Press Release: PubMatic Announces Third Quarter 2025 Financial Results

Dow Jones11-11

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.--(BUSINESS WIRE)--November 10, 2025-- 

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

   --  Revenue in the third quarter of 2025 was $68.0 million, compared to 
      $71.8 million in the same period of 2024. Q3 2024 included $5.0 million 
      in revenue from political advertising; 
 
   --  Net dollar-based retention1 was 98% for the trailing twelve-months 
      ended September 30, 2025, compared to 112% in the comparable trailing 
      twelve-month period a year ago; 
 
   --  GAAP net loss was $(6.5) million with a margin of (9)%, or $(0.14) per 
      diluted share in the third quarter, compared to GAAP net loss of $(0.9) 
      million with a margin of (1)%, or $(0.02) per diluted share in the same 
      period of 2024; 
 
   --  Adjusted EBITDA was $11.2 million, or 16% margin, compared to $18.5 
      million, or a 26% margin, in the same period of 2024; 
 
   --  Non-GAAP net income was $1.6 million, or $0.03 per diluted share in the 
      third quarter, compared to Non-GAAP net income of $6.6 million, or $0.12 
      per diluted share in the same period of 2024; 
 
   --  Net cash provided by operating activities was $32.4 million, an 
      increase over $19.1 million in the same period of 2024; 
 
   --  Total cash and cash equivalents of $136.5 million as of September 30, 
      2025 with no debt; 
 
   --  Through September 30, 2025, used $180.6 million to repurchase 12.4 
      million shares of Class A common stock, representing 24% of fully diluted 
      shares as of the program's inception. 

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.

 
(1) Net dollar-based retention is calculated by starting with the revenue from 
publishers in the trailing twelve months ended September 30, 2024 (Prior 
Period Revenue). We then calculate the revenue from these same publishers in 
the trailing twelve months ended September 30, 2025 (Current Period Revenue). 
Current Period Revenue includes any upsells and is net of contraction or 
attrition, but excludes revenue from new publishers. Our net dollar-based 
retention rate equals the Current Period Revenue divided by Prior Period 
Revenue. Net dollar-based retention rate is an important indicator of 
publisher satisfaction and usage of our platform, as well as potential revenue 
for future periods 
 

Business Highlights

Omnichannel platform drives revenue in key secular growth areas

   --  Excluding political advertising, revenue from CTV grew over 50% 
      year-over-year2. PubMatic recently added and expanded partnerships with a 
      number of free ad-supported streaming services including, Tubi, Future 
      Today and LocalNow, which add to a strong roster of over 90% of the top 
      30 global streamers already on PubMatic. 
 
   --  Excluding political advertising, revenue from omnichannel video, which 
      includes CTV, grew 21% year-over-year.3 

Cutting-Edge AI Innovation Drives Performance and Leading Competitive Advantage

   --  Deployed next-generation AI models on the world's most advanced GPU 
      architecture through a multi-year technical collaboration and innovation 
      cycle with NVIDIA. 
 
   --  We believe this collaboration closes the infrastructure advantage of 
      walled garden platforms. Customers benefit from increased performance and 
      speed, including: 
 
          --  5X faster in bid response speed, unlocking optimization 
             strategies previously impossible at standard programmatic rates; 
 
 
          --  85% reduction in auction timeouts, recovering millions in ad 
             spend that used to be lost to latency; 
 
          --  3 times more ad requests processed per server, expanding our 
             impression capacity without proportional cost; and 
 
          --  Five data center racks consolidated into one, delivering 
             measurable margin leverage. 
 
 

New AI-Powered Platform Fuels Increased Usage, Incremental Revenue and Operational Efficiency

   --  Launched AI-powered publisher platform, putting publishers back in 
      control of their yield, data, and demand. The unified platform combines 
      three core capabilities that directly impact publisher bottom lines: 
      automated revenue optimization, first-party data monetization, and direct 
      access to high-value media budgets. The publisher suite also includes 17 
      operational AI agents guiding yield, diagnostics and creative set up. 
 
   --  Recently launched an AI yield optimization solution for publishers. 
      This new solution uses adaptive learning models to automate pricing and 
      improve auction efficiency, driving an average of 10% revenue growth for 
      publishers. 
 
   --  PubMatic's AI-powered, end to end digital advertising platform cuts 
      campaign setup time by 87%, speeds up issue resolution by 70%, which 
      translates directly into faster activations, higher productivity and 
      better outcomes for our customers. 

Advancing Leadership in CTV

   --  Ad-buying activity from AI-powered Live Sports Marketplace grew 
      sequentially more than 150% in Q3 2025 over Q2 2025. 
 
   --  New premium content drives increased monetization through unique ad 
      demand accessed only on PubMatic. Fremantle, one of the world's largest 
      entertainment content creators generated a 78% increase in incremental 
      programmatic demand across their expanding FAST channel portfolio. 
 
   --  Launched Pause Ads for CTV. Advertisers can now serve dynamic, 
      contextually relevant ads when viewers pause content. This expanded ad 
      format is a premium, brand-safe moment that boosts engagement and yields 
      incremental revenue for publishers. 

Expanding Reach on the Buy Side

   --  Supply Path Optimization represented 55%+ of total activity on our 
      platform in Q3 2025, up from 50% a year ago, driven by Activate, CTV 
      Marketplaces, and robust sell-side targeting capabilities. 
 
   --  Over the trailing nine months, customer adoption on Activate increased 
      35%, and the number of active campaigns grew 4x over the trailing nine 
      months in 2024. 
 
   --  Expanded a top three DSP partnership to launch Programmatic Guaranteed 
      deals that streamline execution for advertisers across premium streaming 
      content. This integration reduces friction in deal setup, accelerates 
      time-to-market for campaigns, and unlocks incremental budgets. 
 
   --  Partnered with Blis, an omnichannel DSP that brings high-value demand 
      from leading global brands across automotive, retail, and financial 
      services that prioritize full-funnel measurement and offline 
      attribution. 
 
   --  Diversified ad buyer mix beyond the legacy DSPs. Ad spend from 
      performance marketers and mid-market focused DSPs grew 25%+ 
      year-over-year. 

Scaling Emerging Revenue Streams

   --  Emerging revenues grew 80% year-over-year, and included curation, 
      commerce media, and other non SSP revenues. 
 
   --  New AI-based yield optimization solution for publishers unlocked tens 
      of millions of dollars in incremental revenue for publishers, in turn 
      generating a new PubMatic revenue stream. 
 
   --  Expanded partnerships with leading data providers around the world, 
      including Nielsen which named PubMatic as their exclusive sell-side 
      partner to bring more than 10,000 audience segments to Australian 
      advertisers and agencies. 

Owned and operated infrastructure drives operational efficiencies

   --  Infrastructure optimization initiatives combined with limited capex 
      drove nearly 87 trillion impressions processed in Q3 2025, an increase of 
      24% over Q3 2024. 
 
   --  Cost of revenue per million impressions processed decreased 19% on a 
      trailing twelve month period, as compared to the prior period. 

"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."

 
(2) Including political advertising, revenue from CTV grew over 10% 
year-over-year. 
(3) Including political advertising, revenue from omnichannel video, which 
includes CTV, grew 5% year-over-year. 
 

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:

   --  Revenue to be between $73 million to $77 million, inclusive of an 
      impact from one of our top DSP buyers. 
 
   --  Adjusted EBITDA to be in the range of $19 million to $21 million, 
      representing approximately a 27% margin at the midpoint. Adjusted EBITDA 
      expectation assumes a negative foreign currency exchange impact 
      predominantly from Euro and Pound Sterling. 

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:

   --  Adjusted EBITDA and non-GAAP net income are widely used by investors 
      and securities analysts to measure a company's operating performance 
      without regard to items such as stock-based compensation expense, 
      litigation related expenses, depreciation and amortization, interest 
      expense, and benefit from income taxes that can vary substantially from 
      company to company depending upon their financing, capital structures and 
      the method by which assets were acquired; and, 
 
   --  Our management uses adjusted EBITDA, non-GAAP net income, and free cash 
      flow in conjunction with GAAP financial measures for planning purposes, 
      including the preparation of our annual operating budget, as a measure of 
      operating performance or, in the case of free cash flow, as a measure of 
      liquidity, and the effectiveness of our business strategies and in 
      communications with our board of directors concerning our financial 
      performance; and adjusted EBITDA provides consistency and comparability 
      with our past financial performance, 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. 

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:

   --  Adjusted EBITDA does not reflect: (a) changes in, or cash requirements 
      for, our working capital needs; (b) the potentially dilutive impact of 
      stock-based compensation; or (c) tax payments that may represent a 
      reduction in cash available to us; 
 
   --  Although depreciation and amortization expense are non-cash charges, 
      the assets being depreciated and amortized may have to be replaced in the 
      future, and adjusted EBITDA does not reflect cash capital expenditure 
      requirements for such replacements or for new capital expenditure 
      requirements; and 
 
   --  Non-GAAP net income does not include: (a) the potentially dilutive 
      impact of stock-based compensation; and (b) income tax effects for 
      stock-based compensation 

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.

 
                 CONDENSED CONSOLIDATED BALANCE SHEETS 
                             (In thousands) 
                              (unaudited) 
 
                                      September 30,      December 31, 
                                           2025               2024 
                                     ----------------  ----------------- 
ASSETS 
Current assets 
Cash and cash equivalents             $      136,548    $     100,452 
Marketable securities                             --           40,135 
Accounts receivable, net                     362,591          424,814 
Prepaid expenses and other current 
 assets                                       21,307           10,145 
                                         -----------       ---------- 
   Total current assets                      520,446          575,546 
Property, equipment and software, 
 net                                          51,396           58,522 
Operating lease right-of-use assets           39,993           44,402 
Acquisition-related intangible 
 assets, net                                   3,099            4,284 
Goodwill                                      29,577           29,577 
Deferred tax assets                           28,269           24,864 
Other assets, non-current                      3,408            2,324 
                                         -----------       ---------- 
TOTAL ASSETS                          $      676,188    $     739,519 
                                         ===========       ========== 
LIABILITIES AND STOCKHOLDERS' 
EQUITY 
Current liabilities 
Accounts payable                      $      356,469    $     386,602 
Accrued liabilities                           25,617           26,365 
Operating lease liabilities, 
 current                                       6,333            5,843 
                                         -----------       ---------- 
   Total current liabilities                 388,419          418,810 
Operating lease liabilities, 
 non-current                                  38,255           39,538 
Other liabilities, non-current                 4,454            3,908 
                                         -----------       ---------- 
TOTAL LIABILITIES                            431,128          462,256 
Stockholders' equity 
Common stock                                       6                6 
Treasury stock                              (193,041)        (146,796) 
Additional paid-in capital                   309,789          275,304 
Accumulated other comprehensive 
 income (loss)                                    67             (636) 
Retained earnings                            128,239          149,385 
                                         -----------       ---------- 
TOTAL STOCKHOLDERS' EQUITY                   245,060          277,263 
                                         -----------       ---------- 
TOTAL LIABILITIES AND STOCKHOLDERS' 
 EQUITY                               $      676,188    $     739,519 
                                         ===========       ========== 
 
 
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
                 (In thousands, except per share data) 
                              (unaudited) 
 
                        Three Months Ended         Nine Months Ended 
                          September 30,              September 30, 
                     ------------------------  ------------------------- 
                        2025         2024          2025         2024 
                     -----------  -----------  ------------  ----------- 
Revenue              $67,960      $71,786      $202,880      $205,754 
Cost of revenue(1)    25,403       25,508        77,603        76,092 
                      ------       ------       -------       ------- 
Gross profit          42,557       46,278       125,277       129,662 
Operating 
expenses:(1) 
   Technology and 
    development        9,616        8,813        27,504        25,432 
   Sales and 
    marketing         25,732       23,696        77,731        71,606 
   General and 
    administrative    15,628       15,134        45,825        43,499 
                      ------       ------       -------       ------- 
Total operating 
 expenses             50,976       47,643       151,060       140,537 
                      ------       ------       -------       ------- 
Operating loss        (8,419)      (1,365)      (25,783)      (10,875) 
                      ------       ------       -------       ------- 
   Interest income     1,198        1,969         4,170         6,873 
   Other income 
    (expense), net      (937)        (930)       (3,939)        3,356 
                      ------       ------       -------       ------- 
Loss before income 
 taxes                (8,158)        (326)      (25,552)         (646) 
Provision for 
 (benefit from) 
 income taxes         (1,706)         586        (4,406)          749 
                      ------       ------       -------       ------- 
Net loss             $(6,452)     $  (912)     $(21,146)     $ (1,395) 
                      ======       ======       =======       ======= 
 
Basic and diluted 
 net loss per share 
 of Class A and 
 Class B stock       $ (0.14)     $ (0.02)     $  (0.45)     $  (0.03) 
                      ======       ======       =======       ======= 
Weighted-average 
 shares used to 
 compute net loss 
 per share 
 attributable to 
 common 
 stockholders - 
 Basic and diluted    45,933       49,056        47,146        49,623 
 
 
(1) Stock-based compensation expense includes the following: 
 
 
                STOCK-BASED COMPENSATION EXPENSE 
                         (In thousands) 
                          (unaudited) 
 
                   Three Months Ended      Nine Months Ended 
                     September 30,           September 30, 
                   ------------------  ------------------------- 
                     2025        2024     2025              2024 
                   ------  ----------  -------  ---------------- 
Cost of revenue    $  474  $      486  $ 1,422   $         1,417 
Technology and 
 development        1,471       1,603    4,684             4,688 
Sales and 
 marketing          3,423       3,450   10,351            10,160 
General and 
 administrative     4,143       3,918   12,553            12,002 
                    -----   ---------   ------      ------------ 
   Total 
    stock-based 
    compensation 
    expense        $9,511  $    9,457  $29,010   $        28,267 
                    =====   =========   ======      ============ 
 
 
             CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 
                             (In thousands) 
                              (unaudited) 
 
                                     Nine Months Ended September 30, 
                                 --------------------------------------- 
                                         2025                2024 
                                 --------------------  ----------------- 
CASH FLOW FROM OPERATING 
ACTIVITIES: 
Net loss                          $       (21,146)     $       (1,395) 
   Adjustments to reconcile 
   net loss to net cash 
   provided by operating 
   activities: 
      Depreciation and 
       amortization                        33,996              33,931 
      Stock-based compensation             29,010              28,267 
      Deferred income taxes               (11,772)            (10,831) 
      Accretion of discount on 
       marketable securities                 (822)             (3,552) 
      Non-cash operating lease 
       expense                              5,528               5,098 
      Other                                  (864)                (78) 
      Changes in operating 
      assets and liabilities: 
         Accounts receivable               62,223              (1,322) 
         Prepaid expenses and 
          other assets                     (2,221)             (1,554) 
         Accounts payable                 (29,981)              8,841 
         Accrued liabilities                  429               2,259 
         Operating lease 
          liabilities                      (1,912)             (4,741) 
         Other liabilities, 
          non-current                         432                 454 
                                     ------------       ------------- 
Net cash provided by operating 
 activities                                62,900              55,377 
                                     ------------       ------------- 
CASH FLOWS FROM INVESTING 
ACTIVITIES: 
   Purchases of property and 
    equipment                              (7,455)            (13,268) 
   Capitalized software 
    development costs                     (16,094)            (16,068) 
   Purchases of marketable 
    securities                            (26,026)           (117,977) 
   Proceeds from sales of 
   marketable securities                   27,095                  -- 
   Proceeds from maturities of 
    marketable securities                  39,859             156,958 
                                     ------------       ------------- 
Net cash provided by investing 
 activities                                17,379               9,645 
                                     ------------       ------------- 
CASH FLOWS FROM FINANCING 
ACTIVITIES: 
   Payment of business 
    combination indemnification 
    claims holdback                            --              (2,148) 
   Proceeds from issuance of 
    common stock for employee 
    stock purchase plan                     1,357               1,451 
   Proceeds from exercise of 
    stock options                           1,495               1,578 
   Principal payments on 
    finance lease obligations                (105)                (98) 
   Payments to acquire treasury 
    stock                                 (47,650)            (65,400) 
                                     ------------       ------------- 
Net cash used in financing 
 activities                               (44,903)            (64,617) 
                                     ------------       ------------- 
NET INCREASE IN CASH AND CASH 
 EQUIVALENTS                               35,376                 405 
Effect of foreign currency on 
cash                                          720                  -- 
CASH AND CASH EQUIVALENTS - 
 Beginning of period                      100,452              78,509 
                                     ------------       ------------- 
CASH AND CASH EQUIVALENTS - End 
 of period                        $       136,548      $       78,914 
                                     ============       ============= 
 
 
           RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES 
                  (In thousands, except per share amounts) 
                                (unaudited) 
 
                      Three Months Ended        Nine Months Ended September 
                         September 30,                      30, 
                  ---------------------------  ----------------------------- 
                      2025           2024           2025           2024 
                  -------------  ------------  --------------  ------------- 
Reconciliation 
of net income 
(loss): 
Net loss          $(6,452)       $  (912)      $(21,146)       $ (1,395) 
   Add back 
   (deduct): 
Stock-based 
 compensation       9,511          9,457         29,010          28,267 
Depreciation and 
 amortization      10,459         11,384         33,996          33,931 
Litigation 
 related 
 expenses(2)          538             --            538              -- 
Interest income    (1,198)        (1,969)        (4,170)         (6,873) 
Provision for 
 (benefit from) 
 income taxes      (1,706)           586         (4,406)            749 
                   ------   ---   ------  ---   -------   ---   -------  --- 
Adjusted 
 EBITDA(3)        $11,152        $18,546       $ 33,822        $ 54,679 
                   ======  ====   ======  ===   =======  ====   =======  === 
Revenue           $67,960        $71,786       $202,880        $205,754 
Adjusted EBITDA 
 margin                16%            26%            17%             27% 
 
 
                           Three Months Ended        Nine Months Ended 
                             September 30,             September 30, 
                        ------------------------  ------------------------ 
                           2025         2024          2025         2024 
                        -----------  -----------  ------------  ---------- 
Reconciliation of net 
income (loss) per 
share: 
Net loss                $(6,452)     $  (912)     $(21,146)     $(1,395) 
   Add back (deduct): 
Stock-based 
 compensation             9,511        9,457        29,010       28,267 
Litigation related 
 expenses(2)                538           --           538           -- 
Adjustment for income 
 taxes                   (2,018)      (1,978)       (6,141)      (5,863) 
                         ------       ------       -------       ------ 
Non-GAAP net income(3)  $ 1,579      $ 6,567      $  2,261      $21,009 
                         ======       ======       =======       ====== 
GAAP diluted EPS        $ (0.14)     $ (0.02)     $  (0.45)     $ (0.03) 
                         ------       ------       -------       ------ 
Non-GAAP diluted EPS    $  0.03      $  0.12      $   0.04      $  0.38 
                         ======       ======       =======       ====== 
GAAP weighted average 
 shares 
 outstanding--diluted    45,933       49,056        47,146       49,623 
Non-GAAP weighted 
 average shares 
 outstanding--diluted    49,180       53,986        50,718       54,854 
 
 
(2) Litigation related expenses represents external legal fees and other 
expenses, net of insurance recoveries, associated with pending litigation that 
arose outside of the ordinary course of business. These costs related to a 
discrete matter, and are not representative of our underlying operating 
performance. We do not adjust for legal expenses incurred in our ordinary 
course of business. 
 
(3) Net loss, Adjusted EBITDA, and Non-GAAP net income for the nine months 
ended September 30, 2024 include other income of $4.0 million related to our 
efforts to build and test integrations with the Google Privacy Sandbox. 
 

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.

 
                SUPPLEMENTAL CASH FLOW INFORMATION 
         COMPUTATION OF FREE CASH FLOW, A NON-GAAP MEASURE 
                          (In thousands) 
                            (unaudited) 
 
                    Three Months Ended        Nine Months Ended 
                      September 30,             September 30, 
                  ----------------------  ------------------------- 
                     2025        2024         2025         2024 
                  -----------  ---------  ------------  ----------- 
Reconciliation 
of cash 
provided by 
operating 
activities: 
Net cash 
 provided by 
 operating 
 activities       $32,374      $ 19,139   $ 62,900      $ 55,377 
   Less: 
    Purchases of 
    property and 
    equipment      (4,674)      (11,731)    (7,455)      (13,268) 
   Less: 
    Capitalized 
    software 
    development 
    costs          (4,914)       (4,542)   (16,094)      (16,068) 
                   ------       -------    -------       ------- 
Free cash flow    $22,786      $  2,866   $ 39,351      $ 26,041 
                   ======       =======    =======       ======= 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20251109448266/en/

 
    CONTACT:    Investors: 

The Blueshirt Group for PubMatic

investors@pubmatic.com

Press Contact:

Broadsheet Communications for PubMatic

pubmaticteam@broadsheetcomms.com

 
 

(END) Dow Jones Newswires

November 10, 2025 16:05 ET (21:05 GMT)

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