[144] Fennec Pharmaceuticals Inc. SEC Filing

Rhea-AI Filing Summary

DoubleVerify (DV) Q2-25 10-Q highlights:

• Revenue rose 21% YoY to $189.0 m; 1H-25 revenue up 19% to $354.1 m.
• Gross margin (ex-D&A) remained robust at 82.5%.
• Operating income improved 23% YoY to $13.5 m, while net income grew 17% to $8.8 m ($0.05 EPS diluted).
• For 1H-25, net income fell 24% to $11.1 m as higher stock-based comp (+14% YoY to $51.3 m) and a 55% effective tax rate offset top-line growth.
• Cash & equivalents declined to $211.8 m (-$81.0 m YTD) after spending $82.3 m to acquire attribution platform Rockerbox and $82.2 m on share buybacks (5.1 m shares YTD). $140 m remains under the current $200 m authorization.
• Balance sheet: No outstanding debt on the $200 m revolver; equity $1.09 b, liabilities $206.9 m.
• Goodwill increased to $516.6 m (+$89 m) and intangibles to $116.1 m following Rockerbox.
• Cash flow: Operating cash flow up 29% YoY to $87.3 m; free cash outflow $15.2 m after capex and M&A.
• Segments: Activation $109.0 m (+25%), Measurement $62.9 m (+15%), Supply-side $17.2 m (+26%). Remaining performance obligations $37.7 m.
• No long-term debt or impairment charges; one securities-class-action filed May 2025 disclosed.

Overall: Solid double-digit revenue growth and strong margins offset by higher expense load, aggressive buybacks and acquisition cash use. Liquidity remains healthy with undrawn credit facility.

Positive

• Revenue up 21% YoY in Q2 driven by Activation and Supply-side growth
• Gross margin 82.5% remains industry-leading, underscoring pricing power
• Operating cash flow +29% YoY to $87.3 m, funding growth initiatives
• No outstanding debt with $200 m revolver provides liquidity flexibility
• Rockerbox acquisition broadens measurement suite and adds $17.7 m intangibles

Negative

• YTD net income down 24% despite higher sales, reflecting cost pressure
• Cash balance fell $81 m due to buybacks and acquisition outlays
• Stock-based compensation up 14% YoY, diluting operating leverage
• Effective tax rate jumped to 55.1% YTD, compressing EPS
• Class-action lawsuit filed May 2025 introduces potential legal risk

Insights

Sell-Side Equity Analyst

TL;DR: Top-line acceleration intact; profitability pressured by stock comp and taxes, but cash still ample.

DV delivered a 21% revenue jump—well ahead of ad-tech peers—thanks to Activation strength and early contribution from Rockerbox. Gross margin north of 80% reaffirms the scalability of the SaaS model. However, stock-based comp now equals 14% of sales and pushed 1H operating margin down 70 bps. The 55% YTD tax rate (vs 33% prior year) further clipped EPS. Cash burn stems largely from the $82 m Rockerbox deal and $82 m of share repurchases; with $212 m cash and an unused $200 m revolver, liquidity risk is low. Buybacks have reduced basic share count 5% YoY and are accretive at ~6× EV/S. Litigation exposure appears immaterial at this stage. I view the print as modestly positive: growth narrative intact, strategic M&A expands TAM, and balance-sheet flexibility preserved.

Risk Analyst

TL;DR: Rising execution risk from higher leverage to stock comp, tax volatility and new class-action.

While net leverage is zero, DV’s earnings quality is diluted by elevated non-cash comp (27 m in Q2) and a spiking tax rate linked to global mix and recent U.S. reform. Cash depletion of $81 m YTD narrows the margin of safety amid ongoing buybacks; remaining authorization equals 66% of cash on hand. Goodwill now 40% of assets, raising impairment sensitivity should growth slow. The May 2025 class action could add legal costs and management distraction. Nonetheless, robust operating cash flow and no debt mitigate immediate credit concerns. Overall neutral-to-slightly negative.

Form 144 Filer Information	UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 144 NOTICE OF PROPOSED SALE OF SECURITIES PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OF 1933
FORM 144

144: Filer Information

Filer CIK
Filer CCC
Is this a LIVE or TEST Filing?	LIVE TEST
Submission Contact Information
Name
Phone
E-Mail Address

144: Issuer Information

Name of Issuer

SEC File Number

Address of Issuer

Phone

Name of Person for Whose Account the Securities are To Be Sold

See the definition of "person" in paragraph (a) of Rule 144. Information is to be given not only as to the person for whose account the securities are to be sold but also as to all other persons included in that definition. In addition, information shall be given as to sales by all persons whose sales are required by paragraph (e) of Rule 144 to be aggregated with sales for the account of the person filing this notice.

Relationship to Issuer

144: Securities Information

Title of the Class of Securities To Be Sold	Name and Address of the Broker	Number of Shares or Other Units To Be Sold	Aggregate Market Value	Number of Shares or Other Units Outstanding	Approximate Date of Sale	Name the Securities Exchange
Common	Morgan Stanley Smith Barney LLC Executive Financial Services 1 New York Plaza 8th Floor New York NY 10004	10000	80933.00	27618743	08/05/2025	NASDAQ

Furnish the following information with respect to the acquisition of the securities to be sold and with respect to the payment of all or any part of the purchase price or other consideration therefor:

144: Securities To Be Sold

Title of the Class	Date you Acquired	Nature of Acquisition Transaction	Name of Person from Whom Acquired	Is this a Gift?	Date Donor Acquired	Amount of Securities Acquired	Date of Payment	Nature of Payment *
Common	05/16/2025	Restricted Stock	Issuer			7570	05/16/2025	Not Applicable
Common	07/31/2025	Restricted Stock	Issuer			2430	07/31/2025	Not Applicable

* If the securities were purchased and full payment therefor was not made in cash at the time of purchase, explain in the table or in a note thereto the nature of the consideration given. If the consideration consisted of any note or other obligation, or if payment was made in installments describe the arrangement and state when the note or other obligation was discharged in full or the last installment paid.

Furnish the following information as to all securities of the issuer sold during the past 3 months by the person for whose account the securities are to be sold.

144: Securities Sold During The Past 3 Months

Name and Address of Seller	Title of Securities Sold	Date of Sale	Amount of Securities Sold	Gross Proceeds
ROSTISLAV RAYKOV PO BOX 13628, 68 TW ALEXANDER DRIVE Research Triangle Park NC 27709	Common	07/03/2025	7570	65179.21
ROSTISLAV RAYKOV PO BOX 13628, 68 TW ALEXANDER DRIVE Research Triangle Park NC 27709	Common	07/03/2025	2430	20922.79
ROSTISLAV RAYKOV PO BOX 13628, 68 TW ALEXANDER DRIVE Research Triangle Park NC 27709	Common	06/05/2025	5139	39971.66
ROSTISLAV RAYKOV PO BOX 13628, 68 TW ALEXANDER DRIVE Research Triangle Park NC 27709	Common	06/05/2025	2431	18908.56
ROSTISLAV RAYKOV PO BOX 13628, 68 TW ALEXANDER DRIVE Research Triangle Park NC 27709	Common	06/05/2025	2430	18900.78
ROSTISLAV RAYKOV PO BOX 13628, 68 TW ALEXANDER DRIVE Research Triangle Park NC 27709	Common	05/16/2025	16667	113002.26

144: Remarks and Signature

Remarks

Date of Notice

Date of Plan Adoption or Giving of Instruction, If Relying on Rule 10b5-1

ATTENTION:

The person for whose account the securities to which this notice relates are to be sold hereby represents by signing this notice that he does not know any material adverse information in regard to the current and prospective operations of the Issuer of the securities to be sold which has not been publicly disclosed. If such person has adopted a written trading plan or given trading instructions to satisfy Rule 10b5-1 under the Exchange Act, by signing the form and indicating the date that the plan was adopted or the instruction given, that person makes such representation as of the plan adoption or instruction date.

Signature

ATTENTION: Intentional misstatements or omission of facts constitute Federal Criminal Violations (See 18 U.S.C. 1001)

FAQ

How did DoubleVerify (DV) perform financially in Q2 2025?

DV posted $189 m revenue (+21% YoY), net income of $8.8 m and diluted EPS of $0.05.

What drove DV’s revenue growth this quarter?

Activation services rose 25%, Measurement 15%, and Supply-side 26%, reflecting higher ad volumes and expanded client adoption.

How much cash does DV have and is it carrying debt?

As of 30-Jun-25, DV held $211.8 m in cash and had no borrowings on its $200 m revolving credit facility.

What is the status of DV’s share repurchase program?

DV bought back 5.1 m shares for $82 m YTD; $140 m remains available under the current authorization.

What impact will the Rockerbox acquisition have?

The $82 m deal adds attribution technology, $72 m goodwill and $17.7 m intangibles; integration expected over the next year.