PubMatic, Inc.

PubMatic reported Q2 revenue growth of 11% year over year, adjusted EBITDA of $19.6 million with a 25% margin versus 20% a year ago, and free cash flow of $13.7 million, up 47% year over year. GAAP net loss was $1.2 million, or minus $0.03 per diluted share. Gross profit increased 19% year over year, while gross impressions processed were reduced 2% sequentially and monetized impressions increased 4%. For Q3, management expects revenue of $75 million to $77 million, which implies 12% growth at the midpoint, and adjusted EBITDA of $17 million to $19 million. Full-year capex outlook was raised to $20 million to $25 million, and management said Q4 adjusted EBITDA margin should be similar to last year's fourth quarter, supporting full-year margin expansion.

Rajeev Goel framed the quarter as evidence that PubMatic’s AI-native platform and agentic-advertising strategy are starting to reshape the open internet. He emphasized that the business is monetizing more of the value chain, with better advertiser outcomes, faster execution and more customer types coming onto the platform. His tone was confident and strategic, repeatedly describing the company as being at the center of a larger industry shift toward agentic buying and decisioning.

Steven Pantelick said Q2 significantly exceeded expectations on both the top and bottom line, with revenue up 11%, adjusted EBITDA up 38% and free cash flow up 47%. He highlighted the mix shift toward higher-value formats: about 60% of revenue now comes from CTV, mobile app and emerging revenue streams, which together grew nearly 40% year over year. He also pointed to balance sheet strength, ending with $137.5 million in cash and marketable securities and zero debt, plus $21.5 million used to repurchase 2.1 million shares; since February 2023 the company has bought back 15.5 million shares for $211.4 million, with $63.6 million remaining authorized. He raised full-year capex to $20 million to $25 million to support AI workloads and NVIDIA-related infrastructure, saying the investments should pay back in approximately 12 months or less.

Analysts focused on whether the growth is durable, how fast agentic advertising can scale, and whether the broader ad-tech environment is shifting toward sell-side players. Management said early adoption is real but still early, with customers returning for more and a view that roughly 25% of the ecosystem could be traded agentically by end-2028 and 50% by end-2030. On monetization, management said AgenticOS is opening net-new business, Activate generates buying fees, and the economics compound as more of the dollar stays inside PubMatic’s ecosystem. They also said the prior DSP-related disruption is fully behind them, that DSP relationships remain healthy, and that the business is benefiting from a more diversified DSP base, stronger advertiser relationships and new formats like creator-led video and live sports.