Core Viewpoint - DoubleVerify Holdings, Inc. is showing signs of a potential turnaround after its third-quarter results met expectations and outlined plans for steady double-digit growth into 2026 [1] Earnings Snapshot - The company reported quarterly earnings of 6 cents per share, which fell short of market estimates of 9 cents per share [2] - Quarterly sales were recorded at $188.621 million, compared to expectations of $190.262 million [3] Analyst View - The company is the last remaining player in the media quality measurement space, providing it with greater flexibility for R&D and innovation, which is expected to help capture market share over the long term [4] - The repositioned product portfolio and several quarters of high-teens growth could enhance estimates and valuation [4] - The analyst anticipates significant improvement in the product portfolio positioning by calendar year 2026 compared to early calendar years 2025 and 2024 [5] Estimates Revision - Limited guidance for calendar year 2026 was provided, but management expects at least 10% year-over-year growth under similar macro conditions as the second half of calendar year 2025 [6] - EPS estimates have been revised down to 96 cents for 2025 (from $1.02), $1.14 for 2026 (from $1.24), and $1.28 for 2027 (from $1.49) [6] - The analyst now expects 10% year-over-year revenue growth for calendar years 2026 to 2028 [6] - Following these updates, DV shares increased by 9.96% to $10.33 [6]

Financial Data and Key Metrics Changes - Genie Energy reported a record-high third-quarter revenue of $138.3 million, a 24% increase year-over-year, driven by sales at its retail supply business, GRE [10] - Diluted EPS decreased to $0.26 from $0.38 year-over-year, reflecting margin pressures from rising commodity prices [4][13] - Consolidated gross profit decreased 21% to $30 million, with gross margin dropping from 33.9% to 21.7% [11][12] - Adjusted EBITDA decreased 40% to $8.2 million, with GRE's adjusted EBITDA also declining [12][13] Business Line Data and Key Metrics Changes - GRE's revenue increased 25% to $132.4 million, with electricity revenue up 26% to $126.6 million, contributing 96% of GRE's revenues [10][11] - The customer base at GRE grew to approximately 318,000 RCEs, a year-over-year increase of 5.4% [6] - GREW's revenue slightly decreased to $6 million, impacted by declines in other business lines despite growth in Diversegy [11][8] Market Data and Key Metrics Changes - The cost of electricity per kilowatt-hour increased 20% year-over-year, while the cost per therm of gas surged 137% [12] - The increase in fixed-price contracts in the retail book has led to lower margins, particularly from a large municipal aggregation deal [5] Company Strategy and Development Direction - The company continues to prioritize the acquisition of high-consumption electric meters and expects margin conditions to improve in Q4 and into 2026 [5][6] - Genie Energy is focusing on growth initiatives in its renewable segment, with projects like Genie Solar's Lansing community solar project expected to generate revenue soon [6][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging market conditions affecting margins but expressed confidence in navigating through margin cycles [5][15] - The company expects to achieve the lower end of its annual guidance range of $40-$50 million in adjusted EBITDA for 2025 [9][15] Other Important Information - The company repurchased approximately 124,000 shares for $2 million and paid a quarterly dividend of $0.075 per share [9][14] - Cash and cash equivalents totaled $206.6 million as of September 30, 2025, an increase from the previous quarter [13] Q&A Session Summary - No questions were asked during the Q&A session, and the call concluded without further inquiries [16]

Financial Data and Key Metrics Changes - Consolidated revenue increased 12% to nearly $1.8 billion, setting a new third-quarter record, despite a strong comparison from last year when revenue increased over 24% [4] - Gross margin was 59.1%, a 90 basis point decrease from the prior quarter, while operating margin was 25.8%, a 180 basis point decrease compared to the prior quarter [15] - Operating income reached $457 million, up 4% year-over-year, with pro forma EPS of $1.99 and GAAP EPS of $2.08 [4][15] Business Segment Data and Key Metrics Changes - **Fitness Segment**: Revenue increased 30% to $601 million, with gross and operating margins at 60% and 32% respectively, resulting in operating income of $194 million [6][7] - **Outdoor Segment**: Revenue decreased 5% to $498 million, with gross and operating margins at 66% and 34% respectively, resulting in operating income of $170 million [8][10] - **Aviation Segment**: Revenue increased 18% to $240 million, with gross and operating margins at 75% and 25% respectively, resulting in operating income of $61 million [11] - **Marine Segment**: Revenue increased 20% to $267 million, with gross and operating margins at 56% and 19% respectively, resulting in operating income of $49 million [12][14] - **Auto OEM Segment**: Revenue decreased 2% to $165 million, with a gross margin of 15% leading to an operating loss of $17 million [14] Market Data and Key Metrics Changes - By geography, double-digit growth was achieved in all three regions: 14% in APAC, 13% in EMEA, and 10% in Americas [16] - Inventory increased year-over-year to approximately $1.9 billion, reflecting a strategy to increase inventory of high-demand product lines [17] Company Strategy and Development Direction - The company is focused on maintaining a diversified business model and anticipates delivering another record year of double-digit growth in revenue, operating income, and EPS [4][6] - New product launches, such as the Edge 550 and Edge 850 cycling computers, and the Bounce 2 smartwatch for kids, are part of the strategy to drive growth in the fitness segment [7][8] - The company is also expanding its presence in the equine wellness market with the Blaze Equine Wellness System [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue of $7.1 billion and raised full-year EPS guidance to $8.15, reflecting strong year-to-date performance [5][18] - The outdoor segment's revenue outlook was revised down due to the late launch of the fnix 8 Pro and high expectations following the previous year's successful product launches [20][21] - Management noted that the overall market for wearables remains strong, with opportunities for growth in both fitness and outdoor segments [29] Other Important Information - The effective tax rate increased to 21.2% due to new U.S. tax legislation affecting R&D cost capitalization [17][18] - Free cash flow for the third quarter was $425 million, with expectations of approximately $1.3 billion for the full year [17] Q&A Session Summary Question: What are the main drivers behind the downward revision to outdoor guidance? - Management indicated that the fnix 8 Pro's late launch and high expectations from previous product releases contributed to the revision [20][21] Question: Can you elaborate on the drivers behind the implied gross margin guide for Q4? - Management noted that higher product costs, tariffs, and warranty accruals impacted gross margins, while Q4 is typically more promotional [22][23][24] Question: How does the company view the cycle for fitness and outdoor segments? - Management sees ongoing opportunities for growth rather than cyclical ups and downs, emphasizing market share gains and product innovation [28][29] Question: What is the outlook for the auto OEM segment as legacy programs wind down? - Management expects revenue pressure in 2026 due to the end of life for certain programs, but anticipates new programs to come online in the latter half of 2026 [41] Question: What is driving the growth in the aviation segment? - Both OEM and aftermarket categories are performing strongly, with a long backlog in OEM and resilient consumer behavior in the aftermarket [42] Question: How is the company managing through the tariff situation? - Management stated that the tariff situation is stable, and they have made necessary short-term adjustments while focusing on long-term optimizations [70]