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DoubleVerify Holdings
(NYSE:DV)
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Rating:72Outperform
Price Target:
$12.00
▲(11.42% Upside)
Action:Reiterated
Date:06/27/26
The score is driven primarily by solid financial fundamentals (high gross margins and low leverage) and a constructive earnings outlook with reiterated guidance and improving EBITDA margins. These positives are tempered by recent margin and free-cash-flow volatility, a premium valuation (P/E ~31.5) with no dividend support, and only moderate technical momentum despite price trading above key moving averages.
Positive Factors
High gross margins
Sustained gross margins near the low‑80s percent reflect strong unit economics of DV’s measurement platform. High gross margins provide durable capacity to fund R&D, sales and AI investments, and cushion operating leverage, supporting long‑term margin resilience and reinvestment.
Negative Factors
Operating cash flow volatility
Weak quarterly operating cash flow and a recent TTM free‑cash‑flow decline signal working capital swings or timing issues that can compress near‑term liquidity. Persistent cash conversion volatility raises execution risk for buybacks, investment pacing, and targets for sustained FCF conversion.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained gross margins near the low‑80s percent reflect strong unit economics of DV’s measurement platform. High gross margins provide durable capacity to fund R&D, sales and AI investments, and cushion operating leverage, supporting long‑term margin resilience and reinvestment.
Read all positive factors
DoubleVerify Holdings Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by different business segments, highlighting which areas drive growth and profitability, and indicating where the company might focus future investments or face challenges.
Breaks down revenue by different business segments, highlighting which areas drive growth and profitability, and indicating where the company might focus future investments or face challenges.
Data provided by:
The Fly
The FlyDoubleVerify Holdings (DV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.76B
Dividend YieldN/A
Average Volume (3M)3.29M
Price to Earnings (P/E)33.3
Beta (1Y)1.00
Revenue Growth12.17%
EPS Growth11.61%
CountryUS
Employees1,197
SectorCommunication Services
Sector Strength97
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.34
Shares Outstanding153,464,190
10 Day Avg. Volume2,618,130
30 Day Avg. Volume3,286,608
Financial Highlights & Ratios
PEG Ratio-6.09
Price to Book (P/B)1.65
Price to Sales (P/S)2.49
P/FCF Ratio10.79
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue1.98
Enterprise Value/Gross Profit2.47
Enterprise Value/Ebitda10.18
Forecast
1Y Price Target
$13.42Price Target Upside24.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)0.48
Revenue Forecast (FY)$818.46M
DoubleVerify Holdings Business Overview & Revenue Model
Company Description
DoubleVerify Holdings, Inc. offers a comprehensive software platform designed for measuring, analyzing, and providing data insights for digital media, serving clients both domestically and across global markets. Through its various offerings, the ...
How the Company Makes Money
DoubleVerify primarily makes money by selling access to its digital media measurement and verification platform to participants in the digital advertising ecosystem (typically advertisers and agencies, and in some cases publishers/platforms). Reve...
DoubleVerify Holdings Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational execution and product momentum—particularly around social activation, AI-driven tools (Slop Stopper) and streaming/CTV—driving healthy revenue growth, improving margins (31% EBITDA in Q1), and reiterated full-year guidance. Key positives include accelerating social activation (92% YoY), measurement growth (16% measurement revenue growth and social measurement +23% YoY), AI efficiencies boosting margins and developer productivity, and meaningful product-level ARR/ACV momentum (Meta $12M ARR, Authentic Advantage $10M ACV). Notable challenges include elevated fraud trends (140% increase in bot variants, 1,300+ fraudulent apps), a weak Q1 operating cash flow ($4M) despite $100M of share repurchases, modest activation revenue growth (6%), and tougher near-term comps (Q2 lapping 21% prior-year growth). Overall, the positives around product traction, margin expansion and strategic positioning outweigh the lowlights, but the company faces operational and market risks that will require continued execution.Positive Updates
Revenue Growth and Scale
Total revenue of $181 million in Q1 2026, up 10% year-over-year, with advertiser revenue representing 90% of total revenue and growing 9% YoY.
Negative Updates
Weak Operating Cash Flow in Quarter
Net cash provided by operating activities was only $4 million in Q1, impacted by timing of collections and payments, creating near-term cash flow volatility despite share buybacks.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth and Scale
Total revenue of $181 million in Q1 2026, up 10% year-over-year, with advertiser revenue representing 90% of total revenue and growing 9% YoY.
Read all positive updates
Company Guidance
DoubleVerify reiterated full‑year 2026 guidance and set Q2 targets after a strong Q1: Q1 revenue was $181M (+10% YoY) with adjusted EBITDA of $55M (31% margin, up from 27% in Q1'25) and revenue less cost of sales of 82%; for Q2 they expect revenue of $199M–$205M (≈+7% YoY at the midpoint) and adjusted EBITDA of $63M–$67M (≈32% margin at the midpoint); full‑year 2026 guidance was reaffirmed at $810M–$826M (+8%–10% YoY) with ~34% adjusted EBITDA margin and ~60% free‑cash‑flow conversion. Additional guidance‑related metrics disclosed include advertiser revenue = 90% of total (grew 9% YoY driven by MTM +12% and MTF -4%), measurement revenue +16% (social +23%, international +18%), activation +6% (ABS = 53% of activation; >75% of top‑500 clients using ABS), supply‑side revenue = 10% of total (+12% YoY), Q1 stock‑based comp $24M (Q2 est. $25M–$27M; FY est. $102M–$107M, >40% lower grant value vs 2025), weighted average diluted shares ~157M for Q2, YTD share repurchases 9.8M shares for $100M (~6% of FY‑2025 shares), ending cash ≈$174M and no long‑term debt.DoubleVerify Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 764.05M | 748.29M | 656.85M | 572.54M | 452.42M | 332.74M |
| Gross Profit | 613.02M | 614.79M | 540.33M | 465.91M | 374.55M | 278.36M |
| EBITDA | 148.67M | 141.02M | 135.12M | 137.83M | 94.60M | 57.28M |
| Net Income | 54.70M | 50.65M | 56.23M | 71.47M | 43.27M | 29.31M |
Balance Sheet | ||||||
| Total Assets | 1.27B | 1.35B | 1.28B | 1.24B | 1.04B | 892.19M |
| Cash, Cash Equivalents and Short-Term Investments | 173.80M | 259.04M | 310.63M | 310.13M | 267.81M | 221.59M |
| Total Debt | 95.54M | 99.55M | 91.67M | 86.39M | 83.75M | 4.55M |
| Total Liabilities | 193.14M | 222.75M | 192.75M | 169.09M | 160.17M | 93.13M |
| Stockholders Equity | 1.08B | 1.13B | 1.08B | 1.07B | 876.86M | 799.07M |
Cash Flow | ||||||
| Free Cash Flow | 134.91M | 172.65M | 132.51M | 102.73M | 54.88M | 73.35M |
| Operating Cash Flow | 177.69M | 211.18M | 159.66M | 119.74M | 94.86M | 82.75M |
| Investing Cash Flow | -26.06M | -105.38M | -44.84M | -84.25M | -39.98M | -158.61M |
| Financing Cash Flow | -136.33M | -143.95M | -129.45M | 6.49M | -7.88M | 264.39M |
DoubleVerify Holdings Technical Analysis
Positive
10.77
Price Trends
10.35
Positive
10.17
Positive
10.63
Positive
Market Momentum
0.24
Negative
65.52
Neutral
87.22
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 10.77 is above the 20-day moving average (MA) of 10.49, above the 50-day MA of 10.35, and above the 200-day MA of 10.63, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 65.52 is Neutral, neither overbought nor oversold. The STOCH value of 87.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DV.
DoubleVerify Holdings Risk Analysis
DoubleVerify Holdings disclosed 41 risk factors in its most recent earnings report. DoubleVerify Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DoubleVerify Holdings Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.44B | 4.20 | 134.28% | ― | 12.95% | ― | |
72 Outperform | $1.76B | 33.28 | 5.00% | ― | 12.17% | 11.61% | |
68 Neutral | $849.32M | 90.44 | 16.65% | ― | 18.15% | 331.16% | |
64 Neutral | $1.27B | 47.00 | 5.25% | ― | 8.10% | -73.21% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $427.81M | -0.51 | -110.37% | ― | -11.42% | -20.07% |
* Communication Services Sector Average
DV
DoubleVerify Holdings
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.