Pubmatic (PUBM) Stock Forecast & Price Target

PubMatic Inc. demonstrates a strong positive outlook driven by impressive year-over-year growth metrics, particularly in Connected TV (CTV) revenue, which increased by over 50% in the third quarter of 2025, significantly benefiting from partnerships with leading streaming companies. The performance of its direct buying platform, Activate, and the Connect platform has also been notable, with revenue growth of 100% and 40% year-over-year, respectively, alongside emerging revenue streams growing by 80% and contributing approximately 10% to total sales. Additionally, the company's ability to offset anticipated headwinds from a major demand-side platform partner has led to investor confidence, resulting in a notable increase in share value during after-hours trading.

PubMatic Inc's recent financial performance reveals a decline in revenue of approximately 5% year-over-year, despite some pockets of growth in connected television and emerging revenue streams, which may not be sufficient to offset broader challenges. The company's guidance for Q4 2025 indicates expected sales to decrease by 10% to 15% year-over-year, reflecting potential headwinds from the cyclical downturn in GDP growth and ongoing pressure from unexpected issues with a significant demand-side platform partner. Additionally, while adjusted EBITDA figures remain above previous forecasts, they indicate a marked decrease, highlighting potential vulnerabilities in the company’s profitability amidst a challenging market environment.