PubMatic (PUBM) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $62.6 million and adjusted EBITDA was $2.6 million, both exceeding guidance, driven by rapid AI adoption, diversified DSP mix, and strategic partnerships in commerce media.

• Underlying business grew 13% year-over-year, with emerging revenues up over 80% and now 14% of total revenues, fueled by AgenticOS and new partnerships.

• CTV and mobile app revenues grew over 20% year-over-year, with CTV in the Americas up 13% and global CTV (ex-legacy DSP) up 18%.

• Over 1,000 AI-powered publisher deals and 20+ AI agents active on AgenticOS, scaling autonomous campaigns globally.

• Platform advantages include scale, direct buying (Activate), AI agents, owned infrastructure, and robust data integrations.

Financial highlights

• Q1 GAAP net loss was $12.5 million or $(0.27) per diluted share; adjusted EBITDA margin was 4%.

• Free cash flow reached $10.7 million (17% margin), with $17.3 million in net operating cash flows, up 11% year-over-year.

• Ended Q1 with $145 million in cash and zero debt.

• Monetized impressions grew double digits, processing over 1 trillion per day and 94.2 trillion in Q1 2026.

• Unit costs declined 20% year-over-year on a trailing twelve-month basis.

Outlook and guidance

• Q2 2026 revenue expected between $68 million and $70 million, with adjusted EBITDA of $8–$10 million and margin expansion anticipated in the second half.

• Full-year capex projected at $16–$19 million, focused on AI and advanced computing infrastructure.

• Double-digit revenue growth and margin expansion expected in the second half as DSP headwinds are lapped.

• Sequential margin expansion anticipated as revenue scales on a largely fixed cost base.