Tech firm PubMatic Q3 revenue beats estimates driven by surge in activate revenue

PubMatic

10/11/2025 21:21

Overview

PubMatic Q3 revenue of $68 mln beats analyst expectations

Adjusted EBITDA for Q3 at $11.2 mln, surpassing estimates

Company repurchased 12.4 mln shares, 24% of total shares

Outlook

PubMatic expects Q4 2025 revenue between $73 mln and $77 mln

Company anticipates Q4 2025 adjusted EBITDA between $19 mln and $21 mln

PubMatic notes foreign currency impact on Q4 2025 adjusted EBITDA

Result Drivers

CTV REVENUE GROWTH - CTV revenue grew over 50% year-over-year excluding political ad spend, driven by partnerships with streaming services like Tubi and LocalNow

ACTIVATE REVENUE SURGE - Activate revenue increased over 100% year-over-year, contributing to PubMatic's revenue growth

AI PLATFORM EFFICIENCY - AI-powered platform reduced campaign setup time by 87% and sped up issue resolution by 70%, enhancing operational efficiency

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$68 mln
$63.88 mln (11 Analysts)
Q3 Adjusted Net Income
Beat
$1.60 mln
-$10.30 mln (8 Analysts)
Q3 Net Income
-$6.50 mln
Q3 Adjusted EBITDA
Beat
$11.20 mln
$8.77 mln (12 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 7 "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 $11.00, about 32.7% above its November 7 closing price of $7.40

Press Release: ID:nBw8QHsMGa

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(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.)