PubMatic (PUBM) Q2 2026 earnings summary

Executive summary

• Achieved 11% year-over-year revenue growth in Q2 2026, with adjusted EBITDA up 38% to $19.6 million and free cash flow up 47%, driven by AI-powered innovation and diversification into CTV, mobile app, and emerging channels, which now account for ~60% of revenue.

• Gross margin increased to 67% from 63% year-over-year, with net loss narrowing to $1.2 million, a significant improvement from a $5.2 million loss in Q2 2025.

• AI customer adoption more than doubled sequentially, with over 4,000 AI-powered deals and 80+ agentic campaigns since January.

• Leadership transitions announced: CFO Steve Pantelick to retire in 2027, with a new global chief revenue officer joining and Chief Growth Officer Paulina Klimenko departing in July 2026.

• Repurchased 2.1 million shares in Q2 2026, totaling 15.5 million shares since 2023 for $211.4 million; $63.6 million remains authorized through 2026.

Financial highlights

• Q2 2026 revenue reached $78.6 million, up 11% year-over-year; adjusted EBITDA was $19.6 million (25% margin); free cash flow was $13.7 million (17% margin); GAAP net loss was $1.2 million, or minus $0.03 per diluted share.

• Gross profit rose 19% year-over-year; gross margin for Q2 2026 was 67%.

• Generated $20.2 million in net operating cash flows, up 36% year-over-year; ended Q2 with $137.5 million in cash and marketable securities and zero debt.

• Operating income for Q2 2026 was $0.6 million, compared to a loss of $5.5 million in Q2 2025.

• Non-GAAP net income for Q2 2026 was $5.9 million ($0.12 per diluted share), up from $2.5 million ($0.05) in Q2 2025.

Outlook and guidance

• Q3 2026 revenue expected at $75–$77 million (10%–13% growth); adjusted EBITDA guidance of $17–$19 million, with margin of 23%–25%.

• Full-year CapEx outlook raised to $20–$25 million to support AI infrastructure and innovation, with anticipated payback in 12 months or less.

• Continued double-digit revenue growth and margin expansion expected for the remainder of the year.

• Cost of revenue and operating expenses expected to increase due to ongoing investments in technology, sales, and marketing.

• Existing liquidity and cash flow from operations are believed sufficient for at least the next 12 months.