PubMatic Announces Record Third Quarter 2026 Financial Results; Delivered Revenue and Adjusted EBITDA Well Ahead of Guidance
PubMatic, Inc. (PUBM) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 PubMatic Announces Record Third Quarter 2026 Financial Results; Delivered Revenue and Adjusted EBITDA Well Ahead of Guidance Board of Directors authorizes $150M expansion of share repurchase program; Total revenues accelerated for the third consecutive quarter and gr
How this was made
The 30-second read
Why it matters
Earnings beat and guidance raise provide a clear catalyst for short‑term buying, while the expanded buyback signals confidence in cash generation.
Market read
Strong earnings and guidance for PubMatic may boost sentiment in the broader ad‑tech and AI‑driven advertising space.
What to watch
Rising competition in AI ad platforms and potential margin pressure from higher spend on AI infrastructure.
PubMatic reports Q3 2026 revenue of $79.6 million, up 17%, GAAP net income of $5.5 million, adjusted EBITDA of $26.0 million, and expands its buyback by $150 million
The filing prints 17% revenue growth, GAAP operating income of $8,746 thousand against an operating loss of $(8,419) thousand a year earlier, adjusted EBITDA up 133% to $26.0 million, a debt-free balance sheet, and an expanded repurchase authorization. Free cash flow and operating cash flow were lower than the prior-year quarter, and the filing states no reason beyond the figures.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Q3 2026GAAP | $79.58M | – | 17% |
| Gross profit, Q3 2026GAAP | $55.61M | – | – |
| Gross margin, Q3 2026GAAP | 70% | – | – |
| Cost of revenue, Q3 2026GAAP | $23.97M | – | – |
| Technology and development expense, Q3 2026GAAP | $7.93M | – | – |
| Sales and marketing expense, Q3 2026GAAP | $23.41M | – | – |
| General and administrative expense, Q3 2026GAAP | $15.53M | – | – |
| Total operating expenses, Q3 2026GAAP | $46.86M | – | – |
| Operating income (loss), Q3 2026GAAP | $8.75M | – | – |
| Total other income, net, Q3 2026GAAP | $1.18M | – | – |
| Net income (loss), Q3 2026GAAP | $5.5M | – | – |
| Net margin, Q3 2026GAAP | 7% | – | – |
| Diluted EPS, Q3 2026GAAP | $0.11 | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $26M | – | 133% |
| Adjusted EBITDA margin, Q3 2026non-GAAP | 33% | – | – |
| Non-GAAP net income, Q3 2026non-GAAP | $12.6M | – | – |
| Non-GAAP diluted EPS, Q3 2026non-GAAP | $0.25 | – | – |
| Net cash provided by operating activities, Q3 2026GAAP | $30.8M | – | – |
| Free cash flow, Q3 2026non-GAAP | $17.6M | – | – |
| Revenue, nine months 2026GAAP | $220.7M | – | – |
| Cost of revenue, nine months 2026GAAP | $75.94M | – | – |
| Gross profit, nine months 2026GAAP | $144.8M | – | – |
| Technology and development expense, nine months 2026GAAP | $25.06M | – | – |
| Sales and marketing expense, nine months 2026GAAP | $78.50M | – | – |
| General and administrative expense, nine months 2026GAAP | $47.18M | – | – |
| Total operating expenses, nine months 2026GAAP | $150.7M | – | – |
| Operating income (loss), nine months 2026GAAP | −$5.95M | – | – |
| Total other income, net, nine months 2026GAAP | $2.64M | – | – |
| Net loss, nine months 2026GAAP | −$8.17M | – | – |
| Diluted EPS, nine months 2026GAAP | $(0.18) | – | – |
| Adjusted EBITDA, nine months 2026non-GAAP | $48.16M | – | – |
| Adjusted EBITDA margin, nine months 2026non-GAAP | 22% | – | – |
| Non-GAAP net income, nine months 2026non-GAAP | $13.03M | – | – |
| Non-GAAP diluted EPS, nine months 2026non-GAAP | $0.26 | – | – |
| Net cash provided by operating activities, nine months 2026GAAP | $68.31M | – | – |
| Free cash flow, nine months 2026non-GAAP | $41.95M | – | – |
| Payments to acquire treasury stock, nine months 2026GAAP | $45.51M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| CTV, mobile app and emerging revenues combinedFiling states this share was up from approximately 60% in Q2 2026. Company describes these as high-value channels and formats growing more than 50%. The CFO states nearly two-thirds of revenue now comes from them. | approximately 64% of total revenue | – | – |
| Connected TV (global)Strength led by the Americas, where CTV revenue grew over 40% year-over-year. Filing adds Sony Pictures Entertainment named PubMatic preferred programmatic partner for LIVE TV on PS5 and Strategus named it preferred live sports programmatic partner. | approximately 21% of total revenue | – | grew over 30% |
| Mobile appFiling reports revenue growth and share of total revenue only. No driver is stated. | approximately 27% of total revenue | – | grew nearly 40% |
| Emerging revenuesFiling says emerging revenues include Activate, Commerce Media, Connect and AI solutions, and that the figure includes revenue from newly launched AI solutions. Buying activity from Activate grew more than 8X over Q3 2025. | approximately 18% of total revenues | – | more than doubled |
Q4 2026 and FY2026 outlook
- RevenueQ4 2026: $91 million to $93 million, 15% year-over-year growth at midpoint. FY2026: $312 million to $314 million, 11% year-over-year growth at midpoint.
- NoteQ4 2026 adjusted EBITDA: $31 million to $33 million. Company states this assumes a negative foreign currency exchange impact predominantly from Euro and Pound Sterling.
- NoteFY2026 adjusted EBITDA: $79 million to $81 million, an increase of 30% year-over-year at the midpoint.
- NoteCompany states it does not provide guidance for net income (loss), citing unpredictable items including stock-based compensation.
Capital returns
- Through September 30, 2026, used $226.6 million in cash to repurchase 16.5 million shares of Class A common stock, with $48.4 million available from the 2023 Repurchase Program.
- On November 9, 2026, the Board authorized an expansion and extension of the repurchase program by up to an additional $150 million of Class A common stock through December 31, 2028.
- Company states that after this expansion it has approximately $198 million allocated to share repurchases through the end of 2028.
- Company expects to fund repurchases with existing cash and cash equivalents and marketable securities. Program may be suspended or discontinued at any time.
- Nine-month payments to acquire treasury stock were $45,507 thousand, compared with $47,650 thousand in the same period of 2025.
What drove it
- Company states that infrastructure optimization initiatives and investments drove a 15% year-over-year increase in monetized impressions in Q3 2026, while impressions processed fell 8% year-over-year.
- Company states cost of revenue per million impressions processed decreased 15% on a trailing twelve month period, as compared to the prior period.
- Company states that revenue from CTV, mobile app and emerging revenues was approximately 64% of total revenue in Q3 2026, up from approximately 60% in Q2 2026.
- Company reports Q3 2026 activity from mid-market focused DSPs grew over 40% year-over-year, and supply path optimization represented approximately 55% of total activity on the platform.
- Company reports gross margin of 70% in Q3 2026, against 63% in Q3 2025.
- Company states its AgenticOS platform has run more than 120 fully autonomous, end-to-end agentic campaigns, up from over 80 a quarter earlier, and more than 14,000 AI-powered deals, up from over 4,000 a quarter earlier.
- Company reports Decision Fabric customer examples: a 50% increase in Average Daily Reach led to a 76% increase in spend delivery for a national quick service restaurant brand, and a nearly 14% increase in Average Daily Reach led to a 41% increase in spend delivery for a national insurance provider.
- Company says the Q4 2026 adjusted EBITDA expectation assumes a negative foreign currency exchange impact predominantly from Euro and Pound Sterling.
Concerns
- Q3 2026 net cash provided by operating activities was $30.8 million, compared with $32.4 million in Q3 2025.
- Q3 2026 free cash flow was $17.6 million, compared with $22.8 million in Q3 2025. Company's Q3 2026 purchases of property and equipment were $9,933 thousand against $4,674 thousand a year earlier.
- Q3 2026 GAAP diluted EPS of $0.11 includes approximately 5 million dilutive securities in the diluted share count. Company states nine-month GAAP diluted loss per share was calculated using basic share count.
- Litigation related expenses were $1,155 thousand in Q3 2026, against $538 thousand in Q3 2025. Company describes these as related to a discrete matter outside the ordinary course of business.
- Accounts payable rose to $385,058 thousand from $343,619 thousand at December 31, 2025, while accounts receivable rose to $381,045 thousand from $358,240 thousand. Company does not comment on these balances in the filing.
- Nine-month GAAP net loss was $(8,167) thousand, and nine-month GAAP operating loss was $(5,948) thousand.
- Company's full-year guidance implies a revenue growth rate of 11% at the midpoint, below the 17% reported in Q3 2026 and the 15% midpoint guided for Q4 2026.
What to watch
- Delivery against the Q4 2026 revenue range of $91 million to $93 million and adjusted EBITDA range of $31 million to $33 million.
- Delivery against the FY2026 revenue range of $312 million to $314 million and adjusted EBITDA range of $79 million to $81 million.
- Size and pace of repurchases under the $150 million expansion, which the company says it will fund from existing cash and marketable securities.
- Trend in operating cash flow and free cash flow, given the lower Q3 2026 figures against Q3 2025 and the higher capital expenditure lines.
- Impact of the negative FX effect from Euro and Pound Sterling that the company cites for Q4 2026 adjusted EBITDA.
- Growth of the emerging revenues line, which includes AI solutions and Activate, and continued growth of CTV and mobile app shares.
Balance sheet and cash flow
- Cash, cash equivalents and marketable securities were $144.5 million at September 30, 2026, and the company reports no debt.
- Balance sheet at September 30, 2026: cash and cash equivalents $120,327 thousand; marketable securities $24,134 thousand (December 31, 2025: cash and cash equivalents $145,518 thousand; marketable securities none).
- Accounts receivable, net: $381,045 thousand at September 30, 2026, compared with $358,240 thousand at December 31, 2025.
- Accounts payable: $385,058 thousand at September 30, 2026, compared with $343,619 thousand at December 31, 2025.
- Total assets: $699,926 thousand at September 30, 2026, compared with $680,195 thousand at December 31, 2025.
- Total stockholders' equity: $241,760 thousand at September 30, 2026, compared with $262,589 thousand at December 31, 2025.
- Treasury stock: $(239,155) thousand at September 30, 2026, compared with $(193,471) thousand at December 31, 2025.
- Nine-month net cash provided by operating activities was $68,306 thousand, compared with $62,900 thousand. Nine-month purchases of property and equipment were $(12,899) thousand, compared with $(7,455) thousand. Nine-month capitalized software development costs were $(13,456) thousand, compared with $(16,094) thousand.
- Q3 2026 purchases of property and equipment were $(9,933) thousand, compared with $(4,674) thousand in Q3 2025. Q3 2026 capitalized software development costs were $(3,285) thousand, compared with $(4,914) thousand.
Analysis
PubMatic reported Q3 2026 revenue of $79,577 thousand, up 17% from $67,960 thousand in Q3 2025. Gross profit was $55,610 thousand, a 70% margin against 63% in the prior-year quarter. Operating income was $8,746 thousand, compared with an operating loss of $(8,419) thousand a year earlier. GAAP net income was $5,545 thousand, or $0.11 per diluted share, compared with a net loss of $(6,452) thousand, or $(0.14) per diluted share. Operating expenses fell year over year on each reported line in the quarter: technology and development, sales and marketing, and general and administrative all printed lower figures, and total operating expenses were $46,864 thousand against $50,976 thousand. Cost of revenue was $23,967 thousand against $25,403 thousand.
Non-GAAP measures moved more sharply. Adjusted EBITDA was $26.0 million with a 33% margin, against $11.2 million and 16% a year earlier, and the headline prints an increase of 133%. Non-GAAP net income was $12.6 million, or $0.25 per diluted share, against $1.6 million and $0.03. The company's reconciliation adds back stock-based compensation of $7,540 thousand and litigation related expenses of $1,155 thousand, among other items. Nine-month figures show the same direction: revenue of $220,737 thousand against $202,880 thousand, and an operating loss narrowing to $(5,948) thousand from $(25,783) thousand.
The mix disclosures are the other element of the quarter. The company states that CTV, mobile app and emerging revenues together were approximately 64% of total revenue, up from approximately 60% in Q2 2026. Global CTV revenue grew over 30% and was approximately 21% of total revenue, with the Americas growing over 40%. Mobile app grew nearly 40% and was approximately 27% of revenue. Emerging revenues more than doubled and were approximately 18% of revenue. Revenue is not printed in dollars for these lines, so the reader cannot size them from the filing.
Cash generation did not match the earnings improvement in the quarter. Net cash provided by operating activities was $30.8 million against $32.4 million, and free cash flow was $17.6 million against $22.8 million, as purchases of property and equipment rose to $9,933 thousand from $4,674 thousand. Nine-month free cash flow was $41,951 thousand against $39,351 thousand, so the year-to-date comparison is positive. The balance sheet shows $144.5 million of cash, cash equivalents and marketable securities with no debt. Accounts payable rose to $385,058 thousand from $343,619 thousand at December 31, 2025. Nine-month treasury stock payments were $45,507 thousand, and the company says $226.6 million has been used cumulatively under its repurchase programs.
Guidance calls for Q4 2026 revenue of $91 million to $93 million, 15% growth at the midpoint, and adjusted EBITDA of $31 million to $33 million, with a stated negative FX effect from Euro and Pound Sterling. For FY2026 the company guides revenue of $312 million to $314 million, 11% growth at the midpoint, and adjusted EBITDA of $79 million to $81 million, a 30% increase at the midpoint. The company did not provide a prior outlook for comparison in this read.
Management, verbatim
Our investments in advertiser performance are translating into faster, more profitable growth and a more diversified business.
Rajeev Goel, Co-founder and CEO, PubMatic
Revenue and adjusted EBITDA were well ahead of guidance with 17% revenue growth, a 33% adjusted EBITDA margin and strong free cash flow. And this is not a one-quarter event.
Steve Pantelick, CFO, PubMatic
For the full year, we expect double-digit revenue growth and adjusted EBITDA margin expansion.
Steve Pantelick, CFO, PubMatic
Not in the filing
stated, not guessed- Q2 2026 revenue, gross profit, operating income, net income and adjusted EBITDA in dollars are not printed in this filing.
- Year-over-year percentage changes for gross profit, operating expense lines, operating income, net income, operating cash flow, free cash flow, non-GAAP net income and non-GAAP EPS are not printed.
- Gross margin change in basis points is not printed for Q3 2026.
- Dollar revenue for CTV (global), Americas CTV, mobile app and emerging revenues is not printed; only percentages of total revenue and growth rates are given.
- Prior-year Q3 2025 cash balance and balance sheet comparisons beyond December 31, 2025 are not printed.
- Full-year 2025 results are not printed in this filing.
- No previous outlook was supplied, so vs_prior_guidance is empty.
- Basic net income (loss) per share for Q3 2026 is printed as $0.12 in the statement of operations but is not part of the key metrics table.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
PubMatic filed a Form 8‑K announcing record Q3 2026 results, including revenue acceleration and an expanded share repurchase program.
Ticker impact
PubMatic reported Q3 2026 revenue up 17% and adjusted EBITDA up 133% versus prior year, beating guidance.
likely upward pressure as investors price in the earnings beat and issued guidance
Revenue and EBITDA growth far exceed prior year and guidance, cash flow remains strong, and the board expanded the share repurchase program, all supporting a price rise.
Market effects
Highlights strength in AI‑powered ad tech, may lift peer ad‑tech stocks.
Positive for US tech sector, especially Nasdaq‑listed ad‑tech firms.
Shows demand for AI‑driven advertising solutions worldwide.
Counterpoint
If the market has already priced in the AI growth story, the stock may face limited upside.
Key entities
- companyPubMatic, Inc.
AI‑powered ad‑tech platform reporting Q3 2026 results.
- executiveRajeev Goel
Co‑founder and CEO of PubMatic, quoted on performance.
