PubMatic, Inc. Q2 2025 Earnings Recap

PubMatic reported strong second-quarter results with a 6% year-over-year revenue growth, led by a notable 19% increase in its core business, driven by CTV and emerging revenue streams.

Key Takeaways

• Adjusted EBITDA margin remained robust at 20%, marking the 37th consecutive quarter of profitability.
• CTV revenue now accounts for nearly 20% of total revenue, with significant partnerships established among top global streaming services.
• Revenue growth is being hampered by recent changes among legacy DSP partners, affecting earnings visibility moving into the second half of 2025.
• There is strong momentum in diversifying the DSP mix, with newer DSPs posting ad spend growth rates exceeding 20%.
• Investments continue in AI and software optimizations to enhance operational efficiencies and accelerate growth in emerging segments.