Free cash flow turned negative at -$6.4 million in 2026Q1, heavily impacted by a $48.1 million working capital outflow and aggressive capital deployment.
| Cash from Operations | 177.69M | 211.18M | 159.66M | 119.74M | 94.86M | 82.75M | 20.64M | 29.43M | 12.06M |
| Operating CF Margin % | - | 28.22% | 24.31% | 20.91% | 20.97% | 24.87% | 8.46% | 16.11% | 11.56% |
| Operating CF Growth % | 37.58% | 32.27% | 33.34% | 26.23% | 14.64% | 300.94% | -29.88% | 144.1% | - |
| Net Income | 54.7M | 50.65M | 56.23M | 71.47M | 43.27M | 29.31M | 20.45M | 23.31M | 3.18M |
| Depreciation & Amortization | 59.53M | 56.58M | 45.22M | 40.88M | 34.33M | 30.29M | 24.59M | 21.81M | 18.63M |
| Stock-Based Compensation | 79.88M | 104.23M | 90.66M | 59.24M | 42.31M | 21.89M | 0 | 1.68M | 1.44M |
| Deferred Taxes | 8.7M | 3.83M | -21.65M | -25.05M | -19.58M | -7.87M | -5.14M | 2M | -2.04M |
| Other Non-Cash Items | 39.36M | 12.94M | 16M | 16.47M | 15.72M | 22.55M | 14.16M | 2.81M | 2M |
| Working Capital Changes | -64.47M | -17.04M | -26.78M | -43.28M | -21.18M | -13.41M | -33.43M | -22.17M | -11.15M |
| Change in Receivables | -12.01M | 6.45M | -26.7M | -43.69M | -49.77M | -22M | -30.44M | -32.74M | -12.97M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -85K | 2.31M | -1.07M | 5.48M | 2.88M | -49K | 2.48M | -538K | -339K |
| Cash from Investing | -26.06M | -105.38M | -44.84M | -84.25M | -39.98M | -158.61M | -9.75M | -63.2M | -12.97M |
| Capital Expenditures | -42.79M | -38.53M | -27.15M | -17.01M | -39.98M | -9.4M | -9.75M | -5.94M | -1.64M |
| CapEx % of Revenue | 5.6% | 5.15% | 4.13% | 2.97% | 8.84% | 2.82% | 4% | 3.25% | 1.57% |
| Acquisitions | 0 | -82.58M | 0 | -67.24M | 0 | -149.22M | 0 | -57.25M | -11.33M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 11.66M | -2.02M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -136.33M | -143.95M | -129.45M | 6.49M | -7.88M | 264.39M | 10.96M | 15.04M | 22.9M |
| Debt Issued (Net) | -5.62M | -4.55M | -2.48M | -2.31M | -1.92M | -23.92M | -53.91M | 17.73M | 22.94M |
| Equity Issued (Net) | -130.59M | -138.73M | -133.82M | -4.59M | -10.24M | 297.59M | 83.06M | 177K | 100K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -131.76M | -142.06M | -133.82M | -4.59M | -10.24M | -1.8M | -260.69M | 0 | 0 |
| Other Financing | -120K | -668K | 6.85M | 13.39M | 4.28M | -9.28M | -18.19M | -2.86M | -138K |
| Net Change in Cash | 17.48M | -33.71M | -16.52M | 42.32M | 46.21M | 188.33M | 22.05M | -18.69M | 21.91M |
| Free Cash Flow | 134.91M | 172.65M | 132.51M | 102.73M | 54.88M | 73.35M | 10.89M | 23.49M | 10.42M |
| FCF Margin % | 17.66% | 23.07% | 20.17% | 17.94% | 12.13% | 22.04% | 4.46% | 12.86% | 9.99% |
| FCF Growth % | -2.6% | 30.29% | 28.99% | 87.19% | -25.18% | 573.7% | -53.65% | 125.48% | - |
| FCF per Share | 0.82 | 1.04 | 0.76 | 0.59 | 0.32 | 0.45 | 0.07 | 0.15 | 0.07 |
| FCF Conversion (FCF/Net Income) | 2.47x | 4.17x | 2.84x | 1.68x | 2.19x | 2.82x | 1.01x | 1.26x | 3.80x |
| Interest Paid | 837K | 0 | 479K | 714K | 554K | 774K | 0 | 0 | 2.54M |
| Taxes Paid | 55.35M | 0 | 41.93M | 60.88M | 12.35M | 7.7M | 0 | 0 | 1.87M |
Working capital volatility risk
As reported in financial statements, DoubleVerify exhibits a significant divergence between net income and operating cash flow, with the OCF/NI ratio reaching an extreme 15.95x in 2025Q1, indicating that GAAP earnings are currently poor proxies for the company's actual cash-generating capacity.
The persistent gap between net income and operating cash flow suggests that non-cash charges, particularly stock-based compensation, are heavily distorting the bottom line. Investors should monitor whether this reliance on non-cash adjustments masks underlying operational inefficiencies or if it reflects a deliberate strategy to preserve cash while incentivizing talent.
Based on reported figures, DoubleVerify's free cash flow trajectory has become increasingly erratic, swinging from a peak of $62.1 million in 2025Q4 to a negative $6.4 million in 2026Q1, highlighting the sensitivity of cash generation to seasonal and operational fluctuations.
The sharp contraction in FCF margins during the most recent quarter warrants further investigation into whether this is a temporary timing issue or a structural shift in cash conversion. The lack of consistent FCF growth suggests that the company's ability to self-fund its expansion is currently less reliable than historical performance might imply.
According to recent SEC filings, working capital dynamics have become a primary headwind for cash flow, evidenced by a substantial $48.1 million outflow in 2026Q1, which significantly offset the company's ability to convert operational activity into realized cash.
The volatility in working capital changes suggests potential friction in the collection cycle or inventory-like build-ups within the programmatic ecosystem. This instability may indicate that the company is facing increased pressure from its partners, which could necessitate a more cautious outlook on near-term liquidity.
As evidenced by the company's financial disclosures, capital expenditures have trended upward, reaching 5.8% of revenue in 2026Q1, which suggests that maintaining the technical infrastructure required for real-time ad verification is becoming increasingly resource-intensive for the firm.
The rising capital intensity may reflect the need for continuous investment in cloud infrastructure and data processing capabilities to support new product lines like CTV. If this trend persists, it may permanently lower the company's free cash flow conversion potential compared to earlier, less capital-intensive periods.
Based on reported figures, DoubleVerify has prioritized aggressive share repurchases, including a $75.1 million outlay in 2026Q1, even as operational cash flow turned negative, suggesting a management focus on supporting equity value over maintaining a conservative cash buffer.
The decision to deploy significant capital into buybacks during a period of negative free cash flow appears to be a high-conviction move that may limit the company's financial flexibility. Investors should monitor whether this capital allocation strategy remains sustainable if the current deceleration in revenue growth continues to pressure cash generation.
Quick answers to the most common questions about buying DV stock.
DoubleVerify Holdings, Inc. (DV) generated $211.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
DoubleVerify Holdings, Inc. (DV) generated $172.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
DoubleVerify Holdings, Inc. (DV) spent $38.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, DoubleVerify Holdings, Inc. (DV) spent $142.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.