Summary
DoubleVerify reported a solid second quarter of fiscal 2025. The quarter showed healthy top-line acceleration. Revenue was $189.0 million, up 21.3% from the prior-year quarter. Year-to-date revenue reached $354.1 million, up 19.4%. Operating income was $13.5 million, up 22.6%, and operating margin was 7.2%, essentially flat with the prior-year quarter. Net income was $8.8 million, up 17.2%. Diluted earnings per share was $0.05, up $0.01. Adjusted EBITDA, a non-GAAP measure, was $57.3 million, a 30% margin, matching the prior-year quarter. Management said growth came from existing customers adding products and expanding into new geographies, followed by new advertiser and supply-side customers. The company also highlighted double-digit growth across all three revenue lines: Activation, Measurement and Supply-side. The customer base remained largely stable, with gross revenue retention above 95%. The company reports in a single segment and described the quarter as balanced across the business.
The operational picture was broad. Media Transactions Measured rose 19% year over year, while Measured Transaction Fees declined 1%, excluding the impact of an introductory fixed fee deal for one large customer. CTV Media Transactions Measured increased 45%. The company said the growth in the first half was predominantly driven by existing customers who adopted additional products and expanded into new geographies. Social gained traction across activation and measurement, CTV scaled rapidly, and programmatic delivered deeper advertiser adoption through ABS and Scibids AI. New enterprise wins included Banco do Brasil, Emaar, Haribo, Lidl, Premier Inn, Puma, Riyadh Air, Sage, Six Flags, Tractor Supply and TransUnion. Fidelity, Kroger and Allwyn Group expanded. DoubleVerify expanded brand suitability measurement on Meta, introduced DV Authentic AdVantage and started beta trials with several top 100 customers, launched DV Authentic Attention for Social on Snap, and announced a partnership with Lyft to authenticate in-app ads. The new business list was geographically diverse, and the expansions suggest room to cross-sell more products into the existing base.
Margins and cash flow showed mixed signals. On a year-to-date basis, operating income was $20.3 million, up 13.2%, while operating margin slipped to 5.7%, down 0.3 percentage points. Year-to-date net income was $11.1 million, down 24.0%, and diluted EPS was $0.07, down $0.01. The year-to-date net income decline stands out against the double-digit revenue growth. Operating cash flow was $49.6 million in the quarter, up 38.3%, and $87.3 million year to date, up 29.0%. Capital expenditures were $9.5 million in the quarter, up 33.0%, and $15.8 million year to date, up 16.6%. The second-quarter operating margin was flat, but the year-to-date margin was lower. The gap between second-quarter and year-to-date profitability reflects the seasonality of expenses and taxes, not a collapse in operating performance. The first half carried higher general and administrative costs, including legal and acquisition-related expenses.
Guidance points to continued growth but slower top-line momentum. For the third quarter of 2025, DoubleVerify expects revenue of $188 to $192 million, a 12% increase at the midpoint, and adjusted EBITDA of $60 to $64 million, a 33% margin at the midpoint. For the full fiscal year 2025, the company raised revenue growth guidance to approximately 15% and reaffirmed an adjusted EBITDA margin of approximately 32%. Management said it remains focused on scalable, profitable growth while investing in opportunities ahead. The company has not reconciled adjusted EBITDA guidance to GAAP net income because it cannot quantify certain items without unreasonable efforts, including depreciation and amortization, acquisition-related costs, interest income and income taxes. Risks include intense competition, rapid technological change, evolving industry standards, system failures, security breaches, cyberattacks, natural disasters, economic downturns, unstable market conditions, payment collection challenges, data privacy legislation and regulation, public criticism of digital advertising technology, international operations, open source software, limited operating history, and potential fluctuations in revenue and results. The company also flagged litigation and regulatory matters outside the ordinary course. Those risks are drawn from the company's forward-looking statements.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $189.0M | $165.1M | +14.5% | $155.9M | +21.3% |
| Gross profit | $155.9M | $134.1M | +16.3% | $129.8M | +20.1% |
| Gross margin | 82.5% | 81.2% | +1.2 pp | 83.3% | -0.8 pp |
| Research & development | $47.2M | $44.7M | +5.6% | $39.8M | +18.6% |
| Sales & marketing | $50.9M | $43.7M | +16.4% | $44.9M | +13.4% |
| General & administrative | $29.6M | $26.5M | +11.5% | $23.1M | +28.2% |
| Operating income (loss) | $13.5M | $6.8M | +100.3% | $11.0M | +22.6% |
| Operating margin | 7.2% | 4.1% | +3.1 pp | 7.1% | +0.1 pp |
| Net income (loss) | $8.8M | $2.4M | +270.9% | $7.5M | +17.2% |
| Net margin | 4.6% | 1.4% | +3.2 pp | 4.8% | -0.2 pp |
| Diluted EPS | $0.05 | $0.01 | +$0.04 | $0.04 | +$0.01 |
| Customers | 100 | — | — | — | — |
Risks
Q2 revenue grew 21.3% to $189.0 million, driven by a 19% increase in Media Transactions Measured, but Measured Transaction Fees declined 1% in the quarter and 3% year to date, excluding an introductory fixed fee deal for one large customer. This points to pricing pressure and reliance on a single large customer.
Q2 general and administrative expenses increased 28% to $29.6 million and included $1.1 million in third party legal fees related to litigation and regulatory matters outside the ordinary course. Adjusted EBITDA also excludes other costs tied to those matters and an office lease termination.
Year-to-date net income decreased 24.0% to $11.1 million even though revenue grew 19.4%, largely because income tax expense increased 89% to $13.6 million due to unfavorable permanent tax adjustments including non-deductible executive compensation and stock-based compensation.
SaaS KPIs
All quarters →Adjusted EBITDA
Adjusted EBITDA Margin
Gross Revenue Retention
Media Transactions Measured (MTM) for CTV
Media Transactions Measured (MTM)
Summary, forecast, risks and KPIs are extracted from DoubleVerify Holdings, Inc.'s SEC filings for Q2 FY2025 (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 1, 2026.