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DoubleVerify Reports Second Quarter 2026 Financial Results

 

NEW YORK – August 6, 2026 – DoubleVerify (“DV”) (NYSE: DV) today announced financial results for the second quarter ended June 30, 2026.

 

Recent Business Announcement:

 

On August 6, 2026, DV entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Neptune BidCo US Inc., a Delaware corporation (“Parent”), and parent company of Nielsen Holdings ("Nielsen"), whereby Nielsen will acquire DV. Additional details regarding the transaction are included in a Current Report on Form 8-K filed today with the Securities and Exchange Commission.

 

Conference Call, Webcast, and Other Information

 

In light of the pending transaction, DV is suspending future earnings and investors calls for the duration of the transaction’s pendency, including the conference call previously scheduled for 4:30 p.m. Eastern time today, August 6, 2026. Additionally, DV is withdrawing all previously issued financial outlook and guidance for the duration of the transaction's pendency. Future updates regarding the transaction and DV’s strategic progress will be provided through official press releases and regulatory filings as appropriate.

 

Second Quarter 2026 Financial Highlights:

 

(All comparisons are to the second quarter of 2025)

 

 ·Total revenue of $193.8 million, an increase of 3%.

 

 oActivation revenue of $107.7 million, a decrease of 1%.
   
 oMeasurement revenue of $66.8 million, an increase of 6%.
   
 oSupply-side revenue of $19.3 million, an increase of 13%

 

 ·Net income of $12.9 million and adjusted EBITDA of $65.3 million, which represented a 34% adjusted EBITDA margin.
   
 ·Cash balance of $210 million, with no debt outstanding.

 

Key Business Terms

 

Activation revenue is generated from the evaluation, verification, and measurement of advertising impressions purchased through programmatic demand-side and social media platforms.

 

Measurement revenue is generated from the verification and measurement of advertising impressions that are directly purchased on digital media properties, including publishers, CTV and social media platforms.

 

Supply-Side revenue is generated from platforms and publisher partners who use DoubleVerify’s data analytics to evaluate, verify and measure their advertising inventory.

 

 

 

 

DoubleVerify Holdings, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

   As of   As of 
(in thousands, except per share data)  June 30, 2026   December 31, 2025 
Assets:          
Current assets          
Cash and cash equivalents  $210,174   $259,038 
Trade receivables, net of allowances for doubtful accounts of $9,133 and $8,096 as of June 30, 2026 and December 31, 2025, respectively   214,926    221,158 
Prepaid expenses and other current assets   46,325    39,132 
Total current assets   471,425    519,328 
Property, plant and equipment, net   129,053    103,284 
Operating lease right-of-use assets, net   63,129    66,908 
Goodwill   511,585    516,002 
Intangible assets, net   87,872    101,616 
Deferred tax assets   30,971    30,920 
Other non-current assets   16,060    16,024 
Total assets  $1,310,095   $1,354,082 
Liabilities and Stockholders' Equity:          
Current liabilities          
Trade payables  $12,992   $14,662 
Accrued expenses   52,426    73,552 
Operating lease liabilities, current   7,932    9,057 
Income tax liabilities   1,952    3,829 
Current portion of finance lease obligations   12,850    6,982 
Other current liabilities   16,664    13,481 
Total current liabilities   104,816    121,563 
Operating lease liabilities, non-current   74,652    77,917 
Finance lease obligations   16,396    5,595 
Deferred tax liabilities   13,066    11,467 
Other non-current liabilities   6,715    6,208 
Total liabilities   215,645    222,750 
Commitments and contingencies (Note 15)          
Stockholders’ equity          
Common stock, $0.001 par value, 1,000,000 shares authorized, 177,110 shares issued and 154,935 outstanding as of June 30, 2026; 1,000,000 shares authorized, 176,546 shares issued and 161,900 outstanding as of December 31, 2025   177    177 
Additional paid-in capital   1,073,680    1,059,938 
Treasury stock, at cost, 22,175 shares and 14,646 shares as of June 30, 2026 and December 31, 2025, respectively   (313,245)   (247,982)
Retained earnings   325,192    305,864 
Accumulated other comprehensive income, net of income taxes   8,646    13,335 
Total stockholders’ equity   1,094,450    1,131,332 
Total liabilities and stockholders' equity  $1,310,095   $1,354,082 

 

 

 

 

DoubleVerify Holdings, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)

 

   Three Months Ended June 30,   Six Months Ended June 30, 
(in thousands, except per share data)  2026   2025   2026   2025 
Revenue  $193,789   $189,021   $374,614   $354,082 
Cost of revenue (exclusive of depreciation and amortization shown separately below)   32,484    33,126    65,643    64,092 
Product development   46,393    47,203    91,774    91,920 
Sales, marketing and customer support   48,260    50,871    93,855    94,572 
General and administrative   26,967    29,576    52,682    56,103 
Depreciation and amortization   16,660    14,697    31,999    27,084 
Income from operations   23,025    13,548    38,661    20,311 
Interest expense   475    443    888    863 
Other expense (income), net   644    (2,105)   1,637    (5,284)
Income before income taxes   21,906    15,210    36,136    24,732 
Income tax expense   8,988    6,452    16,808    13,613 
Net income  $12,918   $8,758   $19,328   $11,119 
Earnings per share:                    
Basic  $0.08   $0.05   $0.12   $0.07 
Diluted  $0.08   $0.05   $0.12   $0.07 
Weighted-average common stock outstanding:                    
Basic   153,959    162,740    157,346    163,922 
Diluted   157,891    166,697    160,981    167,813 
Comprehensive income:                    
Net income  $12,918   $8,758   $19,328   $11,119 
Other comprehensive income (loss):                    
Foreign currency cumulative translation adjustment   242    19,383    (4,689)   26,876 
Total comprehensive income  $13,160   $28,141   $14,639   $37,995 

 

 

 

 

DoubleVerify Holdings, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

 

                           Accumulated Other
Comprehensive		     
                   Additional       Income (Loss)   Total 
   Common Stock   Treasury Stock   Paid-in   Retained   Net of   Stockholders’ 
(in thousands)  Shares   Amount   Shares   Amount   Capital   Earnings   Income Taxes   Equity 
Balance as of January 1, 2026   176,546   $177    14,646   $(247,982)  $1,059,938   $305,864   $13,335    1,131,332 
Foreign currency translation adjustment   —    —    —    —    —    —    (4,931)   (4,931)
Shares repurchased for settlement of employee tax withholdings   —    —    142    (1,437)   —    —    —    (1,437)
Stock-based compensation expense   —    —    —    —    25,613    —    —    25,613 
Common stock issued upon exercise of stock options   —    —    —    —    43    —    —    43 
Common stock issued upon vesting of restricted stock units   90    —    —    —    —    —    —    — 
Common stock issued upon vesting of performance stock units   53    —    —    —    —    —    —    — 
Shares repurchased under authorized repurchase programs   —    —    7,270    (75,145)   —    —    —    (75,145)
Excise tax on shares repurchased   —    —    —    (618)   —    —    —    (618)
Treasury stock reissued upon settlement of equity awards   —    —    (1,298)   20,239    (20,239)   —    —    — 
Net income   —    —    —    —    —    6,410    —    6,410 
Balance as of March 31, 2026   176,689   $177    20,760   $(304,943)  $1,065,355   $312,274   $8,404   $1,081,267 
Foreign currency translation adjustment   —    —    —    —    —    —    242    242 
Shares repurchased for settlement of employee tax withholdings   —    —    392    (4,025)   —    —    —    (4,025)
Stock-based compensation expense   —    —    —    —    26,941    —    —    26,941 
Common stock issued under employee purchase plan   —    —    —    —    1,031    —    —    1,031 
Common stock issued upon exercise of stock options   —    —    —    —    1,223    —    —    1,223 
Common stock issued upon vesting of restricted stock units   392    —    —    —    —    —    —    — 
Common stock issued upon vesting of performance stock units   29    —    —    —    —    —    —    — 
Shares repurchased under authorized repurchase programs   —    —    2,497    (25,050)   —    —    —    (25,050)
Excise tax on shares repurchased   —    —    —    (97)   —    —    —    (97)
Treasury stock reissued upon settlement of equity awards   —    —    (1,474)   20,870    (20,870)   —    —    — 
Net income   —    —    —    —    —    12,918    —    12,918 
Balance as of June 30, 2026   177,110   $177    22,175   $(313,245)  $1,073,680   $325,192   $8,646   $1,094,450 
                                         
Balance as of January 1, 2025   174,003   $174    6,934   $(131,620)  $974,383   $255,214   $(14,692)  $1,083,459 
Foreign currency translation adjustment   —    —    —    —    —    —    7,493    7,493 
Shares repurchased for settlement of employee tax withholdings   —    —    210    (3,210)   —    —    —    (3,210)
Stock-based compensation expense   —    —    —    —    25,080    —    —    25,080 
Common stock issued upon exercise of stock options   58    —    —    —    222    —    —    222 
Common stock issued upon vesting of restricted stock units   641    1    —    —    (1)   —    —    — 
Common stock issued upon vesting of performance stock units   71    —    —    —    —    —    —    — 
Shares repurchased under authorized repurchase programs   —    —    5,169    (82,240)   —    —    —    (82,240)
Excise tax on shares repurchased   —    —    —    (64)   (668)   —    —    (732)
Treasury stock reissued upon settlement of equity awards   —    —    (18)   350    (350)   —    —    — 
Net income   —    —    —    —    —    2,361    —    2,361 
Balance as of March 31, 2025   174,773   $175    12,295   $(216,784)  $998,666   $257,575   $(7,199)  $1,032,433 
Foreign currency translation adjustment   —    —    —    —    —    —    19,383    19,383 
Shares repurchased for settlement of employee tax withholdings   —    —    35    (494)   —    —    —    (494)
Stock-based compensation expense   —    —    —    —    28,053    —    —    28,053 
Common stock issued under employee purchase plan   135    —    —    —    1,577    —    —    1,577 
Common stock issued upon exercise of stock options   29    —    —    —    148    —    —    148 
Common stock issued upon vesting of restricted stock units   954    1    —    —    (1)   —    —    — 
Common stock issued upon vesting of performance stock units   14    —    —    —    —    —    —    — 
Excise tax on shares repurchased   —    —    —    157    —    —    —    157 
Net income   —    —    —    —    —    8,758    —    8,758 
Balance as of June 30, 2025   175,905   $176    12,330   $(217,121)  $1,028,443   $266,333   $12,184   $1,090,015 

 

 

 

 

DoubleVerify Holdings, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

   Six Months Ended 
   June 30, 
(in thousands)  2026   2025 
Operating activities:          
Net income  $19,328   $11,119 
Adjustments to reconcile net income to net cash provided by operating activities          
Bad debt expense   2,409    1,499 
Depreciation and amortization expense   31,999    27,084 
Amortization of debt issuance costs   217    217 
Non-cash lease expense   4,199    3,905 
Deferred taxes   1,586    298 
Stock-based compensation expense   49,774    51,349 
Interest expense, net   348    255 
Loss on disposal of fixed assets   —    89 
Other   804    (419)
Changes in operating assets and liabilities, net of effects of business combinations          
Trade receivables   3,016    40,951 
Prepaid expenses and other assets   (7,149)   (32,762)
Trade payables   (1,638)   638 
Accrued expenses and other liabilities   (24,480)   (16,947)
Net cash provided by operating activities   80,413    87,276 
Investing activities:          
Purchase of property, plant and equipment   (21,056)   (15,813)
Acquisition of businesses, net of cash acquired   —    (82,578)
Proceeds from maturity of short-term investments   —    12,684 
Other investing activities   —    (1,000)
Net cash used in investing activities   (21,056)   (86,707)
Financing activities:          
Proceeds from common stock issued upon exercise of stock options   1,266    370 
Proceeds from common stock issued under employee purchase plan   1,031    1,577 
Finance lease payments   (3,179)   (1,379)
Shares repurchased under authorized repurchase programs   (100,195)   (82,240)
Payment of excise tax on shares repurchased   (884)   (668)
Shares repurchased for settlement of employee tax withholdings   (5,462)   (3,704)
Net cash used in financing activities   (107,423)   (86,044)
Effect of exchange rate changes on cash and cash equivalents and restricted cash   (821)   4,547 
Net decrease in cash, cash equivalents, and restricted cash   (48,887)   (80,928)
Cash, cash equivalents, and restricted cash - Beginning of period   260,034    293,741 
Cash, cash equivalents, and restricted cash - End of period  $211,147   $212,813 
           
Cash and cash equivalents  $210,174   $211,784 
Restricted cash - current (included in Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets)   —    37 
Restricted cash - non-current (included in Other non-current assets on the Condensed Consolidated Balance Sheets)   973    992 
Total cash and cash equivalents and restricted cash  $211,147   $212,813 
Supplemental cash flow information:          
Cash paid for interest  $573   $500 
Non-cash investing and financing activities:          
Right-of-use assets obtained in exchange for new operating lease liabilities, net of impairments and tenant improvement allowances  $245   $2,168 
Acquisition of equipment under finance lease  $19,847   $13,805 
Capital assets financed by accounts payable and accrued expenses  $66   $249 
Stock-based compensation included in capitalized software development costs  $2,785   $1,783 
Accrued excise tax on net share repurchases  $715   $575 

 

 

 

 

Comparison of the Three and Six Months Ended June 30, 2026 and June 30, 2025

 

Revenue

 

   Three Months Ended June 30,   Change   Change   Six Months Ended June 30,   Change   Change 
   2026   2025   $   %   2026   2025   $   % 
   (In Thousands)           (In Thousands)         
Revenue by customer type:                                        
Activation  $107,683   $108,950   $(1,267)   (1)%  $208,230   $204,121   $4,109    2%
Measurement   66,760    62,895    3,865    6    128,563    116,326    12,237    11 
Supply-side   19,346    17,176    2,170    13    37,821    33,635    4,186    12 
Total revenue  $193,789   $189,021   $4,768    3%  $374,614   $354,082   $20,532    6%

 

Non-GAAP Financial Measures

 

In addition to our results determined in accordance with GAAP, management believes that certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Non-GAAP Net income, Non-GAAP Earnings Per Share, Free Cash Flow and Free Cash Flow Conversion (collectively "Non-GAAP Financial Measures") are useful in evaluating our business.

 

We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. We calculate Non-GAAP net income as GAAP net income adjusted to eliminate the impact of stock-based compensation and certain other items that are not related to our core operations, such as amortization of acquired intangibles assets, acquisition-related costs, other non-recurring costs, as well as the income tax effect of these adjustments. Basic non-GAAP earnings per share is calculated by dividing non-GAAP net income by the number of weighted-average common stock outstanding. Diluted Non-GAAP earnings per share adjusts the Basic Non-GAAP earnings per share for the potential dilutive impact of shares of common stock using the treasury stock method. We calculate free cash flow as net cash provided by operating activities determined in accordance with GAAP less purchases of property, plant, and equipment which includes capitalized software development costs. Free cash flow conversion is calculated as free cash flow divided by Adjusted EBITDA for the same period. We use the Non-GAAP Financial Measures as measures of operational efficiency to understand and evaluate our core business operations. We believe that these Non-GAAP Financial Measures are useful to investors for period-to-period comparisons of our core business and for understanding and evaluating trends in our operating results on a consistent basis by either excluding items that we do not believe are indicative of our core operating performance or by measuring cash generated by our operations that is available for various strategic initiatives.

 

 

 

 

The following tables show DV’s non-GAAP financial metrics reconciled to the comparable GAAP financial metrics included in this release.

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2026   2025   2026   2025 
   (In Thousands)   (In Thousands) 
Net income  $12,918   $8,758   $19,328   $11,119 
Net income margin   7%   5%   5%   3%
Depreciation and amortization   16,660    14,697    31,999    27,084 
Stock-based compensation   25,525    27,007    49,774    51,349 
Interest expense   475    443    888    863 
Income tax expense   8,988    6,452    16,808    13,613 
M&A and restructuring costs (a)   —    504    —    1,666 
Other costs (b)   117    1,518    95    1,518 
Other expense (income) (c)   644    (2,105)   1,637    (5,284)
Adjusted EBITDA  $65,327   $57,274   $120,529   $101,928 
Adjusted EBITDA margin   34%   30%   32%   29%

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2026   2025   2026   2025 
   (In Thousands)   (In Thousands) 
Net Income  $12,918   $8,758   $19,328   $11,119 
Stock-based compensation   25,525    27,007    49,774    51,349 
Amortization of acquired intangibles   6,536    8,068    13,091    15,307 
M&A and restructuring costs (a)   —    504    —    1,666 
Other costs (b)   117    1,518    95    1,518 
Income tax effect of non-GAAP adjustments (d)   (9,975)   (11,500)   (19,518)   (21,650)
Non-GAAP net income  $35,121   $34,355   $62,770   $59,309 
                     
GAAP earnings per share:                    
Basic  $0.08   $0.05   $0.12   $0.07 
Diluted  $0.08   $0.05   $0.12   $0.07 
                     
GAAP Weighted-average common stock outstanding:                    
Basic   153,959    162,740    157,346    163,922 
Diluted   157,891    166,697    160,981    167,813 
                     
Non-GAAP earnings per share:                    
Basic  $0.23   $0.21   $0.40   $0.36 
Diluted  $0.22   $0.21   $0.39   $0.35 
                     
Non-GAAP Weighted-average common stock outstanding:                    
Basic   153,959    162,740    157,346    163,922 
Diluted   157,891    166,697    160,981    167,813 

 

 
 (a)M&A and restructuring costs for the three and six months ended June 30, 2025 consist of transaction costs related to the acquisition of Rockerbox.

 

 

 

 

 (b)Other costs for the three and six months ended June 30, 2026 consist of expenses with respect to litigation and regulatory matters outside of the ordinary course. Other costs for the three and six months ended June 30, 2025 consist of expenses incurred with respect to litigation and regulatory matters outside of the ordinary course and costs related to the early termination of an office lease.
   
 (c)Other expense (income) for the three and six months ended June 30, 2026 and June 30, 2025 consist of interest income earned on interest-bearing monetary assets, and the impact of changes in foreign currency exchange rates.
   
 (d)We calculate the income tax effect of the adjustments using a non-GAAP effective tax rate to provide consistency across reporting periods. For the non-GAAP reconciliation, effective tax rates for the three and six months ended June 30, 2026 and 2025 were calculated using assumed blended tax rates of 31%, respectively. These rates represent a blend of the statutory federal tax and state taxes rates associated with the most recent Annual Report on Form 10-K. We will periodically reevaluate this tax rate, as necessary, for significant events such as relevant tax law changes.

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2026   2025   2026   2025 
   (In Thousands)   (In Thousands) 
Net cash provided by operating activities  $76,242   $49,613   $80,413   $87,276 
Purchase of property, plant and equipment   (10,513)   (9,527)   (21,056)   (15,813)
Free cash flow  $65,729   $40,086   $59,357   $71,463 
Free cash flow conversion   101%   70%   49%   70%

 

These Non-GAAP Financial Measures have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP. Some of the limitations of these measures are:

 

 ·they do not reflect changes in, or cash requirements for, working capital needs;
   
 ·they do not reflect our capital expenditures or future requirements for capital expenditures or contractual commitments;
   
 ·they do not reflect income tax expense or the cash requirements to pay income taxes;
   
 ·they do not reflect interest expense or the cash requirements necessary to service interest or principal debt payments; and
   
 ·although depreciation and amortization are non-cash charges related mainly to intangible assets, certain assets being depreciated and amortized will have to be replaced in the future, and they do not reflect any cash requirements for such replacements.

 

In addition, other companies in our industry may calculate these Non-GAAP Financial Measures differently than we do, limiting their usefulness as a comparative measure. You should compensate for these limitations by relying primarily on our GAAP results and using the Non-GAAP Financial Measures only supplementally.

 

 

 

 

Total stock-based compensation expense recorded in the Condensed Consolidated Statements of Operations and Comprehensive Income is as follows:

 

   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
(in thousands)  2026   2025   2026   2025 
Product development  $10,109   $10,389   $19,519   $19,655 
Sales, marketing and customer support   7,588    8,826    14,712    16,455 
General and administrative   7,828    7,792    15,543    15,239 
Total stock-based compensation  $25,525   $27,007   $49,774   $51,349 

 

 

 

 

Forward-Looking Statements

 

This press release includes “forward-looking statements”. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any statements in this press release regarding the proposed transaction with Parent, future revenues, earnings, margins, financial performance or results of operations, and any other statements that are not historical facts are forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. These risks, uncertainties, assumptions and other factors include, but are not limited to, the risk that disruptions from the proposed transaction with Parent (including the ability of certain counterparties to terminate or amend contracts upon a change of control) will harm DV’s business, including current plans and operations, including during the pendency of the transaction, the risk that the Merger may not be completed in a timely manner or at all, which may adversely affect DV’s business and the price of its common stock, the competitiveness of our solutions amid technological developments or evolving industry standards, the competitiveness of our market, system failures, security breaches, cyberattacks or natural disasters, economic downturns and unstable market conditions, our ability to collect payments, data privacy legislation and regulation, public criticism of digital advertising technology, our international operations, our use of “open source” software, our limited operating history and the potential for our revenues and results of operations to fluctuate in the future. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make.

 

Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this press release are included under the caption “Risk Factors” in DV’s Annual Report on Form 10-K filed with the SEC on February 26, 2026, its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026 once filed with the SEC and other filings and reports we make with the SEC from time to time.

 

We have based our forward-looking statements on our management’s beliefs and assumptions based on information available to our management at the time the statements are made. Any forward-looking information presented herein is made only as of the date of this press release, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

 

About DoubleVerify

 

DoubleVerify (NYSE: DV) is the industry’s leading media effectiveness platform that leverages AI to drive superior outcomes for global brands. By creating more effective, transparent ad transactions, we make the digital advertising ecosystem stronger, safer and more secure, thereby preserving the fair value exchange between buyers and sellers of digital media. Learn more at www.doubleverify.com.

 

 

 

 

Investor Relations

 

Brinlea Johnson

The Blueshirt Group

IR@doubleverify.com

 

Media Contact

 

Chris Harihar

Crenshaw Communications

646-535-9475

chris@crenshawcomm.com