Recent News
On July 31, 2025 DoubleVerify expanded AI-powered brand suitability measurement across Meta’s Facebook and Instagram Feeds and Reels, extending post-bid content-level categories. On July 22, 2025 the company published its 2025 Global Insights: North America report highlighting social formats and attention metrics as key performance drivers. The company announced on July 9, 2025 that it would release second-quarter results on August 5, 2025. On July 23, 2025 the company filed an amended employment agreement for CEO Mark Zagorski.
Technical Analysis
ADX Strength: ADX reads very strong at 41.31, signaling a high-strength directional regime that amplifies the impact of directional indicators on near-term price bias.
Directional Indicators (DI+/DI-): DI+ shows a dip & reversal (11.77) and DI- shows a peak & reversal (33.55); both trend patterns qualify as bullish by directional reversal rules, though DI- remains substantially higher than DI+, which indicates the prior negative dominance still carries weight for short-term risk management.
MACD: MACD sits negative at -0.82 with a dip & reversal pattern while the signal line stands at -0.70; the dip & reversal signals developing bullish momentum, but MACD remains below the signal line, so momentum needs further confirmation before asserting a sustained shift.
MRO (Momentum/Regression Oscillator): MRO reads -42.82 (negative), indicating the current price lies below the model target and therefore carries material mean-reversion potential toward that target; the magnitude implies strong potential for upward pressure if momentum flips.
RSI: RSI stands at 41.19 and shows a decreasing trend, which denotes waning price momentum and leaves room for additional downside unless momentum indicators confirm recovery.
Price vs. Averages and Bands: Price closed at $11.98, trading below the 20-day average ($12.56), 50-day average ($14.70) and 200-day average ($15.94); the 12-day EMA (12.55) trends downward. Price sits just above the lower 1x Bollinger band ($11.89), suggesting proximity to a short-term support zone while the broader moving-average alignment tempers bullish directional readings.
Volume & Volatility: Daily volume of ~3.82M falls below the 10-day average (~5.08M) but exceeds the 200-day average (~2.57M), implying muted participation relative to recent sessions; 42- and 52-week volatilities measure ~3%.
Fundamental Analysis
Top-line and growth: Q2 total revenue reported $189.0M, representing YoY revenue growth of 35.27% and a sequential (QoQ) change of -208.26% as provided; the company cited double-digit growth across Activation (+25%), Measurement (+15%), and Supply-Side (+26%).
Profitability: Gross margin reached 82.48% while operating margin recorded 7.17% and EBIT margin measured 8.28%. The EBIT margin at 8.28% falls below the industry peer mean of 32.46% and below the industry peer median of 20.25%, indicating relative compression at the operating-profit level versus peers despite exceptional gross profitability.
Cash, leverage, and liquidity: Cash stands at $211.8M with cash and short-term investments of $216.8M; the cash ratio equals 206.66% and the current ratio equals 440.76%, reflecting ample near-term liquidity. Total debt of $103.6M implies debt-to-assets roughly 7.99% and debt-to-equity about 9.51%, while interest coverage runs high at 35.33x, supporting financial flexibility.
Cash flow and returns: Operating cash flow measured $49.6M with free cash flow $40.1M and a free cash flow yield of 1.60%, which sits above the industry peer mean free cash flow yield of 0.66% (industry peer mean). Cash conversion ratio equals 52.88% and free cash flow growth shows strong sequential gains.
Earnings and multiples: Reported EPS for the period $0.15 versus an estimate of $0.22 produced an EPS surprise of -31.82%. Trailing PE stands near 100.15x with forward PE ~126.62x; price-to-sales sits at 13.29 and enterprise multiple registers ~79.05. WMDST values the stock as under-valued based on present fundamentals and cash dynamics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-05 |
| NEXT REPORT DATE: | 2025-11-06 |
| CASH FLOW | Begin Period Cash Flow | $ 157.3 M |
| Operating Cash Flow | $ 49.6 M | |
| Capital Expenditures | $ -9.53 M | |
| Change In Working Capital | $ -7.41 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 55.5 M | |
| End Period Cash Flow | $ 212.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 189.0 M | |
| Forward Revenue | $ 101.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 33.1 M | |
| Depreciation | $ 14.7 M | |
| Depreciation and Amortization | $ 14.7 M | |
| Research and Development | $ 47.2 M | |
| Total Operating Expenses | $ 175.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 155.9 M | |
| EBITDA | $ 30.4 M | |
| EBIT | $ 15.7 M | |
| Operating Income | $ 13.5 M | |
| Interest Income | $ 743.0 K | |
| Interest Expense | $ 443.0 K | |
| Net Interest Income | $ 300.0 K | |
| Income Before Tax | $ 15.2 M | |
| Tax Provision | $ 6.5 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 8.8 M | |
| Net Income From Continuing Operations | $ 8.8 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.22 | |
| EPS Actual | $ 0.15 | |
| EPS Difference | $ -0.07 | |
| EPS Surprise | -31.818 % | |
| Forward EPS | $ 0.12 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.3 B | |
| Intangible Assets | $ 632.7 M | |
| Net Tangible Assets | $ 457.4 M | |
| Total Current Assets | $ 462.4 M | |
| Cash and Short-Term Investments | $ 216.8 M | |
| Cash | $ 211.8 M | |
| Net Receivables | $ 188.9 M | |
| Inventory | — | |
| Long-Term Investments | $ 11.2 M | |
| LIABILITIES | ||
| Accounts Payable | $ 13.1 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 104.9 M | |
| Net Debt | — | |
| Total Debt | $ 103.6 M | |
| Total Liabilities | $ 206.9 M | |
| EQUITY | ||
| Total Equity | $ 1.1 B | |
| Retained Earnings | $ 266.3 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 6.66 | |
| Shares Outstanding | 163.575 M | |
| Revenue Per-Share | $ 1.16 | |
| VALUATION | Market Capitalization | $ 2.5 B |
| Enterprise Value | $ 2.4 B | |
| Enterprise Multiple | 79.048 | |
| Enterprise Multiple QoQ | -25.118 % | |
| Enterprise Multiple YoY | -44.201 % | |
| Enterprise Multiple IPRWA | high: 438.758 mean: 104.581 median: 102.408 DV: 79.048 low: -175.864 |
|
| EV/R | 12.692 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.19 | |
| Asset To Liability | 6.268 | |
| Debt To Capital | 0.087 | |
| Debt To Assets | 0.08 | |
| Debt To Assets QoQ | -5.264 % | |
| Debt To Assets YoY | 306.616 % | |
| Debt To Assets IPRWA | high: 1.273 median: 0.361 mean: 0.323 DV: 0.08 low: 0.006 |
|
| Debt To Equity | 0.095 | |
| Debt To Equity QoQ | -6.822 % | |
| Debt To Equity YoY | 320.106 % | |
| Debt To Equity IPRWA | high: 3.549 median: 1.943 mean: 1.555 DV: 0.095 low: -1.532 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.305 | |
| Price To Book QoQ | -1.918 % | |
| Price To Book YoY | -31.718 % | |
| Price To Book IPRWA | high: 18.53 mean: 9.45 median: 8.649 DV: 2.305 low: -5.086 |
|
| Price To Earnings (P/E) | 100.147 | |
| Price To Earnings QoQ | -93.293 % | |
| Price To Earnings YoY | -81.611 % | |
| Price To Earnings IPRWA | high: 311.81 median: 129.079 mean: 124.525 DV: 100.147 low: -161.471 |
|
| PE/G Ratio | 0.501 | |
| Price To Sales (P/S) | 13.291 | |
| Price To Sales QoQ | -9.574 % | |
| Price To Sales YoY | -44.458 % | |
| Price To Sales IPRWA | high: 63.641 median: 63.007 mean: 41.182 DV: 13.291 low: 0.281 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 126.62 | |
| Forward PE/G | 0.633 | |
| Forward P/S | 24.752 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.957 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.148 | |
| Asset Turnover Ratio QoQ | 13.585 % | |
| Asset Turnover Ratio YoY | 20.626 % | |
| Asset Turnover Ratio IPRWA | high: 0.467 mean: 0.151 DV: 0.148 median: 0.144 low: -0.019 |
|
| Receivables Turnover | 0.94 | |
| Receivables Turnover Ratio QoQ | 25.152 % | |
| Receivables Turnover Ratio YoY | 15.578 % | |
| Receivables Turnover Ratio IPRWA | high: 8.91 mean: 2.009 median: 1.875 DV: 0.94 low: -3.771 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 97.087 | |
| 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 | 0.529 | |
| CapEx To Revenue | -0.05 | |
| CapEx To Depreciation | -0.648 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.1 B | |
| Net Invested Capital | $ 1.1 B | |
| Invested Capital | $ 1.1 B | |
| Net Tangible Assets | $ 457.4 M | |
| Net Working Capital | $ 357.5 M | |
| LIQUIDITY | ||
| Cash Ratio | 2.067 | |
| Current Ratio | 4.408 | |
| Current Ratio QoQ | 18.618 % | |
| Current Ratio YoY | -37.359 % | |
| Current Ratio IPRWA | high: 8.192 DV: 4.408 mean: 1.276 median: 1.163 low: 0.102 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 3.414 | |
| Cost Of Debt | 0.335 % | |
| Interest Coverage Ratio | 35.334 | |
| Interest Coverage Ratio QoQ | 49.269 % | |
| Interest Coverage Ratio YoY | -37.216 % | |
| Interest Coverage Ratio IPRWA | high: 93.455 DV: 35.334 mean: 28.96 median: 24.959 low: -85.699 |
|
| Operating Cash Flow Ratio | 0.462 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 37.929 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 3.838 % | |
| Revenue Growth | 14.516 % | |
| Revenue Growth QoQ | -208.256 % | |
| Revenue Growth YoY | 35.272 % | |
| Revenue Growth IPRWA | high: 48.984 % DV: 14.516 % median: 11.911 % mean: 10.326 % low: -36.33 % |
|
| Earnings Growth | 200.0 % | |
| Earnings Growth QoQ | -315.385 % | |
| Earnings Growth YoY | -2700.104 % | |
| Earnings Growth IPRWA | DV: 200.0 % high: 184.0 % mean: 19.803 % median: 11.26 % low: -261.224 % |
|
| MARGINS | ||
| Gross Margin | 82.475 % | |
| Gross Margin QoQ | 1.52 % | |
| Gross Margin YoY | -0.938 % | |
| Gross Margin IPRWA | high: 91.59 % DV: 82.475 % median: 75.664 % mean: 64.044 % low: -33.394 % |
|
| EBIT Margin | 8.281 % | |
| EBIT Margin QoQ | 37.49 % | |
| EBIT Margin YoY | -1.557 % | |
| EBIT Margin IPRWA | high: 140.428 % mean: 32.461 % median: 20.252 % DV: 8.281 % low: -150.653 % |
|
| Return On Sales (ROS) | 7.167 % | |
| Return On Sales QoQ | 18.994 % | |
| Return On Sales YoY | -14.8 % | |
| Return On Sales IPRWA | high: 72.429 % mean: 30.893 % median: 18.71 % DV: 7.167 % low: -141.554 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 40.1 M | |
| Free Cash Flow Yield | 1.596 % | |
| Free Cash Flow Yield QoQ | 23.434 % | |
| Free Cash Flow Yield YoY | 107.273 % | |
| Free Cash Flow Yield IPRWA | high: 15.392 % DV: 1.596 % median: 0.849 % mean: 0.656 % low: -24.314 % |
|
| Free Cash Growth | 27.756 % | |
| Free Cash Growth QoQ | 517.349 % | |
| Free Cash Growth YoY | 111.233 % | |
| Free Cash Growth IPRWA | high: 457.143 % DV: 27.756 % mean: 10.591 % median: -6.308 % low: -552.123 % |
|
| Free Cash To Net Income | 4.577 | |
| Cash Flow Margin | 25.632 % | |
| Cash Flow To Earnings | 5.532 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.688 % | |
| Return On Assets QoQ | 267.914 % | |
| Return On Assets YoY | 16.61 % | |
| Return On Assets IPRWA | high: 14.526 % mean: 3.99 % median: 1.79 % DV: 0.688 % low: -14.505 % |
|
| Return On Capital Employed (ROCE) | 1.313 % | |
| Return On Equity (ROE) | 0.008 | |
| Return On Equity QoQ | 250.655 % | |
| Return On Equity YoY | 18.787 % | |
| Return On Equity IPRWA | high: 0.169 median: 0.051 mean: 0.039 DV: 0.008 low: -0.399 |
|
| DuPont ROE | 0.825 % | |
| Return On Invested Capital (ROIC) | 1.134 % | |
| Return On Invested Capital QoQ | 49.014 % | |
| Return On Invested Capital YoY | -134.353 % | |
| Return On Invested Capital IPRWA | high: 14.374 % mean: 7.295 % median: 4.251 % DV: 1.134 % low: -16.5 % |
|