Recent News
On August 8, 2025 the CEO warned that tariff-related uncertainty has weighed on large brand advertisers and the company announced a CFO transition effective August 21, 2025; the update triggered analyst target reductions and a sharp share reaction. Earlier, the company received confirmation of inclusion into the S&P 500 with the effective swap set for mid-July 2025, a move that prompted index-driven buying.
Technical Analysis
ADX stands at 46.06, indicating a very strong trend in place; a very strong ADX amplifies the significance of directional indicator changes and suggests the current price bias can persist in the near term.
DI+ registers 13.51 with a dip & reversal (bullish) and DI– registers 38.99 with a peak & reversal (bullish). Both directional indicators showing reversal behavior implies directional contention has shifted toward a recovery bias, though DI– remains materially higher in absolute terms, which creates asymmetric pressure against a sustained advance.
MACD sits at –4.51 and shows an increasing trend with the MACD line above the signal line (MACD signal –4.97), which constitutes a bullish momentum crossover despite negative absolute MACD; the crossover reduces downside momentum and supports potential short-covering or mean-reversion moves.
MRO at –34.91 places price below the model target and the oscillator’s dip & reversal signals potential upside toward the target level; the negative reading implies scope for price to move higher toward modeled fair-value bands if momentum confirms.
RSI reads 38.02 with a dip & reversal, indicating the indicator trades below neutral and the reversal pattern hints at an emerging bounce rather than sustained strength; RSI behavior aligns with a short-term recovery attempt inside a larger downtrend context.
Price at $46.86 sits below the 200-day average of $78.33 and below the 50-day average of $62.99, while near the 20-day average of $47.30 and under the Ichimoku tenkan/ kijun (Tenkan $48.59, Kijun $49.33); price beneath major longer-term averages implies structural bearish bias, while proximity to short-term averages and the MACD crossover suggest a countertrend rally may occur before any durable trend reversal.
Bollinger bands place price between the 1x lower band ($43.67) and 1x upper band ($50.92), so intraday volatility has compressed; the super trend upper at $49.37 acts as a nearby resistance level to any rally. Volume at 20.0M trails the 10-day average of 26.98M but slightly exceeds the 50-day average, consistent with selective trading interest without broad accumulation.
Fundamental Analysis
Total revenue stands at $694,039,000 with gross profit $543,059,000 and gross margin 78.246%. Operating income / EBIT equals $116,777,000 and EBIT margin equals 16.826%.
EBIT margin QoQ increased by 90.361% and YoY increased by 3.839%. The EBIT margin of 16.8% sits below the industry peer mean of 30.39% and well below the industry peer median of 48.39%, indicating margins lag peer central tendencies despite a high gross margin.
YoY revenue growth reads –33.314% while the unqualified revenue growth figure shows 12.665%; the year-over-year decline on the labeled YoY metric points to recent revenue contraction, whereas the alternate growth figure suggests differing period comparisons—use the YoY revenue growth label of –33.314% for year-over-year assessment.
EPS actual $0.41 matched the estimate $0.41 with an EPS surprise ratio of –0.92%. Forward EPS $0.4825 and forward PE 145.07 reflect elevated forward multiples relative to the forward PE industry mean of 132.98, though forward PE sits within the industry range’s upper half.
Price-to-book at 12.24 exceeds the industry peer mean of 8.44. Price-to-sales at 47.53 also sits above the industry peer mean of 27.02. Free-cash-flow yield equals 0.354% and stands below the industry peer mean of 1.676%, while free cash flow fell QoQ, producing a free cash flow growth decline of –49.188% QoQ. Cash on hand totals $896,387,000 and cash and short-term investments total $1,687,261,000, supporting liquidity.
Leverage remains modest: total debt $343,549,000, debt-to-equity 0.12744, and debt-to-EBITDA 2.39439. Interest coverage 3.19x shows coverage but at a lower level versus many peers. Return on equity 3.343% and return on assets 1.546% indicate muted returns on capital relative to industry peer mean ROE of 9.228%.
WMDST values the stock as over-valued based on the combination of premium market multiples (P/Book, P/S, P/E) and a free-cash-flow yield below the industry peer mean; elevated valuation metrics constrain upside absent a meaningful improvement in revenue growth or cash-flow generation.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-07 |
| NEXT REPORT DATE: | 2025-11-04 |
| CASH FLOW | Begin Period Cash Flow | $ 1.1 B |
| Operating Cash Flow | $ 165.0 M | |
| Capital Expenditures | $ -48.32 M | |
| Change In Working Capital | $ -96.66 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -222.16 M | |
| End Period Cash Flow | $ 896.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 694.0 M | |
| Forward Revenue | $ 455.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 151.0 M | |
| Depreciation | $ 26.7 M | |
| Depreciation and Amortization | $ 26.7 M | |
| Research and Development | $ 134.3 M | |
| Total Operating Expenses | $ 577.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 543.1 M | |
| EBITDA | $ 143.5 M | |
| EBIT | $ 116.8 M | |
| Operating Income | $ 116.8 M | |
| Interest Income | $ 18.0 M | |
| Interest Expense | — | |
| Net Interest Income | $ 18.0 M | |
| Income Before Tax | $ 133.2 M | |
| Tax Provision | $ 43.1 M | |
| Tax Rate | 32.336 % | |
| Net Income | $ 90.1 M | |
| Net Income From Continuing Operations | $ 90.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.41 | |
| EPS Actual | $ 0.41 | |
| EPS Difference | $ 0.00 | |
| EPS Surprise | -0.92 % | |
| Forward EPS | $ 0.48 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 6.0 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 2.7 B | |
| Total Current Assets | $ 5.1 B | |
| Cash and Short-Term Investments | $ 1.7 B | |
| Cash | $ 896.4 M | |
| Net Receivables | $ 3.3 B | |
| Inventory | — | |
| Long-Term Investments | $ 95.9 M | |
| LIABILITIES | ||
| Accounts Payable | $ 2.7 B | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 2.9 B | |
| Net Debt | — | |
| Total Debt | $ 343.5 M | |
| Total Liabilities | $ 3.3 B | |
| EQUITY | ||
| Total Equity | $ 2.7 B | |
| Retained Earnings | $ -162.36 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 5.50 | |
| Shares Outstanding | 489.898 M | |
| Revenue Per-Share | $ 1.42 | |
| VALUATION | Market Capitalization | $ 33.0 B |
| Enterprise Value | $ 31.6 B | |
| Enterprise Multiple | 220.524 | |
| Enterprise Multiple QoQ | -44.173 % | |
| Enterprise Multiple YoY | -42.029 % | |
| Enterprise Multiple IPRWA | high: 887.98 TTD: 220.524 mean: 115.214 median: 44.04 low: -352.026 |
|
| EV/R | 45.59 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.21 | |
| Asset To Liability | 1.826 | |
| Debt To Capital | 0.113 | |
| Debt To Assets | 0.058 | |
| Debt To Assets QoQ | -1.788 % | |
| Debt To Assets YoY | 141.558 % | |
| Debt To Assets IPRWA | high: 0.9 median: 0.194 mean: 0.175 TTD: 0.058 low: 0.004 |
|
| Debt To Equity | 0.127 | |
| Debt To Equity QoQ | 3.358 % | |
| Debt To Equity YoY | 148.906 % | |
| Debt To Equity IPRWA | high: 0.537 median: 0.352 mean: 0.313 TTD: 0.127 low: 0.005 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 12.235 | |
| Price To Book QoQ | 2.626 % | |
| Price To Book YoY | -35.114 % | |
| Price To Book IPRWA | high: 13.162 TTD: 12.235 median: 8.605 mean: 8.439 low: 0.647 |
|
| Price To Earnings (P/E) | 187.907 | |
| Price To Earnings QoQ | -5.889 % | |
| Price To Earnings YoY | -20.575 % | |
| Price To Earnings IPRWA | high: 366.06 TTD: 187.907 mean: 103.373 median: 53.265 low: -119.25 |
|
| PE/G Ratio | 0.606 | |
| Price To Sales (P/S) | 47.526 | |
| Price To Sales QoQ | -9.609 % | |
| Price To Sales YoY | -38.752 % | |
| Price To Sales IPRWA | high: 55.452 TTD: 47.526 mean: 27.017 median: 22.334 low: 1.118 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 145.068 | |
| Forward PE/G | 0.468 | |
| Forward P/S | 72.485 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 9.038 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.119 | |
| Asset Turnover Ratio QoQ | 14.147 % | |
| Asset Turnover Ratio YoY | 0.0 % | |
| Asset Turnover Ratio IPRWA | high: 0.375 median: 0.227 mean: 0.199 TTD: 0.119 low: 0.017 |
|
| Receivables Turnover | 0.22 | |
| Receivables Turnover Ratio QoQ | 14.013 % | |
| Receivables Turnover Ratio YoY | 4.007 % | |
| Receivables Turnover Ratio IPRWA | high: 4.025 mean: 1.8 median: 1.352 low: 0.731 TTD: 0.22 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 414.601 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.33 | |
| CapEx To Revenue | -0.07 | |
| CapEx To Depreciation | -1.809 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.7 B | |
| Net Invested Capital | $ 2.7 B | |
| Invested Capital | $ 2.7 B | |
| Net Tangible Assets | $ 2.7 B | |
| Net Working Capital | $ 2.1 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.572 | |
| Current Ratio | 1.714 | |
| Current Ratio QoQ | -5.355 % | |
| Current Ratio YoY | -4.578 % | |
| Current Ratio IPRWA | high: 6.752 TTD: 1.714 mean: 1.625 median: 1.447 low: 0.894 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 2.394 | |
| Cost Of Debt | 7.295 % | |
| Interest Coverage Ratio | 3.193 | |
| Interest Coverage Ratio QoQ | 114.459 % | |
| Interest Coverage Ratio YoY | 23.287 % | |
| Interest Coverage Ratio IPRWA | high: 220.0 median: 62.533 mean: 42.188 TTD: 3.193 low: -23.112 |
|
| Operating Cash Flow Ratio | 0.081 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 1636.379 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 4.423 % | |
| Revenue Growth | 12.665 % | |
| Revenue Growth QoQ | -175.083 % | |
| Revenue Growth YoY | -33.314 % | |
| Revenue Growth IPRWA | TTD: 12.665 % high: 6.9 % mean: 2.839 % median: 1.312 % low: 0.527 % |
|
| Earnings Growth | 310.0 % | |
| Earnings Growth QoQ | -803.458 % | |
| Earnings Growth YoY | 520.0 % | |
| Earnings Growth IPRWA | TTD: 310.0 % high: 23.034 % median: 16.146 % mean: 7.89 % low: -150.0 % |
|
| MARGINS | ||
| Gross Margin | 78.246 % | |
| Gross Margin QoQ | 1.866 % | |
| Gross Margin YoY | -3.524 % | |
| Gross Margin IPRWA | high: 94.916 % median: 84.601 % mean: 80.2 % TTD: 78.246 % low: 42.327 % |
|
| EBIT Margin | 16.826 % | |
| EBIT Margin QoQ | 90.361 % | |
| EBIT Margin YoY | 3.839 % | |
| EBIT Margin IPRWA | high: 48.388 % median: 48.388 % mean: 30.386 % TTD: 16.826 % low: -30.992 % |
|
| Return On Sales (ROS) | 16.826 % | |
| Return On Sales QoQ | 90.361 % | |
| Return On Sales YoY | 3.839 % | |
| Return On Sales IPRWA | high: 48.388 % median: 48.388 % mean: 30.071 % TTD: 16.826 % low: -80.448 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 116.7 M | |
| Free Cash Flow Yield | 0.354 % | |
| Free Cash Flow Yield QoQ | -50.071 % | |
| Free Cash Flow Yield YoY | 183.2 % | |
| Free Cash Flow Yield IPRWA | high: 7.36 % median: 2.518 % mean: 1.676 % TTD: 0.354 % low: -1.991 % |
|
| Free Cash Growth | -49.188 % | |
| Free Cash Growth QoQ | -265.717 % | |
| Free Cash Growth YoY | -27.505 % | |
| Free Cash Growth IPRWA | high: 320.039 % median: 320.039 % mean: 164.688 % TTD: -49.188 % low: -118.823 % |
|
| Free Cash To Net Income | 1.295 | |
| Cash Flow Margin | 34.436 % | |
| Cash Flow To Earnings | 2.652 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.546 % | |
| Return On Assets QoQ | 80.186 % | |
| Return On Assets YoY | -10.687 % | |
| Return On Assets IPRWA | high: 8.261 % median: 8.261 % mean: 5.027 % TTD: 1.546 % low: -13.869 % |
|
| Return On Capital Employed (ROCE) | 3.881 % | |
| Return On Equity (ROE) | 0.033 | |
| Return On Equity QoQ | 79.249 % | |
| Return On Equity YoY | -5.431 % | |
| Return On Equity IPRWA | high: 0.292 median: 0.14 mean: 0.092 TTD: 0.033 low: -0.177 |
|
| DuPont ROE | 3.33 % | |
| Return On Invested Capital (ROIC) | 2.931 % | |
| Return On Invested Capital QoQ | 118.568 % | |
| Return On Invested Capital YoY | -156.638 % | |
| Return On Invested Capital IPRWA | high: 10.885 % median: 10.885 % mean: 6.536 % TTD: 2.931 % low: -15.042 % |
|