Revenue growth turned positive at 10.5% in Q2 2026, with gross margin expanding to 67.1% and operating income swinging to a positive $579K, though SBC of $8.3M still exceeds operating income.
PubMatic, Inc. (PUBM) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 289.17M | 282.93M | 291.26M | 267.01M | 256.38M | 226.91M | 148.75M | 113.87M | 99.26M |
| Revenue Growth % | -1.04% | -2.86% | 9.08% | 4.15% | 12.99% | 52.55% | 30.63% | 14.72% | - |
| Cost of Goods Sold | 102.86M | 103.08M | 101.03M | 99.23M | 81.51M | 58.31M | 41.19M | 36.1M | 31.23M |
| COGS % of Revenue | - | 36.44% | 34.69% | 37.16% | 31.79% | 25.7% | 27.69% | 31.71% | 31.47% |
| Gross Profit | 186.31M | 179.84M | 190.23M | 167.78M | 174.87M | 168.59M | 107.56M | 77.77M | 68.03M |
| Gross Margin % | 64.43% | 63.56% | 65.31% | 62.84% | 68.21% | 74.3% | 72.31% | 68.29% | 68.53% |
| Gross Profit Growth % | - | -5.46% | 13.38% | -4.05% | 3.72% | 56.74% | 38.31% | 14.31% | - |
| Operating Expenses | 200.46M | 197.1M | 186.3M | 165.75M | 134.35M | 109.81M | 75.81M | 69.26M | 63.06M |
| OpEx % of Revenue | - | 69.66% | 63.97% | 62.08% | 52.4% | 48.39% | 50.96% | 60.82% | 63.53% |
| Selling, General & Admin | 167.83M | 163.28M | 153.04M | 139.02M | 113.5M | 93.92M | 63.56M | 56.8M | 50.44M |
| SG&A % of Revenue | - | 57.71% | 52.54% | 52.07% | 44.27% | 41.39% | 42.73% | 49.89% | 50.82% |
| Research & Development | 33.07M | 33.82M | 33.26M | 26.73M | 20.85M | 15.88M | 12.25M | 12.45M | 12.62M |
| R&D % of Revenue | - | 11.95% | 11.42% | 10.01% | 8.13% | 7% | 8.24% | 10.94% | 12.71% |
| Other Operating Expenses | -438K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -215K |
| Operating Income | -14.15M | -17.26M | 3.93M | 2.04M | 40.52M | 58.79M | 31.75M | 8.51M | 4.97M |
| Operating Margin % | -4.89% | -6.1% | 1.35% | 0.76% | 15.8% | 25.91% | 21.35% | 7.47% | 5% |
| Operating Income Growth % | - | -539.5% | 92.88% | -94.98% | -31.08% | 85.13% | 273.19% | 71.28% | - |
| EBITDA | 36.06M | 26.51M | 49.28M | 46.81M | 80.6M | 74.46M | 47.5M | 21.11M | 17.27M |
| EBITDA Margin % | 12.47% | 9.37% | 16.92% | 17.53% | 31.44% | 32.82% | 31.93% | 18.54% | 17.4% |
| EBITDA Growth % | -14.97% | -46.2% | 5.28% | -41.93% | 8.24% | 56.77% | 125.01% | 22.24% | - |
| D&A (Non-Cash Add-back) | 50.22M | 43.77M | 45.35M | 44.77M | 40.08M | 15.67M | 15.74M | 12.6M | 12.3M |
| EBIT | -11.79M | -15.95M | 17.77M | 10.51M | 37.47M | 64.8M | 31.75M | 9.22M | 5.63M |
| Net Interest Income | 4.91M | 5.46M | 8.48M | 8.83M | 2.21M | 300K | 537K | 1.29M | 877K |
| Interest Income | 4.91M | 5.46M | 8.48M | 8.83M | 2.21M | 300K | 537K | 1.29M | 877K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 2.36M | 1.3M | 13.85M | 8.47M | -3.05M | 6.01M | -175K | 713K | 662K |
| Pretax Income | -11.79M | -15.95M | 17.77M | 10.51M | 37.47M | 64.8M | 31.58M | 9.22M | 5.63M |
| Pretax Margin % | -4.08% | -5.64% | 6.1% | 3.93% | 14.61% | 28.56% | 21.23% | 8.1% | 5.67% |
| Income Tax | 1.69M | -1.49M | 5.27M | 1.62M | 8.76M | 8.2M | 4.97M | 2.58M | 1.21M |
| Effective Tax Rate % | -14.33% | 9.35% | 29.65% | 15.46% | 23.39% | 12.65% | 15.73% | 27.97% | 21.4% |
| Net Income | -13.48M | -14.46M | 12.5M | 8.88M | 28.7M | 56.6M | 26.61M | 6.64M | 4.42M |
| Net Margin % | -4.66% | -5.11% | 4.29% | 3.33% | 11.2% | 24.95% | 17.89% | 5.83% | 4.46% |
| Net Income Growth % | -689.69% | -215.66% | 40.79% | -69.06% | -49.29% | 112.69% | 300.62% | 50.12% | - |
| Net Income (Continuing) | -13.48M | -14.46M | 12.5M | 8.88M | 28.7M | 56.6M | 26.61M | 6.64M | 4.42M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.29 | -0.31 | 0.23 | 0.16 | 0.50 | 1.00 | 0.55 | 0.14 | 0.09 |
| EPS Growth % | -337.32% | -234.78% | 43.75% | -68% | -50% | 81.82% | 292.86% | 50.38% | - |
| EPS (Basic) | - | -0.31 | 0.25 | 0.17 | 0.55 | 1.13 | 0.55 | 0.14 | 0.09 |
| Diluted Shares Outstanding | 46.11M | 47.01M | 54.29M | 56.03M | 56.91M | 56.63M | 48.09M | 47.83M | 47.52M |
| Basic Shares Outstanding | 46.11M | 47.01M | 49.21M | 51.76M | 52.28M | 50.18M | 48.09M | 47.83M | 47.52M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying PUBM stock.
For fiscal year 2025, PubMatic, Inc. (PUBM) reported total revenue of $282.9M. This represents a 185.0% increase compared to $99.3M in 2018.
PubMatic, Inc. (PUBM) reported a net loss of $14.5M for the fiscal year ending 2025.
PubMatic, Inc. (PUBM) reported an operating income of $-17.3M, resulting in an operating profit margin of -6.1%. This margin reflects the operational efficiency of the business before interest and taxes.
PubMatic, Inc. (PUBM) generated $179.8M in gross profit for the year, representing a gross profit margin of 63.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Sustained profitability at scale
Metrics are mathematically derived from official filings.
Inflection in Revenue Trajectory
Revenue growth turned positive at 10.5% in Q2 2026, reversing four quarters of contraction, according to the latest income statement data, suggesting a potential cyclical recovery in ad spend.
After four consecutive quarters of negative year-over-year growth, Q2 2026 revenue jumped to $78.6M, a 10.5% increase, marking a clear inflection. This acceleration appears driven by strength in CTV and mobile app, as management highlighted, though the sustainability of this growth is uncertain given the modest forward guidance of $75M-$77M. The sequential improvement from Q1 2026's $62.6M is notable, but investors should monitor whether this is a seasonal blip or a durable trend.
Gross Margin Recovery Amidst Mix Shift
Gross margin expanded to 67.1% in Q2 2026 from 58.3% in Q1, reflecting a favorable mix shift toward higher-value formats, as reported in the quarterly financials.
The 840 basis point sequential gross margin improvement suggests that the revenue mix is shifting toward CTV and video, which typically carry higher margins. However, the gross margin remains below the 70.8% peak seen in Q4 2024, indicating that the company has not fully regained its pricing power. The fixed-cost nature of its owned infrastructure means that volume recovery is critical to sustaining margin expansion, and the current level still lags peers like The Trade Desk (78.6%).
Operating Leverage Finally Materializing
Operating income swung to a positive $579K in Q2 2026 from a -$14.8M loss in Q1, as revenue growth outpaced cost increases, per the income statement data.
The dramatic swing in operating margin from -23.7% to +0.7% demonstrates the high operating leverage inherent in PubMatic's model. With revenue up 25.6% sequentially, operating expenses grew only modestly, allowing fixed infrastructure costs to be spread over a larger base. However, the operating margin is still razor-thin, and the company has not yet achieved the double-digit operating margins seen in Q4 2024 (10.6%), suggesting that cost discipline remains critical.
SBC Masks Underlying Profitability
Stock-based compensation of $8.3M in Q2 2026 exceeded operating income, indicating that GAAP profitability is still elusive, as disclosed in the financial statements.
Despite the positive operating income, net income remained negative at -$1.2M, largely due to the $8.3M in stock-based compensation. This highlights that the company's adjusted profitability metrics likely diverge significantly from GAAP results. Investors should adjust for SBC when valuing the company, as it represents a real economic cost to shareholders. The persistent SBC expense, which has remained above $8M for the past year, suggests that management is using equity as a significant component of compensation.
Cost Structure Shows Inflexibility
SG&A expenses remained elevated at $43.0M in Q2 2026, nearly unchanged from Q1, despite a 25.6% revenue increase, based on the quarterly income statement.
The stability of SG&A costs despite the revenue surge indicates that the company has not aggressively cut overhead, which is positive for scaling but also suggests that costs may be sticky in a downturn. R&D spending increased to $9.1M, reflecting continued investment in products like AgenticOS and Identity Hub. The cost of revenue, however, declined slightly to $25.9M, which is encouraging as it suggests that the company is not incurring variable costs proportional to revenue growth, a benefit of its owned infrastructure.
Sustainability of the Turnaround Questioned
Despite the Q2 2026 beat, trailing twelve-month operating margin remains negative at -6.1%, and the modest guidance range suggests management's confidence is limited, per the latest earnings release.
Short-sellers would point to the fact that the company has only achieved one quarter of positive operating income in the last five quarters, and the forward guidance of $75M-$77M implies a sequential decline from Q2's $78.6M. This suggests that the Q2 surge may be a one-off, possibly driven by seasonal ad spend or a single large client. Additionally, the negative net margin over the trailing twelve months indicates that the company has not yet proven it can sustain profitability, and the high fixed-cost base could lead to margin compression if revenue growth stalls again.