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Integral Ad Science Reports Third Quarter 2025 Financial Results

On November 4, 2025, Integral Ad Science (IAS), a prominent global media measurement and optimization platform, announced its financial performance for the third quarter ended September 30, 2025. The results revealed a robust revenue growth of 16%, reaching a total of $154.4 million, compared to $133.5 million in the same period last year. The CEO, Lisa Utzschneider, expressed confidence in their outlook, stating, "We exceeded our revenue and adjusted EBITDA expectations for the quarter with strong performance across our various business lines."

Financial Highlights

IAS's financial report highlighted several key performance metrics:

• - Total Revenue: The company achieved $154.4 million, an increase of 16% year-over-year. Revenue segments included:

- Optimization Revenue: $73.7 million, up 21% from $61.1 million in the previous year.
- Measurement Revenue: $57.1 million, growing 8% from $52.9 million.
- Publisher Revenue: $23.5 million, a significant rise of 21% from $19.5 million.
- International Revenue: Non-American revenue reached $44.1 million, an increase of 8%.

Gross profit for the company stood at $118.8 million, reflecting a gross profit margin of 77%. Despite these gains, the net income for Q3 decreased to $7.0 million ($0.04 per share), compared to $16.1 million ($0.10 per share) in the prior-year quarter, indicating a net income margin of 5%. The adjusted EBITDA increased 9% year-over-year to $55.3 million with a margin of 36%.

"While it is disappointing to see a dip in net income, our other financial indicators remain strong and suggest resilience and ongoing demand for our services," Utzschneider added.

Recent Business Advances

Apart from financial gains, IAS made significant strides in expanding its capabilities and partnerships:

• - TMQ Expansion to Meta Threads: In October, IAS expanded its Total Media Quality (TMQ) metrics to Meta Threads, enhancing Brand Safety and Suitability Measurement capabilities for advertisers.
• - Brand Safety Features for TikTok Pangle: The selection by TikTok to enhance brand safety features is a pivotal move, broadening IAS's service offerings in a rapidly growing market.
• - Measurement Expansion with Snap: Further reinforcing their measurement partnership with Snap, IAS aims to equip advertisers with improved ad effectiveness tools.
• - Good-Loop Emissions Partnership: This partnership marks a pioneering effort in calculating the emissions tied to digital media impressions, opening a path for eco-conscious advertising solutions.

Acquisition of IAS by Novacap

Integral Ad Science also announced a definitive agreement to be acquired by Novacap, a North American private equity firm, in an all-cash deal. This acquisition is anticipated to further streamline IAS’s operations and funding, allowing the company to enhance its technological capabilities and market reach. The transaction is expected to finalize in the near future, and due to this merger, IAS opted not to conduct an earnings conference call or issue future financial forecasts.

Financial Health

As of September 30, 2025, IAS reported cash and cash equivalents totaling $129.2 million, supplementing their financial stability and ability to navigate the upcoming acquisition effectively. The firm remains committed to innovating within the media measurement industry while prioritizing growth and stakeholder value.

Looking ahead, Integral Ad Science is poised to leverage its operational strength and strategic partnerships to maintain its competitive edge in the media landscape. With a robust foundation, the company's trajectory hints at promising growth and innovation, despite some temporary setbacks in net earnings.