second quarter of 2026
Filed Aug 6, 2026Delivered revenue and adjusted EBITDA well ahead of guidance; AI customer adoption more than doubled sequentially, delivering 80+ agentic campaigns and 4,000+ AI-powered deals
Revenue grew 11% year-over-year, adjusted EBITDA increased 38%, free cash flow increased 47%, and the company returned to double-digit year-over-year revenue growth ahead of schedule while guiding for continued double-digit year-over-year revenue growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $78.6 million | – | 11% |
| GAAP net lossGAAP | $(1.2) million | – | – |
| GAAP net loss marginGAAP | (1)% | – | – |
| GAAP net loss per diluted shareGAAP | $(0.03) per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $19.6 million | – | 38% |
| Adjusted EBITDA marginnon-GAAP | 25% margin | – | – |
| Non-GAAP net incomenon-GAAP | $5.9 million | – | – |
| Non-GAAP diluted earnings per sharenon-GAAP | $0.12 per non-GAAP diluted share | – | – |
| Net cash provided by operating activitiesGAAP | $20.2 million | – | 36% |
| Free cash flownon-GAAP | $13.7 million | – | 47% |
| Total cash, cash equivalents, and marketable securitiesother | $137.5 million | – | – |
| Impressions processedother | nearly 92 trillion impressions | – | 18% |
| Cost of revenue per million impressions processedother | decreased 20% on a trailing twelve month period | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Global CTV revenueStrength in CTV was led by the Americas, where revenue grew 25% year over year. | approximately 20% of total revenue | – | 13% year-over-year |
| Mobile app revenueMobile app was part of CTV, mobile app and emerging revenues, which represented approximately 60% of total revenue. | approximately 25% of total revenue | – | over 40% year-over-year |
| Emerging revenuesIncludes revenue from newly launched AI solutions. | approximately 15% of total revenues in the quarter | – | approximately 100% year over year |
third quarter of 2026 outlook
- Revenue$75 million to $77 million
- NoteAdjusted EBITDA to be in the range of $17.0 million to $19.0 million.
- NoteAdjusted EBITDA expectation assumes a negative foreign currency exchange impact predominantly from Euro and Pound Sterling.
Capital returns
- Repurchased 2.1 million shares in Q2 2026, representing 4.2% of fully diluted shares as of June 30, 2026.
- Through June 30, 2026, used $211.4 million in cash to repurchase 15.5 million shares of Class A common stock.
- $63.6 million available from the 2023 Repurchase Program.
What drove it
- Since launching in January 2026, PubMatic delivered measurable performance gains for customers across more than 80 fully autonomous, end-to-end campaigns globally, up from over 30 campaigns a quarter ago.
- Over 4,000 AI-powered deals transacted to date, up from just over 1,000 deals a quarter ago.
- Ad spend from Activate grew more than 2X over Q2 2025.
- Ad spend from mid-market focused DSPs grew over 25% year-over-year in Q2 2026.
- Supply Path Optimization represented over 55% of total activity on the platform in Q2 2026.
- Infrastructure optimization initiatives and investments drove nearly 92 trillion impressions processed in Q2 2026.
Concerns
- The outlook assumes that general market conditions do not significantly deteriorate as it relates to current macroeconomic and geopolitical conditions.
- Adjusted EBITDA expectation assumes a negative foreign currency exchange impact predominantly from Euro and Pound Sterling.
- GAAP net loss was $(1.2) million.
- Steve Pantelick, Chief Financial Officer, plans to retire after fifteen years in the role.
What to watch
- Third-quarter revenue guidance of $75 million to $77 million.
- Third-quarter adjusted EBITDA guidance of $17.0 million to $19.0 million.
- Continued adoption of AgenticOS following more than 80 fully autonomous, end-to-end campaigns globally and over 4,000 AI-powered deals transacted to date.
- The search for Steve Pantelick's successor; he will continue to serve as CFO into the first quarter of 2027, and then as a senior adviser through July 1, 2027.
- Growth in CTV, mobile app and emerging revenues, which represented approximately 60% of total revenue.
Balance sheet and cash flow
- Net cash provided by operating activities was $20.2 million, a 36% increase over $14.9 million in the same period of 2025.
- Free cash flow was $13.7 million, a 47% increase over $9.3 million in the same period of 2025.
- Ended the quarter with total cash, cash equivalents, and marketable securities of $137.5 million with no debt.
Analysis
PubMatic reported $78.6 million of second-quarter 2026 revenue, up 11% compared with the same period of 2025. The company characterized the result as a return to double-digit year-over-year revenue growth ahead of schedule. Profitability improved materially: adjusted EBITDA was $19.6 million at a 25% margin, compared with $14.2 million at a 20% margin in the prior-year period, while GAAP net loss narrowed to $(1.2) million from $(5.2) million. Non-GAAP net income was $5.9 million, compared with $2.5 million.
The revenue mix continues to shift toward CTV, mobile app and emerging revenue streams, which together represented approximately 60% of total revenue, roughly double the share of three years ago. Global CTV revenue grew 13% year-over-year and represented approximately 20% of total revenue, with Americas CTV revenue growing 25% year over year. Mobile app revenue grew over 40% year-over-year and accounted for approximately 25% of total revenue. Emerging revenues grew approximately 100% year over year and represented approximately 15% of total revenues in the quarter.
AI products were a central reported source of commercial momentum. Since launching in January 2026, AgenticOS supported more than 80 fully autonomous, end-to-end campaigns globally, compared with over 30 campaigns a quarter ago, and AI-powered deals transacted exceeded 4,000, compared with just over 1,000 deals a quarter ago. The company also highlighted more than 2X growth in Activate ad spend and over 25% growth in ad spend from mid-market focused DSPs. Supply Path Optimization represented over 55% of total activity on the platform.
Cash generation improved alongside profitability. Net cash provided by operating activities was $20.2 million, up 36% year-over-year, and free cash flow was $13.7 million, up 47%. The company ended the quarter with $137.5 million of total cash, cash equivalents, and marketable securities and no debt. It repurchased 2.1 million shares in Q2 2026 and had used $211.4 million through June 30, 2026 to repurchase 15.5 million Class A shares, with $63.6 million remaining under the 2023 Repurchase Program.
For the third quarter of 2026, PubMatic expects revenue of $75 million to $77 million and adjusted EBITDA of $17.0 million to $19.0 million. Management said the adjusted EBITDA expectation assumes a negative foreign currency exchange impact predominantly from Euro and Pound Sterling, and the outlook assumes that general market conditions do not significantly deteriorate in relation to macroeconomic and geopolitical conditions. Leadership transition is also relevant: CFO Steve Pantelick plans to retire, will serve into the first quarter of 2027, and then serve as a senior adviser through July 1, 2027.
Management, verbatim
The second quarter marked an important inflection point for PubMatic. We delivered double-digit revenue growth earlier than anticipated, expanded profitability and strengthened our competitive position across AgenticOS, CTV, and mobile app.
Rajeev Goel, co-founder and CEO at PubMatic
We delivered a remarkable quarter, exceeding our guidance on revenue and adjusted EBITDA. We returned to double-digit year-over-year revenue growth ahead of schedule: revenue grew 11%, adjusted EBITDA increased 38% and free cash flow increased 47%.
Steve Pantelick, CFO at PubMatic
Not in the filing
stated, not guessed- GAAP operating income (loss)
- Gross margin
- Total operating expenses
- Tax rate
- Revenue prior-quarter comparison
- Revenue prior-year dollar amount
- Operating income (loss) prior-year and prior-quarter comparisons
- Cash balance prior-year and prior-quarter comparisons
- Debt amount other than the statement of no debt
- Dividend information
- Prior-period outlook for comparison
- GAAP net income (loss) guidance reconciliation
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.