Ticker Symbol: MGNI

Industry: Advertising Technology — Supply‑Side Platform for programmatic ad monetization, particularly in digital video and Connected TV (CTV)

About Company:

Magnite is the world’s largest independent omnichannel sell‑side platform, serving publishers across CTV, online video, display, and audio formats. It enables publishers to monetize inventory programmatically, and powers ad delivery for brands, agencies, and demand‑side platforms through its SpringServe platform. Key in the CTV and DV+ spaces.

Company History:

• Founded in 2007 as Rubicon Project, rebranded to Magnite in June 2020 after merging with Telaria, becoming the leading independent sell‑side ad tech platform.
• Acquired SpotX in February 2021 for $1.17B to bolster CTV capabilities.
• Recently partnered with Netflix Ads, Paramount Australia, FanDuel Sports Network, Redfin, and dentsu, expanding reach across streaming, real estate, live sports, and enterprise commerce media.

Company Advantage Over Competitors:

• Strong position in growing CTV video ad market, delivering CTV Contribution ex‑TAC of $71.5M in Q2 2025, up 14% YoY.
• Broad partnerships across industries: Netflix, Amazon, REMAX, FanDuel, dentsu, and Redfin provide diversification and scale.
• As an independent SSP, not tied to major walled gardens—it offers neutrality that some brands and publishers favor over Big Tech alternatives. Recent AI integrations (e.g. scene‑level targeting via Anoki ContextIQ) further enhance value.

Risk Factors to Consider:

• Ad tech remains sensitive to economic cycles and ad spend fluctuations; macroeconomic softness could impact demand.
• Highly competitive environment—with dominant players like Google, Amazon, and The Trade Desk drawing much of the digital ad spend. Magnite must defend and grow market share.
• Valuation metrics elevated: trailing P/E around 112×, forward ~68×, PEG ~1.85×, price/sales ~4.7×—suggesting high expectations baked in.
• RS Rating trends: while the Relative Strength rating has recently climbed to 83—typically positive—it implies price momentum risk if technical breakout fails or base formation breaks down.

What Makes This Company Special or a Good Investment?

• Profitability milestone for Q2 2025: achieved net income of $11.1M ($0.08/share), turning from a loss in Q2 2024; net income growth confirmed operational leverage.
• Strong adjusted performance: Contribution ex‑TAC $162M (+10% YoY), Adjusted EBITDA $54.4M (+22%) at a 34% margin (vs 30% prior year), and operating cash flow of $33.9M.
• Financial strength: $426M in cash and equivalents, with a net debt around ~$130M and net leverage ratio reduced to ~0.6×—demonstrating balance sheet improvement.
• Momentum in high-growth verticals: CTV, programmatic video, DV+, and commerce media are core growth drivers, with Q2 showing continuing strength. Analyst benchmarks—Benchmark raised target to $30 on accelerating CTV growth.
• Industry technical strength: RS Rating now at ~83, placing Magnite among leading performers in its group—indicative of relative price strength potential.