DoubleVerify — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue reached $205.6 million for the quarter, a 9% year-over-year increase compared to $188.6 million in Q3 2025.
• Net income was $15.9 million for the quarter, up from $10.2 million in Q3 2025.
• Adjusted EBITDA was $75.4 million, representing a 37% margin, compared to $65.9 million and a 35% margin in the prior year period.
• Activation revenue grew 10% year-over-year to $117.6 million; Measurement revenue increased 8% to $69.1 million; Supply-side revenue rose 5% to $18.9 million.
• Social measurement revenue increased 20% year-over-year; International measurement revenue grew 16%.
• Media Transactions Measured (MTM) for Connected TV (CTV) increased 22%.
• Cash balance stood at approximately $251 million with no debt outstanding.
• Free cash flow for the quarter was $45.7 million, with a free cash flow conversion rate of 61%.
• For the nine months ended September 30, 2026, total revenue was $580.3 million (7% increase), net income was $35.3 million, and Adjusted EBITDA was $195.9 million (34% margin).

Guidance and Future Outlook:

• DV has withdrawn all previously issued financial outlook and guidance due to the pending Merger Agreement.
• The company expects the Merger with Neptune BidCo US Inc. to close by the first quarter of 2027, subject to customary closing conditions.
• Future earnings and investor calls have been suspended for the duration of the transaction's pendency.
• Future updates regarding the transaction and strategic progress will be provided via official press releases and regulatory filings.

Business Segments and Product Lines:

• Launched "Ask Neura," a conversational AI experience integrated into DV Pinnacle® for dynamic data interaction and campaign optimization.
• Announced global availability of independent media quality measurement on TikTok Pangle.
• Initiated attribution measurement and brand suitability evaluation pilots for ChatGPT Ads.
• Revenue by customer type for the quarter: Activation ($117.6M), Measurement ($69.1M), and Supply-side ($18.9M).

Market and Competitive Landscape:

• DoubleVerify is described as the industry's leading media effectiveness platform leveraging AI to drive outcomes for global brands.
• The company continues to measure media transactions across social, CTV, and international markets, with specific growth noted in social measurement and CTV transaction volumes.

Risks and Challenges:

• The completion of the Merger is subject to risks including failure to satisfy closing conditions, lack of governmental or regulatory approvals, and potential termination of the Merger Agreement.
• Risks include disruption to current plans and operations, diversion of management attention, and potential negative impacts on business relationships and operating results during the pendency of the Merger.
• Forward-looking statements regarding the Merger are subject to uncertainties that could cause actual results to differ materially.

Management Commentary and Tone:

• Management highlighted that revenue growth was driven by Social and CTV growth.
• The tone reflects a focus on the pending transaction, with the suspension of standard reporting cycles to prioritize the merger process.

Other Key Points:

• On August 6, 2026, DV entered into a Merger Agreement with Neptune BidCo US Inc. (parent company of Nielsen Company US, LLC).
• At a special stockholder meeting on October 29, 2026, approximately 94% of votes cast were in favor of the Merger Agreement, representing over 75% of issued and outstanding shares.
• During the nine months ended September 30, 2026, the company repurchased shares under authorized programs totaling $100.2 million (including excise taxes).
• Stock-based compensation expense for the quarter was $25.1 million; for the nine months, it was $74.9 million.
• M&A and restructuring costs for the quarter were $2.9 million, consisting of transaction costs related to the Merger Agreement.
• Other costs for the quarter were $0.8 million, related to litigation and regulatory matters outside the ordinary course.
• The company reported $250.9 million in cash and cash equivalents as of September 30, 2026.