DoubleVerify Holdings Inc (NYSE:DV) Q3 2025 Earnings: Revenue Miss and Lowered Guidance Trigger Stock Decline

DoubleVerify Holdings Inc (NYSE:DV) reported third-quarter financial results that presented a mixed picture for investors, with solid year-over-year growth overshadowed by performance that fell short of market expectations, triggering a negative market response.

Third Quarter Financial Performance

The digital media measurement company posted revenue of $188.6 million for the third quarter of 2025, representing an 11% increase compared to the same period last year. While demonstrating continued growth, this figure came in below analyst expectations of approximately $196 million.

The company's non-GAAP earnings per share of $0.22 also missed market projections, though specific comparative analyst estimates for this metric show some inconsistency in the provided data. The earnings performance reflects the challenging environment the company navigated during the quarter.

Key financial highlights from the quarter include:

• Total revenue: $188.6 million (up 11% year-over-year)
• Activation revenue: $106.7 million (up 10%)
• Measurement revenue: $63.8 million (up 9%)
• Supply-side revenue: $18.1 million (up 27%)
• Adjusted EBITDA: $65.9 million (35% margin)

Market Reaction and Guidance

Investors responded negatively to the earnings release, with the stock declining in pre-market and recent trading sessions. The market's reaction appears driven by the revenue miss and concerns about the company's near-term growth trajectory.

Looking ahead, DoubleVerify provided fourth-quarter revenue guidance ranging between $207 million and $211 million, with the midpoint of $209 million sitting slightly below analyst expectations of approximately $211.8 million. For the full year 2025, the company expects approximately 14% revenue growth and has raised its adjusted EBITDA margin guidance from 32% to 33%.

Business Highlights and Strategic Initiatives

Despite the financial metrics falling short of expectations, DoubleVerify demonstrated strong operational execution during the quarter. The company maintained a gross revenue retention rate of over 95% and expanded its client base with new enterprise wins including Citigroup UK, Henkel, Red Bull, Under Armour, and Premier Inn.

The company continues to innovate in key growth areas:

• Launched DV AI Verification to address AI-generated content and automated traffic
• Expanded DV Authentic Advantage for social media protection
• Introduced streaming TV products with enhanced transparency features
• Expanded partnerships with major platforms including Meta, TikTok, Snapchat, and Roku

CEO Mark Zagorski emphasized the company's strategic positioning, stating, "We're innovating at speed for the AI era... As AI reshapes how media is bought, measured, and optimized, and social and CTV take a commanding share of ad budgets, our trusted, independent platform remains essential to helping advertisers drive performance and accountability."

Capital Return Program

DoubleVerify continued its share repurchase program during the quarter, buying back 3.3 million shares for $50.1 million. Year-to-date, the company has repurchased 8.4 million shares for $132.3 million, with $90 million remaining available under the current authorization.

For more detailed earnings analysis and future estimates, view the complete earnings data.

Disclaimer: This article provides financial analysis for informational purposes only and is not intended as investment advice. All investment decisions should be based on your own research and risk tolerance.