Summary
DoubleVerify reported fiscal 2026 first quarter revenue of $180.8 million, up 9.6% from the prior-year quarter. Net income was $6.4 million, up 171.5%, and diluted EPS was $0.04, up $0.03. Operating income rose 131.2% to $15.6 million, and operating margin expanded to 8.6%, up 4.5 percentage points. On a non-GAAP basis, adjusted EBITDA was $55.2 million, a 31% margin, up from $44.7 million and 27% in the prior-year quarter. Management said the quarter reflected solid execution, pointing to momentum in Social and CTV Measurement. The quarter ended March 31, 2026.
The revenue mix showed broad-based growth. Activation revenue increased 6%, Measurement revenue increased 16%, and Supply-side revenue increased 12%. Within Measurement, social measurement revenue grew 23%, international measurement revenue grew 18%, and Media Transactions Measured for CTV rose 28%. Total Media Transactions Measured increased 12%, but Measured Transaction Fees decreased 4%, a mix shift that weighed on advertiser revenue growth. The company attributed Measurement growth to greater adoption of social and CTV solutions, as well as the addition of Rockerbox. Gross revenue retention remained above 95% for the quarter. Advertiser customers generated 90% of revenue, with supply-side customers contributing 10%.
DoubleVerify pushed several product and partnership initiatives during the quarter. The company announced a partnership with Spectrum Reach to enhance transparency across streaming TV campaigns, with Spectrum Reach becoming the first partner in the Certified Transparent Streaming program. It expanded brand suitability coverage across Snapchat's Discover Feed, achieved Media Rating Council accreditation for TikTok Video Viewability, launched DV AI Slop Stopper for social video on YouTube, joined the Ad Context Protocol, and launched DV Content Lens on social platforms. New enterprise wins included FOX, Scotts Miracle Gro, and The Excellence Collection. Supply-side expansion came through partnerships with Wirtualna Polska Media and Bell Media, and the company expanded its Viewability measurement partnership on PubMatic's Activate platform.
Cash generation was the weak spot. Operating cash flow fell 88.9% to $4.2 million. Capital expenditures rose 67.7% to $10.5 million. Free cash flow, a non-GAAP measure, was negative $6.4 million, compared with $31.4 million in the prior-year quarter, and free cash flow conversion was negative 12% versus 70%. The operating cash flow decline reflected working capital movements, including increases in trade receivables and prepaid expenses and a decrease in accrued expenses. DoubleVerify repurchased 9.8 million shares for $100.2 million year to date, including 7.3 million shares for $75.1 million during the first quarter and 2.5 million shares for $25.0 million in April 2026. As of May 6, 2026, $200.0 million remained authorized for repurchases. The company had no outstanding debt under its revolver and $200.0 million undrawn under its New Revolving Credit Facility as of March 31, 2026.
Guidance points to continued growth but a step down in the second quarter. For the second quarter of fiscal 2026, DoubleVerify guides to revenue growth of approximately 7% at the midpoint and adjusted EBITDA of $63 million to $67 million, a margin of approximately 32% at the midpoint. For the full fiscal year 2026, the company reiterates revenue growth of 8% to 10% and an adjusted EBITDA margin of approximately 34%. Management does not reconcile the adjusted EBITDA guidance to GAAP net income because it cannot quantify depreciation and amortization, acquisition-related costs, interest income, and income taxes on a consistent basis without unreasonable efforts. The main risks flagged in the filing include intense competition, rapid technological change, evolving industry standards, system failures, security breaches, cyberattacks, natural disasters, economic downturns, unstable market conditions, potential collection issues, data privacy legislation and regulation, public criticism of digital advertising technology, international operations, use of open source software, limited operating history, and the potential for results to fluctuate.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2026 | Q4 FY2025 | QoQ | Q1 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $180.8M | $205.6M | -12.0% | $165.1M | +9.6% |
| Gross profit | $147.7M | $169.6M | -13.0% | $134.1M | +10.1% |
| Gross margin | 81.7% | 82.5% | -0.9 pp | 81.2% | +0.4 pp |
| Research & development | $45.4M | $41.7M | +8.9% | $44.7M | +1.5% |
| Sales & marketing | $45.6M | $49.2M | -7.4% | $43.7M | +4.3% |
| General & administrative | $25.7M | $26.6M | -3.5% | $26.5M | -3.1% |
| Operating income (loss) | $15.6M | $37.8M | -58.6% | $6.8M | +131.2% |
| Operating margin | 8.7% | 18.4% | -9.7 pp | 4.1% | +4.6 pp |
| Net income (loss) | $6.4M | $29.3M | -78.1% | $2.4M | +171.5% |
| Net margin | 3.5% | 14.3% | -10.7 pp | 1.4% | +2.1 pp |
| Diluted EPS | $0.04 | $0.18 | -$0.14 | $0.01 | +$0.03 |
| Net retention rate | 109.0% | — | — | 112.0% | -3.0 pp |
Risks
Operating cash flow fell 88.9% to $4.2 million in the quarter ended March 31, 2026 from $37.7 million a year earlier, driven by a $20.0 million increase in trade receivables and prepaid expenses and a $28.1 million decrease in trade payables, accrued expenses and other liabilities tied to payment timing. The company notes it typically pays suppliers in advance of collections from customers, so collection and payment cycles can swing cash generation period to period.
Advertiser revenue grew 9% in the quarter ended March 31, 2026 on a 12% increase in Media Transactions Measured that was partially offset by a 4% decrease in Measured Transaction Fees, indicating per-transaction pricing is declining even as measured volume rises.
Other expense (income), net changed by $4.2 million, from income of $3.2 million in the quarter ended March 31, 2025 to expense of $1.0 million in the quarter ended March 31, 2026, due primarily to lower interest earned on interest-bearing monetary assets and losses from foreign exchange rate changes.
Capital expenditures rose 67.7% to $10.5 million in the quarter ended March 31, 2026 from $6.3 million a year earlier, and depreciation and amortization increased 24% to $15.3 million, driven by higher amortization of internally developed software, raising the cash and earnings burden of the company's technology build-out.
Measurement revenue rose 16% in the quarter ended March 31, 2026, driven in part by the addition of Rockerbox, Inc., and general and administrative expense benefited from a $1.2 million decrease in Rockerbox acquisition-related transaction costs, leaving integration execution and future deal costs as an ongoing exposure.
SaaS KPIs
All quarters →Adjusted EBITDA
Adjusted EBITDA Margin
Gross Revenue Retention Rate
Media Transactions Measured (MTM) for CTV Growth
Free Cash Flow
Summary, forecast, risks and KPIs are extracted from DoubleVerify Holdings, Inc.'s SEC filings for Q1 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.