Integral Ad Science delivered a quarter that exceeded Wall Street’s expectations, driven by robust adoption of its AI-enabled ad verification and optimization solutions across key channels. Management pointed to strong momentum in connected TV (CTV) and social measurement offerings, with CEO Lisa Utzschneider highlighting expanded partnerships and wins in international markets. Utzschneider credited ongoing investment in artificial intelligence infrastructure and enhanced product offerings as central to the company’s ability to secure new customers and deepen existing relationships. Notably, Prebid Social Optimization and new CTV solutions contributed significantly to customer retention and growth, while recent partnerships, such as the two-year expansion with Samsung and new agreements in EMEA and APAC, underpinned the quarter’s outperformance.
Is now the time to buy IAS? Find out in our full research report (it’s free).
Integral Ad Science (IAS) Q2 CY2025 Highlights:
- Revenue: $149.2 million vs analyst estimates of $143.7 million (15.7% year-on-year growth, 3.8% beat)
- Adjusted EPS: $0.16 vs analyst estimates of $0.17 (in line)
- Adjusted Operating Income: $39.8 million vs analyst estimates of $10.55 million (26.7% margin, significant beat)
- The company lifted its revenue guidance for the full year to $601 million at the midpoint from $595 million, a 1% increase
- EBITDA guidance for the full year is $211 million at the midpoint, above analyst estimates of $206.5 million
- Operating Margin: 14%, up from 11% in the same quarter last year
- Market Capitalization: $1.50 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Integral Ad Science’s Q2 Earnings Call
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Andrew Jordan Marok (Raymond James) asked about progress with Oracle customer onboarding and upselling. CEO Lisa Utzschneider reported strong momentum and high renewal rates, with a focus on cross-selling optimization solutions to new accounts.
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Andrew Jordan Marok (Raymond James) followed up on Social Optimization adoption, questioning whether the product reached a point of critical mass. Utzschneider noted doubled adoption rates among advertisers, especially in EMEA, and highlighted a new Meta partnership for ThreadsFeed measurement.
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James Edward Heaney (Jefferies) inquired about drivers of publisher segment growth and its future outlook. Utzschneider pointed to expanded OEM partnerships, adoption of new CTV products, and international customer wins as key factors supporting continued double-digit growth.
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Youssef Houssaini Squali (Truist Securities) asked for detail on growth trends by business line and international markets. CFO Alpana Wegner and Utzschneider described high-single-digit growth in measurement, mid-teens in optimization, and strength in EMEA and APAC, with emerging market expansion highlighted.
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Jacob Armstrong (Key) questioned the drivers behind optimization pricing and volume trends. Utzschneider explained that premium pricing was sustained by adoption of QSP products, and strong results were seen across major demand-side platforms like Google DV360 and Amazon.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be tracking (1) further adoption and upselling within the Oracle customer base, (2) the impact of expanded partnerships and product integrations with platforms such as Meta, Lyft, and StackAdapt, and (3) sustained growth in the publisher and optimization segments, especially as new CTV and social products are rolled out globally. Execution on international expansion plans and continued gross margin improvement will also be key signposts for ongoing performance.
Integral Ad Science currently trades at $9.08, up from $7.95 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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