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PubMatic
(NASDAQ:PUBM)
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Rating:60Neutral
Price Target:
$13.50
▲(37.61% Upside)
Action:Reiterated
Date:06/27/26
The score is primarily held back by weakened profitability and TTM revenue contraction, despite strong cash generation and a low-leverage balance sheet. Technicals are supportive with clear upward price trends and positive momentum, while valuation lacks support due to negative earnings and no dividend. The latest earnings call adds a positive tilt via improving guidance and an expected return to growth in Q3/H2, tempered by near-term headwinds and execution/leadership transition risks.
Positive Factors
Strong cash generation and low leverage
Durable cash generation and a net cash position give PubMatic financial flexibility to invest in AI infrastructure, product development, and targeted buybacks without relying on debt. Positive FCF supports runway for multi-quarter execution and cushions against cyclical ad spend swings.
Negative Factors
Profitability deterioration and TTM revenue contraction
Return to GAAP losses and trailing revenue decline indicate weakened core economics versus prior profitable years. Sustained recovery requires converting adjusted EBITDA strength into consistent GAAP profitability and stabilizing top-line trends to restore ROE and reinvestment capacity over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and low leverage
Durable cash generation and a net cash position give PubMatic financial flexibility to invest in AI infrastructure, product development, and targeted buybacks without relying on debt. Positive FCF supports runway for multi-quarter execution and cushions against cyclical ad spend swings.
Read all positive factors
PubMatic Key Performance Indicators (KPIs)
Any
Dollar-Based Net Retention Rate
Measures revenue growth from existing customers, indicating customer satisfaction, product value, and the potential for upselling or cross-selling.
Measures revenue growth from existing customers, indicating customer satisfaction, product value, and the potential for upselling or cross-selling.
Data provided by:
The Fly
The FlyPubMatic (PUBM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$642.31M
Dividend YieldN/A
Average Volume (3M)729.30K
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue Growth-2.33%
EPS Growth-425.96%
CountryUS
Employees1,049
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.38
Shares Outstanding38,180,750
10 Day Avg. Volume491,128
30 Day Avg. Volume729,305
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)1.59
Price to Sales (P/S)1.47
P/FCF Ratio6.25
Enterprise Value/Market Cap0.66
Enterprise Value/Revenue1.51
Enterprise Value/Gross Profit2.39
Enterprise Value/Ebitda19.04
Forecast
1Y Price Target
$13.40Price Target Upside36.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)-0.46
Revenue Forecast (FY)$293.75M
PubMatic Business Overview & Revenue Model
Company Description
PubMatic, Inc. operates a global cloud-based infrastructure designed to facilitate real-time programmatic advertising exchanges between online publishers and advertisers. Its comprehensive suite of solutions includes Openwrap, an enterprise-level ...
How the Company Makes Money
PubMatic primarily makes money by charging fees tied to the programmatic advertising transactions it facilitates for publishers. When a publisher’s ad inventory is sold through PubMatic’s platform (e.g., via real-time bidding or other automated bu...
PubMatic Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and strategic momentum — revenue and adjusted EBITDA beat guidance, double-digit underlying growth (13% ex-legacy DSP), rapid expansion of emerging AI-driven revenues (>80% YoY), notable gains in CTV and mobile app, significant cash generation and infrastructure scale (1 trillion impressions/day). Key near-term negatives were a GAAP net loss, a legacy DSP-related headwind (causing a 12% Americas decline) that complicates comparables until fully lapped in Q3, an FX headwind (~$1M), flattened net retention in Q1, and senior revenue leadership turnover. Management provided confident guidance for Q2 and a clear path to return to reported growth in Q3 with double-digit acceleration in H2, driven by AI adoption, DSP diversification, and high-engagement formats. Overall, the positive operational and strategic developments and the scale/cash strengths outweigh the near-term challenges and transition risks.Positive Updates
Revenue and Adjusted EBITDA Beat
Q1 revenue of $62.6 million and adjusted EBITDA of $2.6 million, both ahead of preliminary figures and above the high end of guidance; adjusted EBITDA margin of ~4%.
Negative Updates
GAAP Net Loss and Low GAAP Profitability
Q1 GAAP net loss of $12.5 million (negative $0.27 per diluted share) despite adjusted EBITDA being positive; adjusted EBITDA margin remains modest at ~4%.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Adjusted EBITDA Beat
Q1 revenue of $62.6 million and adjusted EBITDA of $2.6 million, both ahead of preliminary figures and above the high end of guidance; adjusted EBITDA margin of ~4%.
Read all positive updates
Company Guidance
Management guided Q2 revenue of $68.0–70.0 million and adjusted EBITDA of $8.0–10.0 million, noting the outlook assumes a similar ~$1 million FX headwind to Q1 and still includes the legacy DSP impact that will be lapped in Q3; they expect sequential margin expansion in Q2 as revenue scales on a largely fixed cost base. Cost of revenue and operating expenses are expected to rise only low- to mid-single-digit percentages sequentially, full‑year CapEx is projected at $16–19 million (mostly AI/advanced computing), and management reiterated that they expect to return to reported revenue growth in Q3 and accelerate to double‑digit growth with margin expansion in the second half. For context, Q1 was revenue $62.6M, adjusted EBITDA $2.6M (4% margin), free cash flow $10.7M (17% FCF margin), underlying business growth +13% YoY, emerging revenues +80% YoY (14% of revenues), impressions processed +26% YoY, and unit cost down ~20% YoY (TTM).PubMatic Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
74
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 281.67M | 282.93M | 291.26M | 267.01M | 256.38M | 226.91M |
| Gross Profit | 178.08M | 179.84M | 190.23M | 167.78M | 174.87M | 168.59M |
| EBITDA | 22.34M | 27.82M | 63.13M | 55.27M | 77.55M | 80.48M |
| Net Income | -17.49M | -14.46M | 12.50M | 8.88M | 28.70M | 56.60M |
Balance Sheet | ||||||
| Total Assets | 659.44M | 680.20M | 739.52M | 695.24M | 642.17M | 550.22M |
| Cash, Cash Equivalents and Short-Term Investments | 144.88M | 145.52M | 140.59M | 175.34M | 174.40M | 159.63M |
| Total Debt | 42.38M | 43.86M | 45.38M | 28.21M | 26.59M | 25.69M |
| Total Liabilities | 408.44M | 417.61M | 462.26M | 399.04M | 329.99M | 293.04M |
| Stockholders Equity | 251.00M | 262.59M | 277.26M | 296.20M | 312.19M | 257.18M |
Cash Flow | ||||||
| Free Cash Flow | 42.54M | 66.71M | 34.90M | 52.83M | 38.32M | 49.32M |
| Operating Cash Flow | 82.73M | 81.06M | 73.42M | 81.12M | 87.21M | 88.68M |
| Investing Cash Flow | 6.55M | 6.07M | 22.31M | -39.02M | -81.37M | -96.72M |
| Financing Cash Flow | -46.32M | -42.73M | -73.48M | -55.98M | 4.04M | 9.36M |
PubMatic Technical Analysis
Positive
9.81
Price Trends
10.77
Positive
9.32
Positive
8.90
Positive
Market Momentum
0.52
Negative
70.92
Negative
93.63
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PUBM, the sentiment is Positive. The current price of 9.81 is below the 20-day moving average (MA) of 11.71, below the 50-day MA of 10.77, and above the 200-day MA of 8.90, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 70.92 is Negative, neither overbought nor oversold. The STOCH value of 93.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PUBM.
PubMatic Risk Analysis
PubMatic disclosed 51 risk factors in its most recent earnings report. PubMatic reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PubMatic Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $874.88M | 93.16 | 16.65% | ― | 18.15% | 331.16% | |
67 Neutral | $388.07M | 35.16 | 1.82% | ― | 9.23% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $642.31M | -36.39 | -6.98% | ― | -2.33% | -425.96% | |
56 Neutral | $254.14M | -16.89 | -36.37% | ― | 3.55% | 29.77% | |
52 Neutral | $225.62M | -8.92 | -10.61% | ― | -9.70% | 61.30% |
* Technology Sector Average
PUBM
PubMatic
13.83
1.16
9.16%
API
Agora
4.06
0.36
9.73%
CMRC
Commerce.com
3.08
-1.97
-39.01%
SMRT
SmartRent
1.17
0.06
5.41%
DSP
Viant Technology
13.35
0.04
0.30%
PubMatic Corporate Events
Executive/Board ChangesShareholder Meetings
PubMatic Stockholders Back Directors, Auditor and Pay Practices
Positive
Jun 3, 2026
PubMatic, Inc. held its annual meeting of stockholders on May 29, 2026, with approximately 74.86% of outstanding Class A and Class B shares represented, establishing a quorum for business. Stockholders elected eight directors, each to serve a one-...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.