Revenue growth remains steady at 15.6% as of 2025Q3, though operating margins have shown extreme volatility, contracting to 4.9% from a 16.7% peak in 2024Q4.
| Sales/Revenue | 590.67M | 530.1M | 474.37M | 408.35M | 323.51M | 240.63M | 213.49M |
| Revenue Growth % | 15.51% | 11.75% | 16.17% | 26.22% | 34.44% | 12.72% | - |
| Cost of Goods Sold | 133.36M | 113.96M | 99.35M | 75.75M | 54.57M | 40.51M | 33.11M |
| COGS % of Revenue | - | 21.5% | 20.94% | 18.55% | 16.87% | 16.83% | 15.51% |
| Gross Profit | 457.31M | 416.14M | 375.02M | 332.59M | 268.94M | 200.13M | 180.38M |
| Gross Margin % | 77.42% | 78.5% | 79.06% | 81.45% | 83.13% | 83.17% | 84.49% |
| Gross Profit Growth % | - | 10.97% | 12.76% | 23.67% | 34.39% | 10.95% | - |
| Operating Expenses | 391.82M | 355.75M | 357.93M | 317.44M | 301.95M | 214.01M | 214.16M |
| OpEx % of Revenue | - | 67.11% | 75.45% | 77.74% | 93.34% | 88.94% | 100.32% |
| Selling, General & Admin | 239.67M | 218.01M | 229.62M | 185.94M | 165.4M | 99.31M | 103.44M |
| SG&A % of Revenue | - | 41.13% | 48.41% | 45.53% | 51.13% | 41.27% | 48.45% |
| Research & Development | 79.98M | 69.85M | 72.91M | 76.35M | 67.02M | 48.99M | 40.4M |
| R&D % of Revenue | - | 13.18% | 15.37% | 18.7% | 20.72% | 20.36% | 18.93% |
| Other Operating Expenses | 4M | 67.89M | 55.4M | 55.15M | 69.53M | 65.71M | 70.33M |
| Operating Income | 65.49M | 60.39M | 17.09M | 15.16M | -33.01M | -13.88M | -33.79M |
| Operating Margin % | 11.09% | 11.39% | 3.6% | 3.71% | -10.2% | -5.77% | -15.83% |
| Operating Income Growth % | - | 253.3% | 12.77% | 145.92% | -137.82% | 58.92% | - |
| EBITDA | 125.04M | 124.35M | 72.06M | 65.55M | 29.28M | 51.83M | 36.54M |
| EBITDA Margin % | 21.17% | 23.46% | 15.19% | 16.05% | 9.05% | 21.54% | 17.12% |
| EBITDA Growth % | 10.64% | 72.57% | 9.92% | 123.91% | -43.51% | 41.84% | - |
| D&A (Non-Cash Add-back) | 59.55M | 63.97M | 54.97M | 50.4M | 62.29M | 65.71M | 70.33M |
| EBIT | 60.3M | 60.39M | 17.09M | 22.14M | -36.73M | -13.88M | -33.79M |
| Net Interest Income | -48K | -5.36M | -12.24M | -9.05M | -19.24M | -31.57M | -32.99M |
| Interest Income | 595K | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 643K | 5.36M | 12.24M | 9.05M | 19.24M | 31.57M | 32.99M |
| Other Income/Expense | 109K | -5.36M | -12.24M | -2.07M | -22.96M | -31.57M | -32.99M |
| Pretax Income | 65.6M | 55.03M | 4.86M | 13.09M | -55.98M | -45.45M | -66.78M |
| Pretax Margin % | 11.11% | 10.38% | 1.02% | 3.2% | -17.3% | -18.89% | -31.28% |
| Income Tax | 18.88M | 17.23M | -2.38M | -2.29M | -3.54M | -13.08M | -15.43M |
| Effective Tax Rate % | 28.78% | 31.32% | -49.05% | -17.49% | 6.32% | 28.77% | 23.11% |
| Net Income | 46.72M | 37.8M | 7.24M | 15.37M | -52.44M | -32.37M | -51.35M |
| Net Margin % | 7.91% | 7.13% | 1.53% | 3.76% | -16.21% | -13.45% | -24.05% |
| Net Income Growth % | 42.92% | 422.17% | -52.92% | 129.32% | -61.97% | 36.95% | - |
| Net Income (Continuing) | 46.72M | 37.8M | 7.24M | 15.37M | -52.44M | -32.37M | -51.35M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.28 | 0.23 | 0.04 | 0.10 | -0.37 | -0.21 | -0.34 |
| EPS Growth % | 41.67% | 413.39% | -54.19% | 126.43% | -76.19% | 38.24% | - |
| EPS (Basic) | - | 0.23 | 0.05 | 0.10 | -0.37 | -0.21 | -0.34 |
| Diluted Shares Outstanding | 169.8M | 165.47M | 161.72M | 157.26M | 143.54M | 151.21M | 151.21M |
| Basic Shares Outstanding | 176.13M | 161.06M | 156.27M | 154.7M | 143.54M | 151.21M | 151.21M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Operating margin volatility
As reported in recent financial filings, IAS achieved a 15.6% year-over-year revenue increase in 2025Q3, demonstrating consistent top-line expansion despite broader macroeconomic uncertainty and the ongoing integration of complex social media verification workflows into the company's core programmatic advertising measurement and optimization product suite.
The company's ability to sustain double-digit growth suggests that its deep-tier integrations within DSPs remain a critical utility for advertisers. However, investors should monitor whether this growth trajectory can persist without significant acceleration in CTV penetration or if the current pace represents a maturation of the core display verification business.
Based on the provided income statement data, IAS has maintained a robust gross margin profile, consistently hovering near 77% to 79% over the last ten quarters, which underscores the inherent scalability of its software-driven verification architecture despite the rising costs associated with processing massive volumes of digital impressions.
This high gross margin indicates that the company possesses a strong moat in its technical infrastructure, allowing it to absorb incremental volume without a proportional increase in direct costs. Nevertheless, the stability of these margins warrants further investigation into potential cloud compute cost pressures as the company expands its AI-driven video analysis capabilities.
According to the quarterly income statement data, IAS has struggled to translate gross profit gains into consistent operating income, with operating margins fluctuating significantly from a low of -16.0% in 2023Q2 to a peak of 16.7% in 2024Q4, indicating a lack of predictable operating leverage.
The volatility in operating margins suggests that management is aggressively reinvesting in sales and R&D, which may be necessary to defend market share against competitors like DoubleVerify. Investors should monitor whether these elevated SG&A expenses are temporary growth investments or a structural requirement to maintain the company's competitive position in the programmatic ecosystem.
As evidenced by the historical financial statements, IAS's net income has been subject to significant quarterly variance, often exacerbated by substantial stock-based compensation charges that reached as high as $40.4 million in 2023Q2, which complicates the assessment of true underlying profitability and shareholder dilution.
The wide swings in net income, including periods of negative earnings, suggest that the company's bottom line is highly sensitive to non-cash expenses and potential one-time integration costs. Analysts should focus on the trend of SBC as a percentage of revenue to determine if management is successfully transitioning toward a more disciplined compensation structure.
Based on reported figures, the company's operating margin contraction to 4.9% in 2025Q3 raises concerns regarding the sustainability of its current cost structure, particularly if the competitive landscape intensifies following the exit of legacy players like Oracle's Moat from the verification market.
While the exit of a major competitor may theoretically improve pricing power, the current margin profile suggests that IAS may be forced to spend heavily to capture displaced market share. Investors should be wary of the risk that 'walled garden' platforms could eventually internalize verification tools, potentially rendering third-party services like those offered by IAS less essential.
Quick answers to the most common questions about buying IAS stock.
For fiscal year 2024, Integral Ad Science Holding Corp. (IAS) reported total revenue of $530.1M. This represents a 148.3% increase compared to $213.5M in 2019.
Integral Ad Science Holding Corp. (IAS) is profitable, generating $37.8M in net income for the fiscal year ending 2024 with a net profit margin of 7.1%.
Integral Ad Science Holding Corp. (IAS) reported an operating income of $60.4M, resulting in an operating profit margin of 11.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Integral Ad Science Holding Corp. (IAS) generated $416.1M in gross profit for the year, representing a gross profit margin of 78.5%. This demonstrates the company's core pricing power and production efficiency.