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Mar 31

IAS Q1 2025 Earnings Report

Reported first quarter 2025 financial results

Key Takeaways

Integral Ad Science (IAS) exceeded expectations in the first quarter of 2025, achieving 17% revenue growth driven by strong performance in optimization and publisher revenue. The company reported net income and raised the midpoint of its full-year financial outlook.

Total revenue increased 17% year-over-year to $134.1 million.

Net income was $8.0 million, a significant improvement from a net loss in the prior year.

Adjusted EBITDA reached $41.5 million with a 31% margin.

The company raised the midpoint of its full-year revenue and adjusted EBITDA guidance.

Total Revenue
$134M
Previous year: $115M
+17.1%
EPS
$0.05
Previous year: -$0.01
-600.0%
Gross Profit Margin
78%
Net Income Margin
6%
Adjusted EBITDA Margin
31%
Previous year: 29%
+6.9%
Gross Profit
$104M
Previous year: $88.4M
+17.5%
Cash and Equivalents
$59.1M
Previous year: $83.9M
-29.6%
Total Assets
$1.13B
Previous year: $1.15B
-1.2%

IAS

IAS

IAS Revenue by Segment

IAS Revenue by Geographic Location

Forward Guidance

For the second quarter of 2025, IAS expects total revenue between $142 million and $144 million and Adjusted EBITDA between $45 million and $47 million. For the full year 2025, the company raised the midpoint of its guidance, expecting total revenue between $590 million and $600 million and Adjusted EBITDA between $204 million and $210 million.

Positive Outlook

  • Raised midpoint of full-year revenue outlook.
  • Raised midpoint of full-year adjusted EBITDA outlook.
  • Strong expected revenue growth in Q2 2025 compared to Q1 2025.
  • Higher expected Adjusted EBITDA in Q2 2025 compared to Q1 2025.
  • Positive full-year outlook reflects strong Q1 performance.

Challenges Ahead

  • Guidance may be impacted by factors outside of IAS's control.
  • Reconciliation for forward-looking adjusted EBITDA to net income not provided due to unreasonable effort.
  • Certain material reconciling items for adjusted EBITDA cannot be estimated.
  • Stock-based compensation expense is a material reconciling item.
  • Forward-looking statements are subject to various risks and uncertainties.

Revenue & Expenses

Visualization of income flow from segment revenue to net income