PubMatic(PUBM) - 2025 Q4 - Annual Results

Financial Performance - FY 2025 revenue was $282.9 million, a decrease from $291.3 million in FY 2024[6] - Adjusted EBITDA for FY 2025 was $61.6 million, representing a 22% margin, down from $92.3 million and 32% margin in FY 2024[6] - Fourth quarter revenue was $80.0 million, compared to $85.5 million in Q4 2024[12] - GAAP net income for Q4 2025 was $6.7 million, down from $13.9 million in Q4 2024[12] - Gross profit for the year ended December 31, 2025, was $179,841,000, down from $190,229,000 in 2024, reflecting a decline of 5.5%[34] - Net loss for the year ended December 31, 2025, was $(14,462,000), compared to a net income of $12,504,000 in 2024[34] - Operating income for Q4 2025 was $8,524,000, down from $14,802,000 in Q4 2024, representing a decline of 42.2%[34] - Revenue for Q4 2025 was $80,046, a decrease from $85,502 in Q4 2024, with total revenue for 2025 at $282,926 compared to $291,256 in 2024[39] - Adjusted EBITDA for Q4 2025 was $27,818, down from $37,646 in Q4 2024, with a full year adjusted EBITDA of $61,640 for 2025 compared to $92,325 in 2024[39] - Non-GAAP net income for Q4 2025 was $14,440, compared to $21,443 in Q4 2024, with full year non-GAAP net income of $16,701 for 2025 versus $42,452 in 2024[39] Cash Flow and Assets - Free cash flow in FY 2025 was $46.2 million, an increase of 32% over FY 2024[6] - Total cash, cash equivalents, and marketable securities at the end of FY 2025 were $145.5 million, a 4% increase from FY 2024[6] - Cash and cash equivalents increased to $145,518,000 in 2025 from $100,452,000 in 2024, an increase of 44.8%[32] - Net cash provided by operating activities for Q4 2025 was $18,159, slightly up from $18,048 in Q4 2024, with total operating cash flow for 2025 at $81,059 compared to $73,425 in 2024[41] - Free cash flow for Q4 2025 was $6,852, down from $8,856 in Q4 2024, with total free cash flow for 2025 at $46,203 compared to $34,897 in 2024[41] Shareholder Actions - The company repurchased 4.1 million shares in 2025, representing 8.1% of fully diluted shares[1] - Total stock-based compensation for 2025 was $38,378, compared to $37,676 in 2024, indicating a slight increase in compensation expenses[39] Future Guidance - For Q1 2026, revenue is expected to be between $58 million and $60 million, with adjusted EBITDA guidance of $(0.5) million to $1.0 million[23] - The company expects to provide guidance for revenue and adjusted EBITDA for Q1 2026, indicating a focus on future growth[28] Market Performance - CTV revenue grew over 50% year-over-year in FY 2025, excluding political ad spend[17] - Net dollar-based retention rate for FY 2025 was 96%, indicating strong publisher satisfaction[6] Innovation and Strategy - The company continues to innovate in programmatic advertising, leveraging AI-driven optimization and privacy-focused solutions[29]