PubMatic Q4 Adjusted EBITDA Reaches $27.8M with CTV Up 50%
PubMatic’s emerging revenues, including AI solutions and Commerce Media, nearly doubled in 2025 to approach 10% of total revenue, while CTV sales grew over 50% year-over-year and comprised almost half of full-year revenue. Adjusted Q4 EBITDA reached $27.8 million (35% margin) with GAAP net income of $6.7 million.
1. Revenue Mix and Growth
PubMatic ended 2025 with nearly 50% of revenue generated from CTV, mobile app, and emerging segments. CTV grew over 50% year-over-year excluding political ads, mobile app revenue rose more than 25% in Q4, and emerging revenues represented 12% of Q4 sales after growing over 75% year-over-year.
2. Profitability and Margin
Adjusted EBITDA for Q4 was $27.8 million, representing a 35% margin despite a $0.5 million foreign exchange headwind. GAAP net income was $6.7 million, or $0.14 per diluted share, as operating expenses remained flat while the company expanded its sales team by nearly 20%.
3. AI and Emerging Streams
Emerging revenue streams—including Activate, Commerce Media, and new AI solutions—nearly doubled versus 2024, approaching 10% of total revenue. PubMatic has run over 250 agentic AI campaigns, launched the Agentic OS with major partners, and forecasts agentic execution to account for 25% of digital advertising by 2028.
4. Cash Flow, Buybacks, and Outlook
PubMatic generated $81 million in net operating cash flow in 2025 (up 10%) and $46 million in free cash flow (up 32%), finishing Q4 with $145.5 million in cash and no debt. The company repurchased $181.1 million of shares through year-end, with $93.9 million remaining, and guided Q1 revenue to $58–60 million and adjusted EBITDA to between negative $0.5 million and $1 million.