Magnite(US:MGNI)2025-11-05 21:20Revenue and Growth - Revenue for Q3 2025 was $179.5 million, an 11% increase year-over-year[6] - Contribution ex-TAC for Q3 2025 was $166.8 million, up 12% year-over-year, exceeding guidance of $161 to $165 million[6] - Contribution ex-TAC attributable to CTV was $75.8 million, an 18% increase year-over-year, exceeding guidance of $71 to $73 million[6] - Full-Year 2025 expectations for total Contribution ex-TAC are between $191 million and $196 million, representing growth of 6% to 9%[6] - Contribution ex-TAC attributable to CTV for Q4 2025 is expected to be between $87 million and $89 million, representing growth of 12% to 14%[6] - The company anticipates total Contribution ex-TAC growth above 10%, or mid-teens excluding political[6] - The company reported a total of $508,597 thousand in revenue for the nine months ended September 30, 2025, compared to $474,202 thousand for the same period in 2024, reflecting a growth of 7.3%[30] - Revenue for the nine months ended September 30, 2025, increased to $508,597,000, up 7.3% from $474,202,000 in the same period of 2024[37] Profitability - Net income for Q3 2025 was $20.1 million, compared to $5.2 million in Q3 2024, representing a 285% increase[8] - Adjusted EBITDA for Q3 2025 was $57.2 million, up 13% year-over-year, with a margin of 34%[6] - Adjusted EBITDA for the three months ended September 30, 2025, was influenced by revenue of $179,494 thousand, a 10.2% increase from $162,003 thousand in the same period of 2024[30] - Net income for the three months ended September 30, 2025, was $20,058 thousand, compared to $5,214 thousand for the same period in 2024, representing a significant increase[30] - Non-GAAP income for the nine months ended September 30, 2025, was $80,141,000, compared to $55,011,000 in the same period of 2024, reflecting a 45.6% increase[42] - Basic earnings per share for the three months ended September 30, 2025, was $0.14, compared to $0.04 for the same period in 2024[30] - Basic earnings per share for the nine months ended September 30, 2025, was $0.15, compared to a loss of $0.10 per share in the same period of 2024[36] - Non-GAAP earnings per share for the three months ended September 30, 2025, was $0.20, compared to $0.17 in the same period of 2024[44] Expenses and Liabilities - Total expenses for the three months ended September 30, 2025, were $154,453 thousand, an increase from $146,880 thousand in the same period of 2024[30] - Stock-based compensation expense for the three months ended September 30, 2025, was $18,044 thousand, slightly down from $18,670 thousand in the same period of 2024[31] - Total liabilities as of September 30, 2025, were $2,112,739 thousand, compared to $2,086,550 thousand as of December 31, 2024[28] Assets and Cash Flow - Total current assets as of September 30, 2025, were $1,725,514 thousand, up from $1,703,180 thousand as of December 31, 2024[28] - Cash and cash equivalents as of September 30, 2025, were $482,127 thousand, compared to $483,220 thousand as of December 31, 2024[28] - The company’s total assets as of September 30, 2025, were $2,920,693 thousand, an increase from $2,854,768 thousand as of December 31, 2024[28] - Cash provided by operating activities for the nine months ended September 30, 2025, was $107,711,000, down from $120,504,000 in the same period of 2024[34] - Net cash used in investing activities for the nine months ended September 30, 2025, was $63,741,000, compared to $40,669,000 in the same period of 2024, indicating increased investment[34] - Cash paid for interest decreased to $21,674,000 for the nine months ended September 30, 2025, from $28,748,000 in the same period of 2024, showing improved interest management[35] Shareholder Information - The weighted-average shares used to compute basic earnings per share increased to 143,009,000 for the three months ended September 30, 2025, from 141,270,000 in 2024[44] - The dilutive effect of weighted-average common stock options, RSUs, and PSUs was 10,105,000 for the three months ended September 30, 2025[44] - For the three months ended September 30, 2025, GAAP diluted earnings per share increased to $0.13 compared to $0.04 for the same period in 2024[44] Channel Performance - Contribution ex-TAC from CTV for the three months ended September 30, 2025, was $75,847,000, accounting for 45% of total contribution, compared to 43% in the same period of 2024[46] - Mobile channel contribution ex-TAC for the three months ended September 30, 2025, was $64,428,000, representing 40% of total contribution, consistent with the previous year[46] - Desktop channel contribution ex-TAC for the three months ended September 30, 2025, was $26,504,000, maintaining a 17% share of total contribution[46] - Total contribution ex-TAC for the nine months ended September 30, 2025, reached $474,583,000, a 11.2% increase from $426,744,000 in 2024[46] Strategic Initiatives - The acquisition of streamer.ai is expected to provide early benefits, particularly among SMB advertisers[5] - Adjusted EBITDA margin is expected to expand by approximately 180 basis points[6]