Integral Ad Science (IAS) AI Stock Analysis

• Market Cap: $1.34B
• Dividend Yield: N/A
• Average Volume (3M): 723.97K
• Price to Earnings (P/E): 28.6
• Beta (1Y): 1.48
• Revenue Growth: 13.84%
• EPS Growth: 1494.51%
• Country: US
• Employees: 902
• Sector: Communication Services
• Sector Strength: 71
• Industry: Advertising Agencies
• EPS (TTM): 0.05
• Shares Outstanding: 165,016,300
• 10 Day Avg. Volume: 714,676
• 30 Day Avg. Volume: 723,973
• PEG Ratio: 1.14
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.31
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 30.52
• Enterprise Value/Ebitda: 13.09
• 1Y Price Target: $12.94
• Price Target Upside: 59.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 73 Outperform
• Price Target: $9.00 ▲(10.70%Upside)

Integral Ad Science's overall stock score is driven by strong financial performance and a positive earnings outlook, supported by strategic corporate events. However, technical indicators and valuation metrics suggest caution, as the stock may face resistance and appears overvalued relative to peers.

Positive Factors

Earnings

IAS reported stronger-than-expected 4Q results, with revenue and EBITDA outperforming prior expectations due to strength across all business lines.

Product Innovation

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

Revenue Growth

Publisher growth accelerated to approximately 30% year-over-year in 4Q, driven by new auction bidding features and successes at Oracle.

Negative Factors

Brand Demand Environment

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

Guidance

The Measurement segment decelerates to +4.0% y/y growth in ‘25E, down from +13.4% in ’24, which puts us at the bottom of IAS’ $590M-$600M ‘25E guidance.

Open Web Measurement

Aggressive deceleration in open web Measurement may be heavier than expected, increasing dependency on social media.

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 strong financial performance with robust revenue growth and improved profitability margins. The balance sheet is healthy with low leverage, and cash flows are well-managed, supporting operational flexibility. However, there's room for improvement in capital utilization.

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

Integral Ad Science Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IAS, the sentiment is Neutral. The current price of 8.13 is below the 20-day moving average (MA) of 8.25, below the 50-day MA of 8.17, and below the 200-day MA of 9.36, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.22 is Neutral, neither overbought nor oversold. The STOCH value of 12.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IAS.

Integral Ad Science Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRTO	73 Outperform	$1.19B	9.37	12.79%	―	-0.40%	36.44%
IAS	73 Outperform	$1.34B	28.63	4.80%	―	13.84%	1494.51%
MGNI	71 Outperform	$3.17B	115.03	4.30%	―	5.59%	―
CMPR	69 Neutral	$1.24B	9.05	-27.42%	―	3.38%	-91.24%
STGW	66 Neutral	$1.42B	1,011.76	-0.32%	―	9.56%	―
QNST	65 Neutral	$922.62M	―	-0.29%	―	88.81%	99.16%
Sector *	61 Neutral	$41.94B	-1.87	-13.06%	4.04%	2.13%	-66.09%

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.

The most recent analyst rating on (IAS) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Integral Ad Science stock, see the IAS Stock Forecast page.

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.

The most recent analyst rating on (IAS) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Integral Ad Science stock, see the IAS Stock Forecast page.

Integral Ad Science Holds Annual Shareholder Meeting

On May 1, 2025, Integral Ad Science Holding Corp. held its Annual Meeting of Shareholders, where key proposals were voted on. Shareholders elected Class I directors to serve until 2028, approved executive compensation on a non-binding advisory basis, and ratified PricewaterhouseCoopers LLP as the independent accounting firm for 2025. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market position and stakeholder confidence.