Integral Ad Science (IAS) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue increased 16% to $154.4 million compared to $133.5 million in the prior-year period[2] - Net income was $7.0 million, or $0.04 per share, down from $16.1 million, or $0.10 per share, in the prior-year period, resulting in a net income margin of 5%[6] - Adjusted EBITDA rose 9% to $55.3 million, with an adjusted EBITDA margin of 36% for the third quarter of 2025[6] - Optimization revenue increased 21% to $73.7 million, while measurement revenue grew 8% to $57.1 million[6] - International revenue, excluding the Americas, was $44.1 million, an 8% increase, representing 29% of total revenue for the quarter[6] - Gross profit was $118.8 million, a 12% increase, with a gross profit margin of 77%[6] - Net income for the three months ended September 30, 2024, was $16,089,000, compared to $7,045,000 for the same period in 2025, reflecting a decrease of 61.5%[20] - Adjusted EBITDA for the nine months ended September 30, 2024, was $148,364,000, up from $129,922,000 in 2025, representing an increase of 14.1%[20] - Revenue for the three months ended September 30, 2024, was $133,528,000, compared to $154,358,000 in 2025, indicating a decrease of 13.5%[20] - Cash provided by operating activities for the nine months ended September 30, 2024, was $50,250,000, compared to $109,719,000 in 2025, showing a decrease of 54.3%[15] - The company reported a net increase in cash, cash equivalents, and restricted cash of $42,241,000 for the nine months ended September 30, 2024, compared to a decrease of $67,570,000 in 2025[15] - Stock-based compensation for the nine months ended September 30, 2024, was $47,178,000, compared to $56,994,000 in 2025, reflecting an increase of 20.7%[20] - The company experienced a foreign currency gain of $7,723,000 in 2025, compared to a loss of $1,775,000 in 2024[15] - The net income margin for the three months ended September 30, 2024, was 12%, while the adjusted EBITDA margin was 38%[20] Corporate Developments - IAS announced the expansion of Total Media Quality (TMQ) for Meta Threads to enhance brand safety measurement[6] - IAS was selected by TikTok to launch new Brand Safety Features for advertisers on TikTok Pangle[6] - The company entered into a definitive agreement to be acquired by Novacap in an all-cash transaction[5] - The company is currently undergoing a merger with Novacap, which may impact future operations and financial performance[22] - The Company is involved in a proposed transaction with Novacap, with a preliminary information statement filed with the SEC[25] - Stockholders are encouraged to read the definitive information statement regarding the proposed transaction when available, as it will contain important information[26] - Free copies of the documents filed with the SEC can be obtained from the SEC's website or the Company's Investor Relations page[27] Cash and Equity - Cash and cash equivalents were $129.2 million as of September 30, 2025, up from $84.5 million at the end of 2024[8] - Total stockholders' equity increased to $982,487,000 as of September 30, 2024, from $947,576,000 as of June 30, 2024, marking a growth of 3.7%[13]