Summary
DoubleVerify reported third-quarter revenue of $188.6 million, up 11.2% from the prior-year quarter. Year-to-date revenue reached $542.7 million, up 16.4%. Profitability moved in the opposite direction. Operating income fell 18.0% to $21.1 million in the quarter, and operating margin was 11.2%, down 4.0 percentage points. Year-to-date operating income fell 5.2% to $41.4 million, with a 7.6% operating margin, down 1.7 percentage points. Net income fell 43.9% to $10.2 million in the quarter. Diluted EPS fell 40.0% to $0.06. Year-to-date net income was $21.3 million, down 35.1%, and year-to-date diluted EPS was $0.13, down 31.6%. The profit decline reflects higher operating expenses, including stock-based compensation, depreciation and amortization, and legal and regulatory costs.
Cash generation remained solid. Operating cash flow was $51.2 million in the quarter, down 6.3% from the prior-year quarter. Year-to-date operating cash flow was $138.5 million, up 13.2%. Capital expenditures were $12.1 million in the quarter, up 94.7%, and $28.0 million year to date, up 41.2%. DoubleVerify repurchased 3.3 million shares for $50.1 million in the quarter. Nine-month repurchases totaled 8.4 million shares for $132.3 million. As of November 7, 2025, $90.0 million remained available under the New Repurchase Program.
Non-GAAP results showed stronger profitability. Adjusted EBITDA was $65.9 million, a 35% margin. Year-to-date adjusted EBITDA was $167.8 million, a 31% margin. Non-GAAP net income was $36.1 million, and non-GAAP diluted EPS was $0.22. For the fourth quarter, DoubleVerify guides revenue of $207 to $211 million, up 10% at the midpoint, and adjusted EBITDA of $77 to $81 million, a 38% margin at the midpoint. For full-year 2025, the company expects revenue growth of approximately 14% and raised its adjusted EBITDA margin guidance to approximately 33% from 32%.
Operationally, the company pointed to growth in Media Transactions Measured, which rose 12%, while Measured Transaction Fees declined 4%, excluding an introductory fixed fee deal for one large customer. CTV Media Transactions Measured rose 30%. Gross revenue retention remained over 95%. New product launches included DV AI Verification, DV Authentic Advantage, and Verified Streaming TV. The company expanded partnerships with Meta Threads, TikTok, Snapchat, IMDb, Roku, and Microsoft Advertising. New enterprise wins included Citigroup UK, Henkel, Red Bull, Under Armour, and Premier Inn, with expansions at Vodafone, Papa John's, and Sonos.
The quarter showed margin pressure from higher costs and a changing revenue mix. Management flagged risks including competition amid technological developments, evolving industry standards, system failures, security breaches, cyberattacks, natural disasters, economic downturns, unstable market conditions, payment collection, data privacy legislation and regulation, public criticism of digital advertising technology, international operations, open source software, limited operating history, and potential revenue fluctuations. The company also faces litigation and regulatory matters outside the ordinary course, which increased general and administrative expenses.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $188.6M | $189.0M | -0.2% | $169.6M | +11.2% |
| Gross profit | $155.2M | $155.9M | -0.5% | $140.1M | +10.8% |
| Gross margin | 82.3% | 82.5% | -0.2 pp | 82.6% | -0.3 pp |
| Research & development | $44.8M | $47.2M | -5.0% | $39.3M | +14.1% |
| Sales & marketing | $47.0M | $50.9M | -7.6% | $40.5M | +16.0% |
| General & administrative | $27.0M | $29.6M | -8.7% | $23.0M | +17.2% |
| Operating income (loss) | $21.1M | $13.5M | +55.8% | $25.7M | -18.0% |
| Operating margin | 11.2% | 7.2% | +4.0 pp | 15.2% | -4.0 pp |
| Net income (loss) | $10.2M | $8.8M | +16.5% | $18.2M | -43.9% |
| Net margin | 5.4% | 4.6% | +0.8 pp | 10.7% | -5.3 pp |
| Diluted EPS | $0.06 | $0.05 | +$0.01 | $0.10 | -$0.04 |
Risks
Revenue grew 11.2% in FY2025 Q3, but operating income fell 18.0% and net income fell 43.9%, with operating margin down 4.0 pp to 11.2%. Operating expenses rose across cost of revenue (14%), product development (14%), sales and marketing (16%), G&A (17%), and D&A (32%), pressuring profitability.
Advertiser revenue growth in FY2025 Q3 was driven by a 12% increase in Media Transactions Measured, partially offset by a 4% decrease in Measured Transaction Fees excluding an introductory fixed fee deal for one large customer. For the nine months, fees decreased 3% despite a 17% increase in transactions.
For FY2025 Q3, 90% of revenue came from advertiser customers, and gross revenue retention was over 95%. A decline in spending by one or more large advertisers could materially affect revenue.
G&A expense in FY2025 Q3 included $2.2 million of third party legal fees for litigation and regulatory matters outside the ordinary course, with $3.3 million YTD. These matters may continue to drive costs and uncertainty.
The Rockerbox acquisition contributed to Measurement revenue and to higher D&A, and YTD G&A included $1.7 million of third party professional services related to Rockerbox and the broader acquisition strategy. Integration and amortization may continue to affect results.
Personnel costs including stock-based compensation rose across product development, sales/marketing, and G&A; stock-based compensation was $78.7 million YTD. Unfavorable permanent tax adjustments including non-deductible executive compensation and SBC increased income tax expense by $5.4 million YTD.
Other expense (income), net swung from $4.2 million of income in FY2024 Q3 to $0.1 million of expense in FY2025 Q3, due primarily to lower interest earned on interest-bearing monetary assets and foreign exchange losses. Lower interest income and FX volatility may continue.
SaaS KPIs
All quarters →Adjusted EBITDA
Adjusted EBITDA Margin
Gross Revenue Retention
Media Transactions Measured (MTM) for CTV
Media Transactions Measured (MTM)
Measured Transaction Fee (MTF)
Summary, forecast, risks and KPIs are extracted from DoubleVerify Holdings, Inc.'s SEC filings for Q3 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 2, 2026.