CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
CASH FLOW FROM OPERATING ACTIVITIES:
Net income (loss)	$ (14,462)	$ 12,504	$ 8,881
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	43,769	45,352	44,770
Stock-based compensation	38,378	37,676	28,862
Provision for doubtful accounts	0	0	5,675
Deferred income taxes	(14,489)	(10,984)	(13,406)
Accretion of discount on marketable securities	(822)	(4,117)	(4,093)
Non-cash lease expense	7,351	6,801	6,145
Other	(1,047)	(25)	45
Changes in operating assets and liabilities:
Accounts receivable	66,574	(49,345)	(75,716)
Prepaid expenses and other current assets	(16,220)	(5,826)	3,918
Accounts payable	(42,397)	38,096	79,687
Accrued liabilities	16,179	9,627	3,035
Operating lease liabilities	(2,616)	(6,531)	(5,789)
Other liabilities, non-current	861	197	(893)
Net cash provided by operating activities	81,059	73,425	81,121
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of and deposits on property and equipment	(14,345)	(17,592)	(10,601)
Capitalized software development costs	(20,511)	(20,936)	(17,687)
Purchases of marketable securities	(26,026)	(142,016)	(140,603)
Proceeds from sales of marketable securities	27,095	0	18,873
Proceeds from maturities of marketable securities	39,859	202,858	111,000
Net cash provided by (used in) investing activities	6,072	22,314	(39,018)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of business combination indemnification claims holdback	0	(2,148)	0
Proceeds from issuance of common stock for employee stock purchase plan	2,148	2,368	1,869
Proceeds from exercise of stock options	1,759	1,765	1,549
Principal payments on finance lease obligations	(140)	(131)	(126)
Payments to acquire treasury stock	(46,498)	(75,332)	(59,268)
Net cash used in financing activities	(42,731)	(73,478)	(55,976)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	44,400	22,261	(13,873)
Effect of foreign currency on cash	666	(318)	0
CASH AND CASH EQUIVALENTS - Beginning of Year	100,452	78,509	92,382
CASH AND CASH EQUIVALENTS - End of Year	145,518	100,452	78,509
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:
Stock-based compensation capitalized as internal use software costs	3,474	3,076	2,462
Property and equipment included in accounts payable and accrued expenses	1	618	203
Capitalized software costs included in accounts payable and accrued expenses	$ 2,422	$ 2,365	2,966
Business combination purchase consideration - indemnification claims holdback			$ 2,148

PubMatic, Inc. 10-K