PubMatic reported Q3 2025 revenue of $68.0 million, surpassing the consensus estimate of $63.49 million and marking a 4.5% decline from the $71.8 million earned in the same quarter a year earlier. The company’s non‑GAAP earnings per share came in at $0.03, a $0.04 beat on the $-0.01 consensus estimate and a substantial improvement over the $-0.22 estimate cited by some analysts. The earnings beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin segments, offsetting a modest decline in legacy programmatic revenue.
The quarter’s most notable growth came from connected‑TV (CTV) and the newly launched Activate platform. CTV revenue grew more than 50% year‑over‑year, excluding political advertising, while Activate revenue more than doubled. The AI‑powered platform also delivered operational efficiencies, cutting campaign setup time by 87% and speeding issue resolution by 70%. Mid‑market demand continued to strengthen, with ad spend from DSP partners focused on mid‑market publishers rising 25% year‑over‑year, underscoring the platform’s appeal to a broad range of advertisers.
Segment‑level analysis shows that omnichannel video revenue, excluding CTV, grew 21% year‑over‑year, while data‑centric services and other emerging revenue streams expanded at double‑digit rates. The mix shift toward these higher‑margin segments helped lift the adjusted EBITDA margin to 16%, a significant improvement over the negative operating margin reported in Q3 2024. The company’s cash position remains robust, with $136.5 million in cash and no debt, providing flexibility for continued investment in AI and infrastructure.
Management guided for Q4 2025 revenue of $73–$77 million and a full‑year 2025 revenue outlook of $276–$280 million, up from the prior guidance of $276–$280 million. The guidance reflects confidence in sustained demand for CTV and AI‑driven solutions, as well as a continued shift away from legacy programmatic channels. CEO Rajeev Goel emphasized that the company’s partnership with NVIDIA and its AI platform give it a competitive moat that should translate into incremental revenue and margin expansion in the coming quarters.
Analysts responded positively to the results, citing the company’s strong execution in high‑growth segments and its ability to maintain profitability through cost discipline and a favorable mix shift. The earnings beat and guidance reinforce investor confidence in PubMatic’s strategic focus on AI, CTV, and mid‑market demand.
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