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A maker of software that automates the buying and selling of digital ad space, Magnite runs one of the world's largest marketplaces for connected TV advertising, with tools like SpringServe and ClearLine serving publishers and advertisers. Born from the 2020 merger of Rubicon Project and Telaria, it took its name from the mineral magnetite, a nod to the way its platform magnetically draws together buyers and sellers. Its roots trace to 2007, when Rubicon Project's founders set out to build an automated stock exchange for ad impressions.
CTV contribution ex-TAC rose 36% in Q2 2026, the fastest growth in over two years, as Magnite's shift to higher-margin programmatic deals accelerated.
CTV , the metric that tracks Magnite's core growth engine, rose 36% — its fastest pace in over two years. rose 11% to $192.8 million and widened 5.3 points to 67.8% as the shift away from lower-margin gross-basis CTV transactions continued, while rose 74% to $19.4 million. The company repaid its $205 million convertible notes in March, cutting cash to $332.6 million, and authorized a new $200 million program.
Key takeaways
CTV , the metric management uses to track the core growth driver, rose 36% to $97.1 million, accelerating from 30% growth in Q1 2026 and 14% in Q2 2025.
rose 11% to $192.8 million, driven by a 21% increase in CTV revenue to $101.8 million, while mobile rose 3% and desktop continued to decline.
widened 5.3 points to 67.8%, as cost of fell 4% to $62.0 million — an $8.1 million decline in from the continuing shift away from lower-margin gross-basis CTV transactions more than offset higher and software costs.
Section summaries
Management's Discussion and Analysis
Revenue grew 11% YoY to $192.8M in Q2 2026, driven by 21% CTV growth, while net income rose 74% to $19.4M.
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Total increased 11% to $192.8M in Q2 2026, primarily driven by a $17.7M (21%) increase in CTV revenue and a $1.8M (3%) increase in mobile revenue.
, a metric excluding , grew 17% to $189.6M, with CTV Contribution ex-TAC surging 36% to $97.1M.
rose 74% to $19.4 million from $11.1 million a year ago, helped by growth and a $1.7 million decline in net after the company repaid its at maturity in March 2026.
General and administrative expenses rose 26% to $28.4 million, driven by a $4.1 million increase in professional fees that included legal costs related to the Google antitrust litigation filed in September 2025.
The company repaid its $205.1 million at maturity using cash on hand, reducing cash and equivalents to $332.6 million from $426.0 million a year ago, and authorized a new $200 million program, spending $35.0 million on buybacks during the quarter.
What changed
CTV growth accelerated to 36% in Q2 2026, up from 30% in Q1 2026 and 14% in Q2 2025, settling the question of whether the Q1 2026 rate was sustainable — it was not only sustained but exceeded.
The $205.1 million maturity flagged in the FY 2025 10-K was repaid in March 2026 using cash on hand, reducing cash and equivalents to $332.6 million from $553.4 million at year-end 2025, as planned.
swung to a $186.6 million inflow from a $120.8 million use in Q1 2026, confirming the Q1 outflow was a one-time event driven by the note repayment and working-capital timing, not a structural shift.
The Google antitrust litigation filed in September 2025 began to appear in financials, with G&A expenses rising $4.1 million on higher legal costs; no retaliatory action or change in the commercial relationship has yet been disclosed.
Share repurchases resumed under a new $200 million authorization, with $35.0 million spent in Q2 2026, up from $22.9 million in Q2 2025, signaling a durable shift in capital allocation toward buybacks now that is below $350 million.
What to watch
CTV growth in Q3 2026: whether the 36% rate holds or decelerates as the company laps the 18% growth in Q3 2025, establishing the run rate for the second half.
trajectory: whether the 67.8% reported in Q2 2026 — up 4.6 points sequentially from Q1 2026 — stabilizes at this level or continues to rise as the mix shift away from gross-basis CTV transactions progresses.
Cash balance rebuild: at $332.6 million against $346.8 million in , whether the company replenishes cash through operations or maintains a leaner balance sheet after the note repayment.
Google litigation impact: whether the $4.1 million increase in legal fees is the start of a sustained expense trend, and whether any retaliatory action or change in the commercial relationship materializes.
Cost of decreased 4% to $62.0M due to an $8.1M decline in from lower gross-basis revenue, partially offset by higher and software costs.
General and administrative expenses rose 26% to $28.4M, mainly due to a $4.1M increase in professional fees, including legal costs related to litigation.
increased 30% to $70.6M, reflecting growth and , while reached $19.4M compared to $11.1M in the prior-year period.
The company repaid its $205.1M Convertible Senior Notes at maturity in March 2026 using cash on hand and repurchased $35.0M of common stock under a new $200M authorization.
Quantitative and Qualitative Disclosures About Market Risk
The company faces interest rate, foreign currency, and inflation risks, with a 100 bps rate rise adding ~$3.6M in annual interest expense.
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Cash and short-term investments are relatively insensitive to rate changes, but interest income will vary with rates.
The 2024 Term Loan B Facility has a floating rate with a 0% ; a 100 increase above the floor adds ~$3.6M in annual , partially offset by higher interest income on cash.
No borrowings were outstanding under the 2024 as of June 30, 2026, but future draws would add floating-rate exposure.
A 10% adverse currency move would cause a ~$9.6M foreign currency loss on as of June 30, 2026.
The company does not currently use derivatives to hedge currency risk but may do so in the future.
Cost inflation has not materially affected the business, but sustained pressure could harm results if not offset by price increases.