PubMatic Q1 loss smaller than expected on Ai adoption, cost optimisation

PubMatic

07/05/2026 21:27

Overview

AI ad tech firm's Q1 adjusted EBITDA and adjusted net loss beat analyst expectations

Q1 revenue fell 2% yr/yr as legacy DSP buyer exited, but underlying business grew 13%

Company repurchased 1.0 mln shares in Q1, representing 2.1% of fully diluted shares

Outlook

PubMatic expects Q2 2026 revenue between $68 mln and $70 mln

Company sees Q2 2026 adjusted EBITDA between $8 mln and $10 mln

PubMatic expects double-digit revenue growth and margin expansion in H2 2026

Result Drivers

AI ADOPTION - Rapid uptake of AgenticOS and AI agents drove operational efficiency and repeat advertiser engagement, per CEO Rajeev Goel

EMERGING REVENUE STREAMS - Revenue from new AI solutions and emerging products grew over 80% year-over-year and represented 14% of total revenues

OPERATING EFFICIENCY - Infrastructure optimization increased impressions processed by 26% and reduced cost of revenue per million impressions by 20%

Company press release: ID:nBw6Jb9BQa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted Net Income
Beat
-$5.40 mln
-$15.25 mln (9 Analysts)
Q1 Net Income
-$12.50 mln
Q1 Adjusted EBITDA
Beat
$2.60 mln
$629,420 (12 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for PubMatic Inc is $11.50, about 13.4% above its May 6 closing price of $10.14

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)