Integral Ad Science (IAS) investor relations material

Executive summary

• Revenue for Q3 2025 was $154.4 million, up 16% year-over-year, surpassing guidance, with net income of $7.0 million (5% margin), down 56% from Q3 2024 due to higher operating expenses and merger-related costs.

• Adjusted EBITDA for Q3 2025 was $55.3 million (36% margin), up 9% year-over-year.

• The company entered into a definitive merger agreement to be acquired and taken private at $10.30 per share in an all-cash transaction, expected to close in Q4 2025.

• Key business drivers included growth in optimization and publisher revenue, increased international expansion, and continued investment in technology and product innovation.

Financial highlights

• Q3 2025 revenue grew 16% year-over-year to $154.4 million; nine-month revenue rose 16% to $437.6 million.

• Net income for Q3 2025 was $7.0 million (net margin 5%), down from $16.1 million (12%) in Q3 2024; nine-month net income was $31.4 million (7% margin), up 40% year-over-year.

• Adjusted EBITDA for Q3 2025 was $55.3 million (36% margin); nine-month Adjusted EBITDA was $148.4 million (34% margin).

• Optimization revenue increased 21% to $73.7 million; measurement revenue up 8% to $57.1 million; publisher revenue up 21% to $23.5 million.

• Cash flow from operations for the nine months was $109.7 million, with $129.2 million in cash and equivalents at quarter-end.

Outlook and guidance

• The merger is expected to close in Q4 2025, after which the company will become privately held and delist from Nasdaq.

• Management expects continued growth in optimization and publisher revenue, with seasonality leading to higher Q4 activity.

• Macroeconomic uncertainty, including inflation and global trade, may impact future advertising spend and results.