Pubmatic (PUBM) Stock Forecast & Price Target

PubMatic Inc. has demonstrated robust growth in its Connected TV (CTV) segment, achieving over 50% year-over-year growth in the third quarter of 2025, with specific live sports revenue soaring by 150% quarter-over-quarter and accounting for approximately 20% of total sales. The company's emerging revenue streams, including commerce media, have notably expanded by 80% year-over-year, now representing about 10% of total revenue, highlighting the effectiveness of their strategic diversification. Furthermore, there is an optimistic adjustment in revenue estimates for fiscal year 2025 and an expectation of a return to double-digit growth in the latter half of fiscal year 2026, bolstered by strong performance in omni-channel video.

PubMatic Inc. has experienced a year-over-year revenue decline of approximately 5%, with anticipated revenue for 4Q25 expected to fall by 10% to 15%, suggesting potential challenges in sustaining growth in the face of increasing competition and market dynamics. Despite some positive growth in specific areas such as connected television and emerging revenue streams, overall profitability measures remain under pressure, as evidenced by a reduction in adjusted EBITDA guidance from previous estimates. Additionally, the potential cyclical downturn in GDP growth could exacerbate these challenges, leading to further material deterioration in the company’s financial performance.