DoubleVerify 2025 Q3 Earnings Revenue Rises 11.2% Amid EPS Drop 45.5%

DoubleVerify (DV) reported fiscal 2025 Q3 earnings on Nov 8, 2025, with revenue rising 11.2% to $188.62 million, surpassing expectations. However, EPS declined 45.5% to $0.06, and Q4 guidance fell below estimates. Institutional ownership remains strong at 97.29%, while analysts remain divided on the stock’s trajectory.

Revenue

DoubleVerify’s total revenue climbed to $188.62 million in Q3 2025, a 11.2% increase from $169.56 million in the prior year. Activation led the revenue growth with $106.69 million, followed by Measurement at $63.83 million, and Supply-side contributing $18.10 million. The performance reflects robust demand across digital advertising segments, though softer retail budgets and competitive pressures tempered some growth.

Earnings/Net Income

The company’s EPS declined sharply to $0.06 in Q3 2025, down 45.5% from $0.11 in the prior year. Net income also fell 43.9% to $10.20 million, reflecting higher operating costs and stock-based compensation expenses. Despite sustained profitability for six consecutive years, the EPS drop signals pressure on profitability metrics.

Post-Earnings Price Action Review

While the earnings beat generated optimism, the revenue shortfall and weak guidance have dampened investor sentiment. Institutional confidence remains high, but mixed analyst target prices—from $10 to $27—highlight uncertainty. Strategic investments in AI and CTV could drive long-term value, though near-term volatility and sector-wide headwinds pose risks. The stock’s 30-day holding strategy remains speculative, contingent on management’s ability to execute growth initiatives.

CEO Commentary

Mark Zagorski, CEO, emphasized disciplined execution, noting 11% revenue growth to $189 million and a 35% adjusted EBITDA margin. He highlighted AI-driven efficiency and expansion in social and CTV as key growth drivers. Challenges include retail sector softness and international growth headwinds. The leadership outlook remains optimistic, with plans to leverage AI for structural efficiency and capitalize on digital advertising trends.

Guidance

CFO Nicola Allais outlined Q4 revenue guidance of $207–$211 million (10% growth) and adjusted EBITDA of $77–$81 million (38% margin). Full-year 2025 guidance includes 14% revenue growth and a 33% EBITDA margin. Capital allocation strategies, including share repurchases and M&A, aim to enhance shareholder value despite near-term challenges.

Additional News

Recent developments include Summit Creek Advisors reducing its stake by 41.8% in Q3, citing strategic portfolio rebalancing. The Zacks Rank downgraded DV to “Sell” due to weak earnings revisions and guidance. Meanwhile, DoubleVerify announced AI-powered product launches, including DV Authentic AdVantage, to strengthen its market position. Institutional ownership remains robust at 97.29%, underscoring long-term confidence despite near-term volatility.