Revenue growth has turned negative at -2.0% in 2026Q1, while gross margins have compressed significantly to 58.3% from historical peaks above 70%.
| Sales/Revenue | 281.67M | 282.93M | 291.26M | 267.01M | 256.38M | 226.91M | 148.75M | 113.87M | 99.26M |
| Revenue Growth % | -2.33% | -2.86% | 9.08% | 4.15% | 12.99% | 52.55% | 30.63% | 14.72% | - |
| Cost of Goods Sold | 103.59M | 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 | 178.08M | 179.84M | 190.23M | 167.78M | 174.87M | 168.59M | 107.56M | 77.77M | 68.03M |
| Gross Margin % | 63.22% | 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 | 198.27M | 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 | 165.67M | 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 | 33.03M | 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 | -20.19M | -17.26M | 3.93M | 2.04M | 40.52M | 58.79M | 31.75M | 8.51M | 4.97M |
| Operating Margin % | -7.17% | -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 | 21.89M | 26.51M | 49.28M | 46.81M | 80.6M | 74.46M | 47.5M | 21.11M | 17.27M |
| EBITDA Margin % | 7.77% | 9.37% | 16.92% | 17.53% | 31.44% | 32.82% | 31.93% | 18.54% | 17.4% |
| EBITDA Growth % | -49.52% | -46.2% | 5.28% | -41.93% | 8.24% | 56.77% | 125.01% | 22.24% | - |
| D&A (Non-Cash Add-back) | 42.08M | 43.77M | 45.35M | 44.77M | 40.08M | 15.67M | 15.74M | 12.6M | 12.3M |
| EBIT | -18.86M | -15.95M | 3.93M | 2.04M | 37.47M | 58.79M | 31.75M | 9.22M | 5.63M |
| Net Interest Income | 3.79M | 0 | 8.48M | 8.83M | 2.21M | 300K | 537K | 1.29M | 877K |
| Interest Income | 3.79M | 0 | 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 | 450K | 1.3M | 13.85M | 8.47M | -3.05M | 6.01M | -175K | 713K | 662K |
| Pretax Income | -19.74M | -15.95M | 17.77M | 10.51M | 37.47M | 64.8M | 31.58M | 9.22M | 5.63M |
| Pretax Margin % | -7.01% | -5.64% | 6.1% | 3.93% | 14.61% | 28.56% | 21.23% | 8.1% | 5.67% |
| Income Tax | -2.25M | -1.49M | 5.27M | 1.62M | 8.76M | 8.2M | 4.97M | 2.58M | 1.21M |
| Effective Tax Rate % | 11.42% | 9.35% | 29.65% | 15.46% | 23.39% | 12.65% | 15.73% | 27.97% | 21.4% |
| Net Income | -17.49M | -14.46M | 12.5M | 8.88M | 28.7M | 56.6M | 26.61M | 6.64M | 4.42M |
| Net Margin % | -6.21% | -5.11% | 4.29% | 3.33% | 11.2% | 24.95% | 17.89% | 5.83% | 4.46% |
| Net Income Growth % | -419.55% | -215.66% | 40.79% | -69.06% | -49.29% | 112.69% | 300.62% | 50.12% | - |
| Net Income (Continuing) | -17.49M | -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) | -0.37 | -0.31 | 0.23 | 0.16 | 0.50 | 1.00 | 0.55 | 0.14 | 0.09 |
| EPS Growth % | -594.15% | -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 | 47.12M | 47.01M | 54.29M | 56.03M | 56.91M | 56.63M | 48.09M | 47.83M | 47.52M |
| Basic Shares Outstanding | 47.12M | 47.01M | 49.21M | 51.76M | 52.28M | 50.18M | 48.09M | 47.83M | 47.52M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Revenue growth and margin compression
As reported in recent financial statements, PubMatic's revenue growth has turned negative, with the company posting a -2.0% year-over-year decline in 2026Q1, signaling a persistent struggle to maintain momentum in a competitive programmatic advertising landscape that continues to face significant macroeconomic and structural headwinds.
The transition from positive growth in early 2024 to consistent contraction suggests that the company is losing its ability to capture incremental ad spend. This trend warrants further investigation into whether the decline is driven by broader industry cyclicality or a loss of market share to larger, more diversified competitors.
Based on the latest quarterly data, PubMatic's gross margin has compressed to 58.3% in 2026Q1, down from historical peaks above 70%, reflecting the high fixed-cost nature of its proprietary infrastructure which fails to provide operating leverage during periods of declining platform throughput.
The inability to maintain gross margins above 60% suggests that the company's owned-infrastructure model may be becoming a liability rather than a competitive advantage. Investors should monitor whether this margin compression is a permanent shift or a temporary byproduct of lower utilization rates across its data centers.
According to recent SEC filings, PubMatic's operating margin plummeted to -23.7% in 2026Q1, illustrating a severe lack of operating leverage as the company's fixed operating expenses continue to outpace its declining revenue base, creating a challenging path back to sustained profitability for the firm.
The divergence between revenue and operating expenses indicates that management has not yet successfully rationalized the cost structure to match the current lower-growth environment. This negative leverage suggests that the company is currently burning through capital to maintain its operational footprint, which may be unsustainable if revenue trends do not reverse.
As evidenced by the provided income statement data, PubMatic consistently records significant stock-based compensation expenses, with $8.5M reported in 2026Q1 alone, which effectively obscures the true extent of the company's GAAP net losses and complicates the assessment of its underlying operational profitability.
The reliance on equity-based compensation as a significant portion of operating expenses suggests that GAAP earnings may be consistently overstated relative to cash-based performance. Analysts should adjust for these non-cash charges to determine the actual cash-burn rate and the true economic viability of the current business model.
While PubMatic's proprietary infrastructure is often cited as a competitive moat, the recent financial performance suggests that this high fixed-cost base may be a significant risk factor, as the company lacks the flexibility to scale down costs in response to the current -2.86% revenue contraction.
Short-sellers would likely focus on the risk that the company's capital-intensive model is ill-suited for a market where ad-tech budgets are increasingly volatile. The lack of operating flexibility appears to be a primary driver of the current negative earnings, raising questions about the company's ability to survive a prolonged downturn.
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.