PUBM

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at advertising software stocks, starting with PubMatic (NASDAQ:PUBM). The digital advertising market is large, growing, and becoming more diverse, both in terms of audiences and media. As a result, there is a growing need for software that enables advertisers to use data to automate and optimize ad placements. The 6 advertising software stocks we track reported a slower Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 2.6% below. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Powering billions of daily ad impressions across the open internet, PubMatic (NASDAQ:PUBM) operates a technology platform that helps publishers maximize revenue from their digital advertising inventory while giving advertisers more control and transparency. PubMatic reported revenues of $78.59 million, up 10.5% year on year. This print exceeded analysts’ expectations by 13.7%. Overall, it was an incredible quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations and revenue guidance for next quarter exceeding analysts’ expectations. PubMatic scored the biggest analyst estimate beat and highest guidance raise in the group. Unsurprisingly, the stock is up 20.6% since reporting and currently trades at $16.26. Is now the time to buy PubMatic? Access our full analysis of the earnings results here, it’s free. Powered by an AI engine that processes over one trillion consumer signals monthly, Zeta Global (NYSE:ZETA) operates a data-driven cloud platform that helps companies target, connect, and engage with consumers through personalized marketing across channels like email, social media, and video. Zeta Global reported revenues of $442.8 million, up 43.5% year on year, outperforming analysts’ expectations by 5.2%. The business had a very strong quarter with an impressive beat of analysts’ billings estimates and full-year EBITDA guidance beating analysts’ expectations. The market seems happy with the results as the stock is up 17.8% since reporting. It currently trades at $28.58. Is now the time to buy Zeta Global? Access our full analysis of the earnings results here, it’s free. Using advanced analytics to evaluate over 17 billion digital ad transactions daily, DoubleVerify (NYSE:DV) provides AI-powered technology that verifies digital ads are viewable, fraud-free, brand-suitable, and displayed in the intended geographic location. DoubleVerify reported revenues of $193.8 million, up 2.5% year on year, falling short of analysts’ expectations by 4.2%. It was a disappointing quarter, leaving some shareholders looking for more. DoubleVerify delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 13.6% since the results and currently trades at $13.30. Read our full analysis of DoubleVerify’s results here. Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ:TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices. The Trade Desk reported revenues of $715.1 million, up 3% year on year. This number missed analysts’ expectations by 4.9%. Overall, it was a disappointing quarter as it also logged revenue guidance for next quarter missing analysts’ expectations significantly and EBITDA guidance for next quarter missing analysts’ expectations significantly. The Trade Desk had the weakest performance against analyst estimates and weakest guidance update in the group. The stock is down 25.9% since reporting and currently trades at $13.09. Read our full, actionable report on The Trade Desk here, it’s free. Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ:APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools. AppLovin reported revenues of $1.92 billion, up 52.8% year on year. This result lagged analysts’ expectations by 1.2%. It was a softer quarter as it also recorded revenue guidance for next quarter slightly missing analysts’ expectations and EBITDA guidance for next quarter slightly missing analysts’ expectations. AppLovin scored the fastest revenue growth among its peers. The stock is down 25.6% since reporting and currently trades at $310.98. Read our full, actionable report on AppLovin here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

PubMatic’s second quarter results were well received by the market, as the company’s return to double-digit revenue growth surpassed analyst expectations. Management attributed this momentum to increased adoption of its agentic advertising platform, AgenticOS, and ongoing diversification into channels like connected TV (CTV) and mobile app. CEO Rajeev Goel highlighted the impact of these investments, noting that “approximately 60% of our business comes from CTV, mobile app and emerging revenues, all of which fuel profitable double-digit growth.” The company’s ability to leverage its AI-native infrastructure and proprietary data was cited as a key factor in delivering improved performance for advertisers. Is now the time to buy PUBM? Find out in our full research report (it’s free). Revenue: $78.59 million vs analyst estimates of $69.15 million (10.5% year-on-year growth, 13.7% beat) Adjusted EPS: $0.12 vs analyst estimates of -$0.01 (significant beat) Adjusted EBITDA: $19.62 million vs analyst estimates of $9.06 million (25% margin, significant beat) Revenue Guidance for Q3 CY2026 is $76 million at the midpoint, above analyst estimates of $70.84 million EBITDA guidance for Q3 CY2026 is $18 million at the midpoint, above analyst estimates of $10.91 million Operating Margin: 0.7%, up from -7.7% in the same quarter last year Market Capitalization: $782.8 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Shweta Khajuria (Wolfe Research) asked about the durability of recent growth and what is driving it. CEO Rajeev Goel emphasized the structural shift toward agentic advertising and PubMatic’s unique AI-native infrastructure, citing early but accelerating adoption as a sign of sustainable growth. Robert Coolbrith (Wells Fargo) inquired about the pace and depth of AgenticOS adoption. Goel described the current phase as early adoption, with repeat buyers ramping up campaign size quickly and projecting that half of the ecosystem could be agentic by 2030. Naved Khan (B. Riley) questioned how AgenticOS monetization works. CFO Steven Pantelick explained that the platform generates new buying fees and retains a larger share of ad spend within PubMatic’s ecosystem, fueling both top-line and margin growth. Eric Martinuzzi (Lake Street) sought clarification on the recovery from past DSP disruptions and vertical performance. Pantelick pointed to strong diversification across DSPs and verticals, with mobile app, CTV, and emerging revenues all outperforming prior expectations. James Heaney (Jefferies) asked about PubMatic’s partnership with Roku and broader trends in CTV supply. Goel highlighted expanding relationships with streaming platforms and the shift from walled gardens to more open monetization strategies, citing new deals with Sony and Channel 4 as examples. In future quarters, the StockStory team will be monitoring (1) adoption rates and revenue impact from new AI-powered products like Decision Fabric and expanded AgenticOS capabilities, (2) the scale and profitability of new publisher partnerships and the creator marketplace, and (3) operational efficiency gains from automation and AI. Additional attention will be paid to the influence of political advertising on revenue and further diversification within digital ad verticals. PubMatic currently trades at $17.10, up from $13.48 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, August 6, 2026 at 4:30 p.m. ET Co-Founder and Chief Executive Officer - Rajeev Goel Chief Financial Officer - Steven Pantelick Operator: Hello, everyone, and welcome to PubMatic Second Quarter 2026 Earnings Call. My name is Annabeth, and I will be your Zoom operator today. Thank you for your attendance today. As a reminder, this webinar is being recorded. I will now turn the call over to Stacie Clements. Stacie Clements: Good afternoon, everyone, and welcome to PubMatic's earnings call for the second quarter of 2026. This is Stacie Clements, and I'll be your operator today. Joining me on the call are Rajeev Goel, Co-Founder and CEO; and Steve Pantelick, CFO. Before we get started, I have a few housekeeping items. Today's prepared remarks have been recorded, after which Rajeev and Steve will host live Q&A. [Operator Instructions] A copy of our press release can be found on our website at investors.pubmatic.com. I would like to remind participants that during this call, management will make forward-looking statements, including, without limitation, statements regarding our future performance, market opportunity, growth strategy and financial outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, macroeconomic environment and future conditions. These forward-looking statements are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. You can find more information about these risks and uncertainties in our reports filed with the Securities and Exchange Commission and available at investors.pubmatic.com, including our most recent Form 10-K and any subsequent filings on Forms 10-Q or 8-K. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. All information discussed today is as of August 6, 2026, and we do not intend and undertake no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law. In addition, today's discussion will include references to certain non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, cash flows from operations, free cash flow and free cash flow margin. These non-GAAP measures are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available in our press release. And now I will turn the call over to Rajeev. Rajeev Goel: Thank you, Stacie, and good afternoon, everyone. We delivered an outstanding second quarter. More importantly, we returned to double-digit year-over-year revenue growth well ahead of schedule, and we expect that growth will accelerate through the second half of the year. I'm extremely proud of what the team has accomplished, in particular our innovation and leadership in agentic advertising. Over the past several years, we've made disciplined investments to diversify the business and strengthen our competitive position to deliver both faster growth and strong operating leverage. Today, approximately 60% of our business comes from CTV, mobile app and emerging revenues, all of which fuel profitable double-digit growth. This represents a remarkable transformation of our business and fundamentally strengthens our long-term growth profile. With this strong foundation in place, Steve has announced his plans to retire. He will remain as CFO into the first quarter of 2027, and then in an advisory role through July 1, ensuring a smooth transition as we conduct a search for his successor. Steve and I have worked together for 15 years, and it's difficult to overstate the impact he's had on PubMatic. Under his leadership, we've built a global company with the financial discipline to invest for the future while consistently generating cash, maintaining a debt-free balance sheet and returning capital to shareholders. I'm deeply grateful for his partnership, his friendship and his many, many contributions to PubMatic. He's built an exceptional finance organization that positions PubMatic to create long-term value for years to come. Helping us build that future is our new Global Chief Revenue Officer, Megan Ramm, who joins us on Monday, August 10. Megan brings deep direct-to-brand and performance advertising expertise with established relationships across marquee brands. Her rigor around sales process and execution will enhance our sales effectiveness and is a natural fit with our culture. Together, these strengths will help accelerate adoption of our AI-powered platform while strengthening our commercial capabilities. These leadership milestones reflect the evolution of both our company and our industry. It is clear digital advertising is entering its next major technology transition as AI reshapes how media is bought and sold across the open Internet, and PubMatic is at the epicenter of this change with market-leading scale. Since launching AgenticOS in January, we've delivered over 80 agentic campaigns, including with all 5 global agency holding companies. This is up from 30 campaigns just a quarter ago. For years, the walled gardens have delivered superior advertising performance because they operate a single, integrated technology platform that optimizes media and audiences for advertisers. With Activate and AgenticOS, we're bringing those same performance and technical advantages to the open Internet. As a result, we're monetizing far more of the value chain between advertisers and publishers than at any point in our history, and attracting entirely new customer types to our platform. And because our business is built on outcomes and usage, we generate revenue when we deliver the best outcomes for our customers. This creates powerful alignment as advertisers increasingly prioritize measurable performance and efficiency. Further, as advertising shifts to agentic execution, competitive advantage will be determined not by traditional software user interfaces, but rather by AI-native infrastructure, proprietary intelligence, and the ability to consistently deliver superior outcomes. We've spent 2 decades building these capabilities. Today, they're redefining how value is created across the open Internet by delivering compelling, measurable outcomes. Level Agency is a great example of this. In a controlled comparison against their incumbent DSP, AgenticOS delivered in excess of 2x more reach per dollar on qualified audiences, while significantly accelerating campaign setup and activation time. Additionally, AgenticOS delivered retargeting at scale within days compared to the 1 to 2 months ramp typically required by DSP-led campaigns. As a result, Level increased ad spend with PubMatic to expand its buying across the open Internet. Patrick Van Gorder, Chief Partnership Officer at Level Agency said it best, "What AgenticOS delivered changed how we're thinking about where the open Internet can compete for client budgets, and that's exactly the kind of adaptive advantage and innovation we're always looking for." Level is one of many examples. Across Havas and Telefonica, Amnet and InterBev, Abovomaxlead, Butler/Till and many others, we're consistently delivering better performance, faster execution and greater efficiency, and it's changing how buyers are thinking about the value chain. Those results are driven by our unified platform, where multiple competitive advantages compound and are increasingly difficult to replicate. They're built on years of investment across our infrastructure, intelligence, solutions and customer relationships. First, is AgenticOS. We have deployed over 20 agents to automate and optimize core buying and selling workflows. As agentic advertising compresses the traditional workflow, more of the transaction runs through PubMatic's infrastructure. This allows us to create more value for our customers and drive incremental revenue back to PubMatic. This week we announced an exciting new agent for enterprise buyers. It provides configurable controls, approved workflows and full audit trails for autonomous campaigns. As customers move more budget into agentic buying, trusted governance becomes essential, and we believe this capability will help accelerate enterprise adoption of AgenticOS. Second, is Activate. Activate enables advertisers to buy directly in our SSP. This significantly increases working media and operational efficiency, while also targeting audiences at the point of auction. The result is better advertiser performance and improved publisher yield. Third is our proprietary data intelligence and AI-native infrastructure. We combine signals from more than 300 data partners, including Comscore, Nielsen, Experian, Transunion, PayPal, Intuit, Klarna, Walmart and more, with our own proprietary bidstream data, which exists only on PubMatic. As our business continues to grow, particularly in logged-in environments like CTV and mobile app, the quality and depth of those signals continues to improve, making our platform smarter with every campaign and every transaction. This intelligence runs on our AI-native infrastructure. Through our partnership with NVIDIA, we're able to process massive amounts of data and execute increasingly sophisticated AI-driven decisioning in real time. And fourth, is our premium SSP inventory which includes nearly the entire open Internet. Over 2,000 publishers representing 100,000 plus streamers, mobile apps and web sites. Most recently, we added marquee broadcaster Channel 4 in the U.K. and announced a strategic partnership with Sony Pictures Entertainment as their preferred sell-side platform, delivering access to hundreds of millions of monthly users across PlayStation and Sony Bravia TVs. Importantly, these advantages reinforce one another. Premium supply generates unique signals. Those signals strengthen our proprietary intelligence. That intelligence improves advertising outcomes. Better outcomes attract more advertisers, more campaigns and more data, creating a compounding advantage with every transaction. Building on this advantage, in Q2, we introduced Decision Fabric, the next evolution of our platform. Introduced in June, Decision Fabric enables advertisers, DSPs and technology partners to securely deploy their proprietary models directly within PubMatic's infrastructure. This is commonly referred to as containerization. By running their models closer to our inventory, data and the point of auction, customers remove the traffic shaping and latency constraints that have historically limited performance across the open Internet, allowing them to unlock better advertising outcomes. We're seeing encouraging traction with launch partners, including MiQ, Chalice AI, SWYM.ai, InPowered and a growing number of DSPs. This is an exciting opportunity that we believe will transform the way advertising is transacted on the open Internet. More importantly, our unified platform and compounding intelligence are unlocking performance advertising budgets on PubMatic. It's expanding our market, adding entirely new categories of advertisers and ad budgets to our platform. For example, programmatic trading desk Klever, on behalf of Rouge Care Therapy, a direct-to-consumer wellness brand, expanded into premium CTV without sacrificing the performance measurement and optimization it relies on in social media. Using AgenticOS, the campaign delivered a 5x return on ad spend, double the client's original objective, while significantly accelerating optimization and campaign execution. We're seeing this same trend scale across our DSP partnerships. Smadex, a leading performance CTV advertising platform for apps and games and a business unit of Entravision, partnered with PubMatic to leverage our premium CTV inventory, using our first-party audience targeting and cross-device measurement capabilities. As performance improved, Smadex increased spend on PubMatic over 10x year-over-year, with 75% of that incremental spend flowing into CTV. This kind of measurable performance is unlocking entirely new advertiser budgets for PubMatic and it's reshaping the inventory advertisers want to buy. Creator-led video is another incremental opportunity, which now accounts for 26% of all TV and video viewing. Yet, much of that market has remained within walled gardens, even as TV platforms have brought creator content to the living room. As brands look to stand out, they're increasingly seeking creators whose audiences, values and content naturally align with their brand. With the launch of our Creator Marketplace, we're bringing our infrastructure and AgenticOS to the creator economy, enabling advertisers to connect to premium inventory and reach highly engaged audiences while giving creators new ways to monetize across the open internet. For PubMatic, this positions us well as the creator economy, which is approximately $250 billion dollars globally, moves into the open Internet advertising market, representing an entirely new category of publishers to our platform. Performance is also driving growth across our live sports marketplace, where activity more than doubled year-over-year, highlighting the scale of our premium inventory and the strength of our offering. We were recently recognized with several industry awards, including The Drum's Technology Innovation Award for helping advertisers buy live sports inventory with precision. As more premium events enter the programmatic market like U.S. Open for Tennis, NFL, NBA, MLB and NCAA, there is significant opportunity to scale growth from this vertical. Accelerating the value of our live sports offering, we recently partnered with Gracenote to bring real-time content intelligence, including contextual signals and live sports schedules, directly into our platform. By bringing this intelligence directly to the point of auction, our AI-native infrastructure can make decisions within the milliseconds available before every impression is served. That's particularly valuable in live sports, where context changes continuously and buyers need to optimize campaigns in real time. Whether it's contextual signals from live sports or commerce signals tied to purchasing behavior, our strategy is the same: bring differentiated data closer to every advertising decision. As more buyers, publishers and transactions run across our platform, that intelligence compounds and improves advertiser performance, increases publisher yield and makes our platform more valuable with every interaction. That's the power of the platform we've built. The investments we've made over the last several years are translating into accelerated, profitable growth. By investing early in AI, we've established a leadership position that continues to widen as more customers adopt our platform. We've built a platform that is attracting more buyers, more publishers, more data and more advertising spend. Just as importantly, we're expanding the market we can serve, bringing new forms of advertising, new sources of demand and new intelligence onto our platform. That not only increases the value we create for customers, it also expands the long-term growth opportunity for PubMatic, which we believe is significantly larger than the business we operate today. I'll now turn the call over to Steve for the financials. Steven Pantelick: Thank you, Rajeev, and welcome, everyone. We delivered an outstanding second quarter, significantly exceeding our expectations on both the top and bottom line. Our revenues grew 11% year over year, adjusted EBITDA increased 38% and free cash flow increased 47%. We saw strength across channels and formats, underscoring the breadth and depth of our platform. Our high-value formats and channels gained momentum and scale, and we continued diversifying the business. AI adoption across our company is accelerating our innovation, driving revenue growth, improving customer outcomes and unlocking incremental cost efficiencies. Importantly, we returned to double-digit revenue growth ahead of schedule. Today, our revenue mix is fundamentally different than it was 3 years ago. The majority of our business now comes from high-value formats and channels which are the fastest-growing segments of digital advertising. In Q2, approximately 60% of our revenue came from CTV, mobile app and emerging revenue streams, double that from 3 years ago. Together, these categories grew nearly 40% year-over-year. Breaking this down further. CTV growth was led by the Americas, which grew 25% year-over-year driven by new CTV advertisers and expansion of premium inventory including live sports. Globally, CTV revenue grew 13% year-over-year and accounted for approximately 20% of total revenue. Mobile app grew more than 40% year-over-year and represented approximately 25% of total revenue in Q2. Growth was driven by the mediation platform integrations we highlighted last quarter, ongoing product innovation and continued expansion of our global app publisher base. Emerging revenue streams continued their strong momentum and nearly doubled year-over-year, reaching an all-time high of approximately 15% of total revenue. Growth was driven by increased adoption of our new AI products, including AgenticOS. On a global basis, direct buying on Activate more than doubled year-over-year. Total display revenues grew strongly at 12% year-over-year, primarily driven by mobile app growth. In Q2, we saw the benefit of our broad, diversified omnichannel platform. Across our channels and formats, we generated several million dollars of incremental revenues from the World Cup, Amazon Prime Day and political advertising. We continue to enhance our platform with capabilities that make it easier for advertisers of all sizes to achieve strong ad performance. This is contributing to a broader and more diversified DSP mix. Activity from our mid-market DSP partners accelerated compared to the first quarter, growing over 25% year-over-year in Q2. Looking ahead, we expect activity from mid-market DSP partners to further increase, driven by new inventory categories like content creators, growing demand from direct-to-consumer brands and continued investment in our go-to-market teams. Turning to our diversified ad verticals, in aggregate, our top 10 ad verticals increased 15% year-over-year. We saw double-digit percentage growth in 5 of the top 10 verticals, led by shopping, health and fitness and personal finance. This helped offset some softness in food and drink, arts and entertainment and travel. Our owned and operated infrastructure continues to be a significant competitive and financial advantage. The investments we've made over the last 5 years are enabling us to introduce higher-value capabilities while improving the efficiency of our platform. That was evident in the second quarter, where revenue grew 11% and gross profit increased 19%. With our increasing focus on AI native capabilities, we are realigning our platform's compute and processing resources towards products that create the greatest economic value for our customers and our business. We intend to reduce the number of gross impressions processed to unlock cost savings and repurpose compute capabilities while increasing the number of monetized impressions. We saw the first results of these efforts in the second quarter as we reduced gross impressions sequentially by 2% while increasing monetized impressions by 4%. This is an intentional outcome of how we are evolving the platform and should result in an even more efficient business over time. As we prioritize the impressions that create the most value, we expect our monetization rate to continue rising in future quarters. AI is also improving productivity across the organization. In the second quarter, total head count declined year-over-year as AI and automation increased efficiency across engineering, marketing, customer success and finance. These productivity gains allow us to continue investing in our highest-growth sales opportunities while maintaining a disciplined approach to operating expenses. As a result, we funded incremental investments in our buyer-focused sales team and broader go-to-market organization while holding total OpEx growth to 4%, well below our revenue growth. Q2 adjusted EBITDA was $19.6 million or 25% margin compared to 20% margin a year ago, our 41st consecutive quarter of positive adjusted EBITDA. Q2 GAAP net loss was $1.2 million or minus $0.03 per diluted share. Moving to cash and our capital allocation. Our balance sheet remains a core strategic advantage. We generated $20.2 million in net operating cash flows in the second quarter, up 36% over Q2 last year, and delivered free cash flow of $13.7 million, a 47% increase over last year. To underscore our long-term ability to generate cash, since the beginning of 2021 through Q2 2026, we have generated nearly $450 million in net cash from operations and more than $246 million in free cash flow. During the quarter, we used $21.5 million in cash to repurchase 2.1 million Class A common shares. We ended the quarter with $137.5 million in cash and marketable securities and zero debt. Our capital allocation strategy remains disciplined and balanced, focused on long-term shareholder value creation. We continue to invest in innovation and infrastructure to drive incremental organic growth while maintaining the flexibility to pursue strategic M&A opportunities. We have also made a long-term commitment to return capital to shareholders via our share repurchase program. Since the inception of our repurchase program in February 2023 through the end of Q2, we have bought back 15.5 million Class A common shares for $211.4 million. We have $63.6 million remaining in this program authorized through the end of 2026. Moving onto our outlook. The strong momentum we built throughout the second quarter continued into July. In Q3, we anticipate continued double-digit year-over-year revenue growth, with revenue of $75 million to $77 million or 12% growth at the midpoint. Q3 adjusted EBITDA is expected to be in the range of $17 million to $19 million. We expect cost of revenue and OpEx to increase by A low-single-digit percentage sequentially in Q3, with continued go-to-market investment through the balance of the year. As revenues expand with our leveraged cost model, we expect Q4 adjusted EBITDA margin similar to last year's fourth quarter, leading to meaningful full year margin expansion. Last quarter, we described our plans to further shift our platform investments to targeted GPU centric infrastructure that will strengthen our proprietary data intelligence, creating a compounding advantage as the business continues to grow. We believe this approach will be a durable accelerant to growth over the long term while also supporting the broader industry shift to performance-based advertising. Our results in the second quarter and our momentum in AI powered products, reinforce this strategy. Accordingly, we are increasing our full year CapEx outlook to a range of $20 million to $25 million. These additional investments support increased AI workloads and our strategic innovation with NVIDIA, and we expect them to generate incremental revenues with a payback of approximately 12 months or less. In closing, the results this quarter reinforce what we've been building over the past several years. We returned to double-digit revenue growth ahead of schedule, continued to shift our revenue mix toward high-value formats and channels and demonstrated the strength of our financial model through expanding profitability and higher free cash flow. PubMatic is reshaping digital advertising by leveraging our AI-native infrastructure, compounding intelligence and automation to deliver better outcomes for customers. These are durable, competitive advantages that we believe will continue to strengthen our financial model and drive long-term profitable growth. Let me close with a personal note. As Rajeev mentioned, I plan to retire early next year. It wasn't an easy decision. Rajeev recruited me in 2011 when PubMatic was a small private company. And together, with an exceptional team, we've built something I'm very proud of: a global public company with revenue that's nearly doubled since our IPO, zero debt and 41 consecutive quarters of positive adjusted EBITDA. I'm grateful to Rajeev for his partnership every step of the way. On the transition, my successor will inherit a finance organization we've spent 15 years building and a leadership team as strong as any I've worked with. One of the greatest privileges of my career has been working alongside such talented team members and building trusted relationships with our customers, investors and analysts. I believe PubMatic is in the strongest position I've seen in my time here. My priority is continuing the momentum in our business. With that, I'll turn the call over to Stacie for questions. Stacie Clements: [Operator Instructions] The first question comes from Shweta Khajuria at Wolfe. Shweta Khajuria: First of all, Steve, congratulations. And I'll miss you. We have some time with you still, but congratulations, and I'm super happy for you, and it's been a great run, and it's been nothing but a joy to work with you. So all the best. Steven Pantelick: Thank you, Shweta. Very much appreciate that. Shweta Khajuria: Well, on to the earnings. I guess a couple of questions for me, please. One is what are some of the top 2 to 3 things that you would point to that imply durability of this strength that you're seeing, whether it is top line growth, demand trends, product adoption? Anything that you can point to on the durability of the growth you're seeing? And second, at a high level, are you seeing clear indications that the overall environment is changing to benefit the supply side? And if so, what are some of the tangible indicators that you're seeing that are to your advantage? Rajeev Goel: Yes. Thanks, Shweta. I can kick that off. Steven Pantelick: Great. Rajeev Goel: I think the 2 questions are actually closely related. So I think it's clear that the industry is rapidly moving towards an agentic future, and PubMatic is not only at the epicenter of that shift, but we're driving it. And with that comes a shift in decisioning to the PubMatic platform. So you saw some of the stats, rapid agentic adoption. Obviously, it's still early, but the trend is very clear, 80 Agentic campaigns, 4,000 AI-powered deals. And agentic is driving improved ad performance. So advertisers are getting better performance while also reducing ecosystem complexity and operational overhead, which is growing our addressable market. And I think when we look at our platform, we're very uniquely positioned with our AI-native owned and operated infrastructure, the scale of our publisher relationships, Activate, which you know we've been building for several years now, direct buying in the SSP with AgenticOS, the 20-plus agents and then the intelligence that we have from our own proprietary data from all of the impressions that we process as well as over 300 data partners. And as I talked about in the prepared remarks, I think the competitive advantage of the past that was built around the software user interface and the lock-in that created with buyers, that's very rapidly eroding. Now I think competitive advantage is increasingly being determined by AI-native infrastructure, proprietary intelligence and the ability to consistently deliver advertising performance. We have a second major front in this AI area with Decision Fabric. And Decision Fabric allows curators and DSPs to run their models in our infrastructure, which leverages the impressions and data from our SSP along with our proprietary intelligence. So I think these are -- what we see in terms of customer uptake and activity, these to me are the durable signs of not only our ability to continue to grow at double digits, but also this structural shift towards the sell-side with more of the decisioning, more of the processing happening in our infrastructure, which allows us to add more value and participate in that value creation. Steven Pantelick: Yes. I'd just add to Rajeev's comments, and that is, as an organization, we've always been very focused on operational excellence and execution is in our DNA. And when you think about sort of our strong innovation and all the things that we pioneered over the last 15-plus years, we've really been working towards this position for a very long time, and we're very confident in sort of the trajectory and the durability of everything we've built. And part of it is, it's our DNA, and we're very enthusiastic about the future. Stacie Clements: Our next question comes from Naved Khan at B. Riley. I'm going to keep moving just in the interest of time. I'll come back to you if we can get you back on the line. Our next question comes from Andrew Marok. I'm sorry, hold on a second -- from Rob Coolbrith. Robert Coolbrith: All right. First of all, Steve, you're my idol. I don't give you permission to leave, but congratulations on an amazing run at the company and best wishes for your retirement. Steven Pantelick: Thank you, Rob. Very, very appreciated. Robert Coolbrith: We're looking forward to spending a lot more time with you between now and when you eventually leave. So Rajeev, I wanted to ask you maybe about the pace at which agencies and advertisers are leaning into AgenticOS and agentic more broadly across the landscape. Any way to contextualize that? A lot of this sounds very exciting, but I just wanted to think about how you're thinking about -- or to ask how you're thinking about how quickly this could go in terms of agentic penetration of programmatic media budgets or pools? It seems to be going fast. It seems like there's a lot of incentives for people to make this move, but I wanted to ask about that. And then I just wanted to ask you may be broadly for your thoughts on, there's a lot of different flavors, different approaches to how people are talking about agentic programmatic media right now, maybe some hops in the supply chain being cut out, some people thinking about fee savings in different parts of the ecosystem. Just wondering what do you think is going to be most essential? Are we going to continue to have a robust sort of highly decisioned programmatic landscape? Any thoughts there on what's going to remain after we have this agentic shift? Rajeev Goel: Yes. Thanks, Rob. So on the first part of your question, in terms of the agentic pace, maybe the Clayton Christensen framework is useful. We're definitely still in the phase of the early adopters. But what I think is very promising is that all of the clients that we've run agentic campaigns or execution with, they've all come back for much more, right? So it's working. We've put out, I think, case studies in 10 different countries around the world, maybe half a dozen around the world at this point. We're running things with every agency holdco. So the seeds are planted and the grass is starting to grow. We can very clearly see the shoots. I've said publicly that I think by the end of '28, about 25% of our ecosystem will be traded agentically. And by the end of 2030, it will be 50%. And I continue to believe that's the case. And so that implies a pretty rapid continued trajectory of growth and acceleration between where we are, still early stages, early adoption and getting to that projection. But we are seeing that advertisers and agencies are able to execute. We're seeing broad-based adoption across independent agencies and holdcos and brands pushing on this. And so that's what gives me confidence. On your second question in terms of what -- where are some of the benefits, you talked about hops and other things. I think our focus is really on how do we use this amazing technology as more than just a technical revolution, but really around value chain or supply chain revolution. So our focus is really on compressing the distance between the publisher and the advertiser, whether it's programmatic transactions or it's agentically executing IOs, bringing the publisher and advertiser much closer together so that when they transact, they can transact more directly, primarily on our platform, in our case, where between AgenticOS, Activate and our SSP, we have all of the components that are needed for full end-to-end execution of the transaction. And by doing that, we're able to demonstrate very clearly increased -- significantly increased advertiser performance, but also a lot less operational overhead and complexity. And that's leading to, I think, a massive win for our clients and for our business. Stacie Clements: Our next question comes from Naved who I think I have back now. Naved, if you can -- there you go. Naved Khan: All right. Can you guys hear me now? Rajeev Goel: Yes, we can. Naved Khan: Perfect. So maybe a question on this monetization of AgenticOS. Is this -- like what's your -- what are your thoughts? How are you -- is this something you're charging for as an added feature or are you just monetizing because of the lift you might be seeing to the CPMs and to the overall monetization and getting -- participating in that? Just give us your thoughts on that. And then I have a follow-up. Rajeev Goel: Sure. Steve, you want to take that one? Steven Pantelick: I mean, first off, Naved, so the AgenticOS opportunity, first and foremost, is opening up net new business for us, right? It's new channels, new opportunities. So that's step one. And AgenticOS can be either a DSP's agent, it could be PubMatic's, it could be any number of third-party agents. But what we've done is we've created Activate that we launched several years ago. And so that's the direct buying interface onto our platform. And so when that happens, we generate a buying fee as a result of that. And then really, what's important when you think about the economics of what we're building here is that dollar now is entirely within our ecosystem. And so we're making incremental fees and the absolute dollar amount is growing. So it's very much a compounding benefit to us as a company. And you're seeing some of those strong results. Overall, our portfolio of emerging revenues nearly doubled in the quarter, and that's been a very consistent trajectory. That category hit an all-time high of 15% of revenues. So from our perspective, we're building on the platform that we've created. We're making that platform even stronger and broader and more efficient. And so what you're seeing as a business is we're getting leverage not only from top line growth, but also the cost structure. So you should expect to see margin expansion as well. Naved Khan: Okay. That's great to hear and pretty impressive performance across the board. I want to ask maybe versus your own expectations that you set for us for the quarter -- coming into the quarter, where were you surprised in terms of the amount of upside in which segment? Steven Pantelick: Yes. From our perspective, we were very pleased because we saw positive incremental results across the board. So areas that we've been investing in, executing against, all of them came in better than we expected. CTV, better. As a reminder, CTV in the Americas grew 25% year-over-year. Total CTV globally was up 13%. Mobile app, which is about 25% of our revenues, grew 40% in the quarter, and that's better than we had anticipated. And then I just referenced emerging revenues nearly doubled. So we really saw great incremental progress across the board. And then in addition to that, we also saw display increased double digits. I know it was largely a function of our mobile app progress. So we're very pleased with the results, and it wasn't just one factor. It was across the board. And that's something that we've been sharing with analysts and investors that we see a very big vision and we've been building it on our platform, and now we're just starting to see the early stages of that ramp. Naved Khan: Perfect. Congrats on the retirement. Steven Pantelick: Thank you. Really appreciate that. Stacie Clements: Our next question comes from Eric Martinuzzi at Lake Street. Eric Martinuzzi: My congrats as well to you, Steve, and thanks for sticking around through our September investor conference. Steven Pantelick: Thank you, Eric. Eric Martinuzzi: I was curious to know just on -- we are sort of 1 year removed from a pretty substantial disruption that you experienced with a large DSP. Your business has changed dramatically in those 12 months. And I was just wondering if the -- there was sort of a decrementing of your inventory with that DSP. I was wondering if there's been a kind of a return or a warming of the relationship, if you could comment there? Rajeev Goel: Sure. I can -- why don't I comment on the relationship. Steven Pantelick: Let me -- and then turn that Rajeev on the relationship. So from our perspective, we've been investing and modifying and evolving our business for a number of years. We shared a stat that about 6% of all of our revenue comes from high-value formats, and that's a pretty material number, and that's growing double digits. And so we've been growing through the challenges that we've called out in the past. And we had anticipated this was going to happen. And as both Rajeev and I called out, we did it ahead of schedule. And so from our perspective, our focus has always been on investing and making sure that we are developing our capabilities for wherever the fastest-growing opportunities are. You're seeing that in our results. And at the same time, we really have been building out our relationships with DSPs and continue to maintain very healthy positive relationships. I'll turn it over to Rajeev for any other comments. Rajeev Goel: Yes, thanks. So the relationship with the DSP remains positive and healthy. We continue to do significant business together. But as Steve pointed out, our DSP base has diversified significantly. I think in general, what we're seeing in the market is DSP growth and penetration is diversifying into many different facets of the market, vertical specialization, mid-market advertisers, SMB advertisers, performance CTV, performance mobile app. So the market, I think, has grown much faster than that DSP in question. And so that's contributing to the diversification on our platform. At the same time as well, as we have been growing our sales team, we've been connecting more directly with advertisers as well as agencies. We've always been deeply connected into the agencies. But as we've gone deeper into building those advertiser relationships, it's giving us more directed ability to demonstrate the capabilities of our platform where then the advertisers are saying, okay, we specifically want to be buying on PubMatic because of the AgenticOS capabilities, the Activate capabilities, Decision Fabric now. So I think our solution set and our ability to take that to market, to the end customer, the end decision maker is also strengthening the diversification in our business. Eric Martinuzzi: Okay. And I wanted to follow-up. You talked about greater than doubling of the AgenticOS adoption within the installed base. As far as the size of those campaigns, the 80 campaigns versus the 30, are we getting -- is the repeat, because I realize it's early adopters, but are they coming back with larger campaigns or are they still kind of same size campaign dipping their toe in the water? Rajeev Goel: Yes. So there's kind of 2 aspects to it. One is there's more new buyers every quarter, and those new buyers are typically starting with small campaigns and then ramping from there. The existing buyers, so the ones that are repeating, let's say, from Q1 to Q2, they're absolutely ramping the size, volume of their buys as they work through the change management within their own organization and they rapidly see the benefits from agentic execution on PubMatic. Stacie Clements: Our next question comes from James Heaney at Jefferies. James Heaney: Great. And Steve, congrats on the retirement. Really enjoyed getting to work with you, I think, since the IPO. So wishing you all the best. Steven Pantelick: Thank you. James Heaney: Maybe I'll start with you. Could you just talk about the pockets of strength and weakness, probably more strength than weakness, but just what you're seeing across different verticals? Do want to ask specifically on maybe categories like prediction markets that we've been seeing doing quite well, and interested if that's something that you're seeing on your end? Steven Pantelick: So I mean, as I've shared with everybody in the past, one of the strengths of our business is that we have a very diversified set of ad verticals. And so in the second quarter, the top 10 grew in aggregate around 15%. And for example, we have very strong results from shopping and a couple of other categories that helped offset some softness, let's say, in food and drink and travel. And so the strength that we have developed over time is being able to really be a place for any type of advertiser and the opportunities vary depending on the time of the year, macro conditions. And so overall, we don't -- we haven't seen any material softness. I shared that the July was fairly healthy in terms of momentum. And I think there are certain pockets, as you just point out, prediction markets that rolled up into certain advertising categories. We see some growth there. And from our perspective, we're doing what we need to do, making sure that we continue to develop the relationships on the publisher side that provides all that valuable inventory and then exposing that to an emerging group of new buyers. We've talked about performance DSPs, of which the category that you described would largely fit in. And that part of our business, which we call mid-market DSPs, actually accelerated in the second quarter and grew 25% year-over-year. So overall, there might be quarter-to-quarter some verticals that are softer and others stronger, but we have a very diverse set of verticals that help us navigate that period-to-period. Rajeev Goel: James, maybe I'll just add a little bit to that, which is, there has been some kind of notable standouts around prediction markets within our live sports business. So that live sports business has been growing pretty rapidly. And we saw, for instance, with World Cup, some of the -- I forget which one, one of the 2 major prediction markets advertising pretty heavily on our platform as part of the World Cup. So I think as they scale, I would expect to attract more of their spend on an ongoing basis. James Heaney: Okay, great. And then maybe one for you, Rajeev. Could you just talk about the partnership you have with Roku? I mean, I know they're obviously one of your CTV supply partners. So I'm just interested in hearing how maybe the conversations have evolved with them since the acquisition of Fox? And even if you want to broadly comment on other kind of mega deals that we're seeing across the media landscape and just how you think about your position in kind of those -- that consolidation? Rajeev Goel: Yes, absolutely. So I think one of the things that we're seeing is, obviously, consumers are spending more and more time in streaming. And so that's part of what's driving that growth and the scale of CTV within our business. And then I think the second big trend is that we're seeing what were walled gardens or what might have been walled gardens having much more open approach to monetization and really, I think, appreciating the capabilities in our platform, our ability to drive performance advertising solutions and also the scale of data and the inroads that we have in terms of ad spend budgets flowing on our platform with marquee agencies and advertisers. So Roku is a great example of that, where we monetize a significant portion of their inventory, and we'll expect that to expand and continue with Fox. We also shared earlier in the quarter that we will be the primary SSP partner for Sony Pictures Entertainment, their streaming service launch at some point later in the year. So that, I think, is a prime example of where I think if we were 3 or 4 years ago, somebody may have approached that as a walled garden. But here now, they're doing that as a -- from an open perspective, and they've chosen our platform with which to do that. And there's many other examples, Roblox and others that we've talked about in prior quarters and years. So I think we remain really encouraged by the open nature of monetization and the strength of our platform and our buyer relationships create significant ability for us to monetize that inventory. Stacie Clements: Our next question comes from Barton Crockett at Rosenblatt. Barton Crockett: Okay, great. I was curious about share of your business. I mean, you've given us some growth for Activate doubling. You said that the mid-market DSPs grew 25%. But can you give us a sense of how much of your business is on Activate now? And just broadly, how much of your business is not involving a DSP on the other side, just kind of coming direct through your platform one way or the other? Steven Pantelick: So I'll take that. So from our perspective, we've shared in the past that we estimate our market share to be about 4% globally, and that's obviously has been growing over time. The categories that you just referenced that sit within our emerging revenues portfolio are clearly growing quite significantly. And the way that we -- just to level set the sort of the approach that we take is, these are all rapidly evolving new opportunities, and they are self-reinforcing it. So we are capturing them in this portfolio. We're not currently planning on breaking them out specifically until they get to a certain size. But clearly, as a category, emerging revenues at 15% of total revenues is becoming more and more material. And the other thing to bear in mind is that we've been growing in the fastest-growing areas of the market. And so we expect to grow at or faster than the market now and into the future as a result of all of our investments and the progress that we're making. And then the last thing I'll comment on, none of our expectations or guidance assumes any resolution of the DOJ case against Google. So all of that would be upside to our market share background. Barton Crockett: Okay. Well, if I could just follow-up because I mean, your earnings call is kind of coincident with -- the Trade Desk, which their revenues really kind of flattened out this quarter and yours accelerated. In just broad strokes, is there some broad kind of transition among DSPs and SSPs, some kind of shake up there that you can speak to that maybe -- maybe these things are all kind of related or is it just coincidental but not really related? Rajeev Goel: Yes, I can take that. I mean, I think, Barton, that there are some broad macro trends that are favoring the sell-side, and in particular, PubMatic. And we -- I think we've been talking about some of them for a while. But first of all, I think the Agentic opportunity, right, the industry movement towards agentic monetization, agentic execution, we're obviously aggressively driving that, and that comes with a shift in decisioning to the PubMatic platform, right? So we're processing more and more of the transaction between AgenticOS, Activate, our sell-side platform and our data platform. More of that end-to-end transaction between the publisher and the advertiser is being processed in our platform, including the decisioning, which means we're adding more value and we're participating in that value creation. More recently, we've opened a second front in this area with Decision Fabric. So Decision Fabric is our containerization solution, and it allows curators and DSPs to run their models directly in our infrastructure. And so that leverages the impressions and data from our SSP along with our proprietary intelligence. It gives them more time to make bidding decisions, allows the buyer to use a more complicated model, and we're hosting all of that in our infrastructure. Now that's still early, but that, again, is another, I think, sign of the shift that's happening towards the sell-side of the ecosystem. And I think underlying all of it is the -- if we kind of go back in time, it's a little bit, I think, clear in hindsight is that the user interface that some of the primary buying platforms had trained into agencies and advertisers over years that had created, I think, substantial lock-in where trading organizations were used to a particular user interface. And now with AI and with Decision Fabric, the UI and the value or the lock-in from that UI layer is now eroding. And instead, I think advertisers and publishers are saying, well, hey, where is the greatest performance? What's going to generate the most ROI and the most yield? And that's exactly the opportunity that we're focused on with AgenticOS and with Decision Fabric. Barton Crockett: Okay. That's interesting. And just one final just check box. You guys in the past few quarters have talked about a drag from a DSP transition. That's not happening this quarter, right? That's done. Steven Pantelick: Yes. That is now, Barton, fully behind us. Stacie Clements: Our next question comes from Simran Biswal at RBC. Simran Biswal: This is Simran on for Matt Swanson. Congrats on the quarter and congrats, Steve. Just thinking about your go-to-market investments, how are they balanced across your growth initiatives versus how much are you leaning into your customers to understand agentic or do you think it's becoming more pervasive? Rajeev Goel: So our approach on the go-to-market side is really to think about different segments of the buyer community and then to go in with value propositions that are tied to performance, transparency and control. And so when we think about those audiences, the primary audiences, although not the sole audiences, but the primary ones are advertisers, agency holdcos and then independent agencies. And those sit alongside some of the more tech-forward companies like DSPs and curators. So our go-to-market investment is really about broadening the sales footprint that we have so that we can go deeper into each of those categories. So for instance, with advertisers, we want to be covering the top several hundred, not just the top 100. With holdcos, we want to cover not only the investment teams, but also brand by brand, the key teams. With independent agencies, we're going from the top 50 to the top 250. So that's how we're thinking about, Simran, the investment that we're making. And as we grow and as we penetrate, there's both an account management function as well as a sales function. And so we need to add the right number of people from an account management perspective. But with our own usage of AI internally, what we're seeing is that each account manager can handle more and more accounts and put more time into the relationship side of things rather than the day-to-day management. And so you're seeing that flow through in terms of the leverage that we called out in the quarter. Steven Pantelick: And a quick stat for you, Simran. In the quarter, on a year-over-year basis, we were able to increase our investment and head count in these areas -- go-to-market areas that Rajeev just described by 12%, while our total head count was slightly down. So this is a reflection of just how we plan and manage and execute using AI as a financial leverage, just not on the top line, but also delivering on the bottom line. Simran Biswal: Okay, cool. That's helpful. And then, Steve, just really quickly, anything from political that you're embedding into Q3 guidance or just... Steven Pantelick: Yes. We are assuming that there is going to be incremental political. If you just step back, there was a large benefit to the company back at the '24 presidential cycle. The good news there is many of the capabilities that we first developed there in terms of Activate and our AI capabilities have just gotten better, stronger over time. And so we are very well positioned to take advantage of the political dollar opportunity. We saw a small amount, relatively speaking, in the second quarter. We expect that to ramp up over the balance of the year. We don't think it's going to be as large as it was in the '24 presidential cycle, but we are very optimistic about us getting, I would say, probably more than our fair share based upon all the capabilities that we've built. And obviously, I'll update as we go along in the quarter. But I do expect it to be more back-end loaded end of third quarter, but mostly fourth quarter impact. Stacie Clements: We have time for one more question from Brianna Diaz at Citizens. Brianna, can you hear us? Okay. Rajeev, I'm going to -- unless Brianna comes back, I'm going to throw it back to you for closing remarks. Rajeev Goel: Thank you, Stacie. We delivered an outstanding second quarter, returning to double-digit revenue growth well ahead of schedule while expanding profitability and free cash flow. Importantly, our growth was driven by the strategic areas of our business where we've invested over the past several years, reinforcing our confidence in continued double-digit growth in the second half of the year. Our leadership in agentic advertising continues to strengthen as more customers choose PubMatic for superior ad performance and measurable business outcomes, and that performance is expanding our addressable market. We look forward to seeing many of you at upcoming conferences, including Oppenheimer's 29th Annual Tech Internet and Communications Conference, Rosenblatt's Age of AI Virtual Conference, Wolfe's TMT Conference in San Francisco and Lake Street's Big Investor Conference in New York. Thank you, everyone, for joining us today. Have a great rest of your afternoon. Before you buy stock in PubMatic, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and PubMatic wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends PubMatic. The Motley Fool has a disclosure policy. PubMatic (PUBM) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Returned to double-digit revenue growth ahead of schedule, driven by a fundamental business transformation where 60% of revenue now stems from high-value CTV, mobile app, and emerging streams. Attributed performance gains to the rapid adoption of AgenticOS, which has scaled from 30 to 80 campaigns in one quarter by automating core buying and selling workflows. Strategic shift toward 'agentic' execution is moving decision-making power to the sell-side, allowing PubMatic to monetize more of the value chain between advertisers and publishers. Leveraged owned and operated AI-native infrastructure to process massive data volumes, delivering superior outcomes that attract performance-oriented budgets previously held by walled gardens. Diversified the demand base by expanding relationships with mid-market DSPs and direct-to-consumer brands, reducing reliance on any single large DSP partner. Implemented a platform evolution called Decision Fabric, allowing partners to run proprietary models directly within PubMatic's infrastructure to eliminate latency and traffic shaping constraints. Maintained strict financial discipline, achieving the 41st consecutive quarter of positive adjusted EBITDA while realigning headcount toward high-growth sales opportunities through AI-driven productivity. Anticipates revenue growth will continue to accelerate through the second half of 2026, supported by momentum in AI-powered products and premium inventory expansion. Projects that 25% of the ecosystem will be traded agentically by the end of 2028, reaching 50% by 2030, signaling a long-term structural shift in programmatic media. Increased full-year CapEx outlook to $20 million to $25 million to support GPU-centric infrastructure for AI workloads, with an expected payback period of 12 months or less. Expects monetization rates to rise in future quarters as the platform intentionally reduces gross impressions to prioritize higher-value, monetized transactions. Guidance assumes a back-end loaded contribution from political advertising in late Q3 and Q4, though management expects it to be smaller than the 2024 presidential cycle. CFO Steve Pantelick announced retirement effective early 2027, with a transition plan including an advisory role through July 2027 to ensure continuity. Appointed Megan Ramm as new Global Chief Revenue Officer to enhance direct-to-brand relationships and sales execution rigor. Launched the Creator Marketplace to capture a portion of the $250 billion creator economy as it moves from walled gardens to the open internet. Confirmed that the prior year's disruption with a large DSP is now fully resolved and reflected in the current diversified revenue base. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management emphasized that competitive advantage is shifting from software user interfaces to AI-native infrastructure and proprietary intelligence. Confirmed that every client who tested agentic execution has returned for larger volumes, indicating a durable shift in how budgets are allocated. Revenue is generated through buying fees when advertisers use the Activate direct-buying interface, keeping the entire transaction dollar within the PubMatic ecosystem. The agentic approach opens 'net new' business categories, such as performance-based CTV and mobile app gaming, which were previously difficult to optimize. Noted a trend of former walled gardens (e.g., Roku, Sony, Roblox) adopting more open monetization strategies to leverage PubMatic's scale and data intelligence. Strategic partnerships like the Sony Pictures Entertainment deal position PubMatic as the preferred SSP for high-value streaming inventory.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. PubMatic Inc (NASDAQ:PUBM) returned to double-digit year-over-year revenue growth (11%) ahead of schedule, with expectations for acceleration in the second half of the year. High-value formats and channels (CTV, mobile app, emerging revenues) now account for ~60% of revenue and grew nearly 40% year-over-year, driving profitable growth. Agentic OS adoption is scaling rapidly, with over 80 campaigns (up from 30) and partnerships with all five global agency holding companies, delivering superior performance and expanding the addressable market. Adjusted EBITDA margin expanded to 25% (from 20% a year ago), with free cash flow up 47%, reflecting strong operating leverage and disciplined cost management. The company maintains a debt-free balance sheet with $137.5 million in cash, and continues to return capital to shareholders through buybacks, having repurchased $21.5 million in Q2. GAAP net loss was $1.2 million in Q2, indicating ongoing profitability challenges on a GAAP basis despite strong adjusted EBITDA. The company faces softness in certain ad verticals, including food and drink, arts and entertainment, and travel, which partially offset growth in other areas. CFO Steve Pantalek announced his retirement, creating leadership transition uncertainty, though he will remain in an advisory role through July 2027. Full-year CapEx outlook was increased to $20-25 million, reflecting higher AI-related investments that could pressure near-term cash flows. The company expects Q4 adjusted EBITDA margin to be similar to last year's fourth quarter, suggesting limited near-term margin expansion despite revenue growth. Warning! GuruFocus has detected 7 Warning Signs with PUBM. Is PUBM fairly valued? Test your thesis with our free DCF calculator. Q: What are the top two or three things that imply durability of the strength you're seeing, and are there clear indications that the overall environment is changing to benefit the supply side? A: Rajiv Goel, Co-founder and CEO: The industry is rapidly moving toward an agentic future, and PubMatic is at the epicenter. We're seeing rapid agentic adoption with 80 Agentic campaigns and 4,000 AI-powered deals. The competitive advantage is shifting from software user interfaces to AI-native infrastructure, proprietary intelligence, and the ability to deliver superior outcomes. Our unique position includes our owned-and-operated infrastructure, publisher relationships, Activate, and 20+ agents. This structural shift towards the sell-side means more decisioning and processing happens in our infrastructure, allowing us to add more value and participate in value creation. Q: How are you monetizing Agentic OS, and where were you surprised by the upside in the quarter? A: Steve Pantalek, CFO: Agentic OS is opening up net new business and new channels. When buyers use Activate, we generate a buying fee, and the dollar remains entirely within our ecosystem, creating a compounding benefit. Our emerging revenues portfolio nearly doubled in the quarter, reaching an all-time high of 15% of total revenue. We were pleased with the upside across the boardCTV in the Americas grew 25%, mobile app grew 40%, and emerging revenues nearly doubled. It wasn't just one factor; it was broad-based strength across all our strategic investment areas. Q: Can you comment on the pace of agentic adoption and what will remain after the agentic shift in the programmatic landscape? A: Rajiv Goel, Co-founder and CEO: We're still in the early adopter phase, but all clients who have run Agentic campaigns have come back for much more. We're running campaigns with every agency holding company. I believe by the end of 2028, about 25% of our ecosystem will be traded agentically, and by 2030, it will be 50%. Our focus is on compressing the distance between publisher and advertiser, bringing them closer together to transact more directly on our platform. By doing this, we significantly increase advertiser performance while reducing operational overhead, creating a massive win for our clients and our business. Q: Is the drag from the large DSP transition fully behind you, and how has the relationship evolved? A: Steve Pantalek, CFO: Yes, that is now fully behind us. We've been investing and evolving our business for years, and we've grown through the challenges we called out in the past, ahead of schedule. Rajiv Goel, Co-founder and CEO: The relationship with that DSP remains positive and healthy, but our DSP base has diversified significantly. The market has grown much faster than that DSP in question, and we're connecting more directly with advertisers and agencies, which is strengthening the diversification in our business. Q: What are you seeing across different ad verticals, and are you seeing growth in prediction markets? A: Steve Pantalek, CFO: Our TOP10 ad verticals grew 15% in aggregate, with strong results from shopping, health and fitness, and personal finance, offsetting softness in food and drink and travel. We haven't seen any material softness overall. Rajiv Goel, Co-founder and CEO: We've seen notable standouts around prediction markets within our live sports business. For instance, during the World Cup, one of the major prediction markets advertised heavily on our platform, and I expect to attract more of their spend on an ongoing basis. Q: How much of your business is on Activate, and how much is not involving a DSP? A: Steve Pantalek, CFO: We estimate our market share to be about 4% globally. The categories within our emerging revenues portfolio are growing quite significantly and are self-reinforcing. We're not currently planning to break them out specifically until they reach a certain size, but emerging revenues at 15% of total revenues is becoming more material. None of our expectations or guidance assumes any resolution of the DOJ case against Google, so all of that would be upside to our market share. Q: How are your go-to-market investments balanced across growth initiatives, and how are you leveraging AI internally? A: Rajiv Goel, Co-founder and CEO: Our go-to-market approach targets different buyer segmentsadvertisers, agency holdcos, and independent agencieswith value propositions tied to performance, transparency, and control. We're broadening our sales footprint to cover the top several hundred advertisers, brand-by-brand at holdcos, and expanding independent agencies from TOP50 to TOP250. Steve Pantalek, CFO: We increased investment and headcount in go-to-market areas by 12% year-over-year while total headcount was slightly down. This reflects how we use AI as a financial lever, delivering on both the top-line and bottom-line. Q: What are you embedding into Q3 guidance for political advertising? A: Steve Pantalek, CFO: We are assuming incremental political advertising. We saw a small amount in Q2 and expect it to ramp up in the balance of the year. It won't be as large as the 2024 Presidential cycle, but we're very optimistic about getting more than our fair share based on the capabilities we've built. I expect it to be more back-end loaded, with mostly Q4 impact. Q: Are existing Agentic OS customers coming back with larger campaigns, or are they still testing? A: Rajiv Goel, Co-founder and CEO: There are two aspects. New buyers typically start with small campaigns and ramp from there. Existing buyers who repeated from Q1 to Q2 are absolutely ramping the size and volume of their buys as they work through change management within their organizations and rapidly see the benefits of Agentic execution on PubMatic. Q: How has the partnership with Roku evolved since the Fox acquisition, and how do you view media consolidation? A: Rajiv Goel, Co-founder and CEO: Consumers are spending more time streaming, driving CTV growth. We're seeing what were walled gardens take a much more open approach to monetization, appreciating our platform's capabilities. Roku is a great example where we monetize a significant portion of their inventory, and we expect that to expand with Fox. We'll also be the primary SSP partner for Sony Pictures Entertainment's streaming service launch. This shows the shift from walled gardens to For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in PubMatic, Inc.? Here are five stocks we like better. PubMatic returned to double-digit growth in Q2, with revenue up 11% year over year to $78.3 million, adjusted EBITDA rising 38% to $19.6 million, and free cash flow increasing 47% to $13.7 million. Growth was led by strategic areas including mobile apps, connected TV and AI-driven products: mobile-app revenue grew more than 40%, CTV revenue rose 13%, and emerging revenue streams nearly doubled to about 15% of total revenue. Management forecast Q3 revenue of $75 million to $77 million and raised full-year capital-expenditure guidance to $20 million-$25 million for AI and NVIDIA-related investments. CFO Steve Pantelick plans to retire in 2027, with PubMatic beginning a search for his successor. 3 Overlooked Stocks Where Rewards Outweigh the Risks PubMatic (NASDAQ:PUBM) reported second-quarter revenue growth of 11% year over year, returning to double-digit growth ahead of its prior expectations, as the company cited momentum in connected TV, mobile applications and AI-powered products. Adjusted EBITDA rose 38% from a year earlier to $19.6 million, representing a 25% margin, while free cash flow increased 47% to $13.7 million. The company reported a GAAP net loss of $1.2 million, or $0.03 per diluted share. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth The Trade Desk: When Sell the News Turns Into Buy the Dip CEO and co-founder Rajeev Goel said the company’s business mix has shifted substantially toward higher-growth areas. Approximately 60% of second-quarter revenue came from CTV, mobile app and emerging revenue streams, compared with roughly 30% three years earlier. Those categories grew nearly 40% year over year in aggregate, according to CFO Steve Pantelick. Global CTV revenue increased 13% year over year and accounted for approximately 20% of total revenue. CTV revenue in the Americas rose 25%, aided by new advertisers, premium inventory and live sports activity. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Roblox's Growth Beyond Kids: Stock Set for Major Moves Mobile-app revenue grew more than 40% and represented about 25% of quarterly revenue. Pantelick attributed that growth to mediation-platform integrations, product development and expansion of PubMatic’s global app-publisher base. Emerging revenue streams nearly doubled year over year to an all-time high of roughly 15% of revenue, driven in part by adoption of newer AI products, including AgenticOS. Direct buying through Activate more than doubled globally from a year earlier, management said. → Ulta's Growth Is Real, But So Are the Risks PubMatic also said total display revenue rose 12%, mainly due to mobile-app growth. The company generated several million dollars of incremental revenue during the quarter from the World Cup, Amazon Prime Day and political advertising. Its top 10 advertising verticals grew 15% in aggregate. Shopping, health and fitness, and personal finance posted double-digit gains, which helped offset softness in food and drink, arts and entertainment, and travel. Goel said PubMatic has delivered more than 80 agentic campaigns since launching AgenticOS in January, up from 30 campaigns in the prior quarter. The campaigns included work with all five global agency holding companies. Management described AgenticOS as a set of more than 20 agents that automate and optimize advertising buying and selling workflows. The company this week introduced an enterprise-buyer agent with configurable controls, approved workflows and audit trails for autonomous campaigns. Goel said customer adoption remains at an early-adopter stage, though he said clients that have run agentic campaigns have returned with more business. He reiterated his expectation that roughly 25% of the company’s ecosystem could trade agentically by the end of 2028 and 50% by the end of 2030. PubMatic also highlighted Decision Fabric, introduced in June, which allows advertisers, demand-side platforms and technology partners to run proprietary models within PubMatic’s infrastructure closer to its inventory, data and point of auction. The company named MiQ, Chalice AI, Swim.ai and Empowered among its launch partners. Management said it believes the movement toward agentic advertising and containerized decisioning shifts more transaction processing to the sell side. Goel said the company aims to reduce the distance between publishers and advertisers by using AgenticOS, Activate and its sell-side platform to support end-to-end execution. Gross profit increased 19%, outpacing the 11% revenue increase. PubMatic said it is adjusting its compute and processing resources toward AI-native products and higher-value transactions. During the quarter, gross impressions processed declined 2% sequentially while monetized impressions increased 4%. Pantelick said the company expects its monetization rate to rise as it prioritizes impressions that create greater value. AI and automation also contributed to lower total headcount year over year across engineering, marketing, customer success and finance, while the company increased go-to-market headcount by 12%. Operating expenses increased 4%, below revenue growth, as PubMatic continued investing in its buyer-focused sales organization and broader go-to-market efforts. The company generated $20.2 million in operating cash flow, up 36% from the prior-year period. It ended the quarter with $137.5 million in cash and marketable securities and no debt. During the quarter, PubMatic repurchased 2.1 million Class A shares for $21.5 million. Since starting its repurchase program in February 2023 through the end of the second quarter, the company has repurchased 15.5 million shares for $211.4 million. It had $63.6 million remaining under the authorization through the end of 2026. For the third quarter, PubMatic forecast revenue of $75 million to $77 million, representing 12% growth at the midpoint, and adjusted EBITDA of $17 million to $19 million. The company expects low-single-digit sequential increases in cost of revenue and operating expenses as it maintains go-to-market investment. Management said it expects fourth-quarter adjusted EBITDA margin to be similar to the prior year’s fourth quarter, resulting in meaningful full-year margin expansion. PubMatic raised its full-year capital-expenditure outlook to $20 million to $25 million to support AI workloads and its NVIDIA-related innovation efforts. Pantelick said the added investments are expected to generate incremental revenue with a payback period of about 12 months or less. The company also expects political advertising to increase later in the year, particularly in the fourth quarter, though Pantelick said the contribution is not expected to match the level seen during the 2024 presidential election cycle. Separately, Pantelick said he plans to retire early in 2027. He will remain CFO into the first quarter of 2027 and then serve in an advisory role through July 1 to support the transition. PubMatic has begun a search for his successor. The company also said Megan Ram will join as global chief revenue officer on Aug. 10. PubMatic is a cloud-based digital advertising technology company that provides a supply-side platform (SSP) enabling publishers to automate and optimize the sale of their ad inventory across display, mobile, video and connected TV channels. Its core offerings include real-time bidding infrastructure, header bidding solutions under the OpenWrap brand and data analytics tools that deliver actionable insights on audience engagement and monetization performance. By facilitating seamless auctions and providing transparent reporting, PubMatic helps publishers maximize yield while improving buyer experiences. Founded in 2006 by Rajeev Goel and a team of ad-tech veterans, PubMatic grew from an early entrant in programmatic selling to a publicly traded company, listing on the Nasdaq (symbol: PUBM) in December 2020. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "PubMatic Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Delivered revenue and adjusted EBITDA well ahead of guidance; AI customer adoption more than doubled sequentially, delivering 80+ agentic campaigns and 4,000+ AI-powered deals; Total Revenues Grew 11%, adjusted EBITDA increased 38% and free cash flow increased 47% year-over-year; CTV, Mobile App and Emerging Revenues represented ~60% of total revenue; Repurchased 2.1 million shares in Q2 2026, representing 4.2% of fully diluted shares1 as of June 30, 2026. NO-HEADQUARTERS/REDWOOD CITY, Calif., August 06, 2026--(BUSINESS WIRE)--PubMatic, Inc. (Nasdaq: PUBM), the leading AI-powered ad tech company delivering digital advertising performance, today reported financial results for the quarter ended June 30, 2026. "The second quarter marked an important inflection point for PubMatic. We delivered double-digit revenue growth earlier than anticipated, expanded profitability and strengthened our competitive position across AgenticOS, CTV, and mobile app," said Rajeev Goel, co-founder and CEO at PubMatic. "AI is transforming how digital advertising is planned, activated and optimized, increasing the emphasis on performance advertising. Our AI-native infrastructure and proprietary intelligence consistently deliver better performance, faster execution and greater efficiency for customers. Every interaction strengthens that intelligence, creating a compounding advantage that is difficult to replicate. Further, we’re bringing new forms of advertising, new sources of demand and new intelligence onto our platform that will significantly expand our long-term market opportunities." Second Quarter 2026 Financial Highlights Revenue in the second quarter of 2026 was $78.6 million, up 11% compared to the same period of 2025; GAAP net loss was $(1.2) million with a margin of (1)%, or $(0.03) per diluted share in the second quarter, compared to GAAP net loss of $(5.2) million with a margin of (7)%, or $(0.11) per diluted share in the same period of 2025; Adjusted EBITDA was $19.6 million, or 25% margin, an increase over $14.2 million, or 20% margin in the same period of 2025; Non-GAAP net income was $5.9 million, or $0.12 per non-GAAP diluted share in the second quarter, compared to non-GAAP net income of $2.5 million, or $0.05 per non-GAAP diluted share in the same period of 2025; Net cash provided by operating activities was $20.2 million, a 36% increase over $14.9 million in the same period of 2025; Free cash flow was $13.7 million, a 47% increase over $9.3 million in the same period of 2025; Ended the quarter with total cash, cash equivalents, and marketable securities of $137.5 million with no debt; and Through June 30, 2026, used $211.4 million in cash to repurchase 15.5 million shares of Class A common stock with $63.6 million available from the 2023 Repurchase Program. The section titled "Non-GAAP Financial Measures" below describes our usage of non-GAAP financial measures. Reconciliations between historical GAAP and non-GAAP information are contained at the end of this press release following the accompanying financial data. "We delivered a remarkable quarter, exceeding our guidance on revenue and adjusted EBITDA. We returned to double-digit year-over-year revenue growth ahead of schedule: revenue grew 11%, adjusted EBITDA increased 38% and free cash flow increased 47%," said Steve Pantelick, CFO at PubMatic. "Over the past three years, targeted investment and innovation in the fastest-growing areas of digital advertising have fundamentally changed our business. Today, approximately 60% of our revenue comes from CTV, mobile app and emerging revenue streams, roughly double the level of three years ago. Based on this momentum and the strength of our AI-powered products, we anticipate continued double-digit year-over-year revenue growth and meaningful full-year margin expansion." Business Highlights AgenticOS Drives Superior Open Internet Performance and Customer Adoption Since launching in January 2026, PubMatic has delivered measurable performance gains for customers across more than 80 fully autonomous, end-to-end campaigns globally. This is up from over 30 campaigns a quarter ago, and now includes all five global agency holding companies. Over 4,000 AI-powered deals transacted to date, up from just over 1,000 deals a quarter ago. Level Agency increased ad spend with PubMatic after AgenticOS delivered more than 2x reach per dollar versus its incumbent DSP, while significantly accelerating campaign setup and activation time. Additionally, AgenticOS delivered retargeting at scale within days compared to the 1-2 months ramp typically required by DSP-led campaigns. Havas Media and Telefónica launched Spain's first fully agentic CTV campaign, achieving 18% lower CPM than target while exceeding impression goals by 23% using AgenticOS. Launched advanced guardrail architecture for AgenticOS, giving enterprise buyers configurable control over autonomous campaign execution with human approval workflows, presence-based controls, and full audit trails built directly into the execution layer, reducing barriers to scaling agentic advertising budgets across the platform. New Partnerships Fuel Our Intelligence Advantage Recently partnered with Gracenote to bring real-time content intelligence, including contextual signals and live sports schedules, directly into the PubMatic platform. By embedding this data at the point of auction, coupled with our rich signal data and proprietary bidstream data, our AI-native infrastructure can make increasingly sophisticated decisions within the milliseconds available before every impression is served. Added premium inventory from marquee broadcaster Channel 4 in the UK to expand its access to advertising buyers. New AI-Powered Solutions Launched Launched Decision Fabric, a containerization solution bringing buyer intelligence directly into the auction to improve advertising performance. Launch partners include MiQ, Chalice AI, SWYM.ai and InPowered, who can now run proprietary decision models natively within PubMatic's infrastructure. Expanded Into New Markets, Creating Incremental Growth Opportunities Launched Creator Marketplace, enabling advertisers on PubMatic to connect to premium inventory and reach highly engaged audiences while giving creators new ways to monetize across the open internet. Programmatic trading desk Klever used AgenticOS to help a well-known direct-to-consumer brand expand beyond social channels into premium CTV, and delivered a 5x return on ad spend, which was double the client’s original objective. Diversified Revenue Mix and Expanded Reach On The Buy Side Revenues in Q2 2026 from CTV, mobile app and emerging revenues represented approximately 60% of total revenue, roughly double the share of three years ago. Strength in CTV was led by the Americas, where revenue grew 25% year over year. Global CTV revenue grew 13% year-over-year and represented approximately 20% of total revenue. Q2 2026 revenue from mobile app grew over 40% year-over-year and accounted for approximately 25% of total revenue. Emerging revenues2 in Q2 2026 grew approximately 100% year over year and represented approximately 15% of total revenues in the quarter, which includes revenue from newly launched AI solutions. Ad spend from Activate grew more than 2X over Q2 2025, as buyers and publishers prioritized performance, control and transparency. Ad spend from mid-market focused DSPs grew over 25% year-over-year in Q2 2026. Supply Path Optimization represented over 55% of total activity on our platform in Q2 2026. Operating Priorities Drove Profitable Growth Infrastructure optimization initiatives and investments drove nearly 92 trillion impressions processed in Q2 2026, an increase of 18% over Q2 2025. Cost of revenue per million impressions processed decreased 20% on a trailing twelve month period, as compared to the prior period. Financial Outlook Our outlook assumes that general market conditions do not significantly deteriorate as it relates to current macroeconomic and geopolitical conditions. For the third quarter of 2026, we expect the following: Revenue to be in the range of $75 million to $77 million. Adjusted EBITDA to be in the range of $17.0 million to $19.0 million. Adjusted EBITDA expectation assumes a negative foreign currency exchange impact predominantly from Euro and Pound Sterling. Although we provide guidance for adjusted EBITDA, we are not able to provide guidance for net income (loss), the most directly comparable GAAP measure. Certain elements of the composition of GAAP net income (loss), including stock-based compensation expenses, are not predictable, making it impractical for us to provide guidance on net income or to reconcile our adjusted EBITDA guidance to net income without unreasonable efforts. For the same reason, we are unable to address the probable significance of the unavailable information. Chief Financial Officer Planned Retirement Announced In a separate release issued today, the Company announced that Steve Pantelick, Chief Financial Officer, plans to retire after fifteen years in the role. He will continue to serve as CFO into the first quarter of 2027, and then as a senior adviser through July 1, 2027, to support continuity and a smooth transition. The Company has initiated a search for his successor. Conference Call and Webcast details PubMatic will host a conference call to discuss its financial results on Thursday, August 6, 2026 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). A live webcast of the call can be accessed from PubMatic’s Investor Relations website at https://investors.pubmatic.com. An archived version of the webcast will be available from the same website after the call. Non-GAAP Financial Measures In addition to our results determined in accordance with U.S. generally accepted accounting principles (GAAP), including, in particular operating income (loss), net cash provided by operating activities, and net loss, we believe that adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP earnings per share and free cash flow, each a non-GAAP measure, are useful in evaluating our operating performance. We define adjusted EBITDA as net loss adjusted for stock-based compensation expense, depreciation and amortization, litigation related expenses, interest income, and provision for (benefit from) income taxes. Adjusted EBITDA margin represents adjusted EBITDA calculated as a percentage of revenue. We define non-GAAP net income as net loss adjusted for stock-based compensation expense, litigation related expenses, and adjustments for income taxes. We define non-GAAP free cash flow as net cash provided by operating activities reduced by purchases of property and equipment and capitalized software development costs. In addition to operating income (loss) and net loss, we use adjusted EBITDA and non-GAAP net income as measures of operational efficiency. We believe that these non-GAAP financial measures are useful to investors for period to period comparisons of our business and in understanding and evaluating our operating results for the following reasons: Adjusted EBITDA and non-GAAP net income are widely used by investors and securities analysts to measure a company’s operating performance without regard to items such as stock-based compensation expense, depreciation and amortization, litigation related expenses, interest expense, and provision for (benefit from) income taxes that can vary substantially from company to company depending upon their financing, capital structures and the method by which assets were acquired; and, Our management uses adjusted EBITDA and non-GAAP net income in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of operating performance and the effectiveness of our business strategies and in communications with our board of directors concerning our financial performance; and adjusted EBITDA provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. Our use of non-GAAP financial measures has limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are as follows: Adjusted EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; (b) the potentially dilutive impact of stock-based compensation; or (c) tax payments that may represent a reduction in cash available to us; Although depreciation and amortization expense are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; and Non-GAAP net income does not include: (a) the potentially dilutive impact of stock-based compensation; (b) non-ordinary course litigation related expenses; or (c) income tax effects for stock-based compensation Because of these and other limitations, you should consider adjusted EBITDA and non-GAAP net income along with other GAAP-based financial performance measures, including net income and our GAAP financial results. Forward Looking Statements This press release contains "forward-looking statements" regarding our future business expectations, including our guidance relating to our revenue and adjusted EBITDA for the third quarter of 2026, our expectations regarding our adjusted EBITDA, free cash flow, free cash flow margin, capital expenditures, future adoption and deployment of our AI-enabled products, future market growth, and our long-term revenue growth. These forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions and may differ materially from actual results due to a variety of factors including: our dependency on the overall demand for advertising and the channels we rely on; our existing customers not expanding their usage of our platform, or our failure to attract new publishers and buyers; our ability to maintain and expand access to spend from buyers and valuable ad impressions from publishers; the rejection of the use of digital advertising by consumers through opt-in, opt-out or ad-blocking technologies or other means; our failure to innovate and develop new solutions that are adopted by publishers; geopolitical tensions and uncertainty, including the conflicts in Ukraine and the Middle East, and the related measures taken in response by the global community and disruptions to the international supply chain and global commerce; the impacts of inflation and tariffs as well as fiscal tightening; changes in currency exchange environments and continuing volatility in global capital markets; volatile interest rates; public health crises, including the resulting global economic uncertainty; limitations imposed on our collection, use or disclosure of data about advertisements, including as it may impact our use of Artificial Intelligence and additional AI laws and regulations are enacted globally; the lack of similar or better alternatives to the use of third-party cookies, mobile device IDs or other tracking technologies if such uses are restricted; any failure to scale our platform infrastructure to support anticipated growth and transaction volume; liabilities or fines due to publishers, buyers, and data providers not obtaining consents from consumers for us to process their personal data; any failure to comply with laws and regulations related to data privacy, data protection, information security, and consumer protection; and our ability to manage our growth. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. For more information about risks and uncertainties associated with our business, please refer to the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of our SEC filings, including but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which are available on our investor relations website at https://investors.pubmatic.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. All information in this press release is as of August 6, 2026. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. About PubMatic PubMatic is the leading AI-powered ad tech company delivering digital advertising performance. Through an intelligent, unified platform that connects buyers, publishers, data partners, and commerce media networks, PubMatic delivers superior performance with greater transparency, control, and efficiency. Since 2006, PubMatic has pioneered major advances in programmatic advertising, from enabling the first OpenRTB transactions to embedding AI-driven optimization and privacy-focused innovation across its platform. With omnichannel scale, proven reliability, and a track record of continuous innovation, PubMatic is building a more intelligent, profitable, and sustainable open internet. Built to Connect. Powered to Perform. Reported GAAP diluted loss per share for the three and six months ended June 30, 2026 and 2025 were calculated using basic share count. Non-GAAP diluted earnings per share for the three and six months ended June 30, 2026 and three and six months ended June 30, 2025 were calculated using diluted share count which includes approximately 4 million, 3 million, 3 million, and 4 million, respectively, of dilutive securities related to employee stock awards. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805668883/en/ Contacts Investors: [email protected] Press Contact:Purpose [email protected]

Trade Desk (NASDAQ:TTD), a cloud-based programmatic advertising platform for data-driven digital ad buyers, closed at $17.67, down 6.80%. Investors sold shares throughout the day ahead of Q2 results, and things got worse after hours as the company reported dismal results. As of 5 p.m. ET, TTD stock is down 22%. Trading volume reached 49.5M shares, coming in about 152% above its three-month average of 19.7M shares. Trade Desk IPO'd in 2016 and has grown 487% since going public. The S&P 500 (SNPINDEX:^GSPC) closed at 7,711, down 0.16%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) finished at 26,348, down 0.06%. Among advertising technology rivals, Magnite (NASDAQ:MGNI) closed at $24.32, up 17.66%, and PubMatic (NASDAQ:PUBM) closed at $13.48, down 0.22%, highlighting a split in the peer group. The market was already pessimistic about The Trade Desk’s Q2 earnings call after close today, as the stock slid 7% during market hours -- and the company’s actual results did nothing to dissuade this negative outlook once they hit the press, as the stock declined another 22% after close. Not only did the company’s Q2 earnings fall well short of analyst consensus, but Trade Desk guided for sales of “at least” $650 million -- far shy of Wall Street’s expectations for $805 million. If this revenue guidance is correct, it would represent a 12% year-over-year decline in sales. While The Trade Desk was once a core holding for me -- I still hold all my original shares -- I can’t imagine adding to the position anytime soon. Rather, I’m content to see what new management can bring to the table and see what niche the company can carve out for itself in a rapidly evolving advertising landscape. That said, today’s results show that the company has seemingly lost its grip as the leader in its “open internet” slice of the advertising market, and I would need to see a 180 in results over the next few quarters to really get excited about the stock again. Before you buy stock in The Trade Desk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and The Trade Desk wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,345,502!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 6, 2026. Josh Kohn-Lindquist has positions in The Trade Desk. The Motley Fool has positions in and recommends PubMatic and The Trade Desk. The Motley Fool recommends Magnite. The Motley Fool has a disclosure policy. Stock Market Today, Aug. 6: Trade Desk Plummets After Hours on Weak Q2 Results was originally published by The Motley Fool

PubMatic, Inc. (PUBM) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +300.00%. A quarter ago, it was expected that this company would post a loss of $0.01 per share when it actually produced a loss of $0.11, delivering a surprise of -1000%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. PubMatic, which belongs to the Zacks Internet - Software industry, posted revenues of $78.59 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 13.74%. This compares to year-ago revenues of $71.1 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. PubMatic shares have added about 52.3% since the beginning of the year versus the S&P 500's gain of 12.8%. While PubMatic has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for PubMatic was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.09 on $71.37 million in revenues for the coming quarter and $0.37 on $294.27 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Autodesk (ADSK), has yet to report results for the quarter ended July 2026. The results are expected to be released on August 27. This design software company is expected to post quarterly earnings of $3.12 per share in its upcoming report, which represents a year-over-year change of +19.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Autodesk's revenues are expected to be $2.01 billion, up 14% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PubMatic, Inc. (PUBM) : Free Stock Analysis Report Autodesk, Inc. (ADSK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research