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Jun 30
PubMatic Q2 2025 Earnings Report
PubMatic reported its second quarter 2025 financial results, exceeding revenue and adjusted EBITDA guidance, driven by strong growth in omnichannel video and CTV, increased supply path optimization activity, and strategic investments in AI and diversified DSP mix.
Key Takeaways
PubMatic delivered a strong second quarter in 2025, with revenue reaching $71.1 million and adjusted EBITDA at $14.2 million, both surpassing guidance. The company saw significant growth in omnichannel video, including CTV, which grew 34% year-over-year and accounted for 41% of total revenue, with CTV alone growing over 50%. Supply Path Optimization activity increased to over 55% of total platform activity. Despite a GAAP net loss of $(5.2) million, non-GAAP net income was $2.5 million, and the company maintained a healthy balance sheet with $117.6 million in cash and no debt.
Revenue for Q2 2025 was $71.1 million, a 6% increase year-over-year, exceeding guidance.
Omnichannel video revenue, including CTV, grew 34% year-over-year and represented 41% of total revenue, with CTV revenue growing over 50%.
Adjusted EBITDA was $14.2 million, or a 20% margin, surpassing expectations.
The company repurchased 3.5 million shares in Q2 2025, representing 7% of fully diluted shares, and maintained a strong cash position with $117.6 million in cash and no debt.
PubMatic
PubMatic
PubMatic Revenue by Segment
Revenue by Segment
Omnichannel Video (incl. CTV) Revenue
CapyFin.com Forward Guidance
For the third quarter of 2025, PubMatic estimates revenue to be between $61 million to $66 million and Adjusted EBITDA to be in the range of $7 million to $10 million, representing approximately a 13% margin at the midpoint. This outlook includes an anticipated reduction in ad spend from one of their top DSP partners.
Positive Outlook
- Continued focus on diversifying DSP mix and accelerating investment on the buy-side.
- Commitment to growing CTV and scaling emerging revenue streams.
- Integration of AI across their tech stack and operations to drive efficiencies and innovation.
- Healthy balance sheet and positive cash flow generation supporting long-term strategy.
- Confidence in driving durable, accelerated growth, increased profitability, and maximized shareholder value.
Challenges Ahead
- Outlook includes a reduction in ad spend from one of their top DSP partners.
- Adjusted EBITDA expectation assumes a negative foreign currency exchange impact, predominantly from Euro and Pound Sterling expenses.
- General market conditions are assumed not to significantly deteriorate due to current macroeconomic and geopolitical conditions.
- Inability to provide GAAP net income guidance due to unpredictability of certain elements like stock-based compensation expenses.
- Potential for various factors to cause actual results to differ materially from forward-looking statements, including dependency on advertising demand and failure to attract new publishers/buyers.