PubMatic (PUBM) Q2 2026 earnings summary

Executive summary

• Achieved double-digit year-over-year revenue growth of 11% in Q2 2026, ahead of schedule, with expectations for further acceleration in the second half of the year.

• AI-powered ad tech platform and AI-native infrastructure, including AgenticOS and Activate, drove measurable performance improvements, expanded customer base, and increased addressable markets.

• CTV, mobile app, and emerging revenues accounted for approximately 60% of total revenue, nearly double the share from three years ago, fueling profitable growth and diversification.

• Leadership transitions announced: CFO Steve Pantelick to retire in 2027, with a new Global Chief Revenue Officer joining to drive further growth and enhance sales effectiveness.

• Significant growth in live sports marketplace and creator-led video, with new offerings and partnerships attracting incremental budgets and industry recognition.

Financial highlights

• Q2 2026 revenue reached $78.6 million, up 11% year-over-year; adjusted EBITDA increased 38% to $19.6 million (25% margin); free cash flow up 47% to $13.7 million.

• Gross margin for Q2 2026 was 67%, up from 63% in Q2 2025; gross profit rose 19% year-over-year.

• GAAP net loss was $1.2 million (minus $0.03 per diluted share), improved from a $5.2 million loss in Q2 2025.

• Generated $20.2 million in net operating cash flows, up 36% year-over-year; ended Q2 with $137.5 million in cash and marketable securities and zero debt.

• Share repurchase program: 2.1 million shares bought back in Q2 for $21.5 million; 15.5 million shares repurchased since 2023 for $211.4 million; $63.6 million remains authorized through 2026.

Outlook and guidance

• Q3 2026 revenue expected at $75–$77 million (10%–13% growth); adjusted EBITDA guidance of $17–$19 million (23%–25% margin).

• Full-year CapEx outlook raised to $20–$25 million to support AI infrastructure and innovation, with anticipated payback in 12 months or less.

• Continued double-digit revenue growth and margin expansion expected for the remainder of the year.