DoubleVerify (DV) Q2 2025: ABS Activation Jumps 23%, Accelerating Platform Upsell Momentum
DoubleVerify’s Q2 results underscore a decisive shift toward premium product adoption and deeper client engagement, with ABS activation and social measurement outpacing expectations. Rapid expansion among top enterprise advertisers and a broadened solution stack are fueling recurring revenue growth, while new product launches in CTV and social signal further upside into 2026. Management’s raised guidance and disciplined capital allocation reflect confidence in a durable, multi-pronged growth model as digital ad verification evolves.
Summary
- Premium Product Adoption Surges: ABS activation and social solutions drove outsized upsell activity across top clients.
- Enterprise Expansion Broadens Base: New wins and deeper stacking among large advertisers diversify and strengthen recurring revenue.
- 2026 Growth Levers in Place: Recent launches in CTV and social set the stage for multi-year monetization ramp.
Performance Analysis
DoubleVerify delivered broad-based, double-digit growth across all revenue lines in Q2, with advertiser revenue—representing 91% of the business—expanding at its fastest pace since late 2023. The company’s focus on “attach, stack, and scale” is paying off: existing customers are adopting more solutions and expanding usage, while new enterprise wins are scaling rapidly. ABS (Authentic Brand Suitability, DV’s premium verification and optimization suite) grew 23% YoY, now used by 70% of the top 500 customers, highlighting strong product-market fit and pricing power.
Social measurement rebounded sharply, up 14% YoY after a flat Q1, as both new logos and expanded usage among existing clients (like Unilever and Colgate) contributed. Meta pre-bid activation, now live with 26 advertisers, is compounding value by enabling DV to monetize both pre- and post-bid impressions. CTV (connected TV) remains a standout, with measurement impressions up 45% YoY and CTV now accounting for 11% of total measurement volume. Programmatic activation, including Sybids AI optimization, also showed healthy acceleration, with over half of DV’s top 100 customers now engaged.
- ABS Upsell Momentum: Widespread adoption among top clients and new wins drove premium mix and margin expansion.
- Social and CTV Outperformance: Social measurement acceleration and CTV volume growth both outpaced company averages.
- Programmatic Diversification: Retail media and CTV now represent significant shares of activation volume, reducing reliance on legacy web channels.
Cost discipline was evident, with sales and marketing spend growing slower than revenue and EBITDA margin rising to 30%. Cash generation and a strong balance sheet support continued investment and opportunistic buybacks.
Executive Commentary
"Growth was broad-based, with double-digit expansion across all three of our revenue lines, activation, measurement, and supply side...The largest share of our first half revenue growth came from existing advertisers attaching new DV solutions and expanding usage across channels and geographies. That momentum underscores the success of our attach, stack, and scale revenue growth strategies."
Mark Zagorski, Chief Executive Officer
"We achieved balanced performance across the business with growth converting into healthy profitability even as we continue to invest in long-term initiatives...Adjusted EBITDA grew 22% year-over-year to $57 million, with a 30% margin, up from a 27% margin in Q125."
Nicola Elias, Chief Financial Officer
Strategic Positioning
1. Premium Product Penetration Drives Durable Growth
ABS and other premium solutions are increasingly embedded across DV’s largest clients, raising switching costs and improving margin structure. The attach rate for ABS among the top 500 customers reached 70%, and non-ABS activation revenue also climbed 26% YoY, reflecting both depth and breadth of upsell activity. This “stacking” strategy positions DV as a critical partner rather than a point solution, supporting high net revenue retention and recurring value.
2. Social and CTV as Multi-Year Growth Engines
Social measurement’s sharp rebound and CTV’s 45% impression growth highlight two secular tailwinds. DV’s early-mover advantage in Meta pre-bid and Authentic Advantage (a unified verification and optimization workflow) is enabling dual monetization and deeper client integration. CTV’s rising share of impressions and expansion into new partnerships (e.g., Samsung, TCL) position DV to capture shifting ad budgets from linear TV to streaming.
3. Programmatic Diversification and Retail Media Scale
Programmatic is evolving beyond the open web, now encompassing CTV, retail media, and AI-driven optimization. DV’s tags are accepted across 144 retail media networks, with supply-side retail media revenue up 39% YoY. Sybids AI’s expansion into new platforms and strong adoption among top customers further diversify DV’s opportunity set and reduce exposure to legacy channels.
4. Product Innovation and Flexible Pricing Models
DV is leveraging acquisitions (notably Rockerbox) and new pricing approaches (percent of media) to unlock new markets and verticals. These innovations enable DV to address both high-CPM environments like CTV and lower-CPM emerging markets, broadening TAM (total addressable market) and client accessibility.
5. Capital Allocation and Financial Flexibility
With $217 million in cash and no debt, DV maintains ample firepower for M&A, product investment, and buybacks. The company repurchased $82 million in shares in H1 and retains $140 million under current authorization, balancing dilution offset with strategic investment needs.
Key Considerations
DV’s Q2 results highlight a business in transition from point solution provider to platform partner, with momentum across premium product adoption, enterprise expansion, and new channel penetration. The company’s execution in stacking solutions and deepening client relationships is driving recurring revenue and supporting margin expansion, while new product launches lay groundwork for future growth.
Key Considerations:
- ABS and Premium Mix: Continued upsell of ABS and other high-value solutions is key to sustaining margin gains and competitive differentiation.
- Social Activation Ramp: Meta pre-bid and Authentic Advantage are early in their monetization cycles, with most contribution expected in 2026 and beyond.
- CTV Scaling: CTV’s rapid adoption and upcoming product iterations could drive incremental upside as ad dollars migrate from linear to streaming.
- Retail Media and Programmatic Diversification: Expansion into new programmatic verticals, including retail media, reduces reliance on legacy web and broadens DV’s market reach.
- Capital Allocation Discipline: Prudent buybacks and ongoing investment in product innovation reinforce a balanced approach to growth and shareholder returns.
Risks
DV faces macroeconomic uncertainty, including advertiser budget caution and tariff-related volatility, which could dampen near-term spend patterns. Competitive intensity remains elevated, particularly as legacy providers seek to defend share and new entrants innovate in verification and optimization. Execution risk around new product adoption and integration (especially in CTV and social) may lead to slower-than-expected monetization, while evolving ad formats (e.g., AI-driven answer engines) present both opportunity and disruption risk.
Forward Outlook
For Q3, DoubleVerify guided to:
- Revenue between $188 and $192 million (12% YoY growth implied at midpoint)
- Adjusted EBITDA between $60 and $64 million (33% margin at midpoint)
For full-year 2025, management raised guidance:
- Revenue growth of approximately 15% YoY (up from 13%)
- Adjusted EBITDA margin of approximately 32% (reaffirmed)
Management highlighted several factors that underpin confidence:
- Ongoing upsell-driven growth among existing customers
- Strong pipeline and early scaling of new enterprise wins, with most monetization from new social and CTV products expected in 2026 and beyond
Takeaways
DV’s Q2 results and guidance raise reflect a business successfully navigating transition, with premium product adoption, platform expansion, and disciplined execution driving recurring growth and margin leverage.
- Platform Penetration: Deepening client relationships and premium solution stacking are fueling durable, high-margin growth.
- Secular Tailwinds: Social and CTV channels are early in their monetization cycles, with recent launches and partnerships positioning DV for multi-year upside.
- Execution Watchpoint: Investors should monitor adoption rates of new solutions, integration of acquisitions, and competitive dynamics in emerging ad formats.
Conclusion
DoubleVerify’s Q2 results and strategic posture confirm its evolution from verification vendor to multi-solution platform partner, with premium product adoption, enterprise expansion, and new channel penetration driving a robust growth trajectory into 2026.
Industry Read-Through
DV’s performance and commentary signal intensifying demand for integrated verification, optimization, and measurement solutions as digital ad spend shifts to CTV, social, and retail media. The company’s success in stacking premium products and monetizing new ad formats underscores a broader industry pivot toward platform-based, recurring revenue models. DV’s flexible pricing and innovation roadmap highlight the need for verification vendors to adapt to evolving ad ecosystems, including AI-driven and walled garden environments. Competitors and adjacent players should note the rising importance of deep client integration, premium product mix, and channel diversification in sustaining growth and margin expansion.