PubMatic (PUBM) reported Q3 CY2025 results, surpassing revenue expectations but with a 5.3% sales decline to $67.96 million. Next quarter’s revenue is projected around $75 million, close to analysts’ estimates. Non-GAAP profit per share was $0.03, significantly exceeding consensus estimates.

Revenue for Q3 was $67.96 million, beating analyst estimates by 6.1%. Adjusted EPS was $0.03, significantly higher than expected. Adjusted EBITDA was $11.15 million, with a 16.4% margin, exceeding analyst estimates by 29.5%.

PubMatic’s Q4 CY2025 revenue guidance is $75 million, aligning with analyst expectations. EBITDA guidance for the quarter is $20 million, slightly below estimates. Operating margin decreased to -12.4%, while free cash flow margin increased to 33.5%.

PubMatic operates a technology platform for digital advertising, serving publishers and advertisers. The company has shown decent annualized revenue growth of 17.8% over the last five years, slightly above the industry average.

Recent data shows PubMatic’s demand slowing, with revenue falling by 5.3% year on year to $67.96 million. Management projects a 12.3% decline in sales next quarter, and analysts expect a 6% revenue decrease over the next 12 months.

PubMatic exceeded analysts’ expectations in revenue and EBITDA this quarter, with a 14.3% stock increase to $8.73 post-earnings. Despite solid performance, long-term fundamentals and valuation should be considered when evaluating PubMatic as an investment.

Read more at Yahoo Finance: PubMatic (NASDAQ:PUBM) Surprises With Q3 Sales, Stock Jumps 14.3%