Pubmatic (PUBM) Stock Forecast & Price Target

PubMatic Inc. has demonstrated robust growth within its digital advertising technology offerings, particularly in the Connected TV (CTV) sector, which has seen a year-over-year increase of over 50%, bolstered by a significant uptick in live sports revenue. The company's innovative platforms, Activate and Connect, have also shown impressive growth figures of 100% and 40% year-over-year, respectively, showcasing increased demand for direct buying and data leveraging solutions. Additionally, emerging revenue streams, including commerce media, have risen 80% year-over-year, now comprising approximately 10% of total sales, indicating a diversified and resilient business model positioned for continued growth.

PubMatic's stock faces a negative outlook primarily due to a year-over-year revenue decline of approximately 5%, despite better than expected performance driven by strong growth in connected television (CTV) and emerging revenue streams. The company has issued a cautionary forecast for 4Q25, projecting sales to decrease by 10% to 15% year-over-year, reflecting ongoing challenges from a significant legacy demand-side platform partner and broader economic pressures. Additionally, while adjusted EBITDA for 4Q25 remains higher than previously estimated, it is projected to be down 46% to 62% year-over-year, indicating heightened vulnerability to external market conditions and potential pressures on profitability.