PubMatic Q3 2026: EPS Nearly Doubles the Estimate, Margin Surges

PubMatic posted adjusted earnings per share of $0.25 for the third quarter of 2026, beating the $0.14 consensus and marking the fifth consecutive quarter of topping EPS expectations. Revenue of $79.6 million also came in above the $76.1 million estimate.

Gross margin expanded to 70% from 63% a year earlier, and adjusted EBITDA surged 133% to $25.96 million. The company swung to GAAP net income of $5.54 million from a year-ago loss of $6.45 million, reflecting accelerating revenue growth and improving operating leverage.

Mobile app revenue climbed nearly 40% year over year, global CTV grew over 30%, and newer businesses covering AI solutions, Commerce Media, and Activate more than doubled, together accounting for roughly 64% of total revenue. CEO Rajeev Goel attributed the momentum to advertiser performance investments and what he described as AI accelerating a shift from sell-side targeting to sell-side decisioning.

Management guided Q4 2026 revenue to $91 million to $93 million, about 15% year-over-year growth at the midpoint, with adjusted EBITDA of $31 million to $33 million. Full-year 2026 guidance calls for revenue of $312 million to $314 million and adjusted EBITDA of $79 million to $81 million. The CFO signaled that momentum is expected to carry into 2027.

Despite the beats and the upbeat guidance, the stock sold off in after-hours trading. The board also authorized an expansion of its share repurchase program, bringing total availability to approximately $198 million against a market cap of around $710 million. Whether buyback firepower or accelerating growth resets sentiment is the key question heading into Q4 results.