DoubleVerify Reports Third Quarter 2025 Financial Results

NEW YORK--( BUSINESS WIRE)--DoubleVerify (“DV”) (NYSE: DV), the leading software platform for digital media measurement, data, and analytics, today announced financial results for the third quarter ended September 30, 2025.

“We delivered 11% year-over-year growth in the third quarter, reflecting disciplined execution and continued progress across our key growth initiatives, while delivering stronger quarterly margins as we leverage AI to drive efficiencies in our model,” said Mark Zagorski, CEO of DoubleVerify. “We’re innovating at speed for the AI era, launching DV AI Verification to enhance transparency, performance, and protection for advertisers while also leveraging AI to make our core solutions even more powerful. In Social, our new DV Authentic Advantage solution is gaining early traction with leading global brands, underscoring demand for transparent, performance-driven tools in walled gardens. The launch of our Verified Streaming TV solution extends our leadership with new pre-bid and measurement capabilities that root out misaligned CTV placements, automated Do Not Air Lists that will drive greater efficiency in program-level exclusions, and our recently announced IMDb data integration that will deliver deeper, show-level transparency to improve campaign performance. Together, these innovations reinforce DV’s position as the independent standard for trust and transparency across all digital media. As AI reshapes how media is bought, measured, and optimized, and social and CTV take a commanding share of ad budgets, our trusted, independent platform remains essential to helping advertisers drive performance and accountability in an increasingly complex ecosystem.”

Third Quarter 2025 Financial Highlights:

(All comparisons are to the third quarter of 2024)

Third Quarter and Recent Business Highlights:

AI, Social Media & CTV Announcements

New Product Launches

Expanded Coverage and Partnerships

Programmatic Expansions & Supply-Side Partnerships

Share Repurchase Program

“Our third-quarter results reflect double-digit growth, strong profitability, and continued operating leverage,” said Nicola Allais, CFO of DoubleVerify. “We delivered adjusted EBITDA of $66 million, or a 35% margin, exceeding the high end of our guidance range as we continue to scale efficiently through AI-driven automation and disciplined cost management. For full-year 2025, we expect approximately 14% revenue growth and are raising our adjusted EBITDA margin guidance from 32% to 33%, highlighting the strength and scalability of our model.”

Fourth Quarter and Full-Year 2025 Guidance:

DoubleVerify anticipates Revenue and Adjusted EBITDA to be in the following ranges:

Fourth Quarter 2025:

Full Year 2025:

With respect to the Company’s expectations under "Fourth Quarter and Full Year 2025 Guidance" above, the Company has not reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure net income in this press release because the Company does not provide guidance for depreciation and amortization expense, acquisition-related costs, interest income, and income taxes on a consistent basis as the Company is unable to quantify these amounts without unreasonable efforts, which would be required to include a reconciliation of Adjusted EBITDA to GAAP net income. In addition, the Company believes such a reconciliation would imply a degree of precision that could be confusing or misleading to investors.

Conference Call, Webcast, and Other Information

DoubleVerify will host a conference call and live webcast to discuss its third quarter 2025 financial results at 8:00 a.m. Eastern Time today, November 7, 2025. To access the conference call, dial (800) 715-9871 for the U.S. or Canada, or +1 (646) 307-1963 for international callers. The conference ID is 5064608. The webcast will be available live on the Investors section of the Company’s website at https://ir.doubleverify.com/. An archived webcast will be available approximately two hours after the conclusion of the live event.

In addition, DoubleVerify plans to post certain additional historical quarterly financial information on the investor relations portion of its website for easy access to investors.

Key Business Terms

Activation revenue is generated from the evaluation, verification, and measurement of advertising impressions purchased through programmatic demand-side and social media platforms.

Measurement revenue is generated from the verification and measurement of advertising impressions that are directly purchased on digital media properties, including publishers, CTV, and social media platforms.

Supply-Side revenue is generated from platforms and publisher partners who use DoubleVerify’s data analytics to evaluate, verify, and measure their advertising inventory.

Gross Revenue Retention Rate is the total prior period revenue earned from advertiser customers, less the portion of prior period revenue attributable to lost advertiser customers, divided by the total prior period revenue from advertiser customers.

Media Transactions Measured (MTM) is the volume of media transactions that DoubleVerify’s software platform measures.

Measured Transaction Fee (MTF) is the fixed fee DoubleVerify charges per thousand Media Transactions Measured.

International Revenue Growth Rates are inclusive of foreign currency fluctuations.

DoubleVerify Holdings, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of

(in thousands, except per share data)

September 30, 2025

December 31, 2024

Assets:

Current assets

Cash and cash equivalents

200,729

292,820

Short-term investments

—

17,805

Trade receivables, net of allowances for doubtful accounts of $7,876 and $9,003 as of September 30, 2025 and December 31, 2024, respectively

217,586

226,225

Prepaid expenses and other current assets

58,568

22,201

Total current assets

476,883

559,051

Property, plant and equipment, net

98,358

70,195

Operating lease right-of-use assets, net

68,508

67,721

Goodwill

516,960

427,621

Intangible assets, net

108,195

110,356

Deferred tax assets

14,233

35,488

Other non-current assets

12,759

5,778

Total assets

1,295,896

1,276,210

Liabilities and Stockholders' Equity:

Current liabilities

Trade payables

13,343

11,598

Accrued expenses

70,400

54,532

Operating lease liabilities, current

9,821

11,048

Income tax liabilities

549

15,592

Current portion of finance lease obligations

7,410

2,512

Other current liabilities

18,351

8,200

Total current liabilities

119,874

103,482

Operating lease liabilities, non-current

79,108

77,297

Finance lease obligations

6,775

812

Deferred tax liabilities

8,322

8,509

Other non-current liabilities

5,567

2,651

Total liabilities

219,646

192,751

Commitments and contingencies (Note 15)

Stockholders’ equity

Common stock, $0.001 par value, 1,000,000 shares authorized, 176,300 shares issued and 161,094 outstanding as of September 30, 2025; 1,000,000 shares authorized, 174,003 shares issued and 167,069 outstanding as of December 31, 2024

176

174

Additional paid-in capital

1,046,527

974,383

Treasury stock, at cost, 15,206 shares and 6,934 shares as of September 30, 2025 and December 31, 2024, respectively

(260,011

)

(131,620

)

Retained earnings

276,535

255,214

Accumulated other comprehensive income (loss), net of income taxes

13,023

(14,692

)

Total stockholders’ equity

1,076,250

1,083,459

Total liabilities and stockholders' equity

1,295,896

1,276,210

DoubleVerify Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands, except per share data)

2025

2024

2025

2024

Revenue

188,621

169,556

542,703

466,228

Cost of revenue (exclusive of depreciation and amortization shown separately below)

33,465

29,479

97,557

82,199

Product development

44,842

39,306

136,762

115,506

Sales, marketing and customer support

47,022

40,525

141,594

123,260

General and administrative

26,997

23,039

83,100

68,180

Depreciation and amortization

15,191

11,483

42,275

33,415

Income from operations

21,104

25,724

41,415

43,668

Interest expense

467

353

1,330

818

Other expense (income), net

(4,225

)

(5,185

)

(8,561

)

Income before income taxes

20,538

29,596

45,270

51,411

Income tax expense

10,336

11,395

23,949

18,580

Net income

10,202

18,201

21,321

32,831

Earnings per share:

Basic

0.06

0.11

0.13

0.19

Diluted

0.06

0.10

0.13

0.19

Weighted-average common stock outstanding:

Basic

162,031

170,254

163,285

171,060

Diluted

166,497

173,911

167,368

175,868

Comprehensive income:

Net income

10,202

18,201

21,321

32,831

Other comprehensive income:

Foreign currency cumulative translation adjustment

839

9,079

27,715

2,640

Total comprehensive income

11,041

27,280

49,036

35,471

DoubleVerify Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

Accumulated Other

Additional

Comprehensive

Total

Common Stock

Treasury Stock

Paid-in

Retained

Income (Loss)

Stockholders’

(in thousands)

Amount

Capital

Earnings

Net of Income Taxes

Equity

Balance as of January 1, 2025

174,003

174

6,934

(131,620

)

974,383

255,214

(14,692

)

1,083,459

Foreign currency translation adjustment

—

7,493

Shares repurchased for settlement of employee tax withholdings

—

210

(3,210

)

—

(3,210

)

Stock-based compensation expense

—

25,080

—

25,080

Common stock issued upon exercise of stock options

—

222

—

222

Common stock issued upon vesting of restricted stock units

641

—

)

—

Common stock issued upon vesting of performance stock units

—

Shares repurchased under the Repurchase Program and New Repurchase Program

—

5,169

(82,240

)

—

(82,240

)

Excise tax on shares repurchased

—

(64

)

(668

)

—

(732

)

Treasury stock reissued upon settlement of equity awards

—

(18

)

350

(350

)

—

Net income

—

2,361

—

2,361

Balance as of March 31, 2025

174,773

175

12,295

(216,784

)

998,666

257,575

(7,199

)

1,032,433

Foreign currency translation adjustment

—

19,383

Shares repurchased for settlement of employee tax withholdings

—

(494

)

—

(494

)

Stock-based compensation expense

—

28,053

—

28,053

Common stock issued under employee purchase plan

135

—

1,577

—

1,577

Common stock issued upon exercise of stock options

—

148

—

148

Common stock issued upon vesting of restricted stock units

954

—

)

—

Common stock issued upon vesting of performance stock units

—

Excise tax on shares repurchased

—

157

—

157

Net income

—

8,758

—

8,758

Balance as of June 30, 2025

175,905

176

12,330

(217,121

)

1,028,443

266,333

12,184

1,090,015

Foreign currency translation adjustment

—

839

Shares repurchased for settlement of employee tax withholdings

—

259

(3,391

)

—

(3,391

)

Stock-based compensation expense

—

28,786

—

28,786

Common stock issued upon exercise of stock options

—

260

—

260

Common stock issued upon vesting of restricted stock units

313

—

Common stock issued upon vesting of performance stock units

—

Shares repurchased under the New Repurchase Program

—

3,258

(50,065

)

—

(50,065

)

Excise tax on shares repurchased

—

(396

)

—

(396

)

Treasury stock reissued upon settlement of equity awards

—

(641

)

10,962

(10,962

)

—

Net income

—

10,202

—

10,202

Balance as of September 30, 2025

176,300

176

15,206

(260,011

)

1,046,527

276,535

13,023

1,076,250

DoubleVerify Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

Accumulated Other

Additional

Comprehensive

Total

Common Stock

Treasury Stock

Paid-in

Retained

Income (Loss)

Stockholders’

(in thousands)

Amount

Capital

Earnings

Net of Income Taxes

Equity

Balance as of January 1, 2024

171,168

171

(743

)

878,331

198,983

(2,803

)

1,073,939

Foreign currency translation adjustment

—

(4,625

)

(4,625

)

Shares repurchased for settlement of employee tax withholdings

—

(1,792

)

—

(1,792

)

Stock-based compensation expense

—

20,718

—

20,718

Common stock issued upon exercise of stock options

153

—

1,695

—

1,695

Common stock issued upon vesting of restricted stock units

435

—

)

—

Treasury stock reissued upon settlement of equity awards

—

(38

)

1,389

(1,389

)

—

Net income

—

7,156

—

7,156

Balance as of March 31, 2024

171,756

172

(1,146

)

899,354

206,139

(7,428

)

1,097,091

Foreign currency translation adjustment

—

(1,814

)

(1,814

)

Shares repurchased for settlement of employee tax withholdings

—

(660

)

—

(660

)

Stock-based compensation expense

—

25,315

—

25,315

Common stock issued under employee purchase plan

124

—

1,914

—

1,914

Common stock issued upon exercise of stock options

126

—

870

—

870

Common stock issued upon vesting of restricted stock units

628

—

)

—

Shares repurchased under the Repurchase Program

—

1,369

(25,027

)

—

(25,027

)

Treasury stock reissued upon settlement of equity awards

—

(41

)

1,390

(1,390

)

—

Net income

—

7,474

—

7,474

Balance as of June 30, 2024

172,634

173

1,390

(25,443

)

926,062

213,613

(9,242

)

1,105,163

Foreign currency translation adjustment

—

9,079

Shares repurchased for settlement of employee tax withholdings

—

(636

)

—

(636

)

Stock-based compensation expense

—

23,474

—

23,474

Common stock issued upon exercise of stock options

—

324

—

324

Common stock issued upon vesting of restricted stock units

601

—

Shares repurchased under the Repurchase Program

—

1,254

(25,025

)

—

(25,025

)

Treasury stock reissued upon settlement of equity awards

—

(21

)

404

(404

)

—

Net income

—

18,201

—

18,201

Balance as of September 30, 2024

173,288

173

2,657

(50,700

)

949,456

231,814

(163

)

1,130,580

DoubleVerify Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Nine Months Ended

September 30,

(in thousands)

2025

2024

Operating activities:

Net income

21,321

32,831

Adjustments to reconcile net income to net cash provided by operating activities

Bad debt expense

1,897

3,546

Depreciation and amortization expense

42,275

33,415

Amortization of debt issuance costs

326

334

Non-cash lease expense

5,903

5,329

Deferred taxes

17,055

(17,253

)

Stock-based compensation expense

78,728

67,906

Interest expense (income), net

321

(854

)

Loss on disposal of fixed assets

101

—

Other

771

1,360

Changes in operating assets and liabilities, net of effects of business combinations

Trade receivables

11,596

10,333

Prepaid expenses and other assets

(36,824

)

(12,592

)

Trade payables

1,057

617

Accrued expenses and other liabilities

(6,070

)

(2,692

)

Net cash provided by operating activities

138,457

122,280

Investing activities:

Purchase of property, plant and equipment

(27,952

)

(19,792

)

Acquisition of businesses, net of cash acquired

(82,578

)

—

Purchase of short-term investments

—

(81,937

)

Proceeds from maturity of short-term investments

17,753

32,210

Other investing activities

(1,000

)

—

Net cash used in investing activities

(93,777

)

(69,519

)

Financing activities:

Proceeds from common stock issued upon exercise of stock options

630

2,889

Proceeds from common stock issued under employee purchase plan

1,577

1,914

Finance lease payments

(2,944

)

(1,940

)

Shares repurchased under the Repurchase Program and New Repurchase Program

(132,305

)

(50,052

)

Payment of excise tax on shares repurchased

(668

)

—

Shares repurchased for settlement of employee tax withholdings

(7,095

)

(3,088

)

Net cash used in financing activities

(140,805

)

(50,277

)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

4,109

150

Net (decrease) increase in cash, cash equivalents, and restricted cash

(92,016

)

2,634

Cash, cash equivalents, and restricted cash - Beginning of period

293,741

310,257

Cash, cash equivalents, and restricted cash - End of period

201,725

312,891

Cash and cash equivalents

200,729

311,910

Restricted cash - current (included in Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets)

—

128

Restricted cash - non-current (included in Other non-current assets on the Condensed Consolidated Balance Sheets)

996

853

Total cash and cash equivalents and restricted cash

201,725

312,891

Supplemental cash flow information:

Cash paid for taxes

57,717

36,141

Cash paid for interest

878

430

Non-cash investing and financing activities:

Right-of-use assets obtained in exchange for new operating lease liabilities, net of impairments and tenant improvement allowances

5,139

14,553

Acquisition of equipment under finance lease

13,805

—

Capital assets financed by accounts payable and accrued expenses

Stock-based compensation included in capitalized software development costs

3,190

1,585

Accrued excise tax on net share repurchases

971

—

Comparison of the Three and Nine Months Ended September 30, 2025 and September 30, 2024

Revenue

Three Months Ended September 30,

Change

Nine Months Ended September 30,

Change

2025

2024

2025

2024

(In Thousands)

Revenue by customer type:

Activation

106,693

96,791

9,902

310,814

263,584

47,230

Measurement

63,829

58,468

5,361

180,155

162,560

17,595

Supply-side

18,099

14,297

3,802

51,734

40,084

11,650

Total revenue

188,621

169,556

19,065

542,703

466,228

76,475

Non-GAAP Financial Measures

In addition to our results determined in accordance with GAAP, management believes that certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Non-GAAP Net income and Non-GAAP Earnings Per Share (collectively "Non-GAAP Financial Measures") are useful in evaluating our business.

We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. We calculate Non-GAAP net income as GAAP net income adjusted to eliminate the impact of stock-based compensation and certain other items that are not related to our core operations, such as amortization of acquired intangibles assets, acquisition-related costs, other non-recurring costs, as well as the income tax effect of these adjustments. Basic non-GAAP earnings per share is calculated by dividing non-GAAP net income by the number of weighted-average common stock outstanding. Diluted Non-GAAP earnings per share adjusts the Basic Non-GAAP earnings per share for the potential dilutive impact of shares of common stock using the treasury stock method. We use the Non-GAAP Financial Measures as measures of operational efficiency to understand and evaluate our core business operations. We believe that these Non-GAAP Financial Measures are useful to investors for period-to-period comparisons of our core business and for understanding and evaluating trends in our operating results on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.

The following tables show the Company’s non-GAAP financial metrics reconciled to the comparable GAAP financial metrics included in this release. In addition, DoubleVerify plans to post historical quarterly financial information for Non-GAAP Net Income and Non-GAAP Earnings Per Share for the fiscal year 2024 on the investor relations portion of its website.

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

(In Thousands)

Net income

10,202

18,201

21,321

32,831

Net income margin

Depreciation and amortization

15,191

11,483

42,275

33,415

Stock-based compensation

27,379

22,950

78,728

67,906

Interest expense

467

353

1,330

818

Income tax expense

10,336

11,395

23,949

18,580

M&A and restructuring (recoveries) costs (a)

(10

)

—

1,656

—

Offering and secondary offering costs (b)

—

Other costs (c)

2,187

—

3,705

—

Other expense (income) (d)

(4,225

)

(5,185

)

(8,561

)

Adjusted EBITDA

65,851

60,157

167,779

145,057

Adjusted EBITDA margin

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

(In Thousands)

Net Income

10,202

18,201

21,321

32,831

Stock-based compensation

27,379

22,950

78,728

67,906

Amortization of acquired intangibles

7,929

7,173

23,236

21,582

M&A and restructuring (recoveries) costs (a)

(10

)

—

1,656

—

Other costs (c)

2,187

—

3,705

—

Income tax effect of non-GAAP adjustments (e)

(11,620

)

(7,862

)

(33,271

)

(23,356

)

Non-GAAP net income

36,067

40,462

95,375

98,963

GAAP earnings per share:

Basic

0.06

0.11

0.13

0.19

Diluted

0.06

0.10

0.13

0.19

GAAP Weighted-average common stock outstanding:

Basic

162,031

170,254

163,285

171,060

Diluted

166,497

173,911

167,368

175,868

Non-GAAP earnings per share:

Basic

0.22

0.24

0.58

Diluted

0.22

0.23

0.57

0.56

Non-GAAP Weighted-average common stock outstanding:

Basic

162,031

170,254

163,285

171,060

Diluted

166,497

173,911

167,368

175,868

(a)

M&A and restructuring costs for the three and nine months ended September 30, 2025 consist of third party professional service costs related to the acquisition of Rockerbox and to our broader acquisition strategy.

(b)

Offering and secondary offering costs for the nine months ended September 30, 2024 consist of third party costs incurred for underwritten secondary public offerings by certain stockholders of the Company.

(c)

Other costs for the three and nine months ended September 30, 2025 consist of expenses incurred with respect to litigation and regulatory matters outside of the ordinary course and costs related to the early termination of an office lease.

(d)

Other expense (income) for the three and nine months ended September 30, 2025 and September 30, 2024 consist of interest income earned on interest-bearing monetary assets, and the impact of changes in foreign currency exchange rates.

(e)

We calculate the income tax effect of the adjustments using a non-GAAP effective tax rate to provide consistency across reporting periods. For the non-GAAP reconciliation, effective tax rates for the three and nine months ended September 30, 2025 and 2024 were calculated using assumed blended tax rates of 31% and 26%, respectively. These rates represent a blend of the statutory federal tax and state taxes rates associated with the most recent Annual Report on Form 10-K. We will periodically reevaluate this tax rate, as necessary, for significant events such as relevant tax law changes.

These Non-GAAP Financial Measures have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP. Some of the limitations of these measures are:

In addition, other companies in our industry may calculate these Non-GAAP Financial Measures differently than we do, limiting their usefulness as a comparative measure. You should compensate for these limitations by relying primarily on our GAAP results and using the Non-GAAP Financial Measures only supplementally.

Total stock-based compensation expense recorded in the Condensed Consolidated Statements of Operations and Comprehensive Income is as follows:

Three Months Ended

Nine Months Ended

September 30,

(in thousands)

2025

2024

2025

2024

Product development

10,739

8,899

30,394

26,006

Sales, marketing and customer support

7,932

7,152

24,387

20,591

General and administrative

8,708

6,899

23,947

21,309

Total stock-based compensation

27,379

22,950

78,728

67,906

Forward-Looking Statements

This press release includes “forward-looking statements”. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any statements in this press release regarding future revenues, earnings, margins, financial performance or results of operations (including the guidance provided under “Fourth Quarter and Full-Year 2025 Guidance”, and any other statements that are not historical facts are forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. These risks, uncertainties, assumptions and other factors include, but are not limited to, the competitiveness of our solutions amid technological developments or evolving industry standards, the competitiveness of our market, system failures, security breaches, cyberattacks or natural disasters, economic downturns and unstable market conditions, our ability to collect payments, data privacy legislation and regulation, public criticism of digital advertising technology, our international operations, our use of “open source” software, our limited operating history and the potential for our revenues and results of operations to fluctuate in the future. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make.

Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this press release are included under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the SEC on February 27, 2025 and other filings and reports we make with the SEC from time to time.

We have based our forward-looking statements on our management’s beliefs and assumptions based on information available to our management at the time the statements are made. Any forward-looking information presented herein is made only as of the date of this press release, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

About DoubleVerify

DoubleVerify (NYSE: DV) is the industry’s leading media effectiveness platform that leverages AI to drive superior outcomes for global brands. By creating more effective, transparent ad transactions, we make the digital advertising ecosystem stronger, safer and more secure, thereby preserving the fair value exchange between buyers and sellers of digital media. Learn more at www.doubleverify.com.