PubMatic (PUBM) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached $79.6M, up 17% YoY for a third consecutive quarter; adjusted EBITDA rose 133% to $26.0M at a 33% margin, with both ahead of guidance.

• CTV, mobile app and emerging streams grew more than 50% YoY and represented ~64% of revenue.

• Growth strategy emphasizes high-value formats, Activate, AI solutions, sell-side decisioning and AI-driven productivity.

Financial highlights

• Q3 revenue was $79.6M, up 17% YoY; GAAP net income was $5.5M and diluted EPS was $0.11, versus a net loss a year earlier.

• Adjusted EBITDA was $26.0M versus $11.2M a year earlier; margin increased to 33% from 16%.

• Gross profit was $55.6M, up 31% YoY; gross margin reached 70% from 63%.

• Operating expenses declined 8% YoY to $46.9M, primarily reflecting productivity gains.

• Q3 cash from operations was $30.8M and free cash flow was $17.6M.

Outlook and guidance

• Q4 revenue guidance is $91M–$93M, or 15% YoY growth at the midpoint; adjusted EBITDA guidance is $31M–$33M.

• FY2026 revenue guidance is $312M–$314M, or 11% YoY growth at the midpoint; adjusted EBITDA guidance is $79M–$81M, up 30% at the midpoint.

• FY2026 CapEx outlook is $24M–$28M, increased to support GPU-centered infrastructure and growth initiatives.

• Q4 outlook includes political revenue estimated at 7%–8% of total revenue and assumes prudent advertiser pacing amid seasonal resets; Google Ad Tech remedies are excluded.

• Guidance assumes no significant deterioration in market conditions and includes a negative FX impact, predominantly from the Euro and Pound Sterling.