Integral Ad Science: Hold Rating Amid Strong Optimization Growth and Measurement Segment Challenges

Benchmark Co. analyst Mark Zgutowicz has maintained their neutral stance on IAS stock, giving a Hold rating today.

Mark Zgutowicz has given his Hold rating due to a combination of factors impacting Integral Ad Science. The company showed strong performance in its Optimization segment, driven by new ad performance products, which helped balance the weaker results in the Measurement segment, particularly in the open web area. While the Optimization segment is expected to continue outpacing the company’s overall growth, there are concerns about the significant slowdown in the Measurement segment, which may be more pronounced in the latter half of 2025.
Additionally, although the social Measurement area is performing well, its growth is slowing and is unlikely to compensate for the open web’s underperformance. The anticipated deceleration in the Measurement segment’s growth rate, from 13.4% in 2024 to 4.0% in 2025, places expectations at the lower end of the company’s guidance. Despite these challenges, the company is expected to manage its profitability amid macroeconomic volatility, with a cautious approach to new sales hires. These factors collectively support the decision to maintain a Hold rating.

Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IAS in relation to earlier this year.