Revenue growth decelerated sharply to 2.5% in 2026Q2 from 21.3% a year earlier, while gross margins remained resilient at 83.2%, though operating margins stalled near 11.9% as R&D and SG&A costs rose 26% over the period.
DoubleVerify Holdings, Inc. (DV) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 768.82M | 748.29M | 656.85M | 572.54M | 452.42M | 332.74M | 243.92M | 182.66M | 104.3M |
| Revenue Growth % | 7.64% | 13.92% | 14.72% | 26.55% | 35.97% | 36.42% | 33.53% | 75.13% | - |
| Cost of Goods Sold | 150.39M | 133.5M | 116.52M | 106.63M | 77.87M | 54.38M | 35.75M | 24.85M | 18.52M |
| COGS % of Revenue | - | 17.84% | 17.74% | 18.62% | 17.21% | 16.34% | 14.66% | 13.6% | 17.76% |
| Gross Profit | 618.43M | 614.79M | 540.33M | 465.91M | 374.55M | 278.36M | 208.17M | 157.81M | 85.78M |
| Gross Margin % | 80.44% | 82.16% | 82.26% | 81.38% | 82.79% | 83.66% | 85.34% | 86.4% | 82.24% |
| Gross Profit Growth % | - | 13.78% | 15.97% | 24.39% | 34.56% | 33.72% | 31.91% | 83.98% | - |
| Operating Expenses | 520.89M | 535.59M | 457.91M | 380.19M | 315.53M | 251.68M | 186.81M | 118.71M | 80.72M |
| OpEx % of Revenue | - | 71.58% | 69.71% | 66.4% | 69.74% | 75.64% | 76.59% | 64.99% | 77.39% |
| Selling, General & Admin | 296.43M | 300.57M | 259.65M | 213.92M | 186.08M | 158.69M | 115.21M | 65.3M | 37.87M |
| SG&A % of Revenue | - | 40.17% | 39.53% | 37.36% | 41.13% | 47.69% | 47.23% | 35.75% | 36.3% |
| Research & Development | 178.3M | 178.44M | 153.05M | 125.38M | 95.12M | 62.7M | 47M | 31.6M | 24.22M |
| R&D % of Revenue | - | 23.85% | 23.3% | 21.9% | 21.02% | 18.84% | 19.27% | 17.3% | 23.22% |
| Other Operating Expenses | 3M | 56.58M | 45.22M | 40.88M | 34.33M | 30.29M | 24.59M | 21.81M | -25K |
| Operating Income | 97.55M | 79.2M | 82.42M | 85.73M | 59.02M | 26.68M | 21.36M | 39.1M | 5.06M |
| Operating Margin % | 12.69% | 10.58% | 12.55% | 14.97% | 13.05% | 8.02% | 8.76% | 21.41% | 4.85% |
| Operating Income Growth % | - | -3.91% | -3.86% | 45.24% | 121.2% | 24.95% | -45.39% | 672.35% | - |
| EBITDA | 159.04M | 135.78M | 127.64M | 126.61M | 93.35M | 56.97M | 45.95M | 60.92M | 23.69M |
| EBITDA Margin % | 20.69% | 18.14% | 19.43% | 22.11% | 20.63% | 17.12% | 18.84% | 33.35% | 22.71% |
| EBITDA Growth % | 17.67% | 6.38% | 0.81% | 35.63% | 63.86% | 23.98% | -24.57% | 157.15% | - |
| D&A (Non-Cash Add-back) | 61.49M | 56.58M | 45.22M | 40.88M | 34.33M | 30.29M | 24.59M | 21.81M | 18.63M |
| EBIT | 95.87M | 84.44M | 89.91M | 96.94M | 60.27M | 26.99M | 22.24M | 40.56M | 5.04M |
| Net Interest Income | 2.94M | -1.73M | 11.63M | -1.07M | 1.4M | -1.16M | -4.93M | -5.2M | -3.06M |
| Interest Income | 4.7M | 0 | 12.74M | 0 | 2.31M | 11K | 0 | 0 | 0 |
| Interest Expense | 1.76M | 1.73M | 1.12M | 1.07M | 905K | 1.17M | 4.93M | 5.2M | 3.06M |
| Other Income/Expense | -3.44M | 3.51M | 6.37M | 10.15M | 344K | -863K | -4.05M | -3.74M | -3.08M |
| Pretax Income | 94.11M | 82.71M | 88.79M | 95.88M | 59.37M | 25.82M | 17.31M | 35.36M | 1.98M |
| Pretax Margin % | 12.24% | 11.05% | 13.52% | 16.75% | 13.12% | 7.76% | 7.1% | 19.36% | 1.9% |
| Income Tax | 35.25M | 32.06M | 32.56M | 24.41M | 16.1M | -3.49M | -3.14M | 12.05M | -1.2M |
| Effective Tax Rate % | 37.46% | 38.76% | 36.67% | 25.46% | 27.12% | -13.5% | -18.16% | 34.09% | -60.45% |
| Net Income | 58.86M | 50.65M | 56.23M | 71.47M | 43.27M | 29.31M | 20.45M | 23.31M | 3.18M |
| Net Margin % | 7.66% | 6.77% | 8.56% | 12.48% | 9.56% | 8.81% | 8.39% | 12.76% | 3.05% |
| Net Income Growth % | 11.64% | -9.93% | -21.32% | 65.17% | 47.63% | 43.29% | -12.25% | 633.62% | - |
| Net Income (Continuing) | 58.86M | 50.65M | 56.23M | 71.47M | 43.27M | 29.31M | 20.45M | 23.31M | 3.18M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.37 | 0.30 | 0.32 | 0.41 | 0.25 | 0.18 | 0.13 | 0.15 | 0.02 |
| EPS Growth % | 18.71% | -6.25% | -21.95% | 64% | 38.89% | 38.46% | -13.33% | 631.71% | - |
| EPS (Basic) | - | 0.31 | 0.33 | 0.43 | 0.26 | 0.18 | 0.13 | 0.15 | 0.02 |
| Diluted Shares Outstanding | 157.89M | 166.68M | 175.08M | 173.44M | 170.75M | 162.3M | 156.68M | 156.68M | 155.33M |
| Basic Shares Outstanding | 153.96M | 162.78M | 170.51M | 167.8M | 163.88M | 162.3M | 156.68M | 156.68M | 155.33M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying DV stock.
For fiscal year 2025, DoubleVerify Holdings, Inc. (DV) reported total revenue of $748.3M. This represents a 617.4% increase compared to $104.3M in 2018.
DoubleVerify Holdings, Inc. (DV) is profitable, generating $50.6M in net income for the fiscal year ending 2025 with a net profit margin of 6.8%.
DoubleVerify Holdings, Inc. (DV) reported an operating income of $79.2M, resulting in an operating profit margin of 10.6%. This margin reflects the operational efficiency of the business before interest and taxes.
DoubleVerify Holdings, Inc. (DV) generated $614.8M in gross profit for the year, representing a gross profit margin of 82.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue growth deceleration and SBC dilution
Metrics are mathematically derived from official filings.
Growth Deceleration Amidst Macro Headwinds
According to DV's quarterly filings, revenue growth slowed from 21.3% in 2025Q2 to 2.5% in 2026Q2, indicating a sharp deceleration that investors should monitor closely.
The 10-quarter trend shows a clear deceleration from mid-teens to low-single-digit growth, with the most recent quarter at 2.5% year-over-year. This suggests that the company's core verification business may be facing market saturation or increased competition, as even the seasonal Q4 peak (7.9% growth) was below prior-year levels. The sequential revenue decline from 2025Q4 to 2026Q1 (205.6M to 180.8M) is typical seasonality, but the year-over-year compression indicates a structural slowdown rather than just cyclicality.
Gross Margin Resilience with Cost Volatility
Based on reported financials, DV's gross margin remained above 81% for most quarters, but 2026Q1 dropped to 73.2% due to a spike in COGS, suggesting potential cost pressures.
The gross margin stability at 82-83% across most quarters indicates strong pricing power and a scalable software model. However, the 2026Q1 anomaly (73.2%) with COGS of $48.5M versus the typical $30M range suggests either a one-time cost event or a change in revenue mix. If this cost volatility persists, it could compress the structural margin advantage DV holds over peers like IAS (78.5%) and comScore (39.8%).
Operating Leverage Stalled by Rising Overhead
As reported in DV's income statements, operating income scaled from $6.9M in 2024Q1 to $23.0M in 2026Q2, but operating margin remained below 12% despite revenue growth, indicating limited operating leverage.
While gross profit grew from $114.2M to $161.3M over the period, operating income growth was inconsistent, with margins fluctuating between 4.1% and 20.3%. The 2026Q2 operating margin of 11.9% is below the 2024Q4 peak of 20.3%, suggesting that SG&A and R&D expenses are growing faster than gross profit. This implies that DV's investment in sales and product development is not yet translating into proportional operating income gains, which may indicate inefficiencies in scaling.
SBC Dilution Masks True Profitability
According to DV's quarterly data, stock-based compensation averaged over $25M per quarter, exceeding net income in most periods, which suggests reported EPS may overstate underlying cash profitability.
In 2026Q2, SBC of $49.8M was nearly four times net income of $12.9M, and in 2025Q1, SBC of $24.3M dwarfed net income of $2.4M. This heavy SBC burden indicates that reported earnings are significantly inflated relative to cash earnings, and investors should adjust for this dilution when valuing the company. The EPS growth of 52.4% in 2026Q2 is misleading given the low base and the SBC impact, warranting a closer look at free cash flow conversion.
R&D and SG&A Escalation Outpacing Revenue
Based on DV's financial statements, combined R&D and SG&A expenses rose from $96.3M in 2024Q1 to $121.6M in 2026Q2, a 26% increase while revenue grew only 38% over the same period.
The cost structure shows a consistent upward trend in both R&D and SG&A, with R&D growing from $36.4M to $46.4M and SG&A from $59.9M to $75.2M over the 10 quarters. This suggests management is investing heavily in product innovation and sales capacity, but the return on these investments is not yet visible in operating margins. The 2026Q2 SG&A of $75.2M is the highest in the series, indicating that expense discipline may be weakening as the company pursues growth in a decelerating market.
2025Q4 Peak Marks Operational High-Water Mark
As reported in DV's quarterly results, 2025Q4 delivered the highest operating margin (18.4%) and net income ($29.3M) in the series, but subsequent quarters show a clear decline, suggesting a potential inflection point.
The 2025Q4 quarter benefited from seasonal strength and cost control, with operating income of $37.8M and net income of $29.3M. However, the following quarters (2026Q1 and 2026Q2) saw operating margins fall to 8.6% and 11.9%, respectively, indicating that the Q4 performance was not sustainable. This inflection suggests that the company may have reached a peak in operational efficiency, and the current investment phase is compressing margins, which investors should monitor for a potential recovery or further deterioration.
What Could Invalidate the Base Case
The sharp deceleration in revenue growth to 2.5% in 2026Q2, combined with SBC exceeding net income, suggests the market may be overvaluing DV's growth prospects.
Short-sellers would likely focus on the widening gap between reported net income and SBC-adjusted earnings, as the $49.8M SBC in 2026Q2 alone exceeds the $12.9M net income, implying that true cash profitability is negative. Additionally, the gross margin drop to 73.2% in 2026Q1 and the inability to sustain operating margins above 12% despite revenue growth could indicate that the company's competitive moat is eroding, making the current valuation vulnerable to a re-rating.