PubMatic, Inc. Q1 FY2026 earnings call

Rajeev mentioned AI is accelerating business, AgenticOS and products showing progress, partnerships like Walmart and PayPal. Steve noted strong Q1 financials, infrastructure investments, operating expenses, and productivity gains from AI. Also, diversification across DSPs, verticals, geographies, etc.

Q1 revenue was $62.6 million and adjusted EBITDA was $2.6 million. Underlying business grew 13% y-o-y, representing 83% of total revenues. CTV revenues in Americas grew 13% y-o-y, global CTV revenues excluding legacy DSP buyer grew 18% y-o-y. Mobile app revenue grew over 25% y-o-y. Emerging revenues grew over 80% y-o-y, representing 14% of total revenues. APAC business grew 25% y-o-y, EMEA grew 10% y-o-y, Americas declined 12% y-o-y mainly due to spend decline from legacy DSP buyer.

Q2 revenue expected $68M - $70M, adjusted EBITDA $8M - $10M; Q3 expected to return to revenue growth and accelerate in second half; full year CapEx projected ~$16M - $19M, mostly in AI capabilities and advanced computing infrastructure.

Uncertainty from Google antitrust trial verdict and its potential impact on market share and business

Q: Matt Swanson asked about timing of lap of DSP impact; A: Steve said mid-quarter will fully lap the impact.

Q: Barton Crockett asked about growth ex-DSP; A: Steve said midpoint of guide in single-digit range.

Q: James Heaney asked about momentum in mid-market DSP segment; A: Rajeev said strong growth opportunity with AI enhancing it.

Q: Robert Coolbrith asked about legacy DSP trends and macro; A: Steve said legacy DSP results better than anticipated, macro stable with diversified portfolio.

Q: Eric Martinuzzi asked about net dollar-based retention; A: Steve said flattish, anticipates return to positive.

Q: Justin Patterson asked about AgenticOS scaling; A: Rajeev said AI to simplify ecosystem, level playing field.

Q: Ken Wu asked about Google antitrust trial impact; A: Rajeev said waiting for verdict, big opportunity if structural/behavioral remedies favorable.

Q: Brianna Diaz asked about AgenticOS feedback and pricing; A: Rajeev said positive surprise in effectiveness, Steve said revenue share based for Activate and possible subscription models