PubMatic reports Q2 2025 results with sustained growth in CTV and emerging revenue streams

Programmatic advertising technology company PubMatic Inc. announced its second quarter 2025 financial results on August 11, 2025, reporting revenue of $71.1 million and an adjusted EBITDA of $14.2 million. The company processed approximately 78 trillion impressions during the quarter, representing a 28% increase over the same period in 2024.

Revenue in the second quarter of 2025 was $71.1 million, an increase of 6% over $67.3 million in the same period of 2024, according to the company's quarterly report filed with the Securities and Exchange Commission on August 11, 2025. Adjusted EBITDA was $14.2 million, or 20% margin, compared to $21.1 million, or a 31% margin, in the same period of 2024.

The company faced headwinds from changes implemented by a major demand-side platform (DSP) partner during July, which impacted revenue expectations for the remainder of 2025. "Platform changes on their end are often done with limited visibility and create revenue headwinds for us while we take steps to mitigate them. The most recent example occurred just last month in July and will impact our revenue in the second half of this year as we work through mitigation initiatives", stated CEO Rajeev Goel during the earnings call.

Connected television (CTV) revenue demonstrated robust performance, with revenue from CTV growing over 50% year-over-year. The company now works with 26 of the top 30 global streaming companies, representing 87% coverage of leading streaming platforms. Revenue from omnichannel video, which includes CTV, grew 34% year-over-year and represented 41% of total revenue.

Supply Path Optimization (SPO) continued its expansion across PubMatic's platform activities. Supply Path Optimization represented 55%+ of total activity on our platform in Q2 2025, up from 51% a year ago. SPO enables publishers to optimize revenue streams through more efficient programmatic advertising transactions.

The company's Activate platform, which enables direct programmatic buying, showed significant sequential growth. Buying activity on Activate more than doubled sequentially in the second quarter over the first quarter. PayPal leveraged the platform "to combine their unique transaction-based audience data from over 430 million accounts with PubMatic's premium inventory to streamline campaign execution for advertisers across multiple formats including CTV".

Revenue diversification efforts accelerated during the quarter, with performance marketers and mid-tier DSPs showing substantial growth. Growth of 20%+ year over year in ad spend from performance marketers and mid-tier DSPs contributed to platform resilience amid broader market challenges.

The company launched several artificial intelligence-powered capabilities during the period. "Enhanced PubMatic Assistant, an AI-powered analytics engine, to allow publishers and buyers to access insights, troubleshoot issues, and guide campaign decisions through an intuitive, chat-based interface" was introduced alongside predictive diagnostics for yield optimization.

Infrastructure efficiency improvements enabled the company to process increased impression volumes while maintaining cost discipline. "Cost of revenue per million impressions processed decreased 20% on a trailing twelve month period, as compared to the prior period" despite the 28% increase in total impressions processed.

Financial performance metrics reflected the company's operational efficiency. GAAP net loss was $(5.2) million with a margin of (7)%, or $(0.11) per diluted share in the second quarter, while non-GAAP net income was $2.5 million, or $0.05 per diluted share. Operating cash flow reached $14.9 million, an increase over $11.9 million in the same period of 2024.

The company maintained its share repurchase program during the quarter. Through June 30, 2025, used $178.2 million to repurchase 12.2 million shares of Class A common stock, representing 24% of fully diluted shares as of the program's inception. The company ended the quarter with total cash, cash equivalents, and marketable securities of $117.6 million with no debt.

CFO Steve Pantelick outlined the company's third quarter 2025 outlook during the earnings call, projecting revenue between $61 million and $66 million, inclusive of impacts from the affected DSP partner. Adjusted EBITDA is expected to range from $7 million to $10 million, representing approximately a 13% margin at the midpoint.

The earnings results reflect broader trends in programmatic advertising markets documented by PPC Land coverage, where 72% of marketers plan to increase programmatic investment in 2025, with Connected TV's media budget share projected to double from 14% in 2023 to 28% in 2025.

PubMatic's strategic positioning in emerging growth areas aligns with industry developments covered by PPC Land analysis, showing European programmatic advertising's strong first-half 2025 performance and decisive shift toward outcome-driven campaigns.

The company's focus on artificial intelligence capabilities supports broader automation trends in programmatic advertising, as documented in recent PPC Land reporting on the launch of AI-powered live sports marketplace technology in July 2025.

Timeline

• August 11, 2025 - PubMatic announces Q2 2025 financial results with $71.1 million revenue and 20% adjusted EBITDA margin
• July 17, 2025 - PubMatic launches AI-powered Live Sports Marketplace with real-time game moment targeting
• July 2025 - Major DSP partner implements platform changes affecting PubMatic revenue expectations
• May 2025 - Board authorizes additional $100 million share repurchase program extension through December 2026
• Q2 2025 - Supply Path Optimization reaches 55%+ of total platform activity
• Q2 2025 - Activate platform buying activity more than doubles sequentially from Q1 2025
• First half 2025 - Live sports activity triples compared to same period in 2024
• Q1 2025 - Revenue decline but CTV growth exceeds 50% year-over-year

PPC Land explains

Supply Path Optimization (SPO): A programmatic advertising technology that enables publishers to optimize the flow of their ad inventory through the digital advertising ecosystem. SPO allows publishers to control which demand-side platforms can access their inventory, often through direct integrations or preferred partnerships. This technology helps reduce auction duplication, increases transparency, and typically results in higher revenue for publishers while providing advertisers with more efficient access to premium inventory. PubMatic's platform saw SPO represent 55% of total activity in Q2 2025, demonstrating the growing adoption of this efficiency-focused approach.

Connected TV (CTV): Refers to television content delivered through internet-connected devices rather than traditional cable or broadcast methods. This includes streaming services accessed through smart TVs, gaming consoles, streaming devices, and mobile devices. CTV advertising enables precise audience targeting and real-time measurement capabilities similar to digital advertising, while maintaining the visual impact and engagement of television advertising. The format has become a significant growth driver for programmatic platforms, with PubMatic reporting over 50% year-over-year revenue growth in this segment.

Adjusted EBITDA: A non-GAAP financial measure that stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, with additional adjustments for stock-based compensation and other one-time items. This metric helps investors evaluate a company's operational performance by removing the effects of financing decisions, accounting methods, and non-cash expenses. For technology companies like PubMatic, adjusted EBITDA provides insight into the underlying profitability of core business operations, with the company maintaining a 20% margin in Q2 2025.

Programmatic Advertising: An automated method of buying and selling digital advertising inventory using technology platforms and algorithms. This process enables real-time bidding on individual ad impressions, allowing advertisers to target specific audiences with precision while publishers can optimize revenue through efficient auction mechanisms. Programmatic advertising eliminates much of the manual negotiation and insertion order process traditional in media buying, enabling faster execution and data-driven optimization across multiple channels and formats.

Demand-Side Platform (DSP): A technology platform that enables advertisers and agencies to automatically purchase digital advertising inventory across multiple publishers and ad exchanges. DSPs use algorithms and data to make bidding decisions in real-time, evaluating each available impression based on targeting criteria, budget constraints, and performance goals. These platforms integrate with supply-side platforms like PubMatic to access inventory through programmatic auctions, though changes in DSP algorithms or partnerships can significantly impact SSP revenue streams.

Impressions: The basic unit of measurement in digital advertising, representing each instance when an advertisement is displayed to a user. An impression occurs when an ad loads on a webpage, mobile app, or connected TV interface, regardless of whether the user interacts with the advertisement. For programmatic platforms, impression volume indicates scale and reach capabilities, with PubMatic processing approximately 78 trillion impressions in Q2 2025, demonstrating the massive scale of modern digital advertising infrastructure.

Revenue: The total amount of money generated by a company from its business operations before deducting expenses. For PubMatic, revenue primarily comes from fees charged to publishers for using the platform to monetize their advertising inventory through programmatic auctions. Revenue growth indicates business expansion and market share gains, though it can be affected by factors including client mix changes, pricing pressures, and technological disruptions affecting major partnerships or market dynamics.

Quarter: A three-month period used for financial reporting, with Q2 referring to the second quarter covering April, May, and June. Quarterly reporting enables investors and stakeholders to track business performance trends and compare results across similar periods. For advertising technology companies, quarters often show seasonal patterns, with Q4 typically strongest due to holiday advertising spending, while Q1 may be weaker following post-holiday budget reductions.

Platform: In the context of advertising technology, refers to the integrated software infrastructure that enables automated buying, selling, and optimization of digital advertising inventory. PubMatic's platform combines supply-side technology, data management capabilities, reporting tools, and integration APIs to provide a comprehensive solution for publishers monetizing their digital properties. Modern advertising platforms increasingly incorporate artificial intelligence and machine learning to optimize performance and automate complex decision-making processes.

Company: PubMatic Inc., a publicly-traded independent technology company specializing in programmatic advertising infrastructure. Founded in 2006 and listed on NASDAQ under the symbol PUBM, the company provides supply-side platform services to publishers and app developers globally. As an independent company, PubMatic differentiates itself from larger advertising technology conglomerates by focusing specifically on publisher monetization and maintaining neutrality in the programmatic advertising ecosystem rather than competing directly with its clients.

Summary

Who: PubMatic Inc., a NASDAQ-listed independent technology company specializing in programmatic advertising supply chain solutions, led by CEO Rajeev Goel and CFO Steve Pantelick.

What: The company reported Q2 2025 financial results showing $71.1 million revenue (6% year-over-year growth), $14.2 million adjusted EBITDA (20% margin), and 78 trillion impressions processed while facing challenges from a major DSP partner's platform changes.

When: Results announced August 11, 2025, covering the quarter ended June 30, 2025, with guidance provided for Q3 2025 and impacts expected through the second half of 2025.

Where: The programmatic advertising technology platform operates globally, serving approximately 1,960 publishers and app developers worldwide while maintaining owned-and-operated infrastructure across multiple regions.

Why: The results demonstrate PubMatic's resilience in secular growth areas like Connected TV (50%+ growth) and emerging revenue streams amid programmatic advertising industry consolidation and platform changes affecting traditional DSP partnerships.