PubMatic (PUBM) Q2 2026 earnings summary

Executive summary

• Achieved 11% year-over-year revenue growth in Q2 2026, returning to double-digit growth ahead of schedule, with adjusted EBITDA up 38% and free cash flow up 47% compared to Q2 2025.

• AI-powered ad tech platform and rapid adoption of agentic solutions drove measurable performance improvements, with over 80 campaigns and 4,000+ AI-powered deals in Q2.

• CTV, mobile app, and emerging revenues accounted for ~60% of total revenue, nearly double the share from three years ago, with significant growth in live sports marketplace and creator-led video.

• Leadership transitions announced: CFO Steve Pantelick to retire in 2027, with a new global chief revenue officer joining; Chief Growth Officer Paulina Klimenko to depart in July 2026.

• Platform enhancements, including Decision Fabric, AgenticOS, and creator marketplace, are expanding addressable markets and attracting new advertiser categories.

Financial highlights

• Q2 2026 revenue: $78.6M, up 11% year-over-year; adjusted EBITDA: $19.6M (25% margin), up from $14.2M (20% margin) in Q2 2025; free cash flow: $13.7M, up 47% year-over-year.

• GAAP net loss was $1.2M (margin of -1%), improved from $5.2M loss in Q2 2025.

• Cash, cash equivalents, and marketable securities totaled $137.5M at Q2 2026; no debt.

• Share repurchase program ongoing: 2.1M shares repurchased in Q2 2026 for $21.5M; 15.5M shares repurchased since 2023 using $211.4M; $63.6M remains authorized.

• Gross margin for Q2 2026 was 67%, up from 63% in Q2 2025.

Outlook and guidance

• Q3 2026 revenue guidance: $75M–$77M (10%–13% year-over-year growth); adjusted EBITDA expected between $17M–$19M, with negative FX impact expected.

• Q4 adjusted EBITDA margin expected to match last year, supporting full-year margin expansion.

• Full-year CapEx outlook raised to $20M–$25M to support AI infrastructure and innovation.

• Political advertising expected to ramp in Q4, though not to 2024 levels.

• Company believes existing liquidity and cash flow from operations are sufficient for at least the next 12 months.