IAS Reports Third Quarter 2025 Financial Results

Total revenue increased 16% to $154.4 million

Net income of $7.0 million at a 5% margin; adjusted EBITDA increased to $55.3 million at a 36% margin

NEW YORK, Nov. 4, 2025 /PRNewswire/ -- Integral Ad Science (Nasdaq: IAS), a leading global media measurement and optimization platform, today announced financial results for the third quarter ended September 30, 2025.

"We exceeded our revenue and adjusted EBITDA outlook for the third quarter with strength across our businesses," said Lisa Utzschneider, CEO of IAS. "We are focused on working towards closing the previously announced acquisition of IAS by Novacap while advancing our business priorities."

Third Quarter 2025 Financial Highlights

Recent Business Highlights

Transaction with Novacap

On September 24, 2025, IAS announced that it entered into a definitive agreement to be acquired by Novacap, a leading North American private equity firm, in an all-cash transaction. Please refer to IAS's press release announcing the transaction for more information linked here. As a result of the announced transaction, IAS will not host a quarterly earnings conference call or provide a financial outlook. For further detail and discussion of IAS's financial performance, please refer to IAS's Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, filed with the SEC.

INTEGRAL AD SCIENCE HOLDING CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(IN THOUSANDS, EXCEPT SHARE DATA)

September 30,

2025

December 31,

2024

ASSETS

Current assets:

Cash and cash equivalents

$ 129,204

$ 84,469

Restricted cash

294

506

Accounts receivable, net of allowance for credit losses of $3,845 and $7,454 as of September 30, 2025 and December 31, 2024, respectively

79,515

79,427

Unbilled receivables

54,093

53,388

Prepaid expenses and other current assets

54,093

36,639

Due from related party

Total current assets

317,212

254,457

Property and equipment, net

3,602

4,004

Internal use software, net

61,714

53,636

Intangible assets, net

115,631

140,943

Goodwill

677,635

673,025

Operating lease right-of-use assets, net

20,583

17,888

Deferred tax asset, net

2,439

1,675

Other long-term assets

9,002

5,943

Total assets

$ 1,207,818

$ 1,151,571

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued expenses

$ 58,447

$ 72,910

Operating lease liabilities, current

11,357

10,184

Due to related party

Deferred revenue

1,834

1,061

Total current liabilities

71,642

84,166

Deferred tax liability, net

8,991

3,118

Long-term debt, net

—

34,189

Operating lease liabilities, non-current

13,421

13,374

Other long-term liabilities

8,808

8,713

Total liabilities

102,862

143,560

Commitments and Contingencies

Stockholders' Equity

Preferred Stock, $0.001 par value, 50,000,000 shares authorized at September 30, 2025; 0 shares issued and outstanding at September 30, 2025 and December 31, 2024

—

Common Stock, $0.001 par value, 500,000,000 shares authorized, 166,863,690 and 162,871,266 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively

166

163

Additional paid-in-capital

1,025,055

964,765

Accumulated other comprehensive income (loss)

1,540

(3,666)

Retained earnings

78,195

46,749

Total stockholders' equity

1,104,956

1,008,011

Total liabilities and stockholders' equity

$ 1,207,818

$ 1,151,571

INTEGRAL AD SCIENCE HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(UNAUDITED)

Three Months Ended September 30,

Nine Months Ended September 30,

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

2025

2024

2025

2024

Revenue

$ 154,358

$ 133,528

$ 437,628

$ 377,063

Operating expenses:

Cost of revenue

35,553

27,373

100,028

80,628

Sales and marketing

36,317

30,144

104,243

91,541

Technology and development

22,632

16,840

62,431

52,305

General and administrative

33,715

25,348

86,457

71,407

Depreciation and amortization

17,900

16,243

51,605

47,032

Foreign exchange loss (gain), net

667

(2,607)

(7,113)

(723)

Total operating expenses

146,784

113,341

397,651

342,190

Operating income

7,574

20,187

39,977

34,873

Interest income (expense), net

595

(1,325)

680

(4,787)

Net income before income taxes

8,169

18,862

40,657

30,086

Provision for income taxes

(1,124)

(2,773)

(9,211)

(7,562)

Net income

$ 7,045

$ 16,089

$ 31,446

$ 22,524

Net income per share – basic and diluted

$ 0.04

$ 0.10

$ 0.19

$ 0.14

Weighted average shares outstanding:

Basic

166,473,735

161,663,506

165,056,742

160,528,610

Diluted

169,800,709

165,084,108

168,275,629

164,635,076

Other comprehensive income:

Foreign currency translation adjustments

892

5,206

(360)

Total comprehensive income

$ 7,139

$ 16,981

$ 36,652

$ 22,164

Stock-Based Compensation

(UNAUDITED)

Three Months Ended September 30,

Nine Months Ended September 30,

(IN THOUSANDS)

2025

2024

2025

2024

Cost of revenue

$ 82

$ 80

$ 258

$ 286

Sales and marketing

7,261

4,829

18,379

14,002

Technology and development

8,486

4,941

18,692

14,139

General and administrative

6,796

6,593

19,665

18,758

Total stock-based compensation

$ 22,625

$ 16,443

$ 56,994

$ 47,185

INTEGRAL AD SCIENCE HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(UNAUDITED)

Three Months Ended September 30, 2025

Common Stock

(IN THOUSANDS, EXCEPT SHARES)

Amount

Additional

paid-in

capital

Accumulated

other

comprehensive

income

Retained

earnings

Total

stockholders'

equity

Balance, June 30, 2025

165,273,651

$ 165

$ 1,000,857

$ 1,446

$ 71,150

$ 1,073,618

RSUs and MSUs vested

1,344,795

—

Option exercises

42,826

—

185

—

185

ESPP purchase

202,418

—

1,410

—

1,410

Stock-based compensation

—

22,603

—

22,603

Foreign currency translation adjustment

—

Net income

—

7,045

Balance, September 30, 2025

166,863,690

$ 166

$ 1,025,055

$ 1,540

$ 78,195

$ 1,104,956

Nine Months Ended September 30, 2025

Common Stock

(IN THOUSANDS, EXCEPT SHARES)

Amount

Additional

paid-in

capital

Accumulated

other

comprehensive

income (loss)

Retained

earnings

Total

stockholders'

equity

Balance, December 31, 2024

162,871,266

$ 163

$ 964,765

$ (3,666)

$ 46,749

$ 1,008,011

RSUs and MSUs vested

3,546,776

—

Option exercises

42,826

—

185

—

185

ESPP purchase

402,822

—

3,100

—

3,100

Stock-based compensation

—

57,005

—

57,005

Foreign currency translation adjustment

—

5,206

—

5,206

Net income

—

31,446

Balance, September 30, 2025

166,863,690

$ 166

$ 1,025,055

$ 1,540

$ 78,195

$ 1,104,956

Three Months Ended September 30, 2024

Common Stock

(IN THOUSANDS, EXCEPT SHARES)

Amount

Additional

paid-in

capital

Accumulated

other

comprehensive

loss

Retained

earnings

Total

stockholders'

equity

Balance, June 30, 2024

160,786,740

$ 161

$ 934,194

$ (2,168)

$ 15,389

$ 947,576

RSUs and MSUs vested

995,796

—

ESPP purchase

172,615

—

1,478

—

1,478

Stock-based compensation

—

16,451

—

16,451

Foreign currency translation adjustment

—

892

—

892

Net income

—

16,089

Balance, September 30, 2024

161,955,151

$ 162

$ 952,123

$ (1,276)

$ 31,478

$ 982,487

Nine Months Ended September 30, 2024

Common Stock

(IN THOUSANDS, EXCEPT SHARES)

Amount

Additional

paid-in

capital

Accumulated

other

comprehensive

loss

Retained

earnings

Total

stockholders'

equity

Balance, December 31, 2023

158,757,620

$ 159

$ 901,259

$ (916)

$ 8,954

$ 909,456

RSUs and MSUs vested

2,827,628

—

Option exercises

44,049

—

313

—

313

ESPP purchase

325,854

—

3,373

—

3,373

Stock-based compensation

—

47,178

—

47,178

Foreign currency translation adjustment

—

(360)

—

(360)

Net income

—

22,524

Balance, September 30, 2024

161,955,151

$ 162

$ 952,123

$ (1,276)

$ 31,478

$ 982,487

INTEGRAL AD SCIENCE HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Nine Months Ended September 30,

(IN THOUSANDS)

2025

2024

Cash flows from operating activities:

Net income

$ 31,446

$ 22,524

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

51,605

47,032

Stock-based compensation

56,994

47,185

Foreign currency gain, net

(7,723)

(1,775)

Deferred tax provision (benefit)

5,109

(15,457)

Amortization of debt issuance costs

355

348

(Reversal of) allowance for credit losses

(2,119)

949

Impairment of assets

Changes in operating assets and liabilities:

Decrease (increase) in accounts receivable

4,464

(7,028)

Decrease (increase) in unbilled receivables

186

(1,723)

Increase in prepaid expenses and other current assets

(14,799)

(18,668)

Increase in operating leases, net

(1,544)

(1,169)

Increase in other long-term assets

(1,201)

(696)

Decrease in accounts payable and accrued expenses and other long-term liabilities

(13,878)

(21,958)

Increase in deferred revenue

768

Increase (decrease) in due to/from related party

(119)

Net cash provided by operating activities

109,719

50,250

Cash flows from investing activities:

Purchase of property and equipment

(863)

(1,594)

Acquisition and development of internal use software and other

(32,218)

(28,868)

Net cash used in investing activities

(33,081)

(30,462)

Cash flows from financing activities:

Repayment of long-term debt

(35,000)

(90,000)

Payments for debt issuance costs

(1,845)

—

Proceeds from exercise of stock options

185

313

Cash received from Employee Stock Purchase Program

2,263

2,329

Net cash used in financing activities

(34,397)

(87,358)

Net increase (decrease) in cash, cash equivalents, and restricted cash

42,241

(67,570)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

2,364

(113)

Cash, cash equivalents and restricted cash at beginning of period

87,335

127,290

Cash, cash equivalents, and restricted cash at end of period

$ 131,940

$ 59,607

Supplemental Disclosures:

Net cash (received) paid during the period for:

Interest

$ (1,015)

$ 4,613

Taxes

$ 16,860

$ 29,942

Non-cash investing and financing activities:

Property and equipment acquired included in accounts payable

$ 5

$ 47

Internal use software acquired included in accounts payable

$ 599

$ 966

Lease liabilities arising from right-of-use assets

$ 10,994

$ 6,110

Supplemental Disclosure Regarding Non-GAAP Financial Information

We use supplemental measures of our performance, which are derived from our consolidated financial information, but which are not presented in our consolidated financial statements prepared in accordance with GAAP. Adjusted EBITDA is the primary financial performance measure used by management to evaluate our business and monitor ongoing results of operations. Adjusted EBITDA is defined as income before depreciation and amortization, stock-based compensation, interest (income) expense, income taxes, acquisition, restructuring and integration costs, foreign exchange loss (gain), net, asset impairments, and other one-time, non-recurring costs. Adjusted EBITDA margin represents the adjusted EBITDA for the applicable period divided by the revenue for that period presented in accordance with GAAP.

We use non-GAAP financial measures to supplement financial information presented on a GAAP basis. We believe that excluding certain items from our GAAP results allows management to better understand our consolidated financial performance from period to period and better project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, we believe these non-GAAP financial measures provide our shareholders with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period-to-period comparisons. Although we believe these measures are useful to investors and analysts for the same reasons they are useful to management, as discussed below, these measures are not a substitute for, or superior to, U.S. GAAP financial measures or disclosures. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes.

Reconciliations of historical adjusted EBITDA to its most directly comparable GAAP financial measure, net income/loss, are presented below. We encourage you to review the reconciliations in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future fiscal periods, we may exclude such items and may incur income and expenses similar to these excluded items.

Reconciliation of Adjusted EBITDA

Three Months Ended

September 30,

Nine Months Ended

September 30,

(IN THOUSANDS, EXCEPT PERCENTAGES)

2025

2024

2025

2024

Net income

$ 7,045

$ 16,089

$ 31,446

$ 22,524

Depreciation and amortization

17,900

16,243

51,605

47,032

Stock-based compensation

22,625

16,443

56,994

47,185

Interest (income) expense, net

(595)

1,325

(680)

4,787

Provision for income taxes

1,124

2,773

9,211

7,562

Acquisition, restructuring and integration costs

411

290

760

1,465

Foreign exchange loss (gain), net

667

(2,607)

(7,113)

(723)

Merger related costs

6,093

—

6,093

—

Asset impairments and other costs

—

Adjusted EBITDA

$ 55,270

$ 50,646

$ 148,364

$ 129,922

Revenue

$ 154,358

$ 133,528

$ 437,628

$ 377,063

Net income margin

5 %

12 %

7 %

6 %

Adjusted EBITDA margin

36 %

38 %

34 %

About Integral Ad Science

Integral Ad Science (IAS) is a leading global media measurement and optimization platform that delivers the industry's most actionable data to drive superior results for the world's largest advertisers, publishers, and media platforms. IAS's software provides comprehensive and enriched data that ensures ads are seen by real people in safe and suitable environments, while improving return on ad spend for advertisers and yield for publishers. Our mission is to be the global benchmark for trust and transparency in digital media quality. For more information, visit integralads.com.

Forward-Looking Statements

This earnings press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance, including guidance, and business, including pipeline and industry trends. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "will," "should," "can have," "likely," and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. For example, all statements we make relating to our current expectations relating to the acquisition of the company by Novacap (the "Merger") and the transactions contemplated by the related Merger Agreement, our estimated and projected costs, profitability, expenditures, cash flows, growth rates and financial results or our plans and objectives for future operations, growth initiatives or strategies are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including: (i) the risk that the Merger may not be completed in a timely manner or at all, which may adversely affect our business and the price of our common stock; (ii) the timing to consummate the Merger, or the occurrence of any event, change, or other circumstances that could give rise to the termination of the Merger Agreement, including circumstances requiring a party to pay the other party a termination fee pursuant to the Merger Agreement; (iii) the failure to satisfy the conditions to the consummation of the Merger, and the other transactions contemplated thereby; (iv) the risk that a governmental or regulatory approval that may be required for the Merger is not obtained or is obtained subject to conditions that are not anticipated; (v) the effect of the pendency of the Merger on our business relationships, operating results and business generally; (vi) certain restrictions during the pendency of the Merger that may impact our ability to pursue certain business opportunities or strategic transactions; (vii) risks that the Merger disrupts current plans and operations; (viii) risks related to diverting management's attention from our ongoing business operations; (ix) the outcome of any legal proceedings that may be instituted against the parties to the Merger Agreement or their respective directors, managers or officers, including the effects of any outcomes related thereto; (x) our ability to retain, hire and integrate skilled personnel, and maintain relationships with key business partners and customers, and others with whom we do business, in light of the proposed Merger; (xi) unexpected costs, charges or expenses resulting from the Merger; (xii) the adverse effect on our business, operating results, financial condition, and prospects from various macroeconomic factors, including instability in geopolitical or market conditions; (xiii) our failure to innovate or make the right investment decisions; (xiv) our ability to provide digital or cross-platform analytics; (xv) our failure to maintain or achieve industry accreditation standards; (xvi) our dependence on integrations with advertising platforms, demand side providers ("DSPs") and proprietary platforms that we do not control; (xvii) our ability to compete successfully with our current or future competitors in an intensely competitive market; (xviii) our ability to sustain our profitability and revenue growth rate; (xix) our dependence on the overall demand for advertising; and (xx) other factors disclosed in our filings with the SEC. Given these factors, as well as other variables that may affect our operating results, you should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, or use historical trends to anticipate results or trends in future periods.

We derive many of our forward-looking statements from our operating budgets and forecasts, which are based on many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. The forward-looking statements included in this press release are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Additional Information and Where to Find It

This communication is being made in respect of the proposed transaction involving the Company and Novacap. The Company will prepare an information statement for its stockholders, containing the information with respect to the proposed merger specified in Schedule 14C promulgated under the Exchange Act, and describing the proposed transaction. In connection with the proposed transaction, the Company filed with the SEC a preliminary information statement. When completed, a definitive information statement will be mailed to the Company's stockholders. This communication is not a substitute for the information statement, or any other document, that the Company may file with the SEC or send to its stockholders in connection with the proposed transaction.

THE COMPANY'S STOCKHOLDERS ARE URGED TO CAREFULLY READ THE INFORMATION STATEMENT REGARDING THE PROPOSED TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.

The Company's stockholders may obtain free copies of the documents the Company files with the SEC from the SEC's website at www.sec.gov or through the Investor Relations page of the Company's website at https://investors.integralads.com or by contacting the Company's Investor Relations by e-mail at ir@integralads.com.

No Offer or Solicitation

No person has commenced soliciting proxies in connection with the proposed transaction referenced in this communication, and this communication is neither an offer to purchase nor a solicitation of an offer to sell securities.

Investor Contact:

Jonathan Schaffer

ir@integralads.com

Media Contact:

Tricia Mifsud

press@integralads.com

SOURCE Integral Ad Science, Inc.