PubMatic surged 43.4% intraday following the release of Q3 2025 financial results that exceeded guidance, with revenue of $68 million (6% above estimates) and adjusted EBITDA of $11.2 million (16% margin). The company highlighted 50%+ year-over-year CTV revenue growth (excluding political advertising), AI-driven operational improvements (e.g., 87% faster campaign setup), and a 25% increase in mid-market DSP ad spend. Analysts upgraded price targets to $12–$13, citing the AI-NVIDIA partnership and margin expansion potential. Despite a 5.3% YoY revenue decline due to lower political ad volume, the earnings beat and strategic AI/CTV momentum fueled investor optimism, reversing prior-year declines and positioning the stock for 2026 growth expectations.
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