PubMatic: CTV Growth and Investor Hope through AI

Financial Developments and Growth Expectations

PubMatic, Inc. has announced its third-quarter financial results for 2025, reporting 67.96 million USD in sales and a 6.45 million USD net loss. The company highlighted more than 50% annual growth in Connected TV revenues and advancements in artificial intelligence advertising solutions thanks to a technical collaboration with NVIDIA.

Investment in technology and rapid CTV expansion have led analysts to revise their expectations for PubMatic upwards. The company's improvements in artificial intelligence-focused platform and Connected TV growth are shaping the updated investment narrative.

Opportunities for Investors

Investing in PubMatic today requires belief in the potential shift of advertising budgets to Connected TV and the margin expansion capacity of artificial intelligence-based platforms. While the latest quarterly results affirmed CTV growth of 50% and expanding artificial intelligence tools, it also noted that ongoing consolidation still poses the biggest risk.

Since the beginning of 2023, the company has bought back 12 million shares worth 180.62 million USD. These buybacks may support per-share metrics and signal management's perspective. However, investors should not forget that the consolidation among DSP partners increases the risk of sudden customer attrition.

Long-Term Forecasts

By 2028, PubMatic is expected to generate 302.3 million USD in revenue and 30.6 million USD in earnings. This target requires an annual 1.1% revenue growth and an increase from the current -1.7 million USD earnings to 32.3 million USD.

Forecasts among retail investors present four fair value estimates for PubMatic ranging from 9.19 USD to 275.43 USD per share. While many investors view the potential in CTV and artificial intelligence expansion with great optimism, it appears that the risk of buyer concentration continues to shape the company's future performance.

For more information on assessments you can make as a starting point in investment research, we recommend reviewing our comprehensive analysis. Our report, which summarizes PubMatic's overall financial health visually, includes information on key opportunities and two significant warning signs that could impact your investment decision.