DoubleVerify (DV) Q4 2025 earnings summary

Executive summary

• Revenue grew 14% year-over-year in 2025, reaching up to $818 million, with double-digit gains across Activation, Measurement, and Supply-Side segments, surpassing initial guidance despite retail sector headwinds.

• Q4 2025 revenue increased 8% year-over-year to $206 million, driven by growth in activation, measurement, and supply-side lines.

• Adjusted EBITDA margin reached 38% in Q4 and 33% for the full year, reflecting strong profitability and operational efficiency.

• Customer retention remained high, with no top 100 customer deactivations in Q4 and net revenue retention at 109% for the year.

• Continued innovation in social, CTV, and AI platforms, supporting durable, long-term growth.

Financial highlights

• FY 2025 revenue reached up to $818 million (+14% YoY); Q4 revenue: $206 million (+8% YoY).

• FY 2025 adjusted EBITDA was $246 million (33% margin); Q4 adjusted EBITDA: $78 million (38% margin).

• Net income for 2025 was $51 million; net cash from operating activities: $211 million; free cash flow: $173 million (70% conversion rate).

• Capital expenditures: $39 million (5% of revenue); 8.4 million shares repurchased for $132 million, reducing shares outstanding by 3%.

• Ended 2025 with $260 million in cash and no long-term debt.

Outlook and guidance

• FY 2026 revenue guidance: $810–$826 million (+8–10% YoY); adjusted EBITDA margin expected to rise to 34%.

• Q1 2026 revenue guidance: $177–$183 million (+9% YoY at midpoint); adjusted EBITDA: $48–$52 million (28% margin at midpoint).

• Growth drivers include scaling new social and CTV solutions, deeper enterprise client adoption, and new customer acquisition.

• Capital expenditures for 2026 projected at $46 million, focused on product innovation and AI automation; stock-based compensation expected to decline by over 40%.