Magnite, Inc. (MGNI) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Technology / Software · as of Sep 25, 2026
Magnite, Inc. (MGNI)
A forensic read on Magnite, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Grey Zone
Financial health
1.4
Distress distance
Clean
Earnings quality
4
Forensic signals
21.6
P / E (ttm)
15.7%
ROE
$3.5B
Market cap
6.9%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Magnite, Inc. earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 1.4, placing it in the Grey zone. 4 forensic signals were flagged in its latest SEC filings, led by share-count dilution.
What the filings flag
+6.1%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +13% over the last 2 years to FY2025 (+6.1%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~6.1% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~11%.
666d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 656 to 666 days FY2024→FY2025 (receivables +8% vs revenue +7%). Receivables are creeping up relative to sales. Across FY2023–FY2025 the day count ran 693 → 656 → 666 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in. Both figures are measured on period-end balances rather than the beginning-plus-ending average, because averaging needs the balance a year before every reading — FY2024's opening balance is on file, but across the 3 fiscal years read here (FY2023–FY2025) the average yields only 2 day counts (1 step), too few to tell a climb from one year's move.
9.0%
FY2025
Return on invested capital.Return on invested capital is 9.0% in the latest fiscal year and rising across FY2023–FY2025 from -12.7%. After-tax operating profit was ($122M) in FY2023 and $88M in FY2025, with operating income at -25.0% of revenue in FY2023, 7.6% in FY2024 and 13.7% in FY2025. The capital base behind it barely moved across FY2023–FY2025 ($964M to $978M, +1%), so there has been little new capital for that return to be earned on.
11% of rev
FY2025
Stock-based comp load.
Key fundamentals
Latest Revenue$714.0M
Revenue Growth YoY+6.9%
Revenue CAGR (2yr)+7.3%
Net Margin20.3%
Free Cash Flow$151.9M
Return on Equity15.7%
Debt / Equity0.61x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Magnite, Inc.'s actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Sep 25, 2026. Forensic signals flag probability, not certainty.
Stock-based compensation ran 11% of revenue and 50% of free cash flow in FY2025 — about $0.50 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 6.1% a year, and the rate is falling. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.