Forensic Analysis · Software & SaaS · as of Nov 9, 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.
D · Weak — demands caution
Forensic grade
Distress
Financial health
0.2
Distress distance
Clean
Earnings quality
3
Forensic signals
17.1%
ROE
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 (auditor quality, say on pay, board independence, going concern). 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 D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 0.2, placing it in the Distress zone. 3 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 — 136.6M shares in FY2023, 153.8M in FY2025: 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%.
9.5%
FY2025
Return on invested capital.Return on invested capital is 9.5% 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 went from $964M in FY2023 to $928M in FY2025 (-4%), while the revenue it carried went from $620M to $714M.
11% of rev
FY2025
Stock-based comp load.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 across FY2023–FY2025, 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.
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 Equity17.1%
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?