Slide 1: Q3 2025 Earnings Presentation
Q3 2025 Earnings Presentation November 10, 2025
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains forward-looking statements regarding our future business expectations, including but not limited to our guidance relating to our revenue and adjusted EBITDA for the fourth quarter of 2025 and capex for the full year 2025, our expectations regarding our free cas
Slide 3: Q3 2025 Financial Highlights
Q3 2025 FINANCIAL HIGHLIGHTS W H AT W E D O REVENUE GAAP NET LOSS ▪ PubMatic is $68.0M $(6.5)M building a better supply chain for the future of AD J U S T E D E B I T D A 1 C AS H F L O W F R O M O P E R AT I O N S 2 advertising on the open internet $11.2M $32.4M 16% M AR G I N 1 Adjusted EBITDA and
Slide 4: Google Ad Tech Remediation
Google Ad Tech Remediation As the industry rapidly redefines itself, PubMatic Rise of Sell-Side Targeting is helping to shape its future AI-Driven Innovation 4
Slide 5: PubMatic's AI Leadership: Transforming the Advertising Stack Across Three Layers
P U B M AT I C ’ S A I L E A D E R S H I P : T R A N S F O R M I N G T H E A D V E R T I S I N G S TA C K A C R O S S T H R E E L AY E R S ▪ TRANSACTION Founding member of Ad Context Protocol (AdCP) to APPLICATION enable secure, autonomous agent-to-agent transactions AI-powered buyer and publisher t
Slide 6: AI Drives Growth and Efficiency Across the Business
AI DRIVES GROWTH AND EFFICIENCY ACROSS THE BUSINESS ▪ DRIVING INCREASED UNLOCKING NEW IMPROVING EFFICIENCY PRODUCT USAGE REVENUE STREAMS & PROFITABILITY 6
Slide 7: Focused execution against sustainable growth strategies
E X P AN D O U R D S P M I X Focused AC C E L E R AT E I N V E S T M E N T O N THE BUY-SIDE execution against AD V AN C E C T V L E AD E R S H I P sustainable growth S C AL E E M E R G I N G R E V E N U E S T R E AM S strategies I N T E G R AT E AI AC R O S S O U R B U S I N E S S 7
Slide 8: Diversified demand mix strengthens growth foundations
DIVERSIFIED DEMAND MIX STRENGTHENS GROWTH FOUNDATIONS MID-TIER DSP GROWTH Ad spend from this segment up 25%+ YOY, unlocking mid-market advertiser potential ▪ Launched new partnership with T-Mobile owned DSP S T R AT E G I C P AR T N E R S H I P S Launched Programmatic Guaranteed with a ▪ Incremental
Slide 9: Extending Our Reach on the Buy-Side and Scaling Activate
EXTENDING OUR REACH ON THE BUY-SIDE AND SCALING ACTIVATE E X P AN D I N G B U Y E R R E AC H S H AR E O F P L AT F O R M Investing in sales team to grow coverage of direct AC T I V I T Y F R O M S U P P LY brands by 3X and independent agencies by 7.5X PAT H O P T I M I Z AT I O N I N Q3 2025 AC T I
Slide 10: Accelerating Growth in Connected TV
ACCELERATING GROWTH IN CONNECTED TV generated a 78% increase in incremental programmatic demand. CTV REVENUE GROWTH YOY IN Q3 2025* deployed pause ads via Activate, boosting engagement and publisher revenue. 50%+ AI - P O W E R E D C T V M AR K E T P L AC E S S E Q U E N T I AL GROWTH IN LIVE SPORTS
Slide 11: Scaling Emerging Revenue Streams
SCALING EMERGING REVENUE STREAMS C U S T O M E R E X P AN S I O N O P P O R T U N I T I E S Growth in commerce media and sell-side curation unlock expansion opportunities around first-party audience data monetization YOY GROWTH OF EMERGING REVENUES H I G H - M AR G I N R E C U R R I N G R E V E N U
Slide 12: We combine innovation, diversification and operational excellence
DIVERSIFIED INVESTMENT IN REVENUE We combine STREAM S I N N O VAT I O N innovation, diversification and operational excellence to deliver durable SHAREHOLDER IMPROVED VA L U E CUSTOMER value C R E AT I O N OUTCOMES 12
Slide 13: As the digital advertising landscape evolves through AI
Investments in AI technology As the digital strengthen our platform and advertising landscape expand our competitive moat evolves through AI and regulatory We are diversifying our revenue models to build resilience and change, PubMatic is balanced growth not just adapting. We’re defining what We are
Slide 14: Financial Highlights
Financial Highlights ▪
Slide 15: Q3 2025 Financial Highlights
Q3 2025 FINANCIAL HIGHLIGHTS REVENUE GAAP NET LOSS ▪ Revenue and $68.0M $(6.5)M profit exceed expectations as C AS H F L O W F R O M growth engines AD J U S T E D E B I T D A 1 O P E R AT I O N S 2 scale $11.2M $32.4M 16% M AR G I N 1 Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial
Slide 16: Q3 Revenue Growth Drivers
Q3 REVENUE GROWTH DRIVERS VS. PRIOR YEAR Omnichannel Video Revenue (excluding political advertising) 20%+ CTV Revenue (excluding political advertising) 50%+ Emerging Revenues 80%+ 16
Slide 17: Additional Levers Driving Q3 Revenue
ADDITIONAL LEVERS DRIVING Q3 REVENUE Growth from Top Ad Top ten ad verticals grew in the Verticals single digit percentages YOY Expansion Beyond Ad spend from mid-tier DSP cohort Top 10 DSPs grew over 25% YOY APAC revenues grew 12% YOY while Global Diversification EMEA revenues grew 7% YOY 17
Slide 18: Intrinsic Strength of Business Model
INTRINSIC STRENGTH OF BUSINESS MODEL A D I M P R E S S I O N S P R O C E S S E D C O M PA R E D T O COST OF REVENUE ~60% 87T O F T O TAL P R O C E S S E D +24% IMPRESSIONS FROM 70T C T V AN D M O B I L E AP P $25.5 $25.4 -19% Q3'24 Q3'25 YOY DECLINE IN UNIT COST Ad Impressions Cost of Revenue TTM Q3
Slide 19: GAAP Operating Expenses: AI Efficiencies Drive Investment in Highest Growth Areas
GAAP OPERATING EXPENSES: AI EFFICIENCIES DRIVE INVESTMENT IN HIGHEST GROWTH AREAS DRIVERS $50 $50 $51 $50,000 ▪ AI efficiencies fuel $15 $16 $16 $40,000 investment and growth with relatively flat cost $30,000 structure $27 $25 $26 $20,000 ▪ Higher productivity across teams $10,000 $9 $9 $10 ▪ Expand
Slide 20: Long Term Focus on Cash Generation
LONG TERM FOCUS ON CASH GENERATION USES OF CASH $393M $215M ▪ Investments for secular growth NET CASH FROM FREE CASH FLOW 1 ▪ Share repurchases O P E R AT I N G A C T I V I T I E S Q1 2021 – Q3 2025 Q1 2021 – Q3 2025 ▪ Potential M&A 1 Free Cash Flow is a non-GAAP measure. A reconciliation of free ca
Slide 21: Capital Allocation
CAPITAL ALLOCATION $181M 12.4M CASH CASH USED FOR REPURCHASES1 CLASS A COMMON SHARES $137M REPURCHASED1 END OF Q3 2025 FEB 2023 TO SEP 2025 FEB 2023 TO SEP 2025 1 As of September 30, 2025, fully diluted shares outstanding of 49,179,928. 21
Slide 22: 2025 Q4 and Full Year Guidance
22 2025 Q4 AND FULL YEAR GUIDANCE Q4 2025 FY 2025 ($ in Millions) Low High Low High Revenue $73 $77 $276 $280 Ye a r o v e r Ye a r G r o w t h % -15% -10% -5% -4% Ye a r o v e r Ye a r G r o w t h % 7% 13% -3% -2% excluding political Ad j u s t e d E B I T D A $19 $21 $53 $55 Ad j u s t e d E B I T
Slide 23: Strong Foundation for Long-Term Growth
23 S T R O N G F O U N D AT I O N F O R L O N G - T E R M G R O W T H 1 Scaling Revenue in Key Secular Growth Areas 2 Responsibly Investing in Our Business Transformation 3 Improving Efficiency by Applying AI Across our Operations 4 Durable Business Model Delivers Healthy Margins and Cash Flow 23
Slide 24: Appendix
Appendix 24
Slide 25: Non-GAAP Reconciliation – Adjusted EBITDA & Non-GAAP Net Income (Loss)
N O N - G A A P R E C O N C I L I AT I O N – A D J U S T E D E B I T D A & N O N - G A A P N E T INCOME (LOSS) ($ in Thousands) Q3 '25 Q2 '25 Q1 '25 Q4 '24 Q3 '24 Q2 '24 Q1 '24 Q4 '23 Net income (loss) $(6,452) $(5,208) $(9,486) $ 13,899 $ (912) $ 1,971 $(2,454) $ 18,702 Add back (deduct): Stock-bas
Slide 26: Non-GAAP Reconciliation – Adjusted EBITDA & Non-GAAP Net Income (Loss)
N O N - G A A P R E C O N C I L I AT I O N – A D J U S T E D E B I T D A & N O N - G A A P N E T INCOME (LOSS) (in Thousands except per share data) Q3 '25 Q2 '25 Q1 '25 Q4 '24 Q3 '24 Q2 '24 Q1 '24 Q4 '23 Net income (loss) $(6,452) $(5,208) $(9,486) $ 13,899 $ (912) $ 1,971 $(2,454) $ 18,702 Stock ba
Slide 27: Free Cash Flow Reconciliation
F R E E C A S H F L O W R E C O N C I L I AT I O N ($ in Millions) Three Months Ended September 30, 2025 2024 2023 Net Cash provided by Operating Activities $32.4 $19.1 $23.8 Deduct: Purchases of Property and Equipment (4.7) (11.7) (2.9) Capitalized Software Development Costs (4.9) (4.5) (3.8) Free