PubMatic Announces Third Quarter 2025 Financial Results

About this update from Pubmatic, Inc.

Delivered revenue and adjusted EBITDA ahead of guidance; CTV revenue grew over 50% year-over-year excluding political ad spend; Activate revenue up over 100% year-over-year; AI-powered platform reduces campaign setup time by 87% and speeds up issue resolution by 70%; 25% increase year-over year in ad spend from mid-market focused DSP partners. No Headquarters/REDWOOD CITY, Calif., November 10, 2025 --( BUSINESS WIRE )--PubMatic, Inc. (Nasdaq: PUBM), an independent technology company delivering digital advertising’s supply chain of the future, today reported financial results for the third quarter ending September 30, 2025. "We delivered revenue and adjusted EBITDA ahead of guidance and strong cash flow. CTV growth over 50% year-over-year excluding political advertising once again significantly outpaced the market rate of growth. These results demonstrate the power of our platform, the continued diversification of our business and our accelerated pace of innovation," said Rajeev Goel, co-founder and CEO at PubMatic. "As an early adopter of AI, our leadership extends across the infrastructure, application and transaction layers of programmatic advertising, and is a defining competitive advantage for us. In collaboration with NVIDIA, our infrastructure is, we believe, years ahead of peers. We’ve also deepened our competitive moat and unlocked measurable, incremental revenue opportunities with our newly launched AI platform for buyers and publishers. As the industry rapidly redefines itself, we are actively shaping its future and fueling advertising performance, transparency and automation." Third Quarter 2025 Financial Highlights The section titled "Non-GAAP Financial Measures" below describes our usage of non-GAAP financial measures. Reconciliations between historical GAAP and non-GAAP information are contained at the end of this press release following the accompanying financial data. Business Highlights Omnichannel platform drives revenue in key secular growth areas Cutting-Edge AI Innovation Drives Performance and Leading Competitive Advantage New AI-Powered Platform Fuels Increased Usage, Incremental Revenue and Operational Efficiency Advancing Leadership in CTV Expanding Reach on the Buy Side Scaling Emerging Revenue Streams Owned and operated infrastructure drives operational efficiencies "We exceeded expectations on both revenue and adjusted EBITDA. This outperformance was driven by CTV, online video and mobile app. We also managed expenses, leveraged AI and delivered healthy margins and strong free cash flow," said Steve Pantelick, CFO at PubMatic. "We continue to execute a robust, multifaceted strategy, adding new revenue streams, expanding our SPO relationships and CTV leadership, and expanding our DSP mix. As revenue growth re-accelerates, we anticipate margin expansion in both gross and adjusted EBITDA, directly benefiting from our efficient and leveraged business model." Financial Outlook Our outlook assumes that general market conditions do not significantly deteriorate as it relates to current macroeconomic and geopolitical conditions. Accordingly, we estimate the following for the fourth quarter of 2025: Although we provide guidance for adjusted EBITDA, we are not able to provide guidance for net income, the most directly comparable GAAP measure. Certain elements of the composition of GAAP net income, including stock-based compensation expenses, are not predictable, making it impractical for us to provide guidance on net income or to reconcile our adjusted EBITDA guidance to net income without unreasonable efforts. For the same reason, we are unable to address the probable significance of the unavailable information. Conference Call and Webcast details PubMatic will host a conference call to discuss its financial results on Monday, November 10, 2025 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). A live webcast of the call can be accessed from PubMatic’s Investor Relations website at https://investors.pubmatic.com . An archived version of the webcast will be available from the same website after the call. Non-GAAP Financial Measures In addition to our results determined in accordance with U.S. generally accepted accounting principles (GAAP), including, in particular operating income (loss), net cash provided by operating activities, and net income (loss), we believe that adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per diluted share and free cash flow, each a non-GAAP measure, are useful in evaluating our operating performance. We define adjusted EBITDA as net income (loss) adjusted for stock-based compensation expense, depreciation and amortization, litigation related expenses, interest income, and provision for (benefit from) income taxes. Adjusted EBITDA margin represents adjusted EBITDA calculated as a percentage of revenue. We define non-GAAP net income as net income (loss) adjusted for stock-based compensation expense, litigation related expenses, and adjustments for income taxes. We define non-GAAP free cash flow as net cash provided by operating activities reduced by purchases of property and equipment and capitalized software development costs. In addition to operating income (loss) and net income (loss), we use adjusted EBITDA, non-GAAP net income, and free cash flow as measures of operational efficiency. We believe that these non-GAAP financial measures are useful to investors for period to period comparisons of our business and in understanding and evaluating our operating results for the following reasons: Our use of non-GAAP financial measures has limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are as follows: Because of these and other limitations, you should consider adjusted EBITDA, non-GAAP net income, and free cash flow along with other GAAP-based financial measures, including net income (loss) and cash flow from operating activities, and our GAAP financial results. Forward Looking Statements This press release contains "forward-looking statements" regarding our future business expectations, including 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 total addressable market, future market growth, and our ability to gain market share. These forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions and may differ materially from actual results due to a variety of factors including: our dependency on the overall demand for advertising and the channels we rely on; our existing customers not expanding their usage of our platform, or our failure to attract new publishers and buyers; our ability to maintain and expand access to spend from buyers and valuable ad impressions from publishers; the rejection of the use of digital advertising by consumers through opt-in, opt-out or ad-blocking technologies or other means; our failure to innovate and develop new solutions that are adopted by publishers; our ongoing litigation against Google LLC; geopolitical conflicts and related measures taken in response by the global community; the impacts of inflation, tariffs and recessionary fears as well as fiscal tightening, changes in the interest rate and currency exchange environments and continuing volatility in global capital markets; global macroeconomic uncertainty; limitations imposed on our collection, use or disclosure of data about advertisements; the lack of similar or better alternatives to the use of third-party cookies, mobile device IDs or other tracking technologies if such uses are restricted; any failure to scale our platform infrastructure to support anticipated growth and transaction volume; liabilities or fines due to publishers, buyers, and data providers not obtaining consents from consumers for us to process their personal data; any failure to comply with laws and regulations related to data privacy, data protection, information security, and consumer protection; and our ability to manage our growth. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. For more information about risks and uncertainties associated with our business, please refer to the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of our SEC filings, including but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which are available on our investor relations website at https://investors.pubmatic.com and on the SEC website at www.sec.gov . Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025. All information in this press release is as of November 10, 2025. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. About PubMatic PubMatic is an independent technology company maximizing customer value by delivering digital advertising’s supply chain of the future. PubMatic’s sell-side platform empowers the world’s leading digital content creators across the open internet to control access to their inventory and increase monetization by enabling marketers to drive return on investment and reach addressable audiences across ad formats and devices. Since 2006, PubMatic’s infrastructure-driven approach has allowed for the efficient processing and utilization of data in real time. By delivering scalable and flexible programmatic innovation, PubMatic improves outcomes for its customers while championing a vibrant and transparent digital advertising supply chain. Reported GAAP diluted loss per share for the three and nine months ended September 30, 2025 and 2024 were calculated using basic share count. Non-GAAP diluted earnings per share for the three and nine months ended September 30, 2025 were calculated using diluted share count which includes approximately 3 million and 4 million shares, respectively, of dilutive securities related to employee stock awards. Non-GAAP diluted earnings per share for the three and nine months ended September 30, 2024 were calculated using diluted share count which includes approximately 5 million shares of dilutive securities related to employee stock awards.   View source version on businesswire.com: https://www.businesswire.com/news/home/20251109448266/en/ Contacts Investors: The Blueshirt Group for PubMatic [email protected] Press Contact : Broadsheet Communications for PubMatic [email protected]

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