📊 MGNI Key Takeaways
Is Magnite, Inc.. (MGNI) a Good Investment?
Magnite exhibits severe financial stress with operating cash flow of -$120.8M while reporting positive net income, indicating fundamental earnings quality concerns. Critical liquidity pressure (1.02x current ratio) combined with dangerous interest coverage (1.1x) and minimal profitability (2.7% net margin) leave the company with virtually no financial flexibility for investment, debt service disruption, or market downturns.
Magnite shows improving fundamental quality, with mid-single-digit revenue growth translating into strong operating leverage, sharply higher net income, and a healthy 23.2% free cash flow margin. The balance sheet is manageable with solid cash reserves, but the thin current ratio and modest 3.1x interest coverage mean execution and cash generation need to remain strong.
Why Buy Magnite, Inc.. Stock? MGNI Key Strengths
- Moderate debt-to-equity ratio (0.38x) indicates manageable leverage structure
- Cash position of $184.6M provides short-term operational runway
- Positive net income ($4.4M) and operating income ($7.7M) demonstrate some profitability
- Revenue growth remained positive while profitability expanded materially, with 13.7% operating margin and 20.3% net margin
- Free cash flow generation is strong at $165.63M, supporting a robust 23.2% FCF margin
- Cash of $553.36M provides meaningful liquidity support against $556.11M of long-term debt
MGNI Stock Risks: Magnite, Inc.. Investment Risks
- Catastrophic free cash flow of -$130.2M indicates unsustainable capital burn despite positive accounting earnings
- Interest coverage of 1.1x provides virtually no margin for error in debt service obligations
- Current ratio of 1.02x signals critical liquidity constraints with minimal safety buffer
- Massive divergence between positive net income and negative operating cash flow suggests severe earnings quality or working capital deterioration
- Extremely low return metrics (ROA 0.1%, ROE 0.5%) indicate shareholder value destruction
- The surge in net income and EPS may be difficult to sustain if it was helped by non-core or nonrecurring items
- Liquidity is only adequate, with current and quick ratios both at 1.02x
- Leverage is reasonable but not low-risk, and 3.1x interest coverage leaves limited room if earnings weaken
Key Metrics to Watch
- Operating cash flow trend and reconciliation drivers to explain net income divergence
- Interest coverage ratio trajectory and debt refinancing runway
- Current ratio and working capital changes quarter-over-quarter
- Revenue growth sustainability beyond current 6.9% YoY pace
- Operating margin and free cash flow margin sustainability
- Interest coverage and net debt reduction
Magnite, Inc.. (MGNI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Magnite, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
MGNI Profit Margin, ROE & Profitability Analysis
MGNI vs Technology Sector: How Magnite, Inc.. Compares
How Magnite, Inc.. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Magnite, Inc.. Stock Overvalued? MGNI Valuation Analysis 2026
Based on fundamental analysis, Magnite, Inc.. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Magnite, Inc.. Balance Sheet: MGNI Debt, Cash & Liquidity
MGNI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Magnite, Inc..'s revenue has grown significantly by 52% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.17 indicates the company is currently unprofitable.
MGNI Revenue Growth, EPS Growth & YoY Performance
MGNI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $155.8M | $4.4M | $0.03 |
| Q3 2025 | $162.0M | -$1.1M | $0.04 |
| Q2 2025 | $162.9M | -$1.1M | $-0.01 |
| Q1 2025 | $149.3M | -$9.6M | $-0.07 |
| Q3 2024 | $150.1M | -$1.1M | $0.04 |
| Q2 2024 | $152.5M | -$1.1M | $-0.01 |
| Q1 2024 | $130.2M | -$17.8M | $-0.13 |
| Q3 2023 | $145.8M | -$17.5M | $-0.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Magnite, Inc.. Dividends, Buybacks & Capital Allocation
MGNI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Magnite, Inc.. (CIK: 0001595974)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 19, 2026 | 4 | xslF345X06/form4-05192026_050509.xml | View → |
| May 19, 2026 | 4 | xslF345X06/form4-05192026_050507.xml | View → |
| May 19, 2026 | 4 | xslF345X06/form4-05192026_050506.xml | View → |
| May 19, 2026 | 4 | xslF345X06/form4-05192026_050513.xml | View → |
| May 19, 2026 | 4 | xslF345X06/form4-05192026_050511.xml | View → |
❓ Frequently Asked Questions about MGNI
What is the AI rating for MGNI?
Magnite, Inc.. (MGNI) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MGNI's key strengths?
Claude: Moderate debt-to-equity ratio (0.38x) indicates manageable leverage structure. Cash position of $184.6M provides short-term operational runway. ChatGPT: Revenue growth remained positive while profitability expanded materially, with 13.7% operating margin and 20.3% net margin. Free cash flow generation is strong at $165.63M, supporting a robust 23.2% FCF margin.
What are the risks of investing in MGNI?
Claude: Catastrophic free cash flow of -$130.2M indicates unsustainable capital burn despite positive accounting earnings. Interest coverage of 1.1x provides virtually no margin for error in debt service obligations. ChatGPT: The surge in net income and EPS may be difficult to sustain if it was helped by non-core or nonrecurring items. Liquidity is only adequate, with current and quick ratios both at 1.02x.
What is MGNI's revenue and growth?
Magnite, Inc.. reported revenue of $164.4M.
Does MGNI pay dividends?
Magnite, Inc.. does not currently pay dividends.
Where can I find MGNI SEC filings?
Official SEC filings for Magnite, Inc.. (CIK: 0001595974) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MGNI's EPS?
Magnite, Inc.. has a diluted EPS of $0.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MGNI a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Magnite, Inc.. has a HOLD rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MGNI stock overvalued or undervalued?
Valuation metrics for MGNI: ROE of 0.5% (sector avg: 22%), net margin of 2.7% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy MGNI stock in 2026?
Our dual AI analysis gives Magnite, Inc.. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MGNI's free cash flow?
Magnite, Inc..'s operating cash flow is $-120.8M, with capital expenditures of $9.4M. FCF margin is -79.2%.
How does MGNI compare to other Technology stocks?
Vs Technology sector averages: Net margin 2.7% (avg: 18%), ROE 0.5% (avg: 22%), current ratio 1.02 (avg: 2.5).