Integral Ad Science (IAS) AI Stock Analysis

• Market Cap: $1.31B
• Dividend Yield: N/A
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 28.0
• Beta (1Y): 1.49
• Revenue Growth: 13.84%
• EPS Growth: 1494.51%
• Country: US
• Employees: 902
• Sector: Communication Services
• Sector Strength: 84
• Industry: Advertising Agencies
• EPS (TTM): 0.05
• Shares Outstanding: 165,016,300
• 10 Day Avg. Volume: 1,041,375
• 30 Day Avg. Volume: 1,322,392
• PEG Ratio: -0.68
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.38
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 3.17
• 1Y Price Target: $12.39
• Price Target Upside: 56.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 72 Outperform
• Price Target: $9.00 ▲(13.35%Upside)

Integral Ad Science has a strong overall financial performance, supported by robust revenue growth and profitability. The recent earnings call and corporate events further boost the outlook. However, the stock's premium valuation and mixed technical indicators suggest a cautious approach is warranted. The company's strategic initiatives and strong leadership position it well for future growth.

Positive Factors

Financial Performance

IAS reported stronger-than-expected 4Q results, with revenue and EBITDA outperforming prior expectations due to strength across all business lines.

Product Innovation

Optimization outperformance is being lifted by IAS’ new ad performance products within its Total Media Performance suite.

Negative Factors

Market Environment

A notably weak brand demand environment is expected to continue, impacting the company's growth.

Revenue Growth

The Measurement segment decelerates to +4.0% y/y growth in ‘25E, down from +13.4% in ’24, which puts us at the bottom of IAS’ $590M-$600M ‘25E guidance.

Integral Ad Science Business Overview & Revenue Model

Company Description

Integral Ad Science (IAS) is a global technology company specializing in digital media quality. It operates in the advertising sector, providing data and analytics solutions that help advertisers and publishers ensure that their digital ads are viewable by real people, displayed in safe environments, and optimized to maximize engagement. IAS's core products include solutions for ad fraud detection, brand safety, viewability measurement, and contextual targeting, all aimed at enhancing the efficiency and effectiveness of digital advertising campaigns.

How the Company Makes Money

Integral Ad Science makes money through a revenue model that primarily involves selling its technology solutions and services to advertisers, publishers, and agencies. Its key revenue streams include subscription fees for its software-as-a-service (SaaS) offerings and usage-based fees depending on the volume of ad impressions measured or analyzed. IAS also generates income through partnerships with major digital advertising platforms and networks, which integrate IAS's technology to enhance their own offerings. These partnerships often involve revenue-sharing agreements where IAS earns a percentage of the revenue generated from clients using its integrated solutions. Additionally, IAS may engage in custom service agreements for large-scale clients seeking bespoke analytics and reporting solutions.

Integral Ad Science Financial Statement Overview

Summary

Integral Ad Science displays a strong financial position with healthy revenue growth and improved profitability margins. The balance sheet shows low leverage, indicating financial stability, while cash flows are well-managed, supporting operational and strategic flexibility.

Income Statement

Integral Ad Science has shown strong revenue growth of 15.6% over the past year, with a consistent increase in gross profit margins, reaching 78.5% in TTM. Net profit margin improved to 8.6%, indicating enhanced profitability. The EBIT and EBITDA margins also display positive trends, suggesting better operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.02 and a strong equity ratio of 91.4%. Return on equity increased to 4.5%, reflecting improved shareholder returns. However, the significant cash balance and low leverage suggest potential underutilization of capital.

Cash Flow

Operating cash flow to net income ratio is robust at 2.6, indicating efficient cash generation from operations. Free cash flow growth was substantial at 18.6%, supporting reinvestment and debt servicing capabilities. The free cash flow to net income ratio of 1.95 demonstrates strong cash flow coverage.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
549.64M	530.10M	474.37M	408.35M	323.51M	240.63M
	Gross Profit
431.71M	416.14M	375.02M	332.59M	268.94M	200.13M
	EBIT
71.30M	60.39M	17.09M	26.89M	-26.41M	-13.88M
	EBITDA
131.10M	124.35M	72.06M	72.53M	25.55M	51.83M
	Net Income Common Stockholders
47.04M	37.80M	7.24M	15.37M	-52.44M	-32.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
59.12M	84.47M	124.76M	86.88M	73.21M	51.73M
	Total Assets
1.13B	1.15B	1.19B	1.17B	1.13B	849.58M
	Total Debt
23.98M	57.75M	182.68M	252.89M	244.77M	351.40M
	Net Debt
-35.14M	-26.72M	57.92M	166.01M	171.56M	299.66M
	Total Liabilities
97.33M	143.56M	282.27M	360.47M	362.35M	418.10M
	Stockholders Equity
1.04B	1.01B	909.46M	808.22M	767.19M	431.48M
Cash Flow		Free Cash Flow
91.75M	77.35M	97.87M	55.78M	49.94M	24.27M
	Operating Cash Flow
122.56M	117.90M	131.62M	72.47M	63.59M	33.94M
	Investing Cash Flow
-41.15M	-40.54M	-34.72M	-18.29M	-200.09M	-9.66M
	Financing Cash Flow
-106.85M	-116.38M	-58.85M	-37.47M	160.19M	-1.70M

Integral Ad Science Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.94
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IAS, the sentiment is Negative. The current price of 7.94 is below the 20-day moving average (MA) of 8.12, above the 50-day MA of 7.61, and below the 200-day MA of 9.73, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 31.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IAS.

Integral Ad Science Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGNI	78 Outperform	$2.64B	94.40	4.30%	―	5.59%	―
IAS	72 Outperform	$1.31B	27.96	4.80%	―	13.84%	1494.51%
CRTO	71 Outperform	$1.26B	9.63	13.46%	―	-1.18%	100.33%
STGW	66 Neutral	$1.19B	872.55	0.19%	―	9.86%	―
QNST	62 Neutral	$869.09M	―	-0.29%	―	88.81%	99.16%
CMPR	61 Neutral	$1.07B	6.96	-27.42%	―	3.64%	86.92%
Sector *	54 Neutral	HK$64.45B	-1.04	-1.91%	7.94%	-2.68%	-14.14%

Integral Ad Science Corporate Events

Integral Ad Science Expands Credit Agreement with PNC Bank

On June 17, 2025, Integral Ad Science Inc. entered into a second amendment to its credit agreement with PNC Bank and other financial institutions, extending the maturity date to June 17, 2030, and adding a $30 million sub-facility for swingline loans. This amendment allows IAS to increase its borrowing capacity from $300 million to at least $550 million, supporting its growth and enhancing financial flexibility, as stated by CFO Alpana Wegner.

The most recent analyst rating on (IAS) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Integral Ad Science stock, see the IAS Stock Forecast page.

Integral Ad Science Appoints Alpana Wegner as CFO

On June 3, 2025, Integral Ad Science announced the appointment of Alpana Wegner as Chief Financial Officer, effective June 10, 2025. Wegner, who has over 25 years of financial leadership experience, previously served as CFO at Secureworks and Benefitfocus. Her appointment is expected to strengthen IAS’s financial strategy and support its growth ambitions. She will replace Jill Putman, who served as Interim CFO and will continue as an independent board member.

The most recent analyst rating on (IAS) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Integral Ad Science stock, see the IAS Stock Forecast page.

Integral Ad Science Holds Annual Shareholder Meeting

On May 1, 2025, Integral Ad Science Holding Corp. held its Annual Meeting of Shareholders, where key proposals were voted on. Shareholders elected Class I directors to serve until 2028, approved executive compensation on a non-binding advisory basis, and ratified PricewaterhouseCoopers LLP as the independent accounting firm for 2025. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market position and stakeholder confidence.