Pubmatic 2025 Q2 Earnings Sharp Loss Amid Revenue Growth

Pubmatic(PUBM) reported its fiscal 2025 Q2 earnings on Aug 11th, 2025. The company exceeded revenue expectations with a 5.7% year-over-year increase but swung to a net loss, missing profitability benchmarks. Management maintained guidance for ongoing strategic investments but did not raise full-year expectations.

Revenue
The total revenue of Pubmatic increased by 5.7% to $71.09 million in 2025 Q2, up from $67.27 million in 2024 Q2.

Earnings/Net Income
Pubmatic swung to a loss of $0.11 per share in 2025 Q2 from a profit of $0.04 per share in 2024 Q2 (375.0% negative change). Meanwhile, the company reported a net loss of $-5.21 million in 2025 Q2, reflecting a 364.2% deterioration from the net income of $1.97 million achieved in 2024 Q2. This marked a record low for the company, underscoring a significant earnings shortfall.

Price Action
The stock price of Pubmatic has dropped 3.65% during the latest trading day, has tumbled 9.43% during the most recent full trading week, and has plummeted 22.68% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Pubmatic (PUBM) shares after its revenue increased quarter-over-quarter on the financial report release date and holding for 30 days resulted in a significant loss. Over the past three years, the strategy returned -99.47%, underperforming the benchmark by 148.07%. The Sharpe ratio of -0.35 indicated a negative risk-adjusted return, while the maximum drawdown of 0.00% highlighted the strategy's inability to mitigate losses.

CEO Commentary
Rajeev Goel, CEO of PubMatic, highlighted a strong second quarter with revenue and adjusted EBITDA exceeding guidance. He emphasized growth in omnichannel video, CTV revenue up over 50% YoY, and SPO representing 55%+ of total activity. The CEO noted that the ad tech industry is at an inflection point with AI reshaping programmatic advertising, positioning PubMatic’s AI-powered platform as a competitive advantage. Strategic priorities include diversifying the DSP mix, advancing leadership in CTV, and investing in high-growth areas, reflecting an optimistic outlook on long-term growth and market share.

Guidance
The company reported Q2 2025 revenue of $71.1 million, up 6% YoY from $67.3 million, with adjusted EBITDA of $14.2 million (20% margin), compared to $21.1 million (31% margin) in Q2 2024. GAAP net loss was $(5.2) million, or $(0.11) per diluted share, compared to net income of $2.0 million, or $0.04 per diluted share, in the same period last year. Net dollar-based retention for the trailing twelve months was 102%, down from 108% a year ago.

Additional News
In a separate announcement unrelated to earnings, *Online Edition Shanghai Daily* launched new subscription packages for its digital and print products. With a digital subscription, readers gain unlimited access to current stories and archives, along with real-time downloadable PDF files of the newspaper. Subscribers also receive breaking news updates not included in the print edition. Subscription to the online edition is non-refundable, and print editions are available only through a separate purchase. The packages range from one month to twelve months, with options combining print and digital access. Pricing varies, with digital subscriptions starting at RMB 100 or USD 16.99.