PubMatic (PUBM) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $71.1M, up 6% year-over-year, with adjusted EBITDA of $14.2M (20% margin), driven by strong CTV and emerging revenue streams, and supported by expanded DSP mix and AI-powered platform enhancements.

• CTV revenue grew over 50% year-over-year, now representing nearly 20% of total revenue and covering 87% of the top 30 global streamers.

• Underlying business revenue (excluding affected DSP and political ads) grew 19% year-over-year.

• Net loss for Q2 2025 was $(5.2)M, or $(0.11) per diluted share, reflecting ongoing investments and DSP-related headwinds.

• Share repurchases continued, with 3.5M shares bought in Q2 and 12.2M since program inception.

Financial highlights

• Omnichannel video revenue grew 34% year-over-year, representing 41% of total revenues; emerging revenue streams more than doubled, accounting for 8% of total revenue.

• Free cash flow for Q2 2025 was $9.3M (13% margin); net cash from operating activities was $14.9M.

• Gross margin for Q2 2025 was 63%, flat year-over-year.

• Cost of revenue per million impressions processed decreased by 17–20% year-over-year.

• Cash, cash equivalents, and marketable securities totaled $117.6M as of June 30, 2025, with no debt.

Outlook and guidance

• Q3 2025 revenue expected between $61M and $66M, reflecting DSP headwinds and macro uncertainty.

• Q3 adjusted EBITDA projected at $7M–$10M, factoring in FX headwinds.

• Full-year capex guidance maintained at $15M, a year-over-year reduction.

• Guidance assumes stable macroeconomic and geopolitical conditions, but remains cautious due to DSP changes.