Jordan Bevan
Magnite reported fourth-quarter revenue growth driven primarily by its connected TV (CTV) segment, as advertising budgets continued shifting away from traditional display channels.
For the quarter ended December 31, Magnite posted total revenue of $205 million, up 6% year over year. Contribution ex-TAC (traffic acquisition costs) rose 8% to $195 million, or 16% excluding political advertising. Adjusted EBITDA increased 9% to $84 million, representing a 43% margin on contribution ex-TAC.
CTV contribution ex-TAC reached approximately $94 million in Q4, rising 20% year over year, or 32% excluding political spending. The segment accounted for 48% of total contribution ex-TAC during the quarter, bringing streaming close to half of the company’s revenue base.
For the full year, CTV contribution ex-TAC totaled $304 million, up 17% year over year, or 22% excluding political advertising.
Management indicated that the momentum reflects broader programmatic adoption across streaming platforms, agencies, and demand-side platforms, as well as increased monetization of live sports and premium video inventory. Upfront negotiations also played a role, with streaming allocations exceeding expectations and contributing to second-half strength.
Magnite expects the shift to continue into early 2026. For the first quarter, the company guided CTV contribution ex-TAC between $81 million and $83 million, implying 28% to 31% year-over-year growth and pushing CTV above 50% of total contribution for the first time.
While CTV expanded, Magnite’s DV+ segment — which includes display, online video, mobile in-app, audio, and digital out-of-home — showed signs of budget reallocation. DV+ contribution ex-TAC was $101 million in Q4, down 1% year over year, though up 4% when excluding political spend.
The company projected further softness in Q1, guiding DV+ contribution ex-TAC to a range of $76 million to $78 million, a 6% to 8% year-over-year decline. Executives attributed the slowdown to accelerated shifts of advertiser budgets from open web and display formats into streaming.
Despite revenue pressure, Magnite reported that DV+ supply remains robust, with ad requests up more than 30% year over year in Q4. Management said the business is not supply constrained and continues expanding partnerships in mobile in-app and commerce media. More than 15 commerce partners have been announced, with 11 deployed and ramping.
Net income for the quarter was $123 million, compared with $36 million a year earlier, largely driven by a one-time $90 million tax benefit tied to the release of a valuation allowance on deferred tax assets. GAAP diluted earnings per share were $0.80, while non-GAAP EPS was $0.34.
Magnite ended the year with $553 million in cash and zero net leverage. The company plans to repay its remaining $205 million in convertible notes at maturity using cash on hand. It also announced a new two-year share repurchase authorization of up to $200 million, following approximately $79 million in share repurchases during 2025.
For full-year 2026, Magnite forecast at least 11% growth in contribution ex-TAC, mid-teens adjusted EBITDA growth, and free cash flow growth exceeding 30%, excluding any potential share gains from regulatory outcomes.
Executives also addressed the role of artificial intelligence in programmatic buying. Magnite has begun testing an Advertising Context Protocol (AdCP) framework designed to facilitate agent-to-agent campaign execution, embedding a seller agent within its SpringServe platform. Early tests have involved automated buying interactions between AI agents, though management described budgets tied to these experiments as limited.
The company is also monitoring the remedies phase of the U.S. Department of Justice’s ad tech case against Google, noting that potential structural changes in the market could lead to share reallocation opportunities across the supply side.
Six years after the merger of Rubicon Project and Telaria formed Magnite, the company’s revenue mix now reflects a structural pivot toward streaming. With CTV set to exceed half of total contribution in early 2026, Magnite’s financial trajectory is increasingly tied to the continued expansion of programmatic advertising within connected television.
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