PubMatic (PUBM) Q4 2025 earnings summary

Executive summary

• Q4 and FY 2025 revenue and adjusted EBITDA exceeded guidance, driven by strong growth in CTV, mobile app, and AI-powered solutions, with robust cash flow and healthy margins.

• AI leadership and agentic advertising accelerated growth, with over 250 agentic deals executed and rapid adoption of AgenticOS and AI Accelerator programs.

• Strategic priorities include DSP diversification, Activate adoption, and expansion in CTV, mobile, and emerging revenue streams, positioning for double-digit revenue growth in H2 2026.

• AI infrastructure and automation delivered significant operational efficiencies and margin leverage, with 35%+ gains in financial operations and 40%+ of new code written by AI in 2H 2025.

• Underlying business grew 18% year-over-year in Q4 2025, representing 83% of total revenue, excluding legacy DSP and political advertising.

Financial highlights

• Q4 2025 revenue was $80.0M, adjusted EBITDA margin reached 35%, and GAAP net income was $6.7M ($0.14 per diluted share).

• FY 2025 revenue was $282.9M, gross profit $179.8M (64% margin), adjusted EBITDA $61.6M (22% margin), and non-GAAP net income $16.7M ($0.33 per diluted share).

• Free cash flow for 2025 was $46.2M, up 32% year-over-year; net operating cash flows totaled $81.1M, up 10%.

• Cost of revenue declined 20% year-over-year per unit, with 60% of processed impressions from CTV and mobile app.

• Processed 336.8 trillion impressions in 2025, up 28% year-over-year.

Outlook and guidance

• Q1 2026 revenue expected between $58M–$60M; adjusted EBITDA guidance ranges from -$0.5M to +$1M, impacted by FX headwinds and a top DSP buyer.

• Double-digit revenue growth and margin expansion anticipated in the second half of 2026, supported by AI efficiencies.

• Full-year CapEx projected at $15M–$19M, with focus on AI workload support.

• Operating expenses expected to grow mid-single digits, including litigation costs.