DoubleVerify 2025 Q3 Earnings EPS Dips 45.5% Despite 11.2% Revenue Growth

DoubleVerify (DV) reported fiscal 2025 Q3 earnings on Nov 7, 2025, with revenue rising 11.2% year-on-year to $188.62 million but falling short of analyst estimates. The company’s adjusted EBITDA margin held at 35%, and it provided Q4 revenue guidance below expectations, contributing to a 19% post-earnings stock plunge.

Revenue

DoubleVerify’s total revenue grew to $188.62 million in 2025 Q3, a 11.2% increase from $169.56 million in 2024 Q3. This growth, however, missed Wall Street’s $190.2 million forecast, reflecting softer demand in key markets.

Earnings/Net Income

The company’s EPS declined 45.5% to $0.06 in 2025 Q3 from $0.11 in 2024 Q3, while net income dropped to $10.20 million (down 43.9% from $18.20 million). Despite the decline, DoubleVerify maintained profitability for six consecutive years, underscoring operational resilience.

Price Action

DoubleVerify’s stock surged 21.16% on the day of the earnings report but plummeted 17.49% in the subsequent week and 16.76% month-to-date, reflecting volatile investor sentiment.

Post-earnings, the stock price dropped 19.14% to $8.87, driven by weaker-than-expected revenue and conservative Q4 guidance. Analysts highlighted concerns over softer retail budgets and headwinds from key consumer brands, though AI-driven innovations like DV Authentic AdVantage secured $8 million in annual contract value.

CEO Commentary

CEO Mark Zagorski emphasized Q3’s 11% revenue growth and 35% adjusted EBITDA margin, crediting AI and automation. He highlighted strategic priorities, including AI innovation (e.g., Agent ID Measurement, AI SlopStopper), expansion into social and CTV, and $90 million in remaining share repurchase authority.

Guidance

For Q4 2025, DoubleVerify expects revenue of $207–211 million (10% growth at midpoint) and adjusted EBITDA of $77–81 million (38% margin). Full-year 2025 guidance includes ~14% revenue growth and 33% adjusted EBITDA margin, with 2026 growth projected at 10% under a “base case” scenario.

Post-Earnings Price Action Review

Following the earnings release, DoubleVerify’s stock experienced a sharp sell-off, dropping 19.14% to $8.87 amid concerns over revenue misses and weak Q4 forecasts. The decline contrasted with the 21.16% intraday surge, reflecting mixed investor reactions to the mixed performance. Analysts noted that while AI-driven solutions and customer retention (0% churn among top 100 clients) remain strengths, softer retail budgets and competitive pressures in the ad tech sector weighed on sentiment.

Additional News

Recent developments include a partnership with Roku to enhance connected TV ad performance and eliminate invalid traffic, alongside AI-powered product updates like DV Authentic AdVantage. The company also announced $90 million in remaining share repurchase authority, signaling continued confidence in capital allocation.

Additional News

DoubleVerify’s recent partnership with Roku to improve ad performance in connected TV campaigns underscores its strategic push into emerging ad formats. The company also launched AI-powered tools like DV Authentic AdVantage, securing $8 million in annual contract value. Meanwhile, management reiterated a $90 million share repurchase program, reflecting disciplined capital allocation amid softer market conditions.

Conclusion

DoubleVerify’s Q3 results highlight a mix of growth and challenges, with AI innovation and customer retention offsetting weaker retail demand. While the stock’s post-earnings selloff reflects near-term concerns, the company’s long-term focus on AI-driven efficiency and expansion into CTV and social media positions it for potential recovery. Investors will closely watch Q4 execution and 2026 guidance for signs of renewed momentum.