Pubmatic (PUBM) Stock Forecast & Price Target

PubMatic Inc. has demonstrated significant growth in its Connected TV (CTV) segment, posting an over 50% year-over-year increase in 3Q25, with live sports revenue surging 150% quarter-over-quarter. The company’s emerging revenue streams, which include commerce media, have also shown impressive performance, growing 80% year-over-year to constitute approximately 10% of total sales. Furthermore, PubMatic's leadership has noted a robust expansion in omni-channel video revenue, which has increased by 21% year-over-year, highlighting the company's ability to leverage its technology and partnerships with over 90% of the top 30 streaming companies to support long-term revenue growth.

PubMatic Inc. reported a year-over-year revenue decline of approximately 5% for the quarter, despite exceeding guidance and consensus expectations, primarily due to strong growth in connected television (CTV) and emerging revenue streams. The company has guided for a further revenue decrease of 10% to 15% in Q4 2025, reflecting ongoing challenges and potential impacts from a cyclical downturn in GDP growth, both domestically and internationally. Additionally, the profitability outlook has softened, with adjusted EBITDA expectations revised downward, indicating sustained pressure from the reset of a major demand-side platform (DSP) partner and currency headwinds.