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Public Storage (PSA) Q1 2026 Earnings Call Transcript

Some of the cheapest REITs are in sectors hit by temporary oversupply. Storage and life science stand out as especially discounted today. Patient investors may find rare long-term upside in the selloff.

On May 15, 2026, Public Storage PSA shares fell 3.5% to $292.74, marking a decline in price over various time frames including a 5.9% drop over the last week and a 2.4% decline over the past month. The stock's performance ranged from a 52-week high of $313.51 to a low of $256.54.

GF Value™ verdict: Current price of $292.74 is 4.6% below GF Value™ of $306.79.GF Score™ of 90/100 indicates a strong overall performance.Notable signal: No insider transactions in the last 3 months suggest a neutral sentiment among insiders. Is PSA Overvalued or Undervalued? Currently, Public Storage's shares are trading at $292.74, which is approximately 4.6% below the GF Value™ estimate of $306.79. This positioning indicates that the stock is undervalued, providing a potential opportunity for investors. The margin of safety is favorable, suggesting that there is room for the stock to appreciate closer to its intrinsic value. The GF Valuation label indicates that PSA is fairly valued, which aligns with the current market conditions.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. While the stock appears undervalued, it is essential to consider market conditions and company performance to fully understand the implications of this valuation.

How Does PSA's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 30.2x 28.9x Forward P/E 28.8x N/A Public Storage's current P/E ratio of 30.2x is above its 5-year median of 28.9x, indicating that the stock is trading at a higher valuation compared to its historical performance. This analysis suggests that the P/E multiples align with the GF Value™ assessment, highlighting a potential overvaluation relative to historical standards.

What Does PSA's GF Score™ Tell Us? Metric Rating GF Score™ 90/100 Financial Strength 5/10 Profitability 9/10 Growth 8/10 Valuation 9/10 Momentum 7/10 The GF Score™ of 90/100 indicates a strong overall performance for Public Storage, with particularly high ratings in Profitability (9/10) and Valuation (9/10). However, Financial Strength received a lower score of 5/10, suggesting that while the company demonstrates solid profitability and valuation metrics, there may be areas in its financial structure that require attention. The Growth and Momentum scores further highlight the stability of the company, but the weaker Financial Strength rating could pose risks in volatile market conditions.

What Are Insiders Doing with PSA Stock? In the last three months, there have been no insider transactions reported for Public Storage. This lack of activity may indicate that insiders are not currently optimistic about the stock's short-term movements or that they are maintaining their positions amid market fluctuations. Investors may interpret this neutrality as a sign that insiders are not signaling any significant changes in outlook for the company.

What This Means for Investors Based on the current GF Value™ assessment, Public Storage appears to be undervalued at a price of $292.74 compared to the intrinsic value of $306.79. However, it is essential to consider the elevated P/E ratio and the mixed signals from the GF Score™ when evaluating the investment potential.

For the complete analysis, visit the Public Storage PSA stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is PSA's GF Score™?

PSA has a GF Score™ of 90/100, indicating a strong overall performance that suggests potential for higher long-term returns based on historical data.

Is PSA overvalued or undervalued?

PSA is currently undervalued, with a GF Value™ of $306.79 compared to its trading price of $292.74, indicating a potential opportunity for investors.

What is PSA's P/E ratio?

PSA's P/E ratio is 30.2x, which is above its 5-year median of 28.9x, suggesting that the stock is trading at a higher valuation than its historical averages.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

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A $50,000 annual income is close to what many U.S. workers earn, making it a common target for people pursuing financial independence. In this scenario, however, only half of that income is expected to come from traditional dividend stocks, while the other half relies on real estate investments. That allocation materially changes both the amount of capital required and the way the income stream is likely to perform over the next two decades.

Real estate can provide higher yields and inflation-sensitive cash flow, but it also introduces sector-specific risks such as property downturns, interest-rate pressure, and tenant instability. Broad dividend stocks, meanwhile, tend to offer lower initial yields but stronger long-term dividend growth and wider diversification. Combining the two creates a portfolio designed to balance current income with future income expansion, rather than maximizing either one alone.

The Half-From-REITs Math REITs are required to distribute 90%+ of taxable income, which is why their yields run well above the broad market. Using the pre-set assumptions for this scenario, the math is straightforward:

REIT half at 5.5% blended yield: $25,000 / 0.055 = $454,545 Non-REIT dividend half at 3.8% yield: $25,000 / 0.038 = $657,895 Total capital required: roughly $1.11 million That base case sits between the all-conservative and all-aggressive scenarios most calculators show. Sliding the yield assumption changes the picture quickly.

Three Yield Tiers, Three Different Lives Conservative (3% to 4%): $50,000 / 0.035 = about $1,428,571. This is the broad dividend growth tier. Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) anchors it with a 0.06% expense ratio and holdings like Merck, Chevron, and Coca-Cola. You need the most capital here, but the income stream is built to grow with the underlying businesses.

Moderate (5% to 7%): $50,000 / 0.055 = $909,091 if you use this yield across the whole portfolio. The blue-chip equity REITs live here. Realty Income (NYSE:O | O Price Prediction) trades near $62 with a 5.2% yield and just declared its 114th consecutive quarterly increase. Simon Property Group yields 4.3% and just raised its dividend 7.1% to $2.25 per quarter. Public Storage yields 4.1% and is digesting a $10.5 billion acquisition of National Storage Affiliates.

Aggressive (8% to 14%): $50,000 / 0.10 = $500,000. This is mortgage REIT territory. AGNC Investment (NASDAQ:AGNC) yields 13.7%. Annaly Capital Management yields 12.9%. The capital requirement collapses. The risk does not.

What the High Yield Actually Costs AGNC Investment Corp. saw its tangible book value decline 5.6% in Q1 2026 to $8.38 per share, while its monthly dividend has remained unchanged at $0.12 since January 2020. Annaly Capital Management reduced its dividend sharply in 2022, cutting the quarterly payout from $0.88 to $0.22 before later stabilizing around $0.70. By comparison, Realty Income reported Q1 2026 AFFO per share growth of 6.6% year over year to $1.13 and raised full-year guidance to a range of $4.41 to $4.44.

A 3.5% yield growing at 7% annually can roughly double its income stream within a decade. A 13% yield that remains flat while the underlying share price trends lower may provide strong current income, but it can gradually erode the capital base supporting future distributions. For an investor targeting $25,000 in annual REIT income, that distinction can determine whether the portfolio functions as a durable income-producing asset or slowly consumes its own principal.

Taxes Make or Break the Plan REIT distributions are generally taxed as ordinary income rather than qualified dividends. However, the Section 199A Qualified Business Income deduction currently allows investors to deduct 20% of eligible REIT dividends, a provision extended through 2026 under the OBBBA legislation. For someone in the 22% federal tax bracket, that lowers the effective federal tax rate on REIT dividends to roughly 17.6%, bringing it close to the rate applied to qualified dividends. Holding REITs inside a tax-advantaged account such as an IRA or Roth IRA can significantly improve after-tax income. On a REIT allocation worth roughly $454,545, the tax difference alone may amount to several thousand dollars annually.

Three Things to Do This Week Target your actual spending. If your actual annual outflow is $38,000, you may need closer to $691,000 at a 5.5% blended yield, not $1.11 million. Run the 10-year total return comparison. Realty Income returned 72% over the past decade on price alone; SCHD returned 237%; AGNC returned 87% while paying a high yield the whole way. The income story and the wealth story are different. Diversify the REIT half across subsectors. Net lease, self-storage, retail, residential, and healthcare each respond differently to rates and the consumer cycle. With the 10-year Treasury at 4.59%, concentration risk in any single REIT category is meaningfully higher than it was two years ago.

The Galleri Multi-Cancer Early Detection (MCED) Test Increased Cancer Detection 6.5 Fold When Added to Recommended Screenings for Breast, Colorectal, Cervical and Lung Cancer

71% of the New Cancers Detected by the Galleri Test Were in Stages I-III

, /PRNewswire/ -- GRAIL, Inc. (Nasdaq: GRAL), a healthcare company whose mission is to detect cancer early when it can be cured, today announced that positive performance and safety results from the analysis of the full 35,878 cohort of its registrational PATHFINDER 2 study are being presented during an oral session at the 2026 American Society of Clinical Oncology (ASCO) Annual Meeting[1].

The PATHFINDER 2 study evaluated the safety and performance of the Galleri® multi-cancer early detection (MCED) test when used alongside standard-of-care cancer screenings in the U.S. and Canada. The prospective PATHFINDER 2 study is the largest interventional study of an MCED in North America to date and includes 35,878 participants in a broad, intended-use population of adults aged 50 and older with no clinical suspicion of cancer.

"Cancer outcomes depend not only on better treatments, but on finding cancer before it advances and spreads. Earlier detection can open the door to more treatment options at any stage and increase the chance for cure," said Josh Ofman, MD, MSHS, President and CEO-Elect at GRAIL. "These PATHFINDER 2 results add to the growing body of clinical evidence in a large, representative intended-use population showing that the Galleri test can meaningfully increase cancer detection beyond recommended screening with strong performance and a highly favorable safety profile. Along with the NHS-Galleri trial results, these findings reinforce the clinical benefit of Galleri and its potential to transform early cancer detection at population scale."

Galleri Increases the Number of Cancers Detected and Can Detect Them Early

While effective screening improves early cancer detection, in the U.S., only 14% of all cancers are detected by guideline-recommended screening tests[2]. In PATHFINDER 2, 60% of diagnosed cancers were screen-detected (264/440). Adding Galleri to recommended screenings for breast, cervical, colorectal, and lung cancers (USPSTF A and B recommendations) led to a 6.5 fold increase in the number of cancers found by screening. Galleri detected nearly three times as many cancers when added to standard-of-care screening for breast, cervical, colorectal, lung, and prostate cancers (USPSTF A, B, and C recommendations).

More than half (53.0%) of the new cancers detected by Galleri were stage I or II, and 71.3% of these have no USPSTF A and B recommended screening. More than two-thirds (70.9%) of the new cancers detected by Galleri were detected at stages I-III, when treatment with curative intent is more often possible.

"PATHFINDER 2 provides important additional data on the performance and safety of MCED testing," said Karthik Giridhar, M.D., assistant professor of oncology at Mayo Clinic and a principal investigator on the PATHFINDER 2 study. "MCED tests are not a replacement for existing screening, but they have the potential to complement current approaches by helping detect cancer signals across multiple cancer types, including some for which routine screening is not currently available."

Robust Performance Metrics Consistent with Previous Studies

The Galleri test detected a cancer signal in 287 participants, and of those, cancer was diagnosed in 173 participants. The likelihood of receiving a cancer diagnosis following a positive test result (positive predictive value or PPV) was 60.3%, consistent with previously reported initial results of PATHFINDER 2 and higher than the first PATHFINDER study.

Since PATHFINDER 2 is a prospective clinical trial where the cancer status of participants is unknown at the outset, episode sensitivity – the ability to detect cancer that could be confirmed within 12 months after the blood draw – is evaluated in the study. Galleri demonstrated strong performance, with 69.8% episode sensitivity for the 12 cancers responsible for two-thirds of cancer deaths in the U.S. For all cancers, episode sensitivity was 39.3%.

Specificity was 99.6%, translating to a false positive rate of less than 0.4%.

"The up to 6.5 fold improvement in screen-detected cancers with Galleri in PATHFINDER 2 study, coupled with the greater than 20% reduction in Stage 4 cancers observed in the NHS-Galleri trial, is really exciting data that help support Galleri's performance in a diverse and representative population," said Nima Nabavizadeh, MD, Associate Professor of Radiation Medicine at Oregon Health & Science University. "As an oncologist, I have seen too many patients diagnosed only after their cancer has spread, when treatment decisions become more difficult. By helping find more cancers earlier, when more treatment options may be available, there is great potential for multi-cancer early detection to transform cancer screening."

Galleri Pinpoints Cancer Signal Origin Allowing Efficient Diagnostic Workups

A key benefit of the Galleri test is its ability to predict where in the body the cancer signal is coming from. The PATHFINDER 2 study demonstrated that the test correctly identified the Cancer Signal Origin (CSO) 91.3% of the time, leading to efficient diagnostic workups. Diagnostic resolution took a median of 48 days, and only 0.6% of all safety-analyzable participants had an invasive procedure (213/35,335) following a positive MCED test result. A total of 90.5% of invasive procedures were nonsurgical.

Screening with the Galleri test had a favorable safety profile, with a low false-positive rate and a low rate of invasive procedures. There were five study-related adverse events reported during diagnostic evaluation, only in those with cancer diagnosis. Anxiety temporarily increased for participants with a positive MCED test and subsequent cancer diagnosis, and returned to baseline by 12 months, as has been observed for other screening tests. One serious adverse event related to the diagnostic work-up was identified after the data lock. Follow-up is ongoing; this and any other findings after data lock will be reported in full in the next interim analysis.

About PATHFINDER 2 (NCT05155605)
PATHFINDER 2 is a prospective, multi-center, interventional study evaluating the safety and performance of Galleri in approximately 35,000 individuals aged 50 years and older who are eligible for guideline-recommended cancer screening in the United States. The primary objectives of the study are 1) to evaluate the safety and performance of the Galleri MCED test based on the number and type of diagnostic evaluations performed in participants who receive a cancer signal detected test result, and 2) to evaluate the performance of the Galleri MCED test across various measures, including PPV, negative predictive value (NPV), episode sensitivity, specificity, and CSO prediction accuracy. Participants who receive a cancer signal detected result undergo additional diagnostic testing based on the predicted CSO to determine if a cancer is present. Secondary objectives include utilization of guideline-recommended cancer screening procedures after use of the MCED test, and participant reported outcomes over several time points, including an assessment of participants' anxiety and satisfaction with the MCED test.

About GRAIL
GRAIL is a healthcare company whose mission is to detect cancer early, when it can be cured. GRAIL is focused on alleviating the global burden of cancer by using the power of next-generation sequencing, population-scale clinical studies, and state-of-the-art machine learning, software, and automation to detect and identify multiple deadly cancer types in earlier stages. GRAIL's targeted methylation-based platform can support the continuum of care for screening and precision oncology, including multi-cancer early detection in symptomatic patients, risk stratification, minimal residual disease detection, biomarker subtyping, treatment and recurrence monitoring. GRAIL is headquartered in Menlo Park, Calif. with locations in Washington, D.C., North Carolina, and the United Kingdom.

For more information, visit grail.com.

About Galleri®
The Galleri® multi-cancer early detection (MCED) test screens for more than 50 cancer types, including many deadly cancers that currently lack screening options, such as pancreatic, ovarian and liver/bile duct cancers[3]. The Galleri test is the only MCED test clinically proven through a randomized controlled trial to increase earlier cancer detection (Stage I-III) and reduce Stage IV diagnoses - enabling more patients to have curative treatment[4]. When added to standard-of-care screening, the Galleri test reduced Stage IV diagnosis by more than 20% after the first year of screening across all stageable cancers4,*. The Galleri test increased cancer detection by screening four times versus standard of care screening alone4. The Galleri test has the lowest false positive rate among MCED tests** and the ability to predict the Cancer Signal of Origin with greater than 90% accuracy, helping guide efficient diagnostic evaluation1,4,[5]. The Galleri test is backed by a robust evidence program, with more than 380,000 participants across multiple studies, including the NHS-Galleri trial, the first and only randomized controlled trial for an MCED test. The Galleri test has delivered consistent performance across these studies. The Galleri test requires a prescription from a licensed healthcare provider and should be used in addition to recommended cancer screenings such as mammography, colonoscopy, prostate-specific antigen (PSA) test, or cervical cancer screening. The Galleri test is recommended for adults with an elevated risk for cancer, such as those aged 50 or older.

For more information, visit galleri.com.

*A statistically significant reduction was not observed in combined stage III–IV diagnoses across three screening rounds for the 12 deadly cancers.

**Test performance metrics do not represent results of a head-to-head comparative study. Separate studies have different designs, objectives, and participant populations, which limits the ability to draw conclusions about comparative performance.

Important Galleri Safety Information
The Galleri test is recommended for use in adults with an elevated risk for cancer, such as those age 50 or older. The test does not detect all cancers and should be used in addition to routine cancer screening tests recommended by a healthcare provider. The Galleri test is intended to detect cancer signals and predict where in the body the cancer signal is located. Use of the test is not recommended in individuals who are pregnant, 21 years old or younger, or undergoing active cancer treatment. Results should be interpreted by a healthcare provider in the context of medical history, clinical signs, and symptoms. A test result of No Cancer Signal Detected does not rule out cancer. A test result of Cancer Signal Detected requires confirmatory diagnostic evaluation by medically established procedures (e.g., imaging) to confirm cancer. If cancer is not confirmed with further testing, it could mean that cancer is not present or testing was insufficient to detect cancer, including due to the cancer being located in a different part of the body. False positive (a cancer signal detected when cancer is not present) and false negative (a cancer signal not detected when cancer is present) test results do occur. Rx only.

Laboratory/Test Information
The GRAIL clinical laboratory is certified under the Clinical Laboratory Improvement Amendments of 1988 (CLIA) and accredited by the College of American Pathologists. The Galleri test was developed — and its performance characteristics were determined — by GRAIL. The Galleri test has not been cleared or approved by the Food and Drug Administration. The GRAIL clinical laboratory is regulated under CLIA to perform high-complexity testing. The Galleri test is intended for clinical purposes.

GRAIL Forward Looking Statements
This press release contains forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "aim," "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "should," "would," or "will," the negative of these terms, and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties, and assumptions about us, may include statements related to the potential benefits, uses and impacts of the Galleri test, extrapolation of trends in the results, comparability of the results to a real world setting, benefits of population screening with Galleri, the applicability of the PATHFINDER 2 results to the commercial or FDA versions of the Galleri test, and plans to submit the results for publication, among others.

These statements are only predictions based on our current expectations and projections about future events and trends. There are important factors that could cause our actual results, level of activity, performance, or achievements to differ materially and adversely from those expressed or implied by the forward-looking statements, including those factors and numerous associated risks discussed under the section entitled "Risk Factors" in our Annual Report on Form 10-K for the period ended December 31, 2025. Moreover, we operate in a dynamic and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results, level of activity, performance, or achievements to differ materially and adversely from those contained in any forward-looking statements we may make.

Forward-looking statements relate to the future and, accordingly, are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Although we believe the expectations and projections expressed or implied by the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. Our actual results, financial condition and success in our business strategies and operations may differ materially from those indicated in the forward-looking statements. Except to the extent required by law, we undertake no obligation to update any of these forward-looking statements after the date of this press release to conform our prior statements to actual results or revised expectations or to reflect new information or the occurrence of unanticipated events.

[1] Giridhar K, et al. Safety and Performance Results From PATHFINDER 2 (PF2), a Registrational Study of a Multi-Cancer Early Detection (MCED) Test in an Intended-Use Population [presentation]. American Society of Clinical Oncology (ASCO) Annual Meeting; 2026 May 29-June 2

[2] NORC at the University of Chicago. Percent of cancers detected by screening in the U.S. https://cancerdetection.norc.org/ (2022).

[3] Klein EA, Richards D, Cohn A, et al. Clinical validation of a targeted methylation-based multi-cancer early detection test using an independent validation set. Ann Oncol. 2021 Sep;32(9):1167-77. doi: 10.1016/j.annonc.2021.05.806

[4] Swanton C. NHS-Galleri: Primary Results From a Randomised Controlled Trial to Assess the Clinical Utility of a Multi-Cancer Early Detection (MCED) Test in Population Screening [presentation]. American Society of Clinical Oncology (ASCO) Annual Meeting; 2026 May 29-June 2.

[5] GRAIL, Inc. False positive rate. [Data on file: GR-2025-0256]

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SOURCE GRAIL, Inc.

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Key Takeaways PSA is up 19.9% YTD, beating industry growth of 10.5% despite interest-rate pressure.PSA occupancy improved as move-outs fell; move-in rents stayed negative but better than expected.PSA's National Storage Affiliates deal would add 1,000 assets and targets $110M-$130M synergies. Public Storage (PSA - Free Report) has delivered a strong run so far this year, with the stock up 19.9% year to date, outperforming the industry’s growth of 10.5%. The gain stands out in the REIT space, where investors have been selective because of interest-rate pressure and uneven property-level trends. The move suggests that the market is looking past some near-term softness and giving PSA credit for better operating execution, a strong balance sheet and long-term growth opportunities.

The company is a major player in the self-storage industry, with a large national footprint and a well-known brand. Self-storage demand is tied to life events such as moving, downsizing, family changes and business needs.

The sector has faced pressure from slower move-in activity and new supply in some markets, but Public Storage’s scale, technology investments and capital access give it tools that smaller operators may not have.

Image Source: Zacks Investment Research

Factors Behind PSA Stock Price Rise: Will This Trend Continue?One reason investors have supported PSA is its steady first-quarter performance. Core FFO rose 2.4% year over year to $4.22 per share, while same-store NOI increased 0.4%. That was not rapid growth, but it was encouraging in an uneven market. Move-in rents were still negative, yet better than expected, and occupancy improved as move-outs declined.

Customer retention is another key part of the story. Management highlighted a meaningful drop in move-outs during the quarter, which helped occupancy improve from a year earlier. In self-storage, keeping existing customers can be very valuable because it reduces the need to fill vacant units with discounted pricing or heavier promotions. PSA also noted that delinquency and payment patterns remained healthy, showing that current customers are still in decent shape.

The company’s PS Next operating platform is also playing a role. Public Storage is using data, digital tools and better pricing systems to improve customer conversion, manage inventory and control costs. This helped expenses decline in the first quarter, with lower payroll, repairs, utilities and marketing costs. If PSA can keep using technology to support margins, it could protect earnings, even if revenue growth remains modest.

Investors are also focused on the planned National Storage Affiliates acquisition. The deal is expected to expand PSA’s scale and add more than 1,000 assets through full ownership and joint ventures. Management expects $110 million to $130 million in synergies over time and anticipates the deal to be breakeven to 2026 earnings while adding 35 to 50 cents per share at stabilization. This gives the market a clear growth story beyond the current operating cycle.

Still, the rally may not move in a straight line. Sun Belt markets remain pressured by new supply, and management kept 2026 guidance unchanged despite the better start. Same-store revenue growth is still expected to be weak, and the busy leasing season will be important.

View on PSA StockPublic Storage has several things working in its favor, including scale, strong liquidity, improving retention and the NSA growth opportunity. However, after a 19.9% YTD rally, the stock already reflects a fair amount of optimism. A neutral stance looks appropriate until investors see more evidence that revenue growth is improving and acquisition benefits are coming through as planned.

Currently, PSA carries a Zacks Rank #3 (Hold).

Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Stag Industrial (STAG - Free Report) and Lamar Advertising (LAMR - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Stag Industrial’s 2026 FFO per share calls for 3.1% growth year over year.

The consensus mark for Lamar Advertising’s 2026 FFO per share has been revised 2.2% upward to $8.81 over the past two months.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of National Storage Affiliates Trust (NYSE: NSA) to Public Storage (NYSE: PSA). Under the terms of the proposed transaction, shareholders of National will receive 0.14 of a share of Public Storage common stock or partnership units for each share or unit of National that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.

If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn ([email protected]) toll free at any time at 855-768-1857, or visit https://www.ksfcounsel.com/cases/nyse-nsa/ to learn more.

To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.

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CrowdStrike (CRWD 1.27%) gave investors plenty to cheer when it reported its fiscal first quarter of 2027 results (the period ended April 30, 2026) last week. The cybersecurity company grew revenue 26%, lifted non-GAAP (adjusted) earnings per share by about 50%, raised its full-year outlook, and announced its first-ever stock split.

And yet the stock fell about 10% in the days that followed.

That reaction may look strange for a quarter this strong. But it makes more sense, though, once investors account for one more factor: high expectations. The stock had climbed to an all-time high on June 1, capping a seemingly vertical run, leaving expectations heading into the report sky high. When one closely watched demand figure grew more slowly than revenue, that was enough to send shares lower.

Image source: Getty Images.

Reasons to be cautious While the cybersecurity specialist's revenue rose 26% and net new annual recurring revenue (ARR) reached a fiscal first-quarter record of $256 million (up 32%), additions to deferred revenue grew only about 18%. Additions to deferred revenue reflect amounts billed to customers and recorded as deferred revenue, so a slower pace there can hint that revenue growth could cool down the road, even when current results look strong.

A second figure also prompted some caution. Net new ARR, the fresh recurring revenue added during the quarter, grew 32% -- a record for any fiscal first quarter, but a step down from the 47% growth posted just one quarter earlier.

Then there's the stock's valuation. Even after the pullback, shares are up about 40% year to date as of this writing. At that level, the stock carries a forward price-to-earnings ratio well over 100 -- a price that arguably assumes years of rapid, uninterrupted growth.

AI security demand is accelerating Underneath the sell-off, however, the most important trend for the company may be speeding up. CrowdStrike's newest product line, AI Detection and Response (AIDR) -- software built to detect and respond to AI threats at runtime -- saw its ending ARR grow more than 250% from the prior quarter, with a sales pipeline already topping $50 million for the fiscal second quarter.

Management linked much of that demand to what it called its "Mythos moment" -- a stretch in April when Anthropic introduced Claude Mythos Preview through Project Glasswing, pushing companies to rethink how they protect their systems.

"What I see is AI driving structural demand for cybersecurity that compounds, not decelerates," said CrowdStrike founder and CEO George Kurtz in the company's fiscal first-quarter earnings call.

And CrowdStrike's overall business results seem to support this upbeat narrative. Total revenue growth accelerated for a fourth straight quarter, and ending ARR climbed 24% to $5.51 billion, quickening from the prior period. CrowdStrike was also the only cybersecurity firm selected for early security programs at both OpenAI and Anthropic -- an important signal of its relevance in the AI era.

Today's Change

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682.73

Is the pullback a buying opportunity? So, does the drop make CrowdStrike a buy?

The case for the business is straightforward. Demand for AI-related security looks significant and is showing up in the fastest-growing corners of the platform. On top of that, cash generation hit record levels and management lifted its guidance for the year.

But valuation remains a concern. Trading at more than 130 times forward earnings, the stock already reflects much of the AI optimism, which is why, when things like slower additions to deferred revenue growth arise, it can spark a double-digit slide in the stock price, even if the overall quarterly update was strong.

For now, I'll remain on the sidelines given the stock's borderline egregious valuation. Sure, the quarter showed a company executing well into a powerful trend. But at this price, even a strong report leaves little room for disappointment -- something the past week made clear.

China-linked hackers posed the biggest espionage threat to technology companies over the past year, CrowdStrike, a cybersecurity firm, said in a report published on Tuesday, amid surging investment in artificial intelligence.

The growing adoption of artificial intelligence (AI) is driving a sharp increase in demand for cybersecurity software as enterprises seek to protect their valuable data and digital applications. CrowdStrike's (CRWD 1.27%) Falcon platform is one of the industry's most popular all-in-one solutions, and its capabilities continue to expand to meet the needs of the AI era.

Last Wednesday evening, CrowdStrike posted an incredibly strong set of operating results for its fiscal 2027 first quarter (which ended April 30), yet its stock plummeted 14% by market close on Friday.

Simply put, while the long-term opportunity for cybersecurity vendors is obvious, CrowdStrike is trading at sky-high valuations, and the result is an uncomfortable risk vs. reward situation for investors. 

Image source: Getty Images.

Falcon protects businesses entering the AI era The cybersecurity industry was more fragmented in the past, meaning businesses had to buy products from different vendors to achieve adequate protection. This left holes in their defenses and resulted in slower incident responses. Those sorts of lags are now more dangerous than ever because malicious actors are using AI to rapidly find and exploit vulnerabilities. That's why unified solutions like Falcon are the only way forward.

Enterprises can choose from 33 Falcon modules (products) to build their ideal cybersecurity solution. Plus, with the Falcon Flex subscription option, they can set a fixed budget and then add or remove modules as their needs change without negotiating a new contract with CrowdStrike. This makes it a strong option for businesses that are gradually adding AI to their operations, because this technology requires a different approach to security.

Next-Gen Identity Security is one of Falcon's newer modules. It enforces a zero-standing-privileges policy when humans and AI agents interact with an enterprise's sensitive internal data, regularly revoking their access and forcing them to reauthenticate. This ensures hackers can't hijack control of a single AI agent and gain indefinite access to that data, reducing the likelihood of a catastrophic breach.

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Then there is Falcon's AI Detection and Response (AIDR) module, which uncovers unauthorized AI applications or agents running within an enterprise's network. It also tracks every input and output across all trusted AI applications in the organization, so it can identify malicious prompts that might be entered by someone trying to steal data or orchestrate a breach.

AIDR experienced a whopping 250% sequential increase in its annual recurring revenue during the company's fiscal 2027 first quarter. CrowdStrike CEO George Kurtz said he has never seen a product scale that quickly, and he believes it could become one of the company's largest-ever opportunities.

Revenue growth just accelerated CrowdStrike generated $1.39 billion in revenue in the first quarter, topping management's forecast of $1.36 billion. That was a 26% year-over-year increase, marking an acceleration from the 23% growth the company delivered in the fourth quarter, so the business is carrying real momentum.

It also ended fiscal Q1 with a record $5.5 billion in annual recurring revenue, up 24%. Falcon Flex made an incredible contribution, with its annual recurring revenue almost doubling to $1.9 billion. In other words, more new and existing customers are opting for the flexible subscription option.

The strong top-line results prompted management to increase its full-year annual recurring revenue guidance by $50 million to $6.54 billion (at the midpoint of the forecast range), but none of this was enough to prevent a sharp drop in CrowdStrike stock after the earnings report.

CrowdStrike's high valuation makes it a tough investment Despite its recent 14% dip, CrowdStrike's price-to-sales (P/S) ratio remains sky-high at 33.5 -- significantly more expensive than its core rivals.

CRWD PS Ratio data by YCharts.

As a result, it might be difficult for CrowdStrike stock to rally to new highs in the short term, so investors looking for gains in the next few months might want to steer clear. However, there could still be a case for owning CrowdStrike for the long term, as the company believes it can grow its annual recurring revenue by 263% to $20 billion by the end of fiscal 2036.

If the company achieves that goal, its stock might actually be relatively cheap on a forward basis. Plus, that would still only be a fraction of what CrowdStrike believes is a $325 billion long-term opportunity in the cybersecurity industry.

In summary, whether investors should consider buying CrowdStrike stock depends entirely on their time horizon.

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As AI agents expose the limitations of static access controls, CrowdStrike advances open standards sharing real-time security signals for risk-aware enforcement at industry scale

AUSTIN, Texas--(BUSINESS WIRE)--CrowdStrike (NASDAQ: CRWD) today announced it has joined both the OpenID Foundation as a Sustaining Corporate Member, the highest level of membership, and IDPro to accelerate the shift to continuous, risk-aware identity security across the industry.

As AI agents and non-human identities (NHIs) operate with superhuman speed and access, legacy identity models built on static policies and standing privileges break down. Real-time security signals are needed to make dynamic access decisions as threat conditions change – not just authenticate once and trust indefinitely. By joining these groups and contributing to open standards, CrowdStrike is sharing real-time Falcon® platform intelligence across identity providers, SaaS platforms, and security tools – providing the risk signals the industry needs for continuous, risk-aware identity enforcement.

"Identity is the front line of modern attacks, and static identity frameworks can’t stop AI-driven threats," said Elia Zaitsev, chief technology officer, CrowdStrike. "No other platform has the real-time telemetry and adversary intelligence that Falcon does; the signals that continuous, risk-aware identity security runs on. CrowdStrike is making those signals the foundation for Next-Gen Identity Security across the industry."

Continuous Identity Security

CrowdStrike defines identity security in the AI era, combining real-time Falcon platform intelligence with SGNL’s runtime access enforcement layer. This enables Falcon® Next-Gen Identity Security to continuously evaluate identity and threat signals to dynamically grant, deny, or revoke access across human, non-human, and AI agent identities as conditions change.

Open Standards for Continuous Enforcement

Through its work with the OpenID Foundation, CrowdStrike is helping advance standards including the Shared Signals Framework (SSF) and Continuous Access Evaluation Profile (CAEP) to enable real-time security and identity signals to move seamlessly across modern environments. This allows identity providers, SaaS platforms, cloud services, and security tools to continuously adapt access enforcement as threat conditions change.

"CrowdStrike’s leadership in identity security and commitment to strengthening open identity standards make them an invaluable addition to the OpenID Foundation’s Working Groups and Board,” said Gail Hodges, executive director, OpenID Foundation. “Their participation sends a powerful message across cybersecurity: in the age of AI-accelerated attacks, open identity standards are not optional but a foundational requirement for effective, real-time defense."

Bridging Standards and Real-World Identity Security

Through its membership in IDPro and active participation in OpenID working groups, CrowdStrike is helping bridge the gap between standards development and real-world deployment. By combining Falcon platform intelligence, practitioner expertise, and open identity standards, CrowdStrike is helping shape a more interoperable, resilient, and continuous model for identity security across the industry.

"CrowdStrike is an important and highly respected leader in cybersecurity. At IDPro, we are delighted that they recognize the critical role that identity plays in underpinning the security posture of any institution,” said Joni Brennan, IDPro board chair and DIACC president. “We are thrilled that they will sponsor IDPro and look forward to welcoming members of their team into our community — and to future collaborations that will elevate the knowledge-base across our industry."

To learn more about CrowdStrike’s membership in the OpenID Foundation and IDPro, read our blog.

About CrowdStrike

CrowdStrike (NASDAQ: CRWD), a global cybersecurity leader, has redefined modern security with the world’s most advanced cloud-native platform for protecting critical areas of enterprise risk – endpoints and cloud workloads, identity and data.

Powered by the CrowdStrike Security Cloud and world-class AI, the CrowdStrike Falcon® platform leverages real-time indicators of attack, threat intelligence, evolving adversary tradecraft and enriched telemetry from across the enterprise to deliver hyper-accurate detections, automated protection and remediation, elite threat hunting and prioritized observability of vulnerabilities.

Purpose-built in the cloud with a single lightweight-agent architecture, the Falcon platform delivers rapid and scalable deployment, superior protection and performance, reduced complexity and immediate time-to-value.

CrowdStrike: We stop breaches.

Learn more: https://www.crowdstrike.com/

Follow us: Blog | X | LinkedIn | Instagram

Start a free trial today: https://www.crowdstrike.com/trial

© 2026 CrowdStrike, Inc. All rights reserved. CrowdStrike and CrowdStrike Falcon are marks owned by CrowdStrike, Inc. and are registered in the United States and other countries. CrowdStrike owns other trademarks and service marks and may use the brands of third parties to identify their products and services.

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Key Takeaways CRWD added more than 300 Falcon Flex customers in Q1 FY27, with Flex ARR nearing $2B.CrowdStrike's Re-Flex customers expanded spending, with average ARR increases of 26%.CRWD delivered record net new ARR in Q1 FY27 and raised its fiscal 2027 net new ARR outlook. CrowdStrike's (CRWD - Free Report) Falcon Flex subscription model is becoming an important driver of its recurring revenue growth. Falcon Flex makes it easier for customers to access multiple modules of the Falcon platform through a single contract, allowing customers to deploy additional security products over time and expand their use of the Falcon platform. This has now become the company’s primary go-to-market model.

In the first quarter of fiscal 2027, CrowdStrike added more than 300 Falcon Flex customers. Accounts using Falcon Flex now represent nearly $2 billion in ending annual recurring revenues (ARR), up 99% from the year-ago quarter. This shows that more than one-third of CrowdStrike's total ARR of $5.51 billion is now tied to Flex customers.

CrowdStrike is also seeing strong expansion within its existing Flex customer base. The company ended the first quarter of fiscal 2027 with 480 Re-Flex customers, representing nearly 25% of all Flex customers, up from 380 Re-Flex customers in the fourth quarter of fiscal 2026, representing more than 23% of total Flex customers. The average Re-Flex transaction increased ARR by 26%. Further, more than 130 customers have expanded multiple times, generating an average ARR increase of 51% compared with their original Flex contracts.

Further, strong momentum in Falcon Flex was one of the major contributors that helped CrowdStrike generate a record net new ARR of $256 million, up 32% year over year, in the first quarter of fiscal 2027. Buoyed by better-than-expected performance, CRWD raised its fiscal 2027 net new ARR outlook to be in the range of $1.28 billion to $1.30 billion, up from its prior $1.21 billion to $1.26 billion target. Here, the rising adoption of Falcon Flex could remain one of CrowdStrike’s most important contributors to its long-term growth.

The Zacks Consensus Estimate for fiscal 2027 and 2028 revenues indicates a year-over-year increase of around 23.5% and 21.5%, respectively.

How Competitors Fare Against CRWDCompetitors like Palo Alto Networks (PANW - Free Report) and SentinelOne (S - Free Report) are also gaining ground through platform expansion and AI innovation.

In the third quarter of fiscal 2026, Palo Alto Networks saw robust growth in its Next-Gen Security ARR, which increased 60% year over year. The growth was driven by increased customer adoption of PANW’s advanced cybersecurity offerings, including its AI-driven XSIAM platform, SASE and software firewalls.

Though comparatively a small competitor, SentinelOne posted first-quarter fiscal 2027 year-over-year growth of 23% in its ARR. The growth was fueled by the rising adoption of SentinelOne’s AI-first Singularity platform and Purple AI.

CRWD’s Price Performance, Valuation and EstimatesShares of CrowdStrike have jumped 37.5% in the year-to-date period compared with the Zacks Security industry’s return of 37.2%.

CRWD YTD Price Return Performance
Image Source: Zacks Investment Research

From a valuation standpoint, CrowdStrike trades at a forward price-to-sales ratio of 26.15, significantly higher than the industry’s average of 15.09. The Zacks Value Score of F also suggests that CRWD stock is overvalued.

CRWD Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CrowdStrike’s fiscal 2027 and 2028 earnings indicates year-over-year growth of 30.6% and 26.8%, respectively. The estimates for fiscal 2027 and 2028 have both been revised upward by 2 cents and 3 cents, respectively, over the past seven days.

Image Source: Zacks Investment Research

CrowdStrike currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CrowdStrike Holdings stock is taking a breather. What’s the outlook for CRWD shares? What Is Driving CrowdStrike’s Stock Today?CrowdStrike last week posted fiscal Q1 results that topped expectations and lifted full-year guidance, while also approving a four-for-one stock split that is set to take effect in late June and early July, beat and raise being the key takeaway for longer-term bulls. The company reported revenue of $1.39 billion and adjusted EPS of $1.10, and it raised FY27 revenue guidance to $5.92 billion–$5.96 billion and adjusted EPS guidance to $4.88–$4.96.

CrowdStrike's fundamentals are getting an added tailwind from its own threat-intelligence narrative: the company said China-linked actors account for over 58% of state-sponsored cyberattacks targeting tech firms with AI assets.

The report also tracked activity through March 31 and warned "China-nexus adversaries" are escalating espionage to steal AI capabilities and IP they "cannot build fast enough," a backdrop that supports sustained enterprise security spend as AI adoption accelerates.

CRWD’s Key Technical Levels To WatchCRWD is in a longer-term uptrend, trading 22.9% above its 50-day SMA ($526.53) and 34.7% above its 200-day SMA ($480.39), which keeps the intermediate trend constructive despite today's choppy macro tape. The golden cross that formed in May (50-day SMA moving above the 200-day SMA) reinforces that trend-followers still have a bullish backdrop.

Near-term, the stock is working through consolidation: it's 1.9% below the 20-day SMA ($659.59), suggesting price is digesting gains rather than extending. RSI at 53.81 is neutral—RSI measures how "stretched" a move is, and this reading implies neither overbought pressure nor washed-out selling, which often aligns with a range-building phase after a strong run.

The bigger map still matters: the 52-week high was set in June at $785.66, and the most recent swing high also occurred in June, so that zone is the obvious upside reference if momentum re-accelerates. On the downside, the March swing low is the nearest "line in the sand" conceptually, especially with the 50-day and 200-day averages well below current price and acting as potential trend supports if the tape weakens.

Key Resistance: $659.59 — aligns with the 20-day SMA, a near-term level the stock is currently trading below Key Support: $650.95 — sits near the 20-day EMA, a short-term trend gauge close to the current price What Is CrowdStrike and Its Business Model?CrowdStrike is a cloud-native cybersecurity company specializing in security verticals such as endpoint, cloud workload, identity, and security operations. Its core product is the Falcon platform, which aims to give enterprises a unified view to detect and respond to threats across their IT infrastructure.

That business model ties directly into the quarter's "beat-and-raise" narrative: subscription revenue and annual recurring revenue trends are central to how investors underwrite cybersecurity platforms. The company is based in Austin, Texas, was founded in 2011, and went public in 2019, so it's still often traded like a growth platform stock, especially when guidance moves.

CrowdStrike Stock Price Movement TodayCRWD Stock Price Activity: CrowdStrike Holdings shares were down 0.01% at $644.85 at the time of publication on Wednesday, according to Benzinga Pro data.

Image: Shutterstock

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CrowdStrike ranked highest in Growth and Innovation among all vendors as runtime-first security becomes the standard for cloud and AI workload protection

AUSTIN, Texas--(BUSINESS WIRE)--CrowdStrike (NASDAQ: CRWD) today announced it has been named the Growth and Innovation Leader in the 2026 Frost Radar™: Cloud and Application Runtime Security for the second consecutive time, scoring highest of all vendors evaluated. As AI workloads and frontier model risk expose the limits of posture-only defense, organizations are turning to runtime-first security on the CrowdStrike Falcon® platform to stop breaches in real time.

Frost & Sullivan highlighted “CrowdStrike’s growth in runtime security is supported by the broader market shift from posture-centric cloud security toward runtime detection and response” and noted this shift aligns “directly with CrowdStrike’s strengths in cloud workload protection, real-time CDR, and integrated response.”

“Posture management surfaces risks. Runtime security stops breaches. The market is choosing platforms that deliver both,” said Elia Zaitsev, chief technology officer, CrowdStrike. “As adversaries weaponize frontier AI models to collapse the window between vulnerability and exploit, CrowdStrike delivers real-time protection at the point of execution, stopping breaches before impact.”

Key report findings include:

Runtime-First Cloud Security
Frost & Sullivan highlighted CrowdStrike’s “clear advantage” in cloud runtime security delivering “faster cloud threat detection, investigation, prioritization, and remediation within existing SOC workflows, not through the management of separate cloud security operations.”

Real-Time Detection and Response
As the pioneer of Cloud Detection and Response (CDR), the report identified “CrowdStrike’s most differentiated capability is CDR” citing its “real-time detection architecture” that reduces “latency from minutes to seconds” and enables “automated cloud response actions.”

Unified Architecture
CrowdStrike closes the gap between cloud risk and runtime defense, uniting posture management and detection and response in a single CNAPP. CrowdStrike’s “core value proposition” is its “ability to correlate telemetry across cloud infrastructure, workloads, identities, applications, data, and AI services” through “a unified platform for prevention, detection, investigation, and response across major multi-cloud and hybrid environments.”

Protecting AI Workloads
As enterprises race to deploy AI, cybersecurity has become foundational AI infrastructure. Frost recognized CrowdStrike’s recent AI innovations “reinforce its differentiation as a vendor that connects cloud risk, workload behavior, AI workload exposure,” in a single, unified platform “for better risk management and threat detection & response.”

To learn more about the 2026 Frost Radar™: Cloud and Application Runtime Security, visit here and read our blog.

About CrowdStrike

CrowdStrike (NASDAQ: CRWD), a global cybersecurity leader, has redefined modern security with the world’s most advanced cloud-native platform for protecting critical areas of enterprise risk – endpoints and cloud workloads, identity and data.

Powered by the CrowdStrike Security Cloud and world-class AI, the CrowdStrike Falcon® platform leverages real-time indicators of attack, threat intelligence, evolving adversary tradecraft, and enriched telemetry from across the enterprise to deliver hyper-accurate detections, automated protection and remediation, elite threat hunting, and prioritized observability of vulnerabilities.

Purpose-built in the cloud with a single lightweight-agent architecture, the Falcon platform delivers rapid and scalable deployment, superior protection and performance, reduced complexity, and immediate time-to-value.

CrowdStrike: We stop breaches.

Learn more: https://www.crowdstrike.com/
Follow us: Blog | X | LinkedIn | Instagram
Start a free trial today: https://www.crowdstrike.com/trial

© 2026 CrowdStrike, Inc. All rights reserved. CrowdStrike and CrowdStrike Falcon are marks owned by CrowdStrike, Inc. and are registered in the United States and other countries. CrowdStrike owns other trademarks and service marks and may use the brands of third parties to identify their products and services.

More News From CrowdStrike

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A new stock split is coming in a few weeks, and it's coming from an unlikely source: CrowdStrike (CRWD 1.27%). This isn't one I had on my radar, as its stock price in the neighborhood of $650 isn't quite at a level you'd normally associate a split with. Still, management will enact a 4-for-1 stock split at the end of the trading day on July 1. This will be a major event for some investors, but I think there are better reasons to buy the stock.

I've got three reasons why CrowdStrike is a solid buy before its stock split, and why investors should view its sell-off this month as a buying opportunity.

Image source: Getty Images.

Cybersecurity is a huge opportunity as AI-related threats grow Having a top-notch cybersecurity system is vital for businesses in today's world. No matter what a company does, if its information isn't kept secure and its operating systems are prone to external threats, it could be in a precarious state. Furthermore, while generative artificial intelligence can be a useful tool for legitimate purposes, it can also be harnessed by bad actors to boost their capabilities to breach secure systems.

CrowdStrike is one of the cybersecurity industry's leaders. Its core software is endpoint security, which protects network endpoints like a laptop or phone from external threats. If it detects out-of-the-ordinary usage, it can shut down that endpoint, protecting a business's information quickly and automatically. But that's just the base capability. CrowdStrike also offers other modules that expand on this base capability, with 33 total products. Clients can use it as a one-stop shop for all of their cybersecurity needs, making it a solid pick in a world that needs cybersecurity more than ever.

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CrowdStrike's revenue growth is solid CrowdStrike's revenue growth has been fantastic. In Q1, its annual recurring revenue (ARR) rose 24% year over year to $5.51 billion. That's solid, incremental growth that showcases how it continues to find new clients and expand deals with existing ones, too.

One thing investors may point out is CrowdStrike's tepid profitability. In Q1, it lost money on an operational standpoint, and the company has never been solidly profitable over the past five years.

CRWD Operating Margin (Quarterly) data by YCharts.

There's huge room for improvement here, and if CrowdStrike can flip the profitability switch and deliver 30% to 40% operating margins like many mature software companies do, it could be a great investment.

The stock's valuation has come down recently Valuation is important. The best company bought at the wrong price can still be a poor investment. However, context matters too -- some companies trade at relatively high valuations due to solid execution or industry positioning. CrowdStrike checks both of those boxes because cybersecurity is a rock-solid industry, and it's one of the best companies in it. 

CRWD PS Ratio data by YCharts

At 130 times forward earnings, it looks incredibly expensive, but as mentioned before, it isn't solidly profitable. From a price-to-sales standpoint, its ratio of 32 is also a high premium. However, it has come down by more than 17% from the all-time high it reached early this month.

CrowdStrike is a leading stock in an important market segment, and it's unlikely to lose a large chunk of its premium. As a result, I'm willing to take any sell-off as an opportunity to buy it before its upcoming stock split.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Let's take a look at what these Wall Street heavyweights have to say about CrowdStrike Holdings (CRWD - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

CrowdStrike currently has an average brokerage recommendation (ABR) of 1.65, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 51 brokerage firms. An ABR of 1.65 approximates between Strong Buy and Buy.

Of the 51 recommendations that derive the current ABR, 35 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 68.6% and 5.9% of all recommendations.

Brokerage Recommendation Trends for CRWD

Check price target & stock forecast for CrowdStrike here>>>

While the ABR calls for buying CrowdStrike, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is CRWD Worth Investing In?In terms of earnings estimate revisions for CrowdStrike, the Zacks Consensus Estimate for the current year has declined 8.3% over the past month to $4.93.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for CrowdStrike. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for CrowdStrike with a grain of salt.

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DULUTH, Ga.--(BUSINESS WIRE)--The latest Primerica Household Budget Index™ (HBI™) data, a monthly economic metric that examines how inflation and wage trends impact the ability of middle-income families to afford life’s everyday necessities, is estimated at 99.4% in April, down 1.7% from March and 0.3% from a year ago.

The decline is driven mainly by increasing gas prices, which rose 11% in the past month and 28% year-over-year.

The Consumer Price Index (CPI), which measures inflation for a comprehensive basket of goods for all U.S. households, increased 3.8% in April compared to a year ago. Adjusting the CPI to narrow the impact of inflation to focus specifically on middle-income families and their purchase patterns, inflation rose to 4.4% in April 2026 compared to April 2025. The cost of necessity items as used in the HBI™ metric (food, utilities, gas, auto insurance, and health care) for middle-income Americans is up 5.5% from a year ago.

About the Primerica Household Budget Index™ (HBI™) Data

The Primerica Household Budget Index™ (HBI™) data is constructed monthly on behalf of Primerica by its chief economic consultant Amy Crews Cutts, PhD, CBE®. The index measures the purchasing power of middle-income families with household incomes from $30,000 to $130,000 and is developed using data from the U.S. Bureau of Labor Statistics, the U.S. Bureau of Census, and the Federal Reserve Bank of Kansas City. The index looks at the cost of necessities including food, gas, auto insurance, utilities, and health care and earned income to track differences in inflation and wage growth.

Primerica’s HBI™ metric was created to fill an information void around the economy’s impact on middle-income families. Metrics like the Consumer Price Index (CPI) measure overall inflation but don’t offer a clear picture of how it impacts middle-income Americans. Middle-income households play a key role in driving consumer spending and the overall economy as they account for over 55% of the U.S. population. The purchasing power of middle-income families are a key barometer of real-time economic trends. Understanding middle-income households’ purchasing power is important because it shows whether they are gaining financial ground or falling behind.

The HBI™ data uses January 2019 as its baseline, with the value set to 100% at that point in time.

Periodically, prior HBI™ values may be modified due to revisions in the CPI series and Consumer Expenditure Survey releases by the U.S. Bureau of Labor Statistics (BLS). Beginning with the December 2024 release of the index, the expenditure weights have been updated to the most recent (Q1 2024) data and auto insurance has been added to the group of necessity items. For more information, visit householdbudgetindex.com.

About Primerica, Inc.

Primerica, Inc. is a leading diversified financial services distribution company serving middle-income households in the United States and Canada. Our licensed representatives educate families on how to prepare for a more secure financial future and help them achieve their financial goals with our term life insurance and third-party mutual funds, managed accounts, annuities, loans and other financial products. We insured over 5.5 million lives and had approximately 3.1 million client investment accounts as of December 31, 2025. Through our life insurance subsidiaries in North America, in 2025 Primerica was the #3 issuer of term life insurance, which we largely reinsure. Primerica stock is included in the S&P MidCap 400 and the Russell 1000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI”. We are headquartered in Duluth, Georgia.

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Posted by Defense World Staff on Apr 6th, 2026

Cloudastructure (NASDAQ:CSAI – Get Free Report) and Magnite (NASDAQ:MGNI – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Profitability This table compares Cloudastructure and Magnite’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Cloudastructure -210.73% -147.58% -118.89% Magnite 20.25% 8.44% 2.34% Institutional and Insider Ownership 73.4% of Magnite shares are owned by institutional investors. 20.2% of Cloudastructure shares are owned by insiders. Comparatively, 3.8% of Magnite shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings This is a summary of current ratings for Cloudastructure and Magnite, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Cloudastructure 1 1 0 1 2.33 Magnite 0 2 9 0 2.82 Cloudastructure currently has a consensus price target of $6.00, indicating a potential upside of 920.58%. Magnite has a consensus price target of $24.10, indicating a potential upside of 102.69%. Given Cloudastructure’s higher probable upside, equities research analysts clearly believe Cloudastructure is more favorable than Magnite.

Earnings and Valuation This table compares Cloudastructure and Magnite”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Cloudastructure $5.07 million 2.84 -$6.53 million ($0.40) -1.47 Magnite $713.95 million 2.40 $144.61 million $0.94 12.65 Magnite has higher revenue and earnings than Cloudastructure. Cloudastructure is trading at a lower price-to-earnings ratio than Magnite, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk Cloudastructure has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Magnite has a beta of 2.39, indicating that its share price is 139% more volatile than the S&P 500.

Summary Magnite beats Cloudastructure on 11 of the 15 factors compared between the two stocks.

About Cloudastructure (Get Free Report)

Cloudastructure, Inc. (“Cloudastructure”) was formed under the laws of the State of Delaware on March 28, 2003. We provide an award-winning cloud-based artificial intelligence (“AI”) video surveillance and Remote Guarding service built on AI and machine learning platforms. We operated as a small Silicon Valley startup until early 2021 when we raised over $35 million in funding under Regulation A of the Securities Act of 1933, as amended (the “Securities Act”). With these funds we quickly built a sales, marketing and support structure and achieved a degree of early success in the property management space. As of the date of this prospectus, we have contracts in place with five of the top 10 property management companies on the National Multifamily Housing Council’s (“NMHC’s”) 2024 NMCH 50 list (Greystar Real Estate Partners, Avenue5 Residential, LLC, Cushman & Wakefield, BH Management Services, LLC and FPI Management, Inc.). Our cloud-based solutions allow our customers to provide real-time safety and security solutions for their properties, as well as easily manage security across all of their locations. As of the date of this prospectus, we are focused on expanding into more of our existing top tier customer locations, acquiring additional customers in the property management (“proptech”) space, and we anticipate entering into additional markets in 2025. Our intelligent AI solution works by identifying objects (faces, license plates, animals, guns, etc.) in video footage so that property managers can quickly search for those objects. Additionally, our AI and Remote Guarding services provide a proactive response to crime. Remote guarding combines video surveillance, AI analytics, monitoring centers, and security agents (“Remote Guarding”). Based on internal data comparing the total number of actual threatening activity alerts received by our Remote Guards, against all potentially suspicious and threatening activity alerts received by our Remote Guards, on average, from 2023 to the date of this prospectus, our Remote Guarding services deterred over 97% of all threatening activity for our customers. We believe AI security delivers multiple benefits for many property owners, including, without limitation: · Deterring crime and improving overall safety; · Improving occupancy rates and rental rates; and · Reducing onsite guard costs and lowering insurance rates As of the date of this prospectus, we are the only seamless, cloud-based, AI surveillance and Remote Guarding solution on the market of which we are aware. We also believe that our solution is more affordable and easier to use than the various solutions that our competitors offer. Our Remote Guarding service bridges the line between AI and human intelligence. AI has the ability to monitor all cameras at the same time and all of the time, a task from which humans would fatigue. When the AI detects an event occurring, the Remote Guards are notified. The Remote Guards can then determine if escalation is required. With real-time human intervention, our Remote Guarding service can turn video surveillance from a forensic tool, used after a crime has been committed, into a real time crime prevention tool. This has the potential to greatly increase value for our customers. We were incorporated under the laws of the State of Delaware on March 28, 2003 under the name Connexed Technologies, Inc. On September 28, 2016, we changed our name to Cloudastructure, Inc. Our principal executive offices are located at 228 Hamilton Avenue, 3rd Floor, Palo Alto, California.

About Magnite (Get Free Report)

Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.

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Investors interested in stocks from the Internet - Software sector have probably already heard of Magnite (MGNI) and Autodesk (ADSK). But which of these two stocks offers value investors a better bang for their buck right now?

On April 16, 2026, Magnite Inc MGNI shares rose 3.1% today, currently priced at $13.64. The stock has traded within a 52-week range of $9.64 to $26.65, showing significant volatility over the past year.

GF Value™ verdict: The current price is $13.64, which is 3.1% above the GF Value™ estimate of $13.23, indicating the stock is overvalued.GF Score™: Magnite has a GF Score™ of 82/100, which suggests it has strong fundamentals.Most notable signal: Insider activity shows that insiders sold $0.3 million worth of shares in the last three months, with no buying activity reported. Is MGNI Overvalued or Undervalued? The current price of $13.64 for Magnite Inc MGNI is slightly above the GF Value™ estimate of $13.23, marking it as 3.1% overvalued. This suggests that investors may not have a sufficient margin of safety at the current price point. The GF Valuation label indicates that the stock is fairly valued, but with the current price exceeding the GF Value™, it poses a risk for potential investors. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

Being overvalued implies that the stock may not provide the best entry point for new buyers. Existing shareholders might also need to be cautious about holding onto the stock if the price does not align with its intrinsic value in the near future. Investors should consider these factors when evaluating their positions in MGNI.

How Does MGNI's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 14.5x 89.5x Forward P/E 12.8x N/A The current P/E (TTM) of 14.5x is significantly below its 5-year median P/E of 89.5x, indicating that the stock is trading well below its historical valuation levels. This P/E analysis supports the GF Value™ verdict of being overvalued, as the current P/E is substantially lower than its historical averages, suggesting the market may not be pricing in potential future growth adequately.

What Does MGNI's GF Score™ Tell Us? Metric Rating GF Score™ 82 Financial Strength 5/10 Profitability 4/10 Growth 9/10 Valuation 9/10 Momentum 7/10 Magnite's GF Score™ of 82/100 reflects strong fundamentals, particularly in growth and valuation, where it scores 9/10. However, the financial strength and profitability ranks are weaker at 5/10 and 4/10 respectively. This suggests that while the company has significant growth potential and is relatively well-valued, there are concerns regarding its current financial health and profitability metrics.

What Are Insiders Doing with MGNI Stock? Insider activity in Magnite has shown a trend of selling, with insiders offloading $0.3 million worth of shares in the last three months and no buying activity recorded. This pattern may suggest that insiders lack confidence in the stock's immediate future, reflecting potential concerns about the company's performance or valuation. Such selling can sometimes act as a warning signal for investors.

What This Means for Investors Based on the GF Value™ estimate, Magnite Inc MGNI is currently overvalued at $13.64, being 3.1% above its fair value of $13.23. Investors should exercise caution when considering entry points in this stock, particularly in light of the recent insider selling and the overall market conditions.

For the complete analysis, visit the Magnite Inc MGNI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is MGNI's GF Score™?

MGNI has a GF Score™ of 82/100, indicating strong fundamentals and a potential for higher long-term returns based on historical performance.

Is MGNI overvalued or undervalued?

MGNI is currently overvalued, as its price of $13.64 exceeds the GF Value™ estimate of $13.23 by 3.1%.

What is MGNI's P/E ratio?

MGNI has a P/E (TTM) of 14.5x, which is significantly lower than its 5-year median P/E of 89.5x, suggesting it is trading well below its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

NEW YORK, April 21, 2026 (GLOBE NEWSWIRE) -- Magnite (NASDAQ:MGNI), the largest independent sell-side advertising company, today announced that Hearst News has selected Magnite as a preferred deal partner for high-impact advertising formats across web and CTV inventory. Hearst News is also deepening its relationship with Magnite through a new SpringServe partnership.

This expanded collaboration brings together Hearst News’ premium content and trusted journalism with Magnite’s omnichannel scale and expertise, helping advertisers reach engaged audiences across streaming TV, mobile app, and web environments. As Hearst News continues to invest in emerging ad experiences built for modern viewing habits, the preferred partnership with Magnite will support high-impact formats such as web exit-intent placements and CTV pause ads across Hearst’s omnichannel footprint.

Hearst News will also leverage Magnite’s SpringServe platform to support its video advertising operations as the publisher continues to expand its premium streaming and digital video experiences. By incorporating SpringServe’s capabilities, Hearst News will be better positioned to drive greater operational efficiency and unlock more dynamic, high-impact video formats.

In an environment where advertisers prioritize quality, context, and attention, Hearst News’ portfolio of respected local news outlets offers a powerful advantage. Hearst News reaches over 80 million users who turn to its properties for timely reporting, community updates, and meaningful storytelling. As brands and advertisers seek dependable environments for their messages, Hearst provides a setting built on credibility and daily relevance.

“We’ve built our reputation by investing in strong journalism and trust is our most valuable asset,” said Nate Ryckman, VP, Programmatic Strategy at Hearst News. “As we bring our news properties together into one unified programmatic marketplace, Magnite is helping us deliver consistent, premium advertiser experiences across all of our properties, regardless of environment. The consolidation of our portfolio makes it easier for advertisers to plan, buy, and measure across our properties. Our partnership with Magnite will make it easy for advertisers to deliver impactful, performant experiences across that portfolio.”

“Hearst understands that attention is earned and their audiences come for trusted reporting and high-quality storytelling,” said Ashley Wheeler, Senior Vice President, DV+ Platform at Magnite. “This partnership is about helping Hearst bring forward ad experiences that match that standard. Together we’re delivering high-impact experiences that are respectful of the consumer and consistent across screens.”

About Magnite
We’re Magnite (NASDAQ: MGNI), the world’s largest independent sell-side advertising company. Publishers use our technology to monetize their content across all screens and formats including CTV, online video, display, and audio. The world’s leading agencies and brands trust our platform to access brand-safe, high-quality ad inventory and execute billions of advertising transactions each month. Anchored in bustling New York City, sunny Los Angeles, mile high Denver, historic London, colorful Singapore, and down under in Sydney, Magnite has offices across North America, EMEA, LATAM, and APAC.

About Hearst News
Hearst News is Hearst’s newly unified digital organization, bringing together talent, technology, product, data, and strategy into one centralized team focused on delivering best-in-class programmatic solutions at national scale. Formerly operating under the Hearst Mosaic name, Hearst News now serves as the single-entry point for national advertisers and agencies seeking access to Hearst’s digital news inventory across newspapers and television.

Media Contact:
Charlstie Veith
[email protected]

Investor Contact:
Nick Kormeluk
[email protected]

The market expects Definitive Healthcare Corp. (DH - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 7. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -40%.

Revenues are expected to be $54.9 million, down 7.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Definitive Healthcare?For Definitive Healthcare, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Definitive Healthcare will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Definitive Healthcare would post earnings of $0.06 per share when it actually produced earnings of $0.06, delivering no surprise.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Definitive Healthcare doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Internet - Software industry, Magnite (MGNI - Free Report) , is soon expected to post earnings of $0.05 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of -58.3%. Revenues for the quarter are expected to be $159 million, up 9% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Magnite has been revised 27.3% down to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Magnite will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Contribution ex-TAC(1) Grows 10% Year-Over-Year

Contribution ex-TAC(1) from CTV Grows 30% Year-Over-Year and Now Over 50% of Total

NEW YORK, May 06, 2026 (GLOBE NEWSWIRE) -- Magnite (NASDAQ: MGNI), the largest independent sell-side advertising company, today reported its results of operations for the quarter ended March 31, 2026.

Q1 2026 Highlights:

Revenue of $164.4 million, up 6% year-over-yearContribution ex-TAC(1) of $160.9 million, up 10% year-over-year, at the high end of the guidance range of $157 to $161 millionContribution ex-TAC(1) attributable to CTV of $82.3 million, up 30% year-over-year, within the guidance range of $81 to $83 millionContribution ex-TAC(1) attributable to DV+ of $78.6 million, down 5% year-over-year, exceeded high end of guidance of $76 to $78 millionNet income of $4.4 million, or $0.03 per diluted share, compared to a net loss of $9.6 million, or $0.07 per share for Q1 2025Adjusted EBITDA(1) of $42.9 million, up 16% year-over-year, representing a 27% Adjusted EBITDA margin(2), compared to Adjusted EBITDA(1) of $36.8 million or a 25% margin in Q1 2025Non-GAAP earnings per share(1) of $0.13, compared to non-GAAP earnings per share(1) of $0.12 for Q1 2025Operating cash flow(3) of $23.3 million Q2 2026 Expectations:

Total Contribution ex-TAC(1) to be between $177 million and $181 millionContribution ex-TAC(1) attributable to CTV to be between $90 million and $92 millionContribution ex-TAC(1) attributable to DV+ to be between $87 million and $89 millionAdjusted EBITDA operating expenses(4) to be between $115 million and $117 million Full-Year 2026 Expectations:

Reaffirm total Contribution ex-TAC(1) growth of at least 11%Reaffirm Adjusted EBITDA(1) percentage growth in the mid-teensRaise Adjusted EBITDA margin(2) to be at least 35.5% from greater than 35%Raise free cash flow(5) growth to be in the mid 30% range from greater than 30% “Magnite once again exceeded total top and bottom line expectations, with growth paced by CTV at 30%. Our CTV success is broad based and supported by publisher, agency and DSP momentum. Buyer marketplaces coupled with ClearLine, live sports, and strong SMB trends continue to support the growth acceleration in CTV. AI is also becoming foundational in almost every area of our business, from agentic buying, to creative development, to inventory curation, to workflow. It is powering greater productivity throughout our ecosystem and company. We are starting to see some improvements in key areas of DV+, namely mobile app and commerce media partners. We also remain ready in our DV+ business, as it relates to pending remedies related to the Google trial.” said Michael G. Barrett, CEO of Magnite.

Magnite First Quarter 2026 Results Summary    (in millions, except per share amounts and percentages)     Three Months Ended March 31, 2026 March 31, 2025 Change
Favorable/ (Unfavorable)Revenue$164.4 $155.8 6%Gross profit$104.0 $93.0 12%Contribution ex-TAC(1)$160.9 $145.8 10%Net income (loss)$4.4 ($9.6) NMAdjusted EBITDA(1)$42.9 $36.8 16%Adjusted EBITDA margin(2)26.6% 25.2% 1.4 pptBasic earnings (loss) per share$0.03 ($0.07) NMDiluted earnings (loss) per share$0.03 ($0.07) NMNon-GAAP earnings per share(1)$0.13 $0.12 8% NM = Not meaningful

Footnotes:(1)Contribution ex-TAC, Adjusted EBITDA, and non-GAAP earnings per share are non-GAAP financial measures. Please see the discussion in the section called "Non-GAAP Financial Measures" and the reconciliations included at the end of this press release.(2)Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Contribution ex-TAC.(3)Operating cash flow is calculated as Adjusted EBITDA less capital expenditures.(4)Adjusted EBITDA operating expenses is calculated as Contribution ex-TAC less Adjusted EBITDA.(5)Free cash flow is defined as operating cash flow (Adjusted EBITDA less capital expenditures) less net interest expense. First Quarter 2026 Results Conference Call and Webcast:

The Company will host a conference call on May 6, 2026 at 1:30 PM (PT) / 4:30 PM (ET) to discuss the results for its first quarter of 2026.

Live conference call Toll free number:(844) 875-6911 (for domestic callers)Direct dial number:(412) 902-6511 (for international callers)Passcode:Ask to join the Magnite conference callSimultaneous audio webcast:http://investor.magnite.com under "Events and Presentations"  Conference call replay Toll free number:(855) 669-9658 (for domestic callers)Direct dial number:(412) 317-0088 (for international callers)Passcode:5995164Webcast link:http://investor.magnite.com under "Events and Presentations"
About Magnite
We’re Magnite (NASDAQ: MGNI), the world’s largest independent sell-side advertising company. Publishers use our technology to monetize their content across all screens and formats including CTV, online video, display, and audio. The world's leading agencies and brands trust our platform to access brand-safe, high-quality ad inventory and execute billions of advertising transactions each month. Anchored in bustling New York City, sunny Los Angeles, mile high Denver, historic London, colorful Singapore, and down under in Sydney, Magnite has offices across North America, EMEA, LATAM, and APAC.

Forward-Looking Statements:

This press release and management's prepared remarks during the conference call referred to above include, and management's answers to questions during the conference call may include, forward-looking statements, including statements based upon or relating to our expectations, assumptions, estimates, and projections. In some cases, you can identify forward-looking statements by terms such as "may," "might," "will," "objective," "intend," "should," "could," "can," "would," "expect," "believe," "design," "anticipate," "estimate," "predict," "potential," "plan" or the negative of these terms, and similar expressions. Forward-looking statements may include, but are not limited to, statements concerning the Company’s guidance or expectations with respect to future financial performance; acquisitions by the Company, or the anticipated benefits thereof; macroeconomic conditions or concerns related thereto; the growth of ad-supported programmatic connected television ("CTV"); our ability to use and collect data to provide our offerings; the scope and duration of client relationships; the fees we may charge in the future; key strategic objectives; anticipated benefits of new offerings; business mix; sales growth; benefits from supply path optimization; our ability to adapt to advancements in artificial intelligence ("AI"); the development of identity solutions; client utilization of our offerings; the impact of requests for discounts, rebates, or other fee concessions; our competitive differentiation; our market share and leadership position in the industry; market conditions, trends, and opportunities; the effects of regulatory developments or antitrust rulings on competitive dynamics in our industry; our litigation against Google LLC, or the anticipated benefits thereof; certain statements regarding future operational performance measures; and other statements that are not historical facts. These statements are not guarantees of future performance; they reflect our current views with respect to future events and are based on assumptions and estimates and subject to known and unknown risks, uncertainties and other factors that may cause our actual results, outcomes, performance or achievements, or the timing thereof, to be materially different from expectations or results projected or implied by forward-looking statements.

We discuss many of these risks, uncertainties, and additional factors that could cause actual results, outcomes, or timing thereof, to differ materially from those anticipated by our forward-looking statements under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere in this press release and in other filings we have made and will make from time to time with the Securities and Exchange Commission, or SEC, including our Annual Report on Form 10-K for the year ended December 31, 2025, our Quarterly Report on Form 10-Q for the period ended March 31, 2025, and subsequent filings. These forward-looking statements represent our estimates and assumptions only as of the date of the report in which they are included. Unless required by federal securities laws, we assume no obligation to update any of these forward-looking statements, or to update the reasons actual results or outcomes could differ materially from those anticipated, to reflect circumstances or events that occur after the statements are made. Without limiting the foregoing, any guidance we may provide will generally be given only in connection with quarterly and annual earnings announcements, without interim updates, and we may appear at industry conferences or make other public statements without disclosing material nonpublic information in our possession. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. Investors should read this press release and the documents that we reference in this press release and have filed or will file with the SEC completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

Non-GAAP Financial Measures and Operational Measures:

In addition to our GAAP results, we review certain non-GAAP financial measures to help us evaluate our business on a consistent basis, measure our performance, identify trends affecting our business, establish budgets, measure the effectiveness of investments in our technology and development and sales and marketing, and assess our operational efficiencies. These non-GAAP financial measures include Contribution ex-TAC, Adjusted EBITDA, Non-GAAP Income (Loss), and Non-GAAP Earnings (Loss) per share, each of which is discussed below.

These non-GAAP financial measures are not intended to be considered in isolation from, as substitutes for, or as superior to, the corresponding financial measures prepared in accordance with GAAP. You are encouraged to evaluate these adjustments, and review the reconciliation of these non-GAAP financial measures to their most comparable GAAP measures, and the reasons we consider them appropriate. It is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies. See "Reconciliation of Revenue to Gross Profit to Contribution ex-TAC," "Reconciliation of net income (loss) to Adjusted EBITDA," "Reconciliation of net income (loss) to non-GAAP income," and "Reconciliation of GAAP earnings (loss) per share to non-GAAP earnings per share" included as part of this press release.

We do not provide a reconciliation of our non-GAAP financial expectations for Contribution ex-TAC and Adjusted EBITDA, or a forecast of the most comparable GAAP measures, because the amount and timing of many future charges that impact these measures (such as amortization of future acquired intangible assets, acquisition-related charges, foreign exchange (gain) loss, net, stock-based compensation, impairment charges, provision or benefit for income taxes, and our future revenue mix), which could be material, are variable, uncertain, or out of our control and therefore cannot be reasonably predicted without unreasonable effort, if at all. In addition, we believe such reconciliations or forecasts could imply a degree of precision that might be confusing or misleading to investors.

Contribution ex-TAC:

Contribution ex-TAC is calculated as gross profit plus cost of revenue, excluding traffic acquisition cost ("TAC"). Traffic acquisition cost, a component of cost of revenue, represents what we must pay sellers for the sale of advertising inventory through our platform for revenue reported on a gross basis. Contribution ex-TAC is a non-GAAP financial measure that is most comparable to gross profit. We believe Contribution ex-TAC is a useful measure in facilitating a consistent comparison against our core business without considering the impact of traffic acquisition costs related to revenue reported on a gross basis.

Adjusted EBITDA:

We define Adjusted EBITDA as net income (loss) adjusted to exclude stock-based compensation expense, depreciation and amortization, including amortization of acquired intangible assets, impairment charges, interest income or expense, provision (benefit) for income taxes, and certain cash and non-cash based income or expenses that we do not consider indicative of our core operating performance, including, but not limited to foreign exchange gains and losses, acquisition and related items, gains or losses on extinguishment of debt, other debt refinancing expenses, certain litigation expenses, and non-operational real estate and other expenses (income), net. We believe Adjusted EBITDA is useful to investors in evaluating our performance for the following reasons:

Adjusted EBITDA is widely used by investors and securities analysts to measure a company’s performance without regard to items such as those we exclude in calculating this measure, which can vary substantially from company to company depending upon their financing, capital structures, and the method by which assets were acquired.Our management uses Adjusted EBITDA in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of performance and the effectiveness of our business strategies, and in communications with our board of directors concerning our performance. Adjusted EBITDA is also used as a metric for determining payment of cash incentive compensation.Adjusted EBITDA provides a measure of consistency and comparability with our past performance that many investors find useful, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. Although Adjusted EBITDA is frequently used by investors and securities analysts in their evaluations of companies, Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results of operations as reported under GAAP. These limitations include:

Stock-based compensation is a non-cash charge and will remain an element of our long-term incentive compensation package, although we exclude it as an expense when evaluating our ongoing operating performance for a particular period.Depreciation and amortization are non-cash charges, and the assets being depreciated or amortized will often have to be replaced in the future, but Adjusted EBITDA does not reflect any cash requirements for these replacements.Impairment charges are non-cash charges related to goodwill, intangible assets and/or long-lived assets.Adjusted EBITDA does not reflect certain cash and non-cash charges related to acquisition and related items, such as amortization of acquired intangible assets, merger, acquisition, or restructuring related severance costs, certain transaction expenses, and changes in the fair value of contingent consideration.Adjusted EBITDA does not reflect cash and non-cash charges related to interest income and interest expense and certain financing transactions such as gains or losses on extinguishment of debt or other debt refinancing expenses.Adjusted EBITDA does not reflect cash requirements for income taxes and the cash impact of other income or expense.Adjusted EBITDA does not reflect litigation expenses for specific proceedings.Adjusted EBITDA does not reflect certain non-operational real estate and other (income) and expense, net.Adjusted EBITDA does not reflect changes in our working capital needs, capital expenditures, or contractual commitments.Other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure. Our Adjusted EBITDA is influenced by fluctuations in our revenue, cost of revenue, and the timing and amounts of the cost of our operations. Adjusted EBITDA should not be considered as an alternative to net income (loss), income (loss) from operations, or any other measure of financial performance calculated and presented in accordance with GAAP.

Non-GAAP Income (Loss) and Non-GAAP Earnings (Loss) per Share:

We define non-GAAP earnings (loss) per share as non-GAAP income (loss) divided by non-GAAP weighted-average shares outstanding. Non-GAAP income (loss) is equal to net income (loss) excluding stock-based compensation, cash and non-cash based merger, acquisition, and restructuring costs, which consist primarily of professional service fees associated with merger and acquisition activities, cash-based employee termination costs, and other restructuring activities, including facility closures, relocation costs, contract termination costs, and impairment costs of abandoned technology associated with restructuring activities, amortization of acquired intangible assets, gains or losses on extinguishment of debt, certain litigation expense, non-operational real estate and other expenses or income, foreign currency gains and losses, interest expense associated with Convertible Senior Notes, other debt refinance expenses, and the tax impact of these items. In periods in which we have non-GAAP income, non-GAAP weighted-average shares outstanding used to calculate non-GAAP earnings per share includes the impact of potentially dilutive shares. Potentially dilutive shares consist of stock options, restricted stock units, performance stock units, and potential shares issued under the Employee Stock Purchase Plan, each computed using the treasury stock method, and the impact of shares that would be issuable assuming conversion of all of the Convertible Senior Notes, calculated under the if-converted method. We believe non-GAAP earnings (loss) per share is useful to investors in evaluating our ongoing operational performance and our trends on a per share basis, and also facilitates comparison of our financial results on a per share basis with other companies, many of which present a similar non-GAAP measure. However, a potential limitation of our use of non-GAAP earnings (loss) per share is that other companies may define non-GAAP earnings (loss) per share differently, which may make comparison difficult. This measure may also exclude expenses that may have a material impact on our reported financial results. Non-GAAP earnings (loss) per share is a performance measure and should not be used as a measure of liquidity. Because of these limitations, we also consider the comparable GAAP measure of net income (loss).

Investor Relations Contact
Nick Kormeluk
(949) 500-0003
[email protected]

Media Contact
Charlstie Veith
(516) 300-3569
[email protected]

MAGNITE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited) March 31, 2026 December 31, 2025ASSETS   Current assets:   Cash and cash equivalents$184,648  $553,362 Accounts receivable, net 1,430,657   1,301,955 Prepaid expenses and other current assets 32,276   26,261 TOTAL CURRENT ASSETS 1,647,581   1,881,578 Property and equipment, net 115,865   108,546 Right-of-use lease assets 74,655   66,611 Internal use software development costs, net 29,416   28,799 Intangible assets, net 9,816   12,445 Goodwill 983,902   983,902 Other assets, non-current 85,272   82,494 TOTAL ASSETS$2,946,507  $3,164,375 LIABILITIES AND STOCKHOLDERS' EQUITY   Current liabilities:   Accounts payable and accrued expenses$1,589,636  $1,607,664 Lease liabilities, current 21,737   20,163 Debt, current, net of debt issuance costs 3,632   208,447 Other current liabilities 5,903   5,462 TOTAL CURRENT LIABILITIES 1,620,908   1,841,736 Debt, non-current, net of debt discount and issuance costs 347,217   347,665 Lease liabilities, non-current 57,081   50,085 Other liabilities, non-current 3,394   2,539 TOTAL LIABILITIES 2,028,600   2,242,025 STOCKHOLDERS' EQUITY   Common stock 2   2 Additional paid-in capital 1,431,531   1,440,358 Accumulated other comprehensive loss (1,479)  (1,451)Accumulated deficit (512,147)  (516,559)TOTAL STOCKHOLDERS' EQUITY 917,907   922,350 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$2,946,507  $3,164,375  MAGNITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
 Three Months Ended March 31, 2026 March 31, 2025Revenue$164,371  $155,771 Expenses(1)(2):   Cost of revenue 60,408   62,799 Sales and marketing 46,088   48,106 Technology and development 25,173   22,292 General and administrative 24,983   23,938 Total expenses 156,652   157,135 Income (loss) from operations 7,719   (1,364)Other (income) expense:   Interest expense, net 4,557   5,177 Foreign exchange (gain) loss, net (147)  2,217 Loss on extinguishment of debt —   2,152 Other income (422)  (423)Total other expense, net 3,988   9,123 Income (loss) before income taxes 3,731   (10,487)Benefit for income taxes (681)  (853)Net income (loss)$4,412  $(9,634)Earnings (loss) per share:   Basic$0.03  $(0.07)Diluted$0.03  $(0.07)Weighted average shares used to compute earnings (loss) per share:   Basic 143,541   141,852 Diluted 148,077   141,852  (1) Stock-based compensation expense included in our expenses was as follows:

 Three Months EndedMarch 31, 2026 March 31, 2025Cost of revenue$        685         $        572        Sales and marketing         8,374                  9,144        Technology and development         4,718                  4,635        General and administrative         5,908                  6,858        Total stock-based compensation expense$        19,685         $        21,209         (2) Depreciation and amortization expense included in our expenses was as follows:

 Three Months Ended March 31, 2026 March 31, 2025Cost of revenue$        14,091         $        13,025        Sales and marketing         106                  2,448        Technology and development         124                  69        General and administrative         46                  59        Total depreciation and amortization expense$        14,367         $        15,601         MAGNITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
 Three Months Ended March 31, 2026 March 31, 2025OPERATING ACTIVITIES:   Net income (loss)$4,412  $(9,634)Adjustments to reconcile net income (loss) to net cash provided by operating activities:   Depreciation and amortization 14,367   15,601 Stock-based compensation 19,685   21,209 Loss on extinguishment of debt —   2,152 Amortization of debt discount and issuance costs 848   967 Non-cash lease expense 527   (516)Deferred income taxes (1,152)  154 Unrealized foreign currency (gain) loss, net (3,010)  4,496 Other items, net (23)  (101)Changes in operating assets and liabilities:   Accounts receivable (129,312)  147,859 Prepaid expenses and other assets (7,965)  (11,469)Accounts payable and accrued expenses (21,402)  (166,353)Other liabilities 2,259   (1,804)Net cash (used in) provided by operating activities (120,766)  2,561 INVESTING ACTIVITIES:   Purchases of property and equipment (9,400)  (14,377)Capitalized internal use software development costs (3,720)  (2,821)Net cash used in investing activities (13,120)  (17,198)FINANCING ACTIVITIES:   Proceeds from the Term Loan B Facility refinancing and repricing activities, net of debt discount —   92,622 Repayment of the Term Loan B Facility from refinancing and repricing activities —   (92,622)Payment for debt issuance costs —   (159)Repayment of debt (908)  — Repurchase of Convertible Senior Notes (205,067)  — Proceeds from exercise of stock options 26   252 Purchase of treasury stock (14,483)  (19,229)Taxes paid related to net share settlement (14,645)  (20,314)Net cash used in financing activities (235,077)  (39,450)EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 249   575 CHANGE IN CASH AND CASH EQUIVALENTS (368,714)  (53,512)CASH AND CASH EQUIVALENTS — Beginning of period 553,362   483,220 CASH AND CASH EQUIVALENTS — End of period$184,648  $429,708  MAGNITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-(Continued)
(In thousands)
(unaudited)
 Three Months EndedSUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION:March 31, 2026 March 31, 2025Cash paid for income taxes$303  $571Cash paid for interest$6,288  $6,679Capitalized assets financed by accounts payable and accrued expenses and other liabilities$6,683  $8,133Capitalized stock-based compensation$590  $422Operating lease right-of-use assets obtained in exchange for operating lease liabilities$13,837  $11,692Operating lease right-of-use assets reduction and corresponding non-cash adjustment to operating lease liabilities$(150) $2,047Non-cash financing activity related to Amendment Nos. 1 and 2 to the 2024 Credit Agreement$—  $270,555 MAGNITE, INC.
CALCULATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE
(In thousands, except per share data)
(unaudited)
 Three Months Ended March 31, 2026 March 31, 2025  Basic Earnings (Loss) Per Share:   Net income (loss)$4,412 $(9,634)Weighted-average common shares outstanding used to compute basic earnings (loss) per share 143,541  141,852 Basic earnings (loss) per share$0.03 $(0.07)    Diluted Earnings (Loss) Per Share:   Net income (loss) used to calculated diluted earnings (loss) per share$4,412 $(9,634)    Weighted-average common shares outstanding used to compute basic earnings (loss) per share 143,541  141,852 Dilutive effect of weighted-average restricted stock units 2,342  — Dilutive effect of weighted-average common stock options 1,616  — Dilutive effect of weighted-average performance stock units 551  — Dilutive effect of weighted-average Employee Stock Purchase Plan shares 27  — Weighted-average shares used to compute diluted earnings (loss) per share 148,077  141,852 Diluted earnings (loss) per share$0.03 $(0.07) MAGNITE, INC.
RECONCILIATION OF REVENUE TO GROSS PROFIT TO CONTRIBUTION EX-TAC
(In thousands)
(unaudited)
 Three Months Ended March 31, 2026 March 31, 2025Revenue$164,371 $155,771Less: Cost of revenue 60,408  62,799Gross Profit 103,963  92,972Add back: Cost of revenue, excluding TAC 56,941  52,876Contribution ex-TAC$160,904 $145,848 MAGNITE, INC.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(In thousands)
(unaudited)
 Three Months Ended March 31, 2026 March 31, 2025Net income (loss)$4,412  $(9,634)Add back (deduct):   Stock-based compensation expense 19,685   21,209 Depreciation and amortization expense, excluding amortization of acquired intangible assets 11,737   8,218 Amortization of acquired intangibles 2,630   7,383 Interest expense, net 4,557   5,177 Benefit for income taxes (681)  (853)Foreign exchange (gain) loss, net (147)  2,217 Loss on extinguishment of debt —   2,152 Other debt refinancing expense —   967 Litigation expense(1) 640   — Non-operational real estate and other (income) expense, net 28   (36)Adjusted EBITDA$42,861  $36,800  (1) Litigation expense includes professional and legal expenses related to the Google Action and defense costs relating to class action privacy litigation. For additional information, see the "Regulatory Developments and Google Litigation" section and Part II, Item 1. "Legal Proceedings" within our Quarterly Report on Form 10-Q for the period ended March 31, 2026.

MAGNITE, INC.
RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP INCOME
(In thousands)
(unaudited)
 Three Months Ended March 31, 2026 March 31, 2025Net income (loss)$4,412  $(9,634)Add back (deduct):   Stock-based compensation expense 19,685   21,209 Merger, acquisition, and restructuring costs, including amortization of acquired intangibles and excluding stock-based compensation expense 2,630   7,383 Foreign exchange (gain) loss, net (147)  2,217 Loss on extinguishment of debt —   2,152 Other debt refinancing expense —   967 Litigation expense(1) 640   — Non-operational real estate and other (income) expense, net 28   (36)Interest expense, Convertible Senior Notes 359   421 Tax effect of Non-GAAP adjustments(2) (7,638)  (6,822)Non-GAAP income$19,969  $17,857  (1) Litigation expense includes professional and legal expenses related to the Google Action and defense costs relating to class action privacy litigation. For additional information, see the "Regulatory Developments and Google Litigation" section and Part II, Item 1. "Legal Proceedings" within our Quarterly Report on Form 10-Q for the period ended March 31, 2026.(2) Non-GAAP income includes the estimated tax impact from the reconciling items between net income (loss) and non-GAAP income.  MAGNITE, INC.
RECONCILIATION OF GAAP EARNINGS (LOSS) PER SHARE TO NON-GAAP EARNINGS PER SHARE
(In thousands, except per share amounts)
(unaudited)
 Three Months Ended March 31, 2026 March 31, 2025GAAP earnings (loss) per share(1):   Basic$0.03 $(0.07)Diluted$0.03 $(0.07)    Non-GAAP income(2)$19,969 $17,857 Non-GAAP earnings per share$0.13 $0.12     Weighted-average shares used to compute basic earnings (loss) per share 143,541  141,852 Dilutive effect of weighted-average common stock options, RSUs, and PSUs 4,509  8,191 Dilutive effect of weighted-average ESPP shares 27  65 Dilutive effect of weighted-average Convertible Senior Notes 2,639  3,210 Non-GAAP weighted-average shares outstanding 150,716  153,318      (1) Calculated as net income (loss) divided by basic and diluted weighted-average shares used to compute basic and diluted earnings (loss) per share as included in the condensed consolidated statement of operations.(2) Refer to reconciliation of net income (loss) to non-GAAP income. MAGNITE, INC.
CONTRIBUTION EX-TAC BY CHANNEL
(In thousands)
(unaudited)
 Contribution ex-TAC Three Months Ended March 31, 2026 March 31, 2025Channel:       CTV$82,269 51% $63,225 43%Mobile 55,351 34%  58,008 40%Desktop 23,284 15%  24,615 17%Total$160,904 100% $145,848 100%

Magnite, Inc. (MGNI) Q1 2026 Earnings Call Transcript

STOCKHOLM, June 03, 2026 (GLOBE NEWSWIRE) -- Magnite (NASDAQ: MGNI), the largest independent sell-side advertising company, has announced a partnership with dentsu in Sweden to help accelerate innovation and performance across the media supply chain. This builds on the companies’ existing EMEA partnership which sees dentsu leverage Magnite’s built-for-video tools and technology to power AMX Premium Video, dentsu’s premium video solution delivering improved reach and efficiency.

As programmatic adoption continues to accelerate, this signals a step forward for the Swedish CTV market. By leveraging Magnite’s programmatic infrastructure and relationships with premium publishers, dentsu is helping drive the next evolution of CTV buying in Sweden by enabling more intelligent, data-driven and scalable activation across premium CTV inventory.

“Sweden’s CTV market has matured rapidly over the past year, and we’re seeing growing demand from advertisers for smarter, more transparent ways to activate premium CTV at scale,” said Natasha Westlund, Head of Nordics at Magnite. “dentsu is at the forefront of this evolution, helping shape the future of programmatic CTV buying in the Nordics. By combining Magnite’s technology with dentsu’s forward-looking approach to algorithmic planning, we’re enabling more efficient activation and greater control.”

“As we continue to evolve our dentsu premium video solution, AMX Premium Video, it’s critical that we work with partners who can provide the technology, transparency and interoperability needed to make smarter decisions across the media ecosystem,” said Christian Rissel, Head of dentsu Amplifi. “Magnite is helping us move beyond transactional media buying towards a more curated, intelligent and outcome-driven approach.”

Magnite helps dentsu gain greater visibility and control across its media buys, enabling more informed decision-making and optimisation across video. In consolidating access to premium supply and streamlining deal execution, Magnite enables dentsu to reduce operational friction, move faster from planning to activation, and drive measurable business outcomes for clients.

About Magnite
We’re Magnite (NASDAQ: MGNI), the world’s largest independent sell-side advertising company. Publishers use our technology to monetize their content across all screens and formats including CTV, online video, display, and audio. The world’s leading agencies and brands trust our platform to access brand-safe, high-quality ad inventory and execute billions of advertising transactions each month. Anchored in bustling New York City, sunny Los Angeles, mile high Denver, historic London, colorful Singapore, and down under in Sydney, Magnite has offices across North America, EMEA, LATAM, and APAC.

About dentsu

Dentsu is an integrated growth and transformation partner to the world’s leading organizations. Founded in 1901 in Tokyo, Japan, and now present in approximately 120 countries, it has a proven track record of nurturing and developing innovations, combining the talents of its global network of leadership brands to develop impactful and integrated growth solutions for clients. Dentsu delivers end-to-end experience transformation (EX) by integrating its services across Media, CXM and Creative, while its business transformation (BX) mindset pushes the boundaries of transformation and sustainable growth for brands, people and society.

Contact:
[email protected]