known and unknown risks, uncertainties, and other factors discussed in SEC filings, including the Annual Report on Form 10-K[13](index=13&type=chunk)[14](index=14&type=chunk) [Investor Relations & Media Contacts](index=5&type=section&id=Investor%20Relations%20%26%20Media%20Contacts) Contact information for investor relations and media inquiries is provided for stakeholders seeking further information about Magnite - Investor Relations Contact: Nick Kormeluk, **(949) 500-0003**, nkormeluk@magnite.com[24](index=24&type=chunk) - Media Contact: Charlstie Veith, **(516) 300-3569**, press@magnite.com[24](index=24&type=chunk) [Conference Call & Webcast Details](index=2&type=section&id=Conference%20Call%20%26%20Webcast%20Details) Details for the conference call and webcast to discuss Magnite's second quarter 2025 results are provided, including access numbers for live participation and replay options - Live conference call held on **August 6, 2025, at 1:30 PM (PT) / 4:30 PM (ET)**[9](index=9&type=chunk) - Domestic callers can dial **(844) 875-6911**, international callers **(412) 902-6511**, with a passcode to join the Magnite conference call[10](index=10&type=chunk) - A simultaneous audio webcast and replay are available at http://investor.magnite.com under "Events and Presentations"[10](index=10&type=chunk)[11](index=11&type=chunk) [Financial Results Summary](index=2&type=section&id=Financial%20Results%20Summary) This section summarizes Magnite's Q2 and first-half 2025 consolidated financial performance, detailing key operational metrics and channel contributions [Second Quarter 2025 Consolidated Results](index=2&type=section&id=Second%20Quarter%202025%20Consolidated%20Results) Magnite's consolidated financial summary for Q2 2025 and the six months ended June 30, 2025, demonstrates significant year-over-year improvements across key metrics, including revenue, gross profit, Contribution ex-TAC, net income, and Adjusted EBITDA, reflecting strong operational performance Q2 2025 and Six Months Ended June 30, 2025, Consolidated Financial Summary | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change | 6 Months 2025 (in millions) | 6 Months 2024 (in millions) | YoY Change | | :--------------------- | :-------- | :-------- | :--------- | :------------ | :------------ | :--------- | | Revenue | $173.3M | $162.9M | 6% | $329.1M | $312.2M | 5% | | Gross profit | $108.4M | $100.3M | 8% | $201.4M | $183.7M | 10% | | Contribution ex-TAC | $162.0M | $146.8M | 10% | $307.8M | $277.3M | 11% | | Net income (loss) | $11.1M | ($1.1M) | NM | $1.5M | ($18.8M) | NM | | Adjusted EBITDA | $54.4M | $44.7M | 22% | $91.2M | $69.8M | 31% | | Adjusted EBITDA margin | 34% | 30% | 4 ppt | 30% | 25% | 5 ppt | | Basic and diluted EPS | $0.08 | ($0.01) | NM | $0.01 | ($0.13) | NM | | Non-GAAP earnings per share | $0.20 | $0.14 | 43% | $0.32 | $0.20 | 60% | [Contribution ex-TAC by Channel](index=17&type=section&id=Contribution%20ex-TAC%20by%20Channel) In Q2 2025, Connected TV (CTV) continued to be the largest contributor to Magnite's Contribution ex-TAC, demonstrating strong year-over-year growth, followed by Mobile and Desktop channels, a trend consistent for the six months ended June 30, 2025 Contribution ex-TAC by Channel (Q2 2025 and Six Months Ended June 30, 2025) | Channel | Q2 2025 (Amount in thousands) | Q2 2025 (%) | Q2 2024 (Amount in thousands) | Q2 2024 (%) | 6 Months 2025 (Amount in thousands) | 6 Months 2025 (%) | 6 Months 2024 (Amount in thousands) | 6 Months 2024 (%) | | :------ | :--------------- | :---------- | :--------------- | :---------- | :--------------------- | :---------------- | :--------------------- | :---------------- | | CTV | $71,543 | 44% | $62,953 | 43% | $134,768 | 44% | $117,847 | 43% | | Mobile | $63,772 | 39% | $57,713 | 39% | $121,780 | 39% | $111,012 | 40% | | Desktop | $26,641 | 17% | $26,097 | 17% | $51,256 | 17% | $48,457 | 17% | | Total | $161,956 | 100% | $146,763 | 100% | $307,804 | 100% | $277,316 | 100% | [Non-GAAP Financial Measures Explanation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) This section defines Magnite's key non-GAAP financial measures, including Contribution ex-TAC, Adjusted EBITDA, and Non-GAAP earnings per share, explaining their calculation and utility [Overview of Non-GAAP Measures](index=3&type=section&id=Overview%20of%20Non-GAAP%20Measures) Magnite utilizes non-GAAP financial measures, including Contribution ex-TAC, Adjusted EBITDA, Non-GAAP Income (Loss), and Non-GAAP Earnings (Loss) per share, to provide a consistent view of its business performance and trends, with these measures supplementary to GAAP results and not intended as substitutes, and reconciliations provided to their most comparable GAAP measures - Non-GAAP measures are used to evaluate business consistently, measure performance, identify trends, and assess operational efficiencies[15](index=15&type=chunk) - These measures are not substitutes for GAAP results, and reconciliations to comparable GAAP measures are provided[16](index=16&type=chunk) - Reconciliation of non-GAAP financial expectations to GAAP is not provided due to the variability and uncertainty of future charges[17](index=17&type=chunk)[18](index=18&type=chunk) [Contribution ex-TAC Definition](index=4&type=section&id=Contribution%20ex-TAC%20Definition) Contribution ex-TAC is a non-GAAP financial measure calculated as gross profit plus cost of revenue, excluding traffic acquisition cost (TAC), considered a useful metric for consistently comparing the company's core business performance without the impact of TAC, which represents payments to sellers for advertising inventory - **Contribution ex-TAC** is calculated as gross profit plus cost of revenue, excluding traffic acquisition cost (TAC)[19](index=19&type=chunk) - **TAC** represents payments to sellers for the sale of advertising inventory through the platform[19](index=19&type=chunk) - It is a useful measure for consistent comparison of the core business without considering the impact of TAC[19](index=19&type=chunk) [Adjusted EBITDA Definition](index=4&type=section&id=Adjusted%20EBITDA%20Definition) Adjusted EBITDA is a non-GAAP measure defined as net income (loss) adjusted for stock-based compensation, depreciation and amortization (including acquired intangibles), impairment charges, interest, taxes, foreign exchange, acquisition-related items, and other non-core expenses, used by management and investors to evaluate performance, but with limitations as it does not reflect cash requirements for certain items like asset replacement or taxes - **Adjusted EBITDA** excludes stock-based compensation, depreciation and amortization, impairment charges, interest, taxes, foreign exchange, acquisition and related items, and non-operational real estate and other expenses[20](index=20&type=chunk) - It is used by investors and analysts to measure performance without regard to items that vary substantially, and by management for planning, performance measurement, and compensation[21](index=21&type=chunk) - Limitations include not reflecting cash requirements for asset replacement, income taxes, working capital needs, capital expenditures, or contractual commitments[21](index=21&type=chunk) [Non-GAAP Income (Loss) and Non-GAAP Earnings (Loss) per Share Definition](index=5&type=section&id=Non-GAAP%20Income%20(Loss)%20and%20Non-GAAP%20Earnings%20(Loss)%20per%20Share%20Definition) Non-GAAP earnings (loss) per share is derived by dividing Non-GAAP income (loss) by Non-GAAP weighted-average shares outstanding, with Non-GAAP income (loss) adjusting net income (loss) by excluding stock-based compensation, M&A/restructuring costs, amortization of acquired intangibles, foreign currency gains/losses, debt-related items, non-operational real estate, and the tax impact of these adjustments, aiming to provide a clearer view of ongoing operational performance - **Non-GAAP earnings (loss) per share** is calculated as non-GAAP income (loss) divided by non-GAAP weighted-average shares outstanding[23](index=23&type=chunk) - **Non-GAAP income (loss)** excludes stock-based compensation, M&A/restructuring costs, amortization of acquired intangibles, foreign currency gains/losses, debt extinguishment/refinancing, non-operational real estate, Convertible Senior Notes interest expense, and the tax impact of these items[23](index=23&type=chunk) - This measure is useful for evaluating ongoing operational performance and facilitating comparisons with other companies, though definitions may vary[23](index=23&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Magnite's condensed consolidated balance sheets, statements of operations, cash flows, and earnings per share calculations [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Magnite's balance sheet as of June 30, 2025, shows a slight increase in total assets, primarily driven by accounts receivable, while cash and cash equivalents decreased, and total liabilities also increased, mainly due to a significant rise in current debt, partially offset by a decrease in non-current debt Condensed Consolidated Balance Sheets (Selected Items) | Item | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | | :---------------------------------- | :----------------------------- | :------------------------------- | :----- | | Cash and cash equivalents | $426,004 | $483,220 | ($57,216) | | Accounts receivable, net | $1,303,042 | $1,200,046 | $102,996 | | TOTAL CURRENT ASSETS | $1,756,520 | $1,703,180 | $53,340 | | TOTAL ASSETS | $2,927,147 | $2,854,768 | $72,379 | | Accounts payable and accrued expenses | $1,530,389 | $1,466,377 | $64,012 | | Debt, current, net | $207,862 | $3,641 | $204,221 | | TOTAL CURRENT LIABILITIES | $1,764,955 | $1,495,984 | $268,971 | | Debt, non-current, net | $348,556 | $550,104 | ($201,548) | | TOTAL LIABILITIES | $2,158,680 | $2,086,550 | $72,130 | | TOTAL STOCKHOLDERS' EQUITY | $768,467 | $768,218 | $249 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, Magnite reported a significant turnaround from a net loss to a net income, driven by a 6% increase in revenue and improved operating income, with total expenses decreasing slightly year-over-year for the quarter, contributing to the positive income from operations Condensed Consolidated Statements of Operations (Selected Items) | Item | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Revenue | $173,332 | $162,880 | $329,103 | $312,199 | | Total expenses | $151,373 | $153,306 | $308,508 | $316,453 | | Income (loss) from operations | $21,959 | $9,574 | $20,595 | ($4,254) | | Total other expense, net | $9,862 | $6,025 | $18,985 | $17,763 | | Net income (loss) | $11,139 | ($1,078) | $1,505 | ($18,835) | | Basic EPS | $0.08 | ($0.01) | $0.01 | ($0.13) | | Diluted EPS | $0.08 | ($0.01) | $0.01 | ($0.13) | - **Stock-based compensation expense** for Q2 2025 was **$19,558 thousand**, a slight decrease from $19,660 thousand in Q2 2024[29](index=29&type=chunk) - Total **depreciation and amortization expense** for Q2 2025 was **$12,210 thousand**, down from $14,236 thousand in Q2 2024[29](index=29&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities decreased compared to the prior year period, net cash used in investing activities increased, primarily due to higher purchases of property and equipment, and net cash used in financing activities also increased significantly, mainly driven by treasury stock purchases and taxes paid related to net share settlement Condensed Consolidated Statements of Cash Flows (Selected Items) | Item | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------------ | :------------------------------------ | :------------------------------------ | | Net cash provided by operating activities | $21,089 | $29,156 | | Net cash used in investing activities | ($33,255) | ($22,556) | | Net cash used in financing activities | ($47,385) | ($5,646) | | CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ($57,216) | $245 | | CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period | $426,004 | $326,464 | - Purchases of property and equipment increased to **$26,891 thousand** in 6M 2025 from $15,040 thousand in 6M 2024[31](index=31&type=chunk) - Purchase of treasury stock amounted to **$22,880 thousand** in 6M 2025, compared to none in 6M 2024[31](index=31&type=chunk) - Taxes paid related to net share settlement increased to **$27,258 thousand** in 6M 2025 from $12,743 thousand in 6M 2024[31](index=31&type=chunk) [Calculation of Basic and Diluted Earnings (Loss) Per Share](index=12&type=section&id=Calculation%20of%20Basic%20and%20Diluted%20Earnings%20(Loss)%20Per%20Share) This section details the calculation of basic and diluted earnings (loss) per share for Magnite, showing the net income (loss) and weighted-average common shares outstanding used for these GAAP metrics, with basic and diluted EPS for Q2 2025 at $0.08, a significant improvement from a loss of $0.01 in Q2 2024 Basic and Diluted Earnings (Loss) Per Share | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) (in thousands) | $11,139 | ($1,078) | $1,505 | ($18,835) | | Weighted-average common shares outstanding (basic) (in thousands) | 141,654 | 140,551 | 141,752 | 139,924 | | Basic earnings (loss) per share | $0.08 | ($0.01) | $0.01 | ($0.13) | | Weighted-average shares used to compute diluted EPS (in thousands) | 148,260 | 140,551 | 149,184 | 139,924 | | Diluted earnings (loss) per share | $0.08 | ($0.01) | $0.01 | ($0.13) | [Reconciliations of Non-GAAP Financial Measures](index=13&type=section&id=Reconciliations%20of%20Non-GAAP%20Financial%20Measures) This section details reconciliations of Magnite's non-GAAP financial measures to GAAP, covering Contribution ex-TAC, Adjusted EBITDA, and Non-GAAP income and EPS [Reconciliation of Revenue to Gross Profit to Contribution ex-TAC](index=13&type=section&id=Reconciliation%20of%20Revenue%20to%20Gross%20Profit%20to%20Contribution%20ex-TAC) This reconciliation illustrates the calculation of Contribution ex-TAC by starting with revenue, subtracting cost of revenue to arrive at gross profit, and then adding back the portion of cost of revenue that excludes traffic acquisition cost (TAC), with Q2 2025 Contribution ex-TAC reaching $161.9 million, an increase from $146.8 million in Q2 2024 Reconciliation of Revenue to Gross Profit to Contribution ex-TAC | Item | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Revenue | $173,332 | $162,880 | $329,103 | $312,199 | | Less: Cost of revenue | $64,953 | $62,606 | $127,752 | $128,508 | | Gross Profit | $108,379 | $100,274 | $201,351 | $183,691 | | Add back: Cost of revenue, excluding TAC | $53,577 | $46,489 | $106,453 | $93,625 | | Contribution ex-TAC | $161,956 | $146,763 | $307,804 | $277,316 | [Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=14&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20to%20Adjusted%20EBITDA) This reconciliation details the adjustments made to net income (loss) to arrive at Adjusted EBITDA, including adding back non-cash expenses like stock-based compensation and depreciation/amortization, as well as other non-core items, with Q2 2025 Adjusted EBITDA at $54.4 million, a 22% increase from $44.7 million in Q2 2024, reflecting improved operational profitability Reconciliation of Net Income (Loss) to Adjusted EBITDA | Item | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Net income (loss) | $11,139 | ($1,078) | $1,505 | ($18,835) | | Stock-based compensation expense | $19,558 | $19,660 | $40,767 | $40,491 | | Depreciation and amortization expense (excl. acquired intangibles) | $9,320 | $6,662 | $17,538 | $12,640 | | Amortization of acquired intangibles | $2,890 | $7,574 | $10,273 | $15,163 | | Interest expense, net | $5,071 | $6,793 | $10,248 | $14,751 | | Provision (benefit) for income taxes | $958 | $4,627 | $105 | ($3,182) | | Foreign exchange (gain) loss, net | $4,944 | $516 | $7,161 | ($1,799) | | Loss on extinguishment of debt | — | — | $2,152 | $7,387 | | Other debt refinancing expense | — | — | $967 | $3,140 | | Non-operational real estate and other (income) expense, net | $511 | ($7) | $475 | $17 | | Adjusted EBITDA | $54,391 | $44,747 | $91,191 | $69,773 | [Reconciliation of Net Income (Loss) to Non-GAAP Income](index=15&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20to%20Non-GAAP%20Income) This reconciliation adjusts net income (loss) by adding back various non-cash and non-recurring expenses, such as stock-based compensation, M&A/restructuring costs, and debt-related expenses, and then applying a tax effect to arrive at Non-GAAP income, with Q2 2025 Non-GAAP income at $30.4 million, up from $21.5 million in Q2 2024 Reconciliation of Net Income (Loss) to Non-GAAP Income | Item | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Net income (loss) | $11,139 | ($1,078) | $1,505 | ($18,835) | | Stock-based compensation expense | $19,558 | $19,660 | $40,767 | $40,491 | | Merger, acquisition, and restructuring costs (incl. acquired intangibles amortization, excl. stock-based comp) | $2,890 | $7,574 | $10,273 | $15,163 | | Foreign exchange (gain) loss, net | $4,944 | $516 | $7,161 | ($1,799) | | Loss on extinguishment of debt | — | — | $2,152 | $7,387 | | Other debt refinancing expense | — | — | $967 | $3,140 | | Non-operational real estate and other (income) expense, net | $511 | ($7) | $475 | $17 | | Interest expense, Convertible Senior Notes | $422 | $422 | $843 | $843 | | Tax effect of Non-GAAP adjustments | ($9,074) | ($5,603) | ($15,896) | ($16,939) | | Non-GAAP income | $30,390 | $21,484 | $48,247 | $29,468 | [Reconciliation of GAAP EPS to Non-GAAP EPS](index=16&type=section&id=Reconciliation%20of%20GAAP%20EPS%20to%20Non-GAAP%20EPS) This reconciliation details the calculation of Non-GAAP earnings per share by adjusting GAAP net income (loss) and weighted-average shares outstanding for various non-GAAP items, including the dilutive effect of equity instruments and Convertible Senior Notes, with Q2 2025 Non-GAAP EPS at $0.20, a 43% increase from $0.14 in Q2 2024 Reconciliation of GAAP EPS to Non-GAAP EPS | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | GAAP earnings (loss) per share: Basic | $0.08 | ($0.01) | $0.01 | ($0.13) | | GAAP earnings (loss) per share: Diluted | $0.08 | ($0.01) | $0.01 | ($0.13) | | Non-GAAP income (in thousands) | $30,390 | $21,484 | $48,247 | $29,468 | | Non-GAAP earnings per share | $0.20 | $0.14 | $0.32 | $0.20 | | Weighted-average shares used to compute basic EPS (in thousands) | 141,654 | 140,551 | 141,752 | 139,924 | | Dilutive effect of weighted-average common stock options, RSUs, and PSUs (in thousands) | 6,602 | 4,972 | 7,397 | 4,672 | | Dilutive effect of weighted-average ESPP shares (in thousands) | 4 | 55 | 35 | 60 | | Dilutive effect of weighted-average Convertible Senior Notes (in thousands) | 3,210 | 3,210 | 3,210 | 3,210 | | Non-GAAP weighted-average shares outstanding (in thousands) | 151,470 | 148,788 | 152,394 | 147,866 |

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________ FORM 10-Q __________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-36384 __________________ Registrant's teleph ...

Core Insights - Magnite reported a revenue of $173.3 million for Q2 2025, representing a 6% year-over-year increase [7] - Contribution ex-TAC reached $162.0 million, up 10% year-over-year, exceeding guidance [7][6] - Adjusted EBITDA for the quarter was $54.4 million, reflecting a 22% increase year-over-year and a 34% margin [7][6] Financial Performance - Revenue for the first half of 2025 was $329.1 million, a 5% increase from $312.2 million in the same period of 2024 [8] - Net income for Q2 2025 was $11.1 million, compared to a net loss of $1.1 million in Q2 2024 [7][8] - Non-GAAP earnings per share increased to $0.20 from $0.14 year-over-year [7][8] Segment Performance - Contribution ex-TAC from CTV was $71.5 million, up 14% year-over-year, while excluding political contributions, growth was 15% [7][6] - Contribution ex-TAC from DV+ was $90.4 million, marking an 8% increase year-over-year, with twenty consecutive quarters of growth [7][6] Future Outlook - The company expects total Contribution ex-TAC growth above 10% for the second half of 2025 [7] - Adjusted EBITDA margin is projected to expand by at least 150 basis points [7] - Free cash flow is anticipated to grow in the high-teens to 20% range [7]

Core Insights - Magnite partners with REMAX to enhance its commerce media business, focusing on monetizing digital inventory and utilizing first-party home buyer data to connect brands with high-intent home buyers [1][2] Group 1: Partnership and Strategy - REMAX becomes the first real estate franchisor to launch a commerce media network, aiming to revolutionize the intersection of real estate and advertising while capitalizing on the retail media trend [2] - The collaboration will leverage Magnite's curation tools to enhance media supply with REMAX's proprietary homebuyer data, allowing for the creation of premium audience segments based on attributes like income, age, and homebuying stage [2][3] Group 2: Audience Targeting and Efficiency - The partnership enables advertisers to utilize REMAX's data against Magnite's premium inventory, providing precise targeting and streamlined programmatic workflows [2][3] - REMAX audience segments reflect real-time home buyer intent signals, which are crucial for sectors such as mortgage lending, insurance, and financial services, enhancing targeting effectiveness [3] Group 3: Network and Market Reach - The REMAX Media Network, launched in December 2024, encompasses digital and offline activations across the U.S. and Canada, offering a unique platform for advertisers to connect with consumers [4] - The collaboration with Magnite is designed to maximize the value of REMAX's home buyer data, allowing advertisers to reach audiences across various platforms, thereby improving match rates and cost efficiency [4]

Analyst's Disclosure:I/we have a beneficial long position in the shares of MGNI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The company's two main segments are CTV (Connected TV, that is, streaming) and DV (Digital Video), and it seems to be in He runs SHU Growth Por ...

25% YOY Growth in Impressions Served Through Magnite's SpringServe Video Platform About Main Street Sports Group Main Street Sports Group owns FanDuel Sports Network, the nation's leading multiplatform provider of local sports, offering fans widescale availability and optionality to view their local teams. FanDuel Sports Network serves as the local media partner and home to select MLB, NHL and NBA teams and produces over 3,000 live sports events year-round. Main Street Sports Group harnesses its powerful pa ...

Core Insights - Magnite has announced a strategic partnership with dentsu in EMEA to enhance innovation and performance in the media supply chain [1][2] - The collaboration focuses on utilizing Magnite's video tools to support dentsu's Total TV initiative and aims to lead in the "Algorithmic Era" of advertising [1][3] Group 1: Partnership Details - The partnership enables dentsu to leverage Magnite's SpringServe video platform for more efficient and data-rich connections to inventory, enhancing media experiences [2] - The collaboration emphasizes a commitment to evolving media deployment and optimization, with a focus on client performance [2] Group 2: Strategic Goals - Dentsu aims to build Next Gen media solutions through partnerships with leading technologies, enhancing client success in the Algorithmic Era [3] - Magnite's technology facilitates a shift from transactional media buying to a more curated, high-performance approach, providing greater visibility and control over media buys [3]