DoubleVerify Holdings (DV) AI Stock Analysis

• Market Cap: $1.77B
• Dividend Yield: N/A
• Average Volume (3M): 2.94M
• Price to Earnings (P/E): 36.8
• Beta (1Y): 0.91
• Revenue Growth: 14.86%
• EPS Growth: -30.25%
• Country: US
• Employees: 1,197
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.18
• Shares Outstanding: 161,987,980
• 10 Day Avg. Volume: 3,749,335
• 30 Day Avg. Volume: 2,940,910
• PEG Ratio: -6.07
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 10.79
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 2.17
• Enterprise Value/Gross Profit: 2.64
• Enterprise Value/Ebitda: 11.52
• 1Y Price Target: $13.33
• Price Target Upside: 21.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 0.52
• Revenue Forecast (FY): $818.47M

• Rating: 72 Outperform
• Price Target: $11.50 ▲(4.45% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by strong financial quality (high gross margins, low leverage, and improving cash generation) and a constructive earnings outlook with planned margin expansion and significant buybacks. These positives are tempered by weaker technical positioning versus longer-term averages and a relatively premium P/E without dividend support, alongside near-term demand/pricing headwinds reflected in measured guidance.

Positive Factors

High gross margins

Sustained ~81–85% gross margins indicate strong unit economics from a largely software/data business. High margins provide durable operating leverage as volumes scale, enabling reinvestment in product, margin resilience through ad cycles, and capacity to fund strategic initiatives without immediate profitability trade-offs.

Conservative balance sheet

Very low leverage (debt-to-equity <0.10) and a meaningful equity base limit financial risk and preserve strategic optionality. This balance-sheet strength supports sustained R&D, potential M&A, dividend/buyback flexibility, and resilience through advertising market downturns without forcing asset sales or dilutive financing.

Strong cash generation & buybacks

Material operating cash flow ($211M) and improving free cash flow, combined with a $300M repurchase program and no long-term debt, show durable cash conversion and capital return discipline. Reliable cash flow enhances shareholder optionality and funds product investment without relying on external capital.

Negative Factors

Margin compression trend

Declining net and EBITDA margins since 2023 suggest increased operating costs or elevated reinvestment that have outpaced revenue scaling. If cost base or customer economics do not re-normalize, profitability expansion targets become harder to achieve and compress long-term return on equity and cash conversion.

Pricing pressure

A ~3% decline in price-per-transaction reflects structural pricing headwinds in adtech and potential commoditization of measurement. Long-term revenue growth must rely more on volume expansion or higher-value products; failure to offset price erosion risks reduced revenue per unit and margin pressure.

Vertical concentration & volatility

Persistent retail softness and agency-related campaign pullbacks create lumpy demand and revenue volatility. Dependence on large advertisers and certain verticals can amplify downside in ad slowdowns, complicating forecasting, retention efforts, and the steady realization of upsell and product adoption across cycles.

DoubleVerify Holdings Business Overview & Revenue Model

Company Description

DoubleVerify Holdings, Inc. provides a software platform for digital media measurement, data, and analytics in the United States and internationally. Its solutions provide advertisers unbiased data analytics that enable advertisers to increase the effectiveness, quality and return on their digital advertising investments. The company's solutions include DV Authentic Ad, a metric of digital media quality, which evaluates the existence of fraud, brand safety, viewability, and geography for each digital ad; DV Authentic Attention solution that provides exposure and engagement predictive analytics to drive campaign performance; and Custom Contextual solution, which allows advertisers to match their ads to relevant content to maximize user engagement and drive campaign performance. Its solutions also comprise DV Publisher suite, a solution for digital publishers to manage revenue and increase inventory yield by improving video delivery, identifying lost or unfilled sales, and aggregate data across all inventory sources; and DV Pinnacle, a service and analytics platform user interface that allows its customers to adjust and deploy controls for their media plan and track campaign performance metrics across channels, formats, and devices. The company's software solutions are integrated in the digital advertising ecosystem, including programmatic platforms, connected TV, social media channels, and digital publishers. It serves brands, publishers, and other supply-side customers covering various industry verticals, including consumer packaged goods, financial services, telecommunications, technology, automotive, and healthcare. The company was founded in 2008 and is headquartered in New York, New York.

How the Company Makes Money

DoubleVerify generates revenue primarily through its subscription-based model, where clients pay for access to its suite of verification and analytics tools. The company has multiple key revenue streams, including fees for its brand safety and fraud detection services, which are charged based on the volume of ads verified or the number of impressions measured. In addition, DoubleVerify partners with major advertising platforms and agencies, which helps drive adoption of its services and expand its customer base. The company's strong relationships within the digital advertising ecosystem, along with the increasing demand for transparency and accountability in online advertising, contribute to its earnings growth.

DoubleVerify Holdings Financial Statement Overview

Summary

Strong overall fundamentals supported by excellent gross margins (~81–85%), low leverage (debt-to-equity under ~0.10), and robust operating cash flow/free cash flow improvement. The main offset is margin compression and declining profitability metrics since 2023, which bears monitoring as growth continues.

Income Statement

Revenue growth has been strong over the period (2020–2025), with a particularly sharp acceleration in 2025. Gross margins are consistently excellent (~81–85%), supporting attractive unit economics. The key weakness is profitability trajectory: net margin has trended down from 2023 to 2025 and EBITDA margin has compressed versus 2023, suggesting higher operating costs or reinvestment pressure despite continued top-line growth.

Balance Sheet

The balance sheet looks conservative: leverage is low with debt-to-equity staying under ~0.10 across recent years, and equity has grown meaningfully over time. Returns on equity are positive but have softened in 2025 versus 2023, indicating profitability is not scaling as efficiently as before. Overall, financial risk appears limited given modest debt levels relative to the equity base.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are solid and improved materially in 2024 and 2025, with strong free cash flow growth in 2025. Cash flow also comfortably exceeds reported earnings (operating cash flow to net income well above 1x), signaling good earnings quality. A notable watch-out is that free cash flow remains somewhat below net income (free cash flow to net income below 1x), implying ongoing cash uses (e.g., investment or working-capital needs) that temper conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	748.29M	656.85M	572.54M	452.42M	332.74M
Gross Profit	614.79M	540.33M	465.91M	374.55M	278.36M
EBITDA	141.02M	135.12M	137.83M	94.60M	57.28M
Net Income	50.65M	56.23M	71.47M	43.27M	29.31M
Balance Sheet
Total Assets	1.35B	1.28B	1.24B	1.04B	892.19M
Cash, Cash Equivalents and Short-Term Investments	259.04M	310.63M	310.13M	267.81M	221.59M
Total Debt	99.55M	91.67M	86.39M	83.75M	4.55M
Total Liabilities	222.75M	192.75M	169.09M	160.17M	93.13M
Stockholders Equity	1.13B	1.08B	1.07B	876.86M	799.07M
Cash Flow
Free Cash Flow	172.65M	132.51M	102.73M	54.88M	73.35M
Operating Cash Flow	211.18M	159.66M	119.74M	94.86M	82.75M
Investing Cash Flow	-105.38M	-44.84M	-84.25M	-39.98M	-158.61M
Financing Cash Flow	-143.95M	-129.45M	6.49M	-7.88M	264.39M

DoubleVerify Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DV, the sentiment is Positive. The current price of 11.01 is above the 20-day moving average (MA) of 9.77, above the 50-day MA of 10.43, and below the 200-day MA of 12.54, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 62.78 is Neutral, neither overbought nor oversold. The STOCH value of 91.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DV.

DoubleVerify Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	73 Outperform	$1.47B	167.44	21.35%	―	6.48%	168.94%
DV	72 Outperform	$1.77B	36.77	4.57%	―	14.86%	-30.25%
OPFI	67 Neutral	$795.40M	1.60	9.19%	―	9.63%	-112.71%
DSP	65 Neutral	$669.29M	35.38	4.45%	―	22.97%	49.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BMBL	51 Neutral	$352.87M	4.29	-25.34%	―	-7.43%	61.36%

DoubleVerify Holdings Corporate Events

DoubleVerify Announces Record Buyback After Strong 2025 Results

On February 26, 2026, DoubleVerify reported that 2025 revenue rose 14% year over year to $748.3 million, with net income of $50.7 million and a 33% adjusted EBITDA margin, driven by growth in social, connected TV measurement and programmatic activation. The company measured a record 9.5 trillion media transactions in 2025, maintained net revenue retention of 109% and over 95% gross revenue retention, and posted strong supply-side revenue growth of 25% amid new global enterprise wins.

Fourth-quarter 2025 results showed 8% revenue growth to $205.6 million and a 38% adjusted EBITDA margin, underscoring robust profitability and cash generation that lifted full-year operating cash flow to about $211 million and left DoubleVerify with roughly $260 million in cash and no debt. The board on February 26, 2026 authorized a new $300 million share repurchase program, replacing the 2024 program and marking the largest in the company’s history, as management highlighted expanding market share, product innovation in CTV and social, and signaled 2026 guidance of mid‑single‑digit to low‑double‑digit revenue growth with further margin expansion.

The most recent analyst rating on (DV) stock is a Sell with a $8.00 price target. To see the full list of analyst forecasts on DoubleVerify Holdings stock, see the DV Stock Forecast page.