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PubMatic
(NASDAQ:PUBM)
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Rating:72Outperform
Price Target:
$15.00
▲(19.81% Upside)
Action:Upgraded
Date:08/07/26
The score is driven primarily by solid cash generation and a strong balance sheet, reinforced by an upbeat earnings call with supportive growth and margin guidance. Technicals are constructive and trend-positive, while valuation remains a key drag due to ongoing GAAP losses and a negative P/E.
Positive Factors
Strong cash generation
Sustained, sizable operating cash flow and rising free cash flow provide durable financial flexibility to fund AI infrastructure, buybacks, and product development without relying on external financing. Over 2–6 months this supports execution of strategic initiatives and cushions margin variability from cyclical ad demand.
Negative Factors
GAAP profitability weakness
Persistent GAAP losses and negative EBIT signal a gap between adjusted results and reported profitability. Over a 2–6 month horizon, converting adjusted EBITDA into sustained GAAP profits is necessary to restore returns and justify continued buybacks and reinvestment without eroding equity value.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained, sizable operating cash flow and rising free cash flow provide durable financial flexibility to fund AI infrastructure, buybacks, and product development without relying on external financing. Over 2–6 months this supports execution of strategic initiatives and cushions margin variability from cyclical ad demand.
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
$824.77M
Dividend YieldN/A
Average Volume (3M)517.23K
Price to Earnings (P/E)―
Beta (1Y)1.55
Revenue Growth-1.04%
EPS Growth-710.67%
CountryUS
Employees1,030
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.30
Shares Outstanding37,303,646
10 Day Avg. Volume466,119
30 Day Avg. Volume517,227
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$20.22Price Target Upside61.52% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)-0.14
Revenue Forecast (FY)$306.28M
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 facilitating programmatic advertising transactions on behalf of publishers and charging fees based on the media that flows through its platform. Its core revenue stream is a percentage of the gross spend transacte...
PubMatic Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives: return to double-digit revenue growth, robust adjusted EBITDA and free cash flow expansion, rapid adoption of AI and agentic products, improved monetization and premium supply wins, and a debt-free balance sheet with active buybacks. Near-term negatives are limited to a small GAAP loss, selective vertical softness, increased near-term CapEx and OpEx related to AI infrastructure investments, the early-stage nature of agentic market adoption (execution risk), and ongoing macro/legal uncertainties (e.g., DOJ case). Overall, the positives materially outweigh the lowlights and indicate strong momentum and confidence in durable growth driven by AI-native products and platform advantages.Positive Updates
Return to Double-Digit Revenue Growth
Revenue grew 11% year-over-year in Q2 2026, marking a return to double-digit YoY growth ahead of schedule, with management expecting growth to accelerate through the second half of the year and Q3 revenue guidance of $75M–$77M (~12% growth at the midpoint).
Negative Updates
Modest GAAP Loss Despite Adjusted Profitability
Company reported a small GAAP net loss of $1.2M (‑$0.03 per diluted share) in Q2, even as adjusted EBITDA was positive and growing—highlighting the gap between GAAP and non‑GAAP results.
Read all updates
Q2-2026 Updates
Positive
Negative
Return to Double-Digit Revenue Growth
Revenue grew 11% year-over-year in Q2 2026, marking a return to double-digit YoY growth ahead of schedule, with management expecting growth to accelerate through the second half of the year and Q3 revenue guidance of $75M–$77M (~12% growth at the midpoint).
Read all positive updates
Company Guidance
PubMatic guided Q3 revenue of $75.0–$77.0 million (about 12% year‑over‑year growth at the midpoint) with Q3 adjusted EBITDA of $17–$19 million; they expect cost of revenue and operating expenses to rise by a low‑single‑digit percentage sequentially in Q3, continued double‑digit revenue growth into the second half, Q4 adjusted EBITDA margin to be similar to last year’s Q4 (driving meaningful full‑year margin expansion), and they raised full‑year CapEx to $20–$25 million to support AI/NVIDIA investments (expected to generate incremental revenue with a payback of ~12 months or less).PubMatic Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 289.17M | 282.93M | 291.26M | 267.01M | 256.38M | 226.91M |
| Gross Profit | 186.31M | 179.84M | 190.23M | 167.78M | 174.87M | 168.59M |
| EBITDA | 38.42M | 27.82M | 63.13M | 55.27M | 77.55M | 80.48M |
| Net Income | -13.48M | -14.46M | 12.50M | 8.88M | 28.70M | 56.60M |
Balance Sheet | ||||||
| Total Assets | 700.04M | 680.20M | 739.52M | 695.24M | 642.17M | 550.22M |
| Cash, Cash Equivalents and Short-Term Investments | 137.51M | 145.52M | 140.59M | 175.34M | 174.40M | 159.63M |
| Total Debt | 40.64M | 43.86M | 45.38M | 28.21M | 26.59M | 25.69M |
| Total Liabilities | 461.31M | 417.61M | 462.26M | 399.04M | 329.99M | 293.04M |
| Stockholders Equity | 238.73M | 262.59M | 277.26M | 296.20M | 312.19M | 257.18M |
Cash Flow | ||||||
| Free Cash Flow | 46.94M | 66.71M | 34.90M | 52.83M | 38.32M | 49.32M |
| Operating Cash Flow | 88.04M | 81.06M | 73.42M | 81.12M | 87.21M | 88.68M |
| Investing Cash Flow | -27.87M | 6.07M | 22.31M | -39.02M | -81.37M | -96.72M |
| Financing Cash Flow | -30.18M | -42.73M | -73.48M | -55.98M | 4.04M | 9.36M |
PubMatic Technical Analysis
Positive
12.52
Price Trends
12.86
Positive
11.14
Positive
9.67
Positive
Market Momentum
1.04
Negative
80.00
Negative
88.16
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 12.52 is below the 20-day moving average (MA) of 13.73, below the 50-day MA of 12.86, and above the 200-day MA of 9.67, indicating a bullish trend. The MACD of 1.04 indicates Negative momentum. The RSI at 80.00 is Negative, neither overbought nor oversold. The STOCH value of 88.16 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $824.77M | -58.83 | -5.41% | ― | -1.04% | -710.67% | |
71 Outperform | $923.37M | 102.49 | 6.87% | ― | 21.99% | 271.66% | |
67 Neutral | $427.34M | 40.96 | 1.82% | ― | 9.23% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $174.83M | -30.54 | -12.79% | ― | 2.77% | 68.74% | |
55 Neutral | $260.59M | -14.04 | -8.50% | ― | -2.78% | 72.47% |
* Technology Sector Average
PUBM
PubMatic
17.65
9.31
111.63%
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4.67
0.85
22.25%
CMRC
Commerce.com
2.25
-2.06
-47.80%
SMRT
SmartRent
1.41
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3.68%
DSP
Viant Technology
13.19
3.45
35.42%
PubMatic Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial Disclosures
PubMatic Announces CFO Retirement Amid Strong Q2 Results
Positive
Aug 6, 2026
On August 6, 2026, PubMatic reported second-quarter 2026 results that showed an 11% year-over-year rise in revenue to $78.6 million, a narrowed GAAP net loss and a 38% increase in adjusted EBITDA to $19.6 million, with free cash flow up 47%. CTV, ...
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.