Integral Ad Science (IAS) AI Stock Analysis

• Market Cap: $1.74B
• Dividend Yield: N/A
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 37.0
• Beta (1Y): 1.08
• Revenue Growth: 15.51%
• EPS Growth: 39.60%
• Country: US
• Employees: 902
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.04
• Shares Outstanding: 167,855,000
• 10 Day Avg. Volume: 2,180,194
• 30 Day Avg. Volume: 1,461,287
• PEG Ratio: 0.11
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 3.17
• P/FCF Ratio: 21.74
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 2.75
• Enterprise Value/Gross Profit: 3.55
• Enterprise Value/Ebitda: 13.53
• 1Y Price Target: $10.30
• Price Target Upside: -0.39% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.33
• Revenue Forecast (FY): $604.16M

• Rating: 78 Outperform
• Price Target: $11.50 ▲(11.22% Upside)

Integral Ad Science's strong financial performance and positive corporate event in the form of a strategic merger are the primary drivers of its stock score. Technical indicators support a positive trend, though the high P/E ratio suggests potential overvaluation.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and competitiveness.

Cash Generation

Strong cash generation enhances operational and strategic flexibility, enabling investment in growth opportunities and resilience against market fluctuations.

Strategic Merger

The merger with Igloo Group is expected to enhance market position and operational capabilities, providing a competitive edge and potential for increased market share.

Negative Factors

High P/E Ratio

A high P/E ratio suggests potential overvaluation, which could limit stock price appreciation and attract scrutiny from value-focused investors.

Moderate Profitability

Moderate profitability relative to equity may limit the company's ability to generate high returns for shareholders, affecting long-term investor appeal.

Regulatory Approval Risk

Pending regulatory approvals for the merger introduce uncertainty, which could delay strategic benefits and impact short-term operational plans.

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

IAS generates revenue primarily through subscription-based services and transactional fees for its suite of measurement and verification products. Key revenue streams include fees charged to advertisers and publishers for access to its analytics and reporting tools, often offered through annual or multi-year contracts. Additionally, IAS partners with various advertising platforms, agencies, and technology providers, leveraging these relationships to expand its customer base and enhance service offerings. The company's ability to provide actionable insights and ensure compliance with industry standards further drives its earnings.

Integral Ad Science Financial Statement Overview

Summary

Integral Ad Science shows strong financial performance with robust revenue growth, high profitability margins, and efficient operations. The balance sheet is solid with low leverage, and cash flow generation is strong, supporting future growth.

Income Statement

Integral Ad Science has demonstrated strong revenue growth with a TTM revenue growth rate of 3.66%, building on consistent annual growth. The company maintains healthy profitability with a gross profit margin of 78.03% and a net profit margin of 9.79% in the TTM. EBIT and EBITDA margins are also robust at 13.93% and 25.66%, respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.03, suggesting low leverage and financial risk. The return on equity is moderate at 5.44%, indicating reasonable profitability relative to shareholder equity. The equity ratio of 91.47% highlights a strong equity base compared to total assets, enhancing financial stability.

Cash Flow

Cash flow analysis shows a positive trajectory with a significant free cash flow growth rate of 18.20% in the TTM. The operating cash flow to net income ratio of 2.06 and a free cash flow to net income ratio of 0.93 indicate strong cash generation relative to net income, supporting operational and strategic flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	590.67M	530.10M	474.37M	408.35M	323.51M	240.63M
Gross Profit	457.31M	416.14M	375.02M	332.59M	268.94M	200.13M
EBITDA	119.85M	124.35M	72.06M	72.53M	25.55M	51.83M
Net Income	46.72M	37.80M	7.24M	15.37M	-52.44M	-32.37M
Balance Sheet
Total Assets	1.21B	1.15B	1.19B	1.17B	1.13B	849.58M
Cash, Cash Equivalents and Short-Term Investments	129.20M	84.47M	124.76M	86.88M	73.21M	51.73M
Total Debt	24.78M	57.75M	182.68M	252.89M	244.77M	351.40M
Total Liabilities	102.86M	143.56M	282.27M	360.47M	362.35M	418.10M
Stockholders Equity	1.10B	1.01B	909.46M	808.22M	767.19M	431.48M
Cash Flow
Free Cash Flow	164.58M	77.35M	97.87M	55.78M	49.94M	33.30M
Operating Cash Flow	175.52M	117.90M	131.62M	72.47M	63.59M	33.94M
Investing Cash Flow	-43.16M	-40.54M	-34.72M	-18.29M	-200.09M	-9.66M
Financing Cash Flow	-61.57M	-116.38M	-58.85M	-37.47M	160.19M	-1.70M

Integral Ad Science Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 10.34 is above the 20-day moving average (MA) of 10.27, above the 50-day MA of 10.24, and above the 200-day MA of 8.83, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 68.23 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 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	$1.74B	37.03	4.48%	―	15.51%	39.60%
CRTO	77 Outperform	$1.07B	6.85	15.37%	―	0.32%	69.78%
ZD	69 Neutral	$1.37B	14.06	6.26%	―	5.70%	97.88%
QNST	69 Neutral	$822.90M	80.56	4.55%	―	43.12%	―
STGW	65 Neutral	$1.26B	65.19	3.80%	―	6.76%	1841.46%
EEX	62 Neutral	$921.78M	215.74	1.21%	1.29%	11.18%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Integral Ad Science Corporate Events

Integral Ad Science Files SEC Statement for Merger

On September 24, 2025, Integral Ad Science Holding Corp. (IAS) announced a merger agreement with Igloo Group Parent, Inc. and its subsidiary. IAS filed a definitive information statement with the SEC on November 7, 2025, and has voluntarily supplemented certain disclosures. The merger agreement includes customary terms and conditions, and the company has updated its financial forecasts for 2025-2029 to aid in evaluating the merger’s potential impact.

Integral Ad Science Announces Merger with Igloo Group

On September 24, 2025, Integral Ad Science Holding Corp. entered into a merger agreement with Igloo Group Parent, Inc., and its subsidiary, Igloo Group Acquisition Company, Inc., both affiliates of Novacap Management Inc. This merger will result in Integral Ad Science becoming a wholly owned subsidiary of Igloo Group Parent. The agreement stipulates that each share of Integral Ad Science’s common stock will be converted into cash at $10.30 per share. The merger is subject to customary closing conditions and regulatory approvals, with a planned closing date not before November 23, 2025. The merger aims to enhance Integral Ad Science’s market position and operational capabilities, with financing commitments secured from major banks to support the transaction.