PubMatic (NASDAQ:PUBM) Posts Earnings Results, Beats Expectations By $0.13 EPS

PubMatic (NASDAQ:PUBM) issued its quarterly earnings results on Thursday. The company reported $0.29 EPS for the quarter, topping the consensus estimate of $0.16 by $0.13, FiscalAI reports. The firm had revenue of $80.05 million during the quarter, compared to analysts’ expectations of $76.12 million. PubMatic had a negative return on equity of 2.78% and a negative net margin of 2.51%.

Here are the key takeaways from PubMatic’s conference call:

• PubMatic beat Q4 guidance with $27.8M adjusted EBITDA (a 35% margin), GAAP net income of $6.7M, free cash flow up 32% to $46M, and a strong balance sheet with $145.5M cash and zero debt.
• Management positions PubMatic as an early leader in agentic AI — launching AgenticOS, co-founding the Ad Context Protocol, running 250+ agentic deals, and rolling out AI publisher solutions that already monetize ~10% of publishers.
• Secular growth engines powered results — CTV grew over 50% year-over-year (ex-political), mobile app revenue accelerated (~25% in Q4), and emerging revenues (Activate/Commerce/AI) nearly doubled and now represent roughly 10–12% of total revenue.
• Near-term guidance is muted — Q1 revenue of $58–60M and adjusted EBITDA around break-even reflect lingering headwinds from a legacy DSP and seasonality, while potential upside from Google remedies or litigation remains uncertain and is excluded from the outlook.

PubMatic Stock Performance

Shares of NASDAQ PUBM traded up $0.49 during midday trading on Thursday, reaching $7.07. 2,042,369 shares of the stock were exchanged, compared to its average volume of 664,835. The stock has a market capitalization of $328.19 million, a P/E ratio of -37.21 and a beta of 1.58. The company has a 50 day simple moving average of $7.64 and a 200 day simple moving average of $8.27. PubMatic has a twelve month low of $6.15 and a twelve month high of $14.80.

Insiders Place Their Bets

In other PubMatic news, CEO Rajeev K. Goel sold 44,000 shares of the firm’s stock in a transaction on Tuesday, January 20th. The stock was sold at an average price of $7.55, for a total transaction of $332,200.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders sold 431,650 shares of company stock valued at $3,434,455 in the last ninety days. Corporate insiders own 26.42% of the company’s stock.

Hedge Funds Weigh In On PubMatic

Several large investors have recently modified their holdings of PUBM. Quarry LP purchased a new position in shares of PubMatic during the 4th quarter worth $30,000. Caitong International Asset Management Co. Ltd lifted its position in PubMatic by 75.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 4,449 shares of the company’s stock valued at $39,000 after buying an additional 1,915 shares during the last quarter. Tower Research Capital LLC TRC boosted its stake in PubMatic by 264.8% during the second quarter. Tower Research Capital LLC TRC now owns 4,878 shares of the company’s stock worth $61,000 after buying an additional 3,541 shares during the period. BNP Paribas Financial Markets increased its position in shares of PubMatic by 120.8% during the third quarter. BNP Paribas Financial Markets now owns 8,875 shares of the company’s stock valued at $73,000 after acquiring an additional 4,856 shares during the last quarter. Finally, Headlands Technologies LLC raised its stake in shares of PubMatic by 59.2% in the 2nd quarter. Headlands Technologies LLC now owns 12,043 shares of the company’s stock valued at $150,000 after acquiring an additional 4,478 shares during the period. Institutional investors and hedge funds own 64.26% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Wall Street Zen lowered shares of PubMatic from a “hold” rating to a “sell” rating in a report on Saturday, January 10th. Wolfe Research reaffirmed an “outperform” rating and set a $14.00 price objective on shares of PubMatic in a research note on Monday, January 5th. Weiss Ratings reissued a “sell (d)” rating on shares of PubMatic in a research note on Thursday, January 22nd. Rosenblatt Securities upped their price target on PubMatic from $17.00 to $20.00 and gave the company a “buy” rating in a research report on Tuesday, November 11th. Finally, Evercore increased their price target on PubMatic from $12.00 to $13.00 and gave the company an “outperform” rating in a report on Tuesday, November 11th. Five equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $12.44.

About PubMatic

PubMatic is a cloud-based digital advertising technology company that provides a supply-side platform (SSP) enabling publishers to automate and optimize the sale of their ad inventory across display, mobile, video and connected TV channels. Its core offerings include real-time bidding infrastructure, header bidding solutions under the OpenWrap brand and data analytics tools that deliver actionable insights on audience engagement and monetization performance. By facilitating seamless auctions and providing transparent reporting, PubMatic helps publishers maximize yield while improving buyer experiences.

Founded in 2006 by Rajeev Goel and a team of ad-tech veterans, PubMatic grew from an early entrant in programmatic selling to a publicly traded company, listing on the Nasdaq (symbol: PUBM) in December 2020.