PubMatic(US:PUBM)2025-11-10 21:10Revenue Performance - Revenue for Q3 2025 was $68.0 million, down from $71.8 million in Q3 2024, which included $5.0 million from political advertising[6] - Revenue for Q3 2025 was $67,960,000, a decrease of 5.1% compared to $71,786,000 in Q3 2024[31] - The company estimates Q4 2025 revenue to be between $73 million to $77 million[17] Profitability Metrics - Adjusted EBITDA was $11.2 million, representing a 16% margin, down from $18.5 million and a 26% margin in the same period of 2024[6] - Adjusted EBITDA for Q3 2025 was $11,152,000, with an adjusted EBITDA margin of 16%[37] - Adjusted EBITDA for Q4 2025 is expected to be in the range of $19 million to $21 million, representing approximately a 27% margin at the midpoint[19] - Operating loss for Q3 2025 was $8,419,000, compared to a loss of $1,365,000 in Q3 2024[31] - Net loss for Q3 2025 was $6,452,000, compared to a net loss of $912,000 in Q3 2024[31] Cash and Liquidity - Total cash and cash equivalents were $136.5 million as of September 30, 2025, with no debt[8] - Cash and cash equivalents increased to $136,548,000 as of September 30, 2025, from $100,452,000 at the beginning of the period[35] - Net cash provided by operating activities for Q3 2025 was $32,374,000, compared to $19,139,000 in Q3 2024, representing a year-over-year increase of 69.5%[39] - Free cash flow for the nine months ended September 30, 2025, was $39,351,000, up from $26,041,000 in the same period of 2024, reflecting a growth of 51.1%[39] - The total cash flow from operating activities for the nine months ended September 30, 2025, was $62,900,000, compared to $55,377,000 in 2024, marking an increase of 13.7%[39] Asset and Liability Management - Total assets decreased to $676,188,000 as of September 30, 2025, down from $739,519,000 at the end of 2024[29] - Total liabilities decreased to $431,128,000 as of September 30, 2025, compared to $462,256,000 at the end of 2024[29] Operational Efficiency - AI-powered platform reduced campaign setup time by 87% and sped up issue resolution by 70%[3] - Supply Path Optimization represented over 55% of total activity on the platform in Q3 2025, up from 50% a year ago[18] - CTV revenue grew over 50% year-over-year excluding political ad spend, while omnichannel video revenue grew 21% year-over-year[12] - Emerging revenues grew 80% year-over-year, including curation, commerce media, and other non-SSP revenues[18] Stock and Compensation - Stock-based compensation expense for Q3 2025 was $9,511,000, slightly up from $9,457,000 in Q3 2024[33] - The company reported a basic and diluted net loss per share of $0.14 for Q3 2025, compared to a loss of $0.02 in Q3 2024[37] Capital Expenditures - Purchases of property and equipment decreased from $11,731,000 in Q3 2024 to $4,674,000 in Q3 2025, indicating a reduction of 60.1%[39] - Capitalized software development costs remained relatively stable, with $4,914,000 in Q3 2025 compared to $4,542,000 in Q3 2024, showing an increase of 8.2%[39]