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. 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 flow from operations, and free cash flow. We delivered an exceptional first quarter with revenue and adjusted EBITDA ahead of guidance. Emerging revenues grew over 80% year-over-year and climbed to 14% of total revenues, aided by AgenticOS.

As a pioneer in AI, our multi-year investments are paying off and fueling new revenue streams, operating leverage, and market-leading advantages that are at the early stages of compounding. We're evaluated on our ability to monetize every ad impression we process, and we earn revenue only when we deliver superior results for publishers and buyers. As customers see stronger performance, they increase usage, creating a self-reinforcing model where greater adoption and utilization drive both customer ROI and our own profitable growth. By connecting ad demand and premium supply in a single environment, advertisers see higher ROI and publishers benefit from increased yield.

We're using NVIDIA Triton Inference Server to deploy real-time inferencing for bidding and audience decisioning. With faster processing, we are improving our proprietary model training in real time, resulting in significant performance improvements and better optimization for advertiser return on ad spend. Our growth profile mirrors this trend as we diversify our business and accelerate expansion beyond the largest DSPs. This is an exciting area of innovation and demonstrates how existing software interfaces are quickly becoming obsolete.

What went well
  • Q1 revenue of $62.6 million and adjusted EBITDA of $2.6 million both topped guidance and the preliminary figures shared on April 22.
  • The underlying business, excluding the legacy DSP, grew 13% year-over-year and represented 83% of total revenue.
  • Emerging revenues grew over 80% year-over-year to 14% of revenue; CTV, mobile app, and emerging revenues combined grew over 20%, with mobile app up over 25% and global CTV up 18% excluding the legacy DSP.
  • Delivered its 40th consecutive quarter of positive adjusted EBITDA and $10.7 million of free cash flow (up 47%, a 17% margin), ending with $145 million of cash and zero debt.
  • Held cost-of-revenue growth to just 2% despite utility pass-throughs, crossed 1 trillion impressions processed per day, and took Amazon's Dynamic Traffic Engine integration global (up to 10% higher CPMs) while running 30+ fully agentic campaigns and 1,000+ AI-powered deals.
What went wrong
  • The Q1 GAAP net loss widened to $12.5 million, or -$0.27 per diluted share.
  • Americas revenue declined 12% year-over-year, driven by the anticipated legacy DSP spend declines, which would not be lapped until Q3.
  • Adjusted EBITDA margin was only 4%, held back by a roughly $1 million FX headwind from a weaker US dollar.
  • Softness persisted in the business and food-and-drink ad verticals.
  • Total company revenue remained below the prior-year quarter because of the legacy DSP drag, with double-digit growth confined to the underlying business.

More on PubMatic, Inc.

Reported 2026-05-07 · figures from the PubMatic, Inc. Q1 2026 earnings call.

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