DoubleVerify (NYSE: DV) posts 31% margin and $100M share buyback
Rhea-AI Filing Summary
DoubleVerify Holdings reported first quarter 2026 results with steady growth and strong profitability. Revenue reached $180.8 million, up 10% year-over-year, led by Activation, Measurement and Supply-side customer types. Net income was $6.4 million, compared with $2.4 million a year earlier.
Adjusted EBITDA rose to $55.2 million with a 31% margin, up from 27%, reflecting operating leverage despite higher product development and sales costs. Free cash flow was negative $6.4 million as working capital and capital spending outpaced cash from operations.
The company repurchased 9.8 million shares for $100.2 million year to date and ended the quarter with about $173.8 million in cash and cash equivalents. Management highlighted a strong balance sheet with no debt and reaffirmed a disciplined capital allocation strategy and financial flexibility.
Positive
- None.
Negative
- None.
Insights
Solid revenue growth, margin expansion and buybacks, offset by weak near-term cash generation.
DoubleVerify delivered Q1 $180.8M revenue, up 10% year-over-year, showing continued demand across Activation, Measurement and Supply-side customers. Operating income more than doubled, lifting net income to $6.4M as scale benefits outweighed higher operating expenses.
Profitability was particularly strong at the non-GAAP level, with Adjusted EBITDA of $55.2M and a 31% margin versus 27% a year ago. However, free cash flow was negative $6.4M, driven by working capital movements and increased capital expenditures, after generating $31.4M in the prior-year quarter.
Capital returns are notable: the company repurchased 9.8 million shares for $100.2M year to date and ended Q1 with $173.8M in cash and no debt. Management emphasized financial flexibility and reiterated revenue and Adjusted EBITDA guidance ranges for Q2 2026 and full-year 2026, linking future growth to AI-driven product innovation in social, CTV and broader media measurement.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
free cash flow financial
Gross Revenue Retention Rate financial
Media Transactions Measured financial
stock-based compensation financial
Earnings Snapshot
The company provided ranges for Q2 2026 and full-year 2026 revenue and Adjusted EBITDA, and did not reconcile Adjusted EBITDA guidance to GAAP net income.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
| | |||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| ||
(Address of principal executive offices) | (Zip Code) |
(
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of Class | Trading Symbol | Name of Each Exchange on Which Registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02.Results of Operations and Financial Condition.
On May 6, 2026, DoubleVerify Holdings, Inc. (the “Company”) issued a press release announcing its financial results for the three months ended March 31, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this Item 2.02 and in Exhibit 99.1 attached to this Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.
Item 9.01.Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number | Description |
99.1 | Press Release dated May 6, 2026. |
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
DOUBLEVERIFY HOLDINGS, INC. | |||
By: | /s/ Nicola Allais | ||
Name: | Nicola Allais | ||
Title: | Chief Financial Officer | ||
Date: May 6, 2026 | |||
Exhibit 99.1
DoubleVerify Reports First Quarter 2026 Financial Results
Increased Revenue by 10% Year-over-Year to $180.8 Million, Driven by Social and CTV
Achieved Net Income of $6.4 Million and Adjusted EBITDA of $55.2 Million, representing a 31% Adjusted EBITDA margin
Repurchased 9.8 Million shares for $100.2 Million Year to Date
NEW YORK – May 6, 2026 – DoubleVerify (“DV”) (NYSE: DV), the leading software platform for digital media measurement, data and analytics, today announced financial results for the first quarter ended March 31, 2026.
“We continued our solid execution in the first quarter - reporting 10% year-over-year growth in revenue, while delivering strong 31% adjusted EBITDA margins,” said Mark Zagorski, CEO of DoubleVerify. “Our momentum is driven by our product-led growth cycle, marked by momentum in Social and continued acceleration in CTV Measurement. Our priorities remain clear: driving consistent durable growth, translating new product launches into scaled revenue contribution and differentiation and leveraging AI to deliver EBITDA margin expansion. DV continues to build competitive leadership through AI-fueled product innovation, with product launches focused on expanding Social activation, enhancing CTV transparency and quality, and empowering agentic advertising as future growth catalysts. Additionally, signaling our confidence in the business, we have executed $100 million of our share buyback since the beginning of the year, underscoring our disciplined capital allocation strategy and focus on driving shareholder value.”
First Quarter 2026 Financial Highlights:
(All comparisons are to the first quarter of 2025)
| ● | Total revenue of $180.8 million, an increase of 10%. |
| ● | Activation revenue of $100.5 million, an increase of 6%. |
| ● | Measurement revenue of $61.8 million, an increase of 16%. |
| o | Social measurement revenue increased by 23%. |
| o | International measurement revenue increased by 18%. |
| o | Media Transactions Measured (“MTM”) for CTV increased by 28%. |
| ● | Supply-side revenue of $18.5 million, an increase of 12%. |
| ● | Net income of $6.4 million and adjusted EBITDA of $55.2 million, which represented a 31% adjusted EBITDA margin. |
| ● | Cash balance of approximately $174 million, with no debt outstanding. |
Share Repurchase Program:
| ● | Repurchased 9.8 million shares for $100.2 million year to date. |
| ● | As of May 6, 2026, $200.0 million remain authorized for share repurchases. |
Recent Business Highlights:
AI, CTV & Social Media Innovations
| ● | Announced a partnership with Spectrum Reach to enhance transparency and performance across streaming TV campaigns. As part of the collaboration, Spectrum Reach has become the first partner to join DV’s Certified Transparent Streaming program, reinforcing its commitment to secure, program-level transparency across streaming TV ad inventory. |
| ● | Expanded brand suitability coverage across Snapchat's Discover Feed format, enabling our advertisers to have complete coverage across Snap DiscoverTiles placements. |
| ● | Achieved Media Rating Council (MRC) accreditation for TikTok Video Viewability, becoming the first measurement vendor to receive the accreditation. |
| ● | Launched DV AI Slop Stopper for social video, extending our market leading capability to enable advertisers to avoid low quality, AI generated content, initially on YouTube. |
| ● | Joined the Ad Context Protocol (AdCP), a coalition of ad tech companies established by Agentic Advertising Organization (AAO) to define standards for ad buying and selling by AI agents. |
| ● | Launched DV Content Lens on social platforms, enabling advertisers to get a dynamic, granular snapshot of the specific suitability violations to power better media decisioning. |
New Customers Expansions and Integrations
| ● | Drove global market share growth through product upsells, international expansion, and new enterprise logo wins, including FOX, Scotts Miracle Gro, and The Excellence Collection. |
| ● | Drove supply-side expansion via new partnerships with Wirtualna Polska Media and Bell Media. |
| ● | Expanded Viewability measurement partnership on PubMatic’s direct-to-supply activation platform, "Activate". |
“We reported a solid first quarter and remained focused on driving scalable, profitable growth,” said Nicola Allais, CFO of DoubleVerify. “For the first quarter, we reported revenue growth of 10% year-over-year and adjusted EBITDA margins of 31%, exceeding expectations through operational efficiencies. To date this year, we have repurchased $100 million of shares through our buyback program, and ended the quarter with approximately $174 million in cash. We continue to execute a disciplined capital allocation strategy, with a strong balance sheet, no debt, and significant financial flexibility to invest in strategic opportunities while returning capital to shareholders.”
Second Quarter and Full-Year 2026 Guidance:
DoubleVerify anticipates Revenue and Adjusted EBITDA to be in the following ranges:
Second Quarter 2026:
| ● | Revenue in the range of $199 and $205 million, representing a year-over-year increase of approximately 7% at the midpoint. |
| ● | Adjusted EBITDA in the range of $63 and $67 million, representing a margin of approximately 32% at the midpoint. |
Reiterates Full Year 2026:
| ● | Revenue in the range of $810 million and $826 million, representing a year-over-year increase of 8% to 10%. |
| ● | Adjusted EBITDA margin of approximately 34%. |
With respect to the Company’s expectations under "Second Quarter and Full Year 2026 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 first quarter 2026 financial results at 4:30 p.m. Eastern Time today, May 6, 2026. 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: 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.
Net Revenue Retention Rate is the total current period revenue earned from advertiser customers, which were also customers during the entire most recent twelve-month period, divided by the total prior year period revenue earned from the same advertiser customers, excluding a portion of our revenues that cannot be allocated to specific 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 | | As of | ||
(in thousands, except per share data) | | March 31, 2026 | | December 31, 2025 | ||
Assets: |
| | |
| | |
Current assets |
| | |
| | |
Cash and cash equivalents | | $ | 173,802 | | $ | 259,038 |
Trade receivables, net of allowances for doubtful accounts of $8,790 and $8,096 as of March 31, 2026 and December 31, 2025, respectively | | | 222,559 | | | 221,158 |
Prepaid expenses and other current assets | |
| 55,047 | |
| 39,132 |
Total current assets | |
| 451,408 | |
| 519,328 |
Property, plant and equipment, net | |
| 106,163 | |
| 103,284 |
Operating lease right-of-use assets, net | | | 64,916 | | | 66,908 |
Goodwill | |
| 512,503 | |
| 516,002 |
Intangible assets, net | |
| 94,521 | |
| 101,616 |
Deferred tax assets | |
| 28,955 | |
| 30,920 |
Other non-current assets | |
| 15,941 | |
| 16,024 |
Total assets | | $ | 1,274,407 | | $ | 1,354,082 |
Liabilities and Stockholders' Equity: | |
| | | | |
Current liabilities | |
| | | | |
Trade payables | | $ | 12,459 | | $ | 14,662 |
Accrued expenses | |
| 49,521 | |
| 73,552 |
Operating lease liabilities, current | | | 8,322 | | | 9,057 |
Income tax liabilities | |
| 2,594 | |
| 3,829 |
Current portion of finance lease obligations | |
| 6,555 | |
| 6,982 |
Other current liabilities | |
| 15,167 | |
| 13,481 |
Total current liabilities | |
| 94,618 | |
| 121,563 |
Operating lease liabilities, non-current | | | 76,236 | | | 77,917 |
Finance lease obligations | |
| 4,426 | |
| 5,595 |
Deferred tax liabilities | |
| 10,856 | |
| 11,467 |
Other non-current liabilities | |
| 7,004 | |
| 6,208 |
Total liabilities | | | 193,140 | | | 222,750 |
Commitments and contingencies (Note 15) | |
| | | | |
Stockholders’ equity | |
| | | | |
Common stock, $0.001 par value, 1,000,000 shares authorized, 176,689 shares issued and 155,929 outstanding as of March 31, 2026; 1,000,000 shares authorized, 176,546 shares issued and 161,900 outstanding as of December 31, 2025 | | | 177 | | | 177 |
Additional paid-in capital | | | 1,065,355 | | | 1,059,938 |
Treasury stock, at cost, 20,760 shares and 14,646 shares as of March 31, 2026 and December 31, 2025, respectively | | | (304,943) | | | (247,982) |
Retained earnings | |
| 312,274 | |
| 305,864 |
Accumulated other comprehensive income, net of income taxes | |
| 8,404 | |
| 13,335 |
Total stockholders’ equity | |
| 1,081,267 | |
| 1,131,332 |
Total liabilities and stockholders' equity | | $ | 1,274,407 | | $ | 1,354,082 |
DoubleVerify Holdings, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)
| | Three Months Ended March 31, | ||||
(in thousands, except per share data) | | 2026 | | 2025 | ||
Revenue | | $ | 180,825 | | $ | 165,061 |
Cost of revenue (exclusive of depreciation and amortization shown separately below) | |
| 33,159 | | | 30,966 |
Product development | |
| 45,381 | | | 44,717 |
Sales, marketing and customer support | |
| 45,595 | | | 43,701 |
General and administrative | |
| 25,715 | | | 26,527 |
Depreciation and amortization | |
| 15,339 | | | 12,387 |
Income from operations | |
| 15,636 | |
| 6,763 |
Interest expense | |
| 413 | | | 420 |
Other expense (income), net | |
| 993 | | | (3,179) |
Income before income taxes | |
| 14,230 | | | 9,522 |
Income tax expense | |
| 7,820 | | | 7,161 |
Net income | | $ | 6,410 | | $ | 2,361 |
Earnings per share: | |
| | | | |
Basic | | $ | 0.04 | | $ | 0.01 |
Diluted | | $ | 0.04 | | $ | 0.01 |
Weighted-average common stock outstanding: | |
| | |
| |
Basic | |
| 160,772 | | | 165,117 |
Diluted | |
| 164,108 | | | 168,941 |
Comprehensive income: | |
| | | | |
Net income | | $ | 6,410 | | $ | 2,361 |
Other comprehensive (loss) income: | |
| | | | |
Foreign currency cumulative translation adjustment | |
| (4,931) | |
| 7,493 |
Total comprehensive income | | $ | 1,479 | | $ | 9,854 |
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) | | Shares | | Amount | | Shares | | Amount | | Capital | | Earnings | | Net of Income Taxes | | Equity | ||||||
Balance as of January 1, 2026 | | 176,546 | | $ | 177 | | 14,646 | | $ | (247,982) | | $ | 1,059,938 | | $ | 305,864 | | $ | 13,335 | | $ | 1,131,332 |
Foreign currency translation adjustment | | — | |
| — | | — | |
| — | |
| — | |
| — | |
| (4,931) | |
| (4,931) |
Shares repurchased for settlement of employee tax withholdings | | — | | | — | | 142 | | | (1,437) | | | — | | | — | | | — | | | (1,437) |
Stock-based compensation expense | | — | |
| — | | — | |
| — | |
| 25,613 | |
| — | |
| — | |
| 25,613 |
Common stock issued upon exercise of stock options | | — | | | — | | — | | | — | | | 43 | | | — | | | — | | | 43 |
Common stock issued upon vesting of restricted stock units | | 90 | |
| — | | — | |
| — | |
| — | |
| — | |
| — | |
| — |
Common stock issued upon vesting of performance stock units | | 53 | | | — | | — | | | — | | | — | | | — | | | — | | | — |
Shares repurchased under authorized repurchase programs | | — | | | — | | 7,270 | | | (75,145) | | | — | | | — | | | — | | | (75,145) |
Excise tax on shares repurchased | | — | | | — | | — | | | (618) | | | — | | | — | | | — | | | (618) |
Treasury stock reissued upon settlement of equity awards | | — | | | — | | (1,298) | | | 20,239 | | | (20,239) | | | — | | | — | | | — |
Net income | | — | |
| — | | — | |
| — | |
| — | |
| 6,410 | |
| — | |
| 6,410 |
Balance as of March 31, 2026 | | 176,689 | | $ | 177 | | 20,760 | | $ | (304,943) | | $ | 1,065,355 | | $ | 312,274 | | $ | 8,404 | | $ | 1,081,267 |
| | | | | | | | | | | | | | | | | | | | | | |
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 | |
| 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 | | 58 | | | — | | — | | | — | | | 222 | | | — | | | — | | | 222 |
Common stock issued upon vesting of restricted stock units | | 641 | | | 1 | | — | | | — | | | (1) | | | — | | | — | | | — |
Common stock issued upon vesting of performance stock units | | 71 | | | — | | — | | | — | | | — | | | — | | | — | | | — |
Shares repurchased under authorized repurchase programs | | — | | | — | | 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 |
DoubleVerify Holdings, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
| | Three Months Ended | ||||
| | March 31, | ||||
(in thousands) | | 2026 | | 2025 | ||
Operating activities: |
| | |
| | |
Net income | | $ | 6,410 | | $ | 2,361 |
Adjustments to reconcile net income to net cash provided by operating activities | |
| | | | |
Bad debt expense | |
| 1,448 | |
| 983 |
Depreciation and amortization expense | |
| 15,339 | |
| 12,387 |
Amortization of debt issuance costs | |
| 109 | |
| 109 |
Non-cash lease expense | | | 2,074 | | | 1,874 |
Deferred taxes | |
| 1,501 | |
| (3,367) |
Stock-based compensation expense | |
| 24,249 | |
| 24,342 |
Interest expense, net | | | 273 | | | 299 |
Loss on disposal of fixed assets | | | — | | | 89 |
Other | | | 916 | | | (704) |
Changes in operating assets and liabilities, net of effects of business combinations | |
| | | | |
Trade receivables | |
| (3,698) | |
| 14,766 |
Prepaid expenses and other assets | |
| (16,311) | |
| (10,530) |
Trade payables | |
| (2,060) | |
| 337 |
Accrued expenses and other liabilities | |
| (26,079) | |
| (5,283) |
Net cash provided by operating activities | |
| 4,171 | |
| 37,663 |
Investing activities: | |
| | |
| |
Purchase of property, plant and equipment | |
| (10,543) | |
| (6,286) |
Acquisition of businesses, net of cash acquired | | | — | | | (82,578) |
Other investing activities | | | — | | | (1,000) |
Net cash used in investing activities | |
| (10,543) | |
| (89,864) |
Financing activities: | |
| | |
| |
Proceeds from common stock issued upon exercise of stock options | | | 43 | | | 222 |
Finance lease payments | | | (1,597) | | | (525) |
Shares repurchased under authorized repurchase programs | | | (75,145) | | | (82,240) |
Shares repurchased for settlement of employee tax withholdings | | | (1,437) | | | (3,210) |
Net cash used in financing activities | |
| (78,136) | |
| (85,753) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | |
| (746) | |
| 1,526 |
Net decrease in cash, cash equivalents, and restricted cash | |
| (85,254) | |
| (136,428) |
Cash, cash equivalents, and restricted cash - Beginning of period | |
| 260,034 | |
| 293,741 |
Cash, cash equivalents, and restricted cash - End of period | | $ | 174,780 | | $ | 157,313 |
| | | | | | |
Cash and cash equivalents | | $ | 173,802 | | $ | 156,360 |
Restricted cash - current (included in Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets) | |
| — | |
| 34 |
Restricted cash - non-current (included in Other non-current assets on the Condensed Consolidated Balance Sheets) | | | 978 | | | 919 |
Total cash and cash equivalents and restricted cash | | $ | 174,780 | | $ | 157,313 |
Supplemental cash flow information: | |
| | |
| |
Cash paid for interest | | $ | 300 | | $ | 41 |
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 | | $ | 245 | | $ | 1,815 |
Acquisition of equipment under finance lease | | $ | — | | $ | 13,805 |
Capital assets financed by accounts payable and accrued expenses | | $ | 55 | | $ | 98 |
Stock-based compensation included in capitalized software development costs | | $ | 1,364 | | $ | 744 |
Accrued excise tax on net share repurchases | | $ | 618 | | $ | 732 |
Comparison of the Three Months Ended March 31, 2026 and March 31, 2025
Revenue
| Three Months Ended March 31, | | Change | | Change | ||||||
| 2026 | | 2025 | | $ | | % | ||||
| (In Thousands) | | | | | | | ||||
Revenue by customer type: | | | | | | | | | | | |
Activation | $ | 100,547 | | $ | 95,172 | | $ | 5,375 | | 6 | % |
Measurement |
| 61,803 | |
| 53,430 | |
| 8,373 | | 16 | |
Supply-side |
| 18,475 | |
| 16,459 | |
| 2,016 | | 12 | |
Total revenue | $ | 180,825 | | $ | 165,061 | | $ | 15,764 | | 10 | % |
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, Non-GAAP Earnings Per Share, Free Cash Flow and Free Cash Flow Conversion (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 calculate free cash flow as net cash provided by operating activities determined in accordance with GAAP less purchases of property, plant, and equipment which includes capitalized software development costs. Free cash flow conversion is calculated as free cash flow divided by Adjusted EBITDA for the same period. 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 either excluding items that we do not believe are indicative of our core operating performance or by measuring cash generated by our operations that is available for various strategic initiatives.
The following tables show the Company’s non-GAAP financial metrics reconciled to the comparable GAAP financial metrics included in this release.
| Three Months Ended March 31, | ||||
| 2026 | | 2025 | ||
| (In Thousands) | ||||
Net income | $ | 6,410 | | $ | 2,361 |
Net income margin | | 4% | | | 1% |
Depreciation and amortization |
| 15,339 |
| | 12,387 |
Stock-based compensation |
| 24,249 |
| | 24,342 |
Interest expense |
| 413 |
| | 420 |
Income tax expense |
| 7,820 |
| | 7,161 |
M&A and restructuring costs (a) |
| — | | | 1,162 |
Other recoveries (b) |
| (22) | | | — |
Other expense (income) (c) |
| 993 |
| | (3,179) |
Adjusted EBITDA | $ | 55,202 | | $ | 44,654 |
Adjusted EBITDA margin | | 31% | |
| 27% |
| Three Months Ended March 31, | ||||
| 2026 | | 2025 | ||
| (In Thousands) | ||||
Net Income | $ | 6,410 | | $ | 2,361 |
Stock-based compensation | | 24,249 | | | 24,342 |
Amortization of acquired intangibles |
| 6,555 |
| | 7,239 |
M&A and restructuring costs (a) |
| — |
| | 1,162 |
Other recoveries (b) |
| (22) |
| | — |
Income tax effect of non-GAAP adjustments (d) |
| (9,542) |
| | (10,150) |
Non-GAAP net income | $ | 27,650 | | $ | 24,954 |
| | | | | |
GAAP earnings per share: | | | | | |
Basic | $ | 0.04 | | $ | 0.01 |
Diluted | $ | 0.04 | | $ | 0.01 |
| | | | | |
GAAP Weighted-average common stock outstanding: | | | | | |
Basic | | 160,772 | | | 165,117 |
Diluted | | 164,108 | | | 168,941 |
| | | | | |
Non-GAAP earnings per share: | | | | | |
Basic | $ | 0.17 | | $ | 0.15 |
Diluted | $ | 0.17 | | $ | 0.15 |
| | | | | |
Non-GAAP Weighted-average common stock outstanding: | | | | | |
Basic | | 160,772 | | | 165,117 |
Diluted | | 164,108 | | | 168,941 |
| (a) | M&A and restructuring costs for the three months ended March 31, 2025 consist of transaction costs related to the acquisition of Rockerbox. |
| (b) | Other recoveries for the three months ended March 31, 2026 consist of changes to accrued expenses with respect to litigation and regulatory matters outside of the ordinary course. |
| (c) | Other expense (income) for the three months ended March 31, 2026 and March 31, 2025 consist of interest income earned on interest-bearing monetary assets, and the impact of changes in foreign currency exchange rates. |
| (d) | 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 months ended March 31, 2026 and 2025 were calculated using assumed blended tax rates of 31%, 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. |
| Three Months Ended March 31, | ||||
| 2026 | | 2025 | ||
| (In Thousands) | ||||
Net cash provided by operating activities | $ | 4,171 | | $ | 37,663 |
Purchase of property, plant and equipment | | (10,543) | | | (6,286) |
Free cash flow | $ | (6,372) |
| $ | 31,377 |
Free cash flow conversion |
| (12)% |
| | 70% |
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:
| ● | they do not reflect changes in, or cash requirements for, working capital needs; |
| ● | they do not reflect our capital expenditures or future requirements for capital expenditures or contractual commitments; |
| ● | they do not reflect income tax expense or the cash requirements to pay income taxes; |
| ● | they do not reflect interest expense or the cash requirements necessary to service interest or principal debt payments; and |
| ● | although depreciation and amortization are non-cash charges related mainly to intangible assets, certain assets being depreciated and amortized will have to be replaced in the future, and they do not reflect any cash requirements for such replacements. |
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 Consolidated Statements of Operations and Comprehensive Income is as follows:
| | Three Months Ended | ||||
| | March 31, | ||||
(in thousands) |
| 2026 |
| 2025 | ||
Product development | | $ | 9,410 | | $ | 9,266 |
Sales, marketing and customer support | |
| 7,124 | |
| 7,629 |
General and administrative | |
| 7,715 | |
| 7,447 |
Total stock-based compensation | | $ | 24,249 | | $ | 24,342 |
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 “Second Quarter and Full-Year 2026 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 26, 2026 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.
Investor Relations
Brinlea Johnson
The Blueshirt Group
IR@doubleverify.com
Media Contact
Chris Harihar
Crenshaw Communications
646-535-9475
chris@crenshawcomm.com