Integral Ad Science (IAS) AI Stock Analysis

• Market Cap: $1.49B
• Dividend Yield: N/A
• Average Volume (3M): 848.16K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 1.43
• Revenue Growth: 14.39%
• EPS Growth: 1946.11%
• Country: US
• Employees: 902
• Sector: Communication Services
• Sector Strength: 86
• Industry: Advertising Agencies
• EPS (TTM): 0.10
• Shares Outstanding: 166,163,510
• 10 Day Avg. Volume: 1,043,339
• 30 Day Avg. Volume: 848,164
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 2.98
• Enterprise Value/Ebitda: 9.08
• 1Y Price Target: $12.07
• Price Target Upside: 35.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 78 Outperform
• Price Target: $10.50 ▲(17.85% Upside)

Integral Ad Science's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust cash flow and low leverage position it well for future growth. Technical indicators suggest a positive trend, though caution is advised due to overbought signals. Valuation is moderate, and recent corporate events further support the company's growth strategy.

Positive Factors

Innovation

IAS is the first verification partner measuring brand safety on Meta's Threads, highlighting its innovation in the industry.

Product Development

Optimization outperformance is being lifted by IAS’ new ad performance products within its Total Media Performance suite.

Revenue Growth

IAS' Publisher segment outperformed revenue expectations, aided by strong partnerships and product offerings.

Negative Factors

Advertiser Growth

Large advertiser growth is decelerating, leading to expected mid-single growth for the remainder of the year.

Brand Demand

A notably weak brand demand environment is expected to continue, impacting the company's growth.

Measurement Segment

Aggressive deceleration in open web Measurement may be heavier than expected.

Integral Ad Science Business Overview & Revenue Model

Company Description

Integral Ad Science Holding Corp. operates as a digital advertising verification company in the United States, the United Kingdom, Germany, Italy, Spain, Sweden, Singapore, Australia, France, Japan, Canada, India, and Brazil. The company provides IAS Signal, a cloud-based technology platform that offers actionable insights; and deliver independent measurement and verification of digital advertising across devices, channels, and formats, including desktop, mobile, connected TV, social, display, and video. Its digital media quality solutions offer ad fraud detection and prevention, viewability, brand safety and suitability, contextual targeting, inventory yield management, and reporting. The company offers Quality Impressions, a metric designed to verify that digital ads are served to a real person rather than a bot, viewable on-screen, and presented in a brand-safe and suitable environment in the correct geography; Context Control solution that delivers contextual targeting and brand suitability capabilities; pre-bid programmatic and post-bid verification solutions for advertisers; and optimization and verification solutions for publishers. It serves advertisers and agencies, publishers, advertising/audience networks, and supply side platforms. The company was founded in 2009 and is headquartered in New York, New York.

How the Company Makes Money

Integral Ad Science makes money through a revenue model that primarily involves selling its technology solutions and services to advertisers, publishers, and agencies. Its key revenue streams include subscription fees for its software-as-a-service (SaaS) offerings and usage-based fees depending on the volume of ad impressions measured or analyzed. IAS also generates income through partnerships with major digital advertising platforms and networks, which integrate IAS's technology to enhance their own offerings. These partnerships often involve revenue-sharing agreements where IAS earns a percentage of the revenue generated from clients using its integrated solutions. Additionally, IAS may engage in custom service agreements for large-scale clients seeking bespoke analytics and reporting solutions.

Integral Ad Science Financial Statement Overview

Summary

Integral Ad Science displays a strong financial position with healthy revenue growth and improved profitability margins. The balance sheet shows low leverage, indicating financial stability, while cash flows are well-managed, supporting operational and strategic flexibility. Continued focus on capital utilization could enhance growth prospects.

Income Statement

Integral Ad Science has shown strong revenue growth of 15.6% over the past year, with a consistent increase in gross profit margins, reaching 78.5% in TTM. Net profit margin improved to 8.6%, indicating enhanced profitability. The EBIT and EBITDA margins also display positive trends, suggesting better operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.02 and a strong equity ratio of 91.4%. Return on equity increased to 4.5%, reflecting improved shareholder returns. However, the significant cash balance and low leverage suggest potential underutilization of capital.

Cash Flow

Operating cash flow to net income ratio is robust at 2.6, indicating efficient cash generation from operations. Free cash flow growth was substantial at 18.6%, supporting reinvestment and debt servicing capabilities. The free cash flow to net income ratio of 1.95 demonstrates strong cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	569.84M	530.10M	474.37M	408.35M	323.51M	240.63M
Gross Profit	444.66M	416.14M	375.02M	332.59M	268.94M	200.13M
EBITDA	146.24M	124.35M	72.06M	72.53M	25.55M	51.83M
Net Income	55.76M	37.80M	7.24M	15.37M	-52.44M	-32.37M
Balance Sheet
Total Assets	1.17B	1.15B	1.19B	1.17B	1.13B	849.58M
Cash, Cash Equivalents and Short-Term Investments	90.69M	84.47M	124.76M	86.88M	73.21M	51.73M
Total Debt	27.80M	57.75M	182.68M	252.89M	244.77M	351.40M
Total Liabilities	98.63M	143.56M	282.27M	360.47M	362.35M	418.10M
Stockholders Equity	1.07B	1.01B	909.46M	808.22M	767.19M	431.48M
Cash Flow
Free Cash Flow	140.79M	77.35M	97.87M	55.78M	49.94M	24.27M
Operating Cash Flow	151.86M	117.90M	131.62M	72.47M	63.59M	33.94M
Investing Cash Flow	-42.53M	-40.54M	-34.72M	-18.29M	-200.09M	-9.66M
Financing Cash Flow	-91.84M	-116.38M	-58.85M	-37.47M	160.19M	-1.70M

Integral Ad Science Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IAS, the sentiment is Positive. The current price of 8.91 is above the 20-day moving average (MA) of 8.56, above the 50-day MA of 8.35, and below the 200-day MA of 9.18, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 57.01 is Neutral, neither overbought nor oversold. The STOCH value of 53.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IAS.

Integral Ad Science Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IAS	78 Outperform	$1.49B	25.99	5.52%	―	14.39%	1946.11%
CRTO	74 Outperform	$1.35B	10.11	12.79%	―	-0.40%	36.44%
MGNI	74 Outperform	$3.11B	77.69	5.82%	―	5.52%	―
STGW	73 Outperform	$1.48B	492.79	-0.32%	―	9.56%	―
QNST	64 Neutral	$846.88M	192.98	2.04%	―	78.27%	―
CMPR	64 Neutral	$1.48B	101.15	-27.42%	―	3.38%	-91.24%
Sector *	60 Neutral	$42.79B	1.96	-13.01%	4.01%	1.89%	-41.77%

Integral Ad Science Corporate Events

Integral Ad Science Expands Credit Agreement with PNC Bank

On June 17, 2025, Integral Ad Science Inc. entered into a second amendment to its credit agreement with PNC Bank and other financial institutions, extending the maturity date to June 17, 2030, and adding a $30 million sub-facility for swingline loans. This amendment allows IAS to increase its borrowing capacity from $300 million to at least $550 million, supporting its growth and enhancing financial flexibility, as stated by CFO Alpana Wegner.

Integral Ad Science Appoints Alpana Wegner as CFO

On June 3, 2025, Integral Ad Science announced the appointment of Alpana Wegner as Chief Financial Officer, effective June 10, 2025. Wegner, who has over 25 years of financial leadership experience, previously served as CFO at Secureworks and Benefitfocus. Her appointment is expected to strengthen IAS’s financial strategy and support its growth ambitions. She will replace Jill Putman, who served as Interim CFO and will continue as an independent board member.