Pubmatic Inc (PUBM)
NASDAQ:PUBM
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PubMatic
(NASDAQ:PUBM)
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Rating:61Neutral
Price Target:
$10.50
▲(7.03% Upside)
Action:Reiterated
Date:05/12/26
The score is primarily driven by weakened profitability and TTM revenue pressure (financial performance), partially offset by strong cash generation, low leverage, and a positive earnings-call outlook that targets a return to reported growth and improving margins. Technicals add moderate support, while negative earnings (negative P/E) limit the valuation component.
Positive Factors
Strong cash generation & conservative capitalization
PubMatic generates positive free cash flow and meaningful operating cash flow, providing internal funding for R&D, AI infrastructure and buybacks. Coupled with a conservative balance sheet and low leverage, this durable cash strength supports reinvestment and shock absorption over the next 2–6 months.
Negative Factors
Return to GAAP net losses and weakened profitability
Despite healthy gross margins, operating profitability has deteriorated and TTM shows a GAAP net loss. Persistent GAAP losses constrain retained earnings, reduce earnings quality, and limit optionality for margin expansion unless underlying revenue growth and operating leverage consistently re-accelerate over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & conservative capitalization
PubMatic generates positive free cash flow and meaningful operating cash flow, providing internal funding for R&D, AI infrastructure and buybacks. Coupled with a conservative balance sheet and low leverage, this durable cash strength supports reinvestment and shock absorption over the next 2–6 months.
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
$460.25M
Dividend YieldN/A
Average Volume (3M)701.05K
Price to Earnings (P/E)―
Beta (1Y)1.31
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. Volume887,594
30 Day Avg. Volume701,048
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 Cap0.78
Enterprise Value/Revenue1.27
Enterprise Value/Gross Profit2.02
Enterprise Value/Ebitda15.45
Forecast
1Y Price Target
$13.40Price Target Upside36.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)-0.46
Revenue Forecast (FY)$293.76M
PubMatic Business Overview & Revenue Model
Company Description
PubMatic, Inc. provides a cloud infrastructure platform that enables real-time programmatic advertising transactions for Internet content creators and advertisers worldwide. The company's solutions include Openwrap, a header bidding solution that ...
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 | 23.23M | 27.82M | 49.28M | 46.81M | 77.55M | 74.46M |
| 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
9.06
Positive
8.36
Positive
8.56
Positive
Market Momentum
0.22
Positive
57.68
Neutral
34.09
Neutral
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 9.88, above the 50-day MA of 9.06, and above the 200-day MA of 8.56, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 34.09 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $681.27M | -109.70 | 16.65% | ― | 18.15% | 331.16% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $460.25M | -7.70 | -6.98% | ― | -2.33% | -425.96% | |
57 Neutral | $339.66M | 18.47 | 1.68% | ― | 6.11% | ― | |
56 Neutral | $227.73M | 14.69 | -36.37% | ― | 3.55% | 29.77% | |
48 Neutral | $219.84M | -16.16 | -10.61% | ― | -9.70% | 61.30% |
* Technology Sector Average
PUBM
PubMatic
9.88
-1.53
-13.41%
API
Agora
3.81
0.26
7.32%
CMRC
Commerce.com
3.01
-1.88
-38.45%
SMRT
SmartRent
1.23
0.40
48.19%
DSP
Viant Technology
10.95
-2.95
-21.22%
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.