PubMatic, Inc. (NASDAQ: PUBM) reported fourth‑quarter and fiscal‑year 2025 results that exceeded expectations, with revenue of $80.05 million for the quarter and $282.9 million for the year. Non‑GAAP earnings per share were $0.29, a $0.13 beat over the consensus estimate of $0.16, and the company generated $81.1 million in net cash from operations for the year while repurchasing 4.1 million shares in 2025.
Revenue fell 6.4% year‑over‑year to $80.05 million, but it still surpassed the consensus estimate of $75.39 million by roughly 6.5%. The beat was driven by a 50%+ increase in connected‑TV (CTV) revenue, a 25% rise in mobile‑app revenue, and a 75% jump in emerging revenue streams, offsetting a decline in legacy DSP and political‑ad revenue that had weighed the prior year.
Earnings per share outperformed expectations by $0.13 largely because PubMatic maintained disciplined cost control while expanding its high‑margin AI and agentic advertising businesses. The company’s adjusted EBITDA margin contracted from 44% in Q4 2024 to 35% in Q4 2025, but the $27.8 million adjusted EBITDA still reflects strong operational leverage and the impact of AI‑driven efficiencies.
For the first quarter of 2026, PubMatic guided revenue to $58 million–$60 million, a 6–8% decline from the prior year’s $62 million. Management cited near‑term headwinds but expressed confidence that double‑digit revenue growth would resume in the second half of 2026, driven by AI and agentic advertising momentum.
CEO Rajeev Goel said, "We delivered an exceptional fourth quarter, highlighted by strong growth across CTV, Activate, and our emerging revenue streams, and accelerating momentum of our AI solutions." CFO Steve Pantelick added, "Our fourth‑quarter results represented an important structural inflection point for PubMatic, as we meaningfully exceeded expectations on both revenue and adjusted EBITDA."
Investors responded positively to the earnings beat, noting the company’s robust free‑cash‑flow generation and the strategic emphasis on AI and agentic advertising as key growth drivers.
The company’s $81.1 million net cash from operations and the 4.1 million‑share repurchase program underscore its strong balance sheet and confidence in cash‑flow generation.
PubMatic’s Q4 2025 performance demonstrates resilience amid a challenging macro environment, with significant gains in high‑margin segments and a clear path to future growth through AI and agentic advertising.
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