# EDGAR Filing Document

**Accession Number:** 0001842718
**File Stem:** 0001842718-25-000109
**Filing Date:** 2025-11
**Character Count:** 178221
**Document Hash:** 068dac8ef7cd90c2b871c1cd117f2b85
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001842718-25-000109.hdr.sgml**: 20251104

**ACCESSION NUMBER**: 0001842718-25-000109

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 86

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251104

**DATE AS OF CHANGE**: 20251104

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** INTEGRAL AD SCIENCE HOLDING CORP.
- **CENTRAL INDEX KEY:** 0001842718
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 830731995
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40557
- **FILM NUMBER:** 251446489

**BUSINESS ADDRESS:**
- **STREET 1:** 12 EAST 49TH STREET
- **STREET 2:** 20TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10017
- **BUSINESS PHONE:** (646) 278-4871

**MAIL ADDRESS:**
- **STREET 1:** 12 EAST 49TH STREET
- **STREET 2:** 20TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10017

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** INTEGRAL AD SCIENCE HOLDING LLC
- **DATE OF NAME CHANGE:** 20210301

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** KAVACHA TOPCO, LLC
- **DATE OF NAME CHANGE:** 20210127

?xml version='1.0' encoding='ASCII'? ias-20250930

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended September 30, 2025**

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ______________ to ______________**

**Commission File Number: 001-40557**

![IAS logo.jpg](ias-20250930_g1.jpg)

**INTEGRAL AD SCIENCE HOLDING CORP.**

**(Exact name of registrant as specified in its charter)**

---

| | |
|:---|:---|
| **Delaware** | **83-0731995** |
| **(State or other jurisdiction of<br>incorporation or organization)** | **(IRS Employer<br>Identification No.)** |
| **12 E 49th Street, 20th Floor<br>New York, NY**  | **10017** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**(646) 278-4871**

**(Registrant's telephone number, including area code)**

**Not Applicable**

**(Former name, former address or former fiscal year, if changed since last report)**

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading<br>Symbol(s)** | **Name of each exchange<br>on which registered** |
| **Common Stock, $0.001 par value per share** | **IAS** | **The NASDAQ Stock Market LLC** |
|  |  | **(Nasdaq Global Select Market)** |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

On October 30, 2025, the Registrant had 167,854,529 shares of common stock, $0.001 par value, outstanding.

------

**Table of Contents**

---

| | | |
|:---|:---|:---|
| | | **Page No.** |
| **PART I.** | **<u>[FINANCIAL INFORMATION](#ic9e2456032584bd3b2e25e1e45b92c96_10)</u>** | |
| Item 1. | **<u>[Condensed Consolidated Financial Statements (Unaudited)](#ic9e2456032584bd3b2e25e1e45b92c96_13)</u>** |  |
|  | <u>[Condensed Consolidated Balance Sheets as of](#ic9e2456032584bd3b2e25e1e45b92c96_16)[September](#ic9e2456032584bd3b2e25e1e45b92c96_19)[30, 2025 (Unaudited) and December 31, 2024](#ic9e2456032584bd3b2e25e1e45b92c96_16)</u> | <u>[3](#ic9e2456032584bd3b2e25e1e45b92c96_16)</u> |
|  | <u>[Condensed Consolidated Statements of Operations and Comprehensive Income for the Three and](#ic9e2456032584bd3b2e25e1e45b92c96_19)[Nine](#ic9e2456032584bd3b2e25e1e45b92c96_19)[Months Ended](#ic9e2456032584bd3b2e25e1e45b92c96_19)[September](#ic9e2456032584bd3b2e25e1e45b92c96_19)[30, 2025 and 2024 (Unaudited)](#ic9e2456032584bd3b2e25e1e45b92c96_19)</u> | <u>[4](#ic9e2456032584bd3b2e25e1e45b92c96_19)</u> |
|  | <u>[Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three and](#ic9e2456032584bd3b2e25e1e45b92c96_22)[Nine](#ic9e2456032584bd3b2e25e1e45b92c96_19)[Months Ended](#ic9e2456032584bd3b2e25e1e45b92c96_22)[September](#ic9e2456032584bd3b2e25e1e45b92c96_19)[30, 2025 and 2024 (Unaudited)](#ic9e2456032584bd3b2e25e1e45b92c96_22)</u> | <u>[5](#ic9e2456032584bd3b2e25e1e45b92c96_22)</u> |
|  | <u>[Condensed Consolidated Statements of Cash Flows for the](#ic9e2456032584bd3b2e25e1e45b92c96_25)[Nine](#ic9e2456032584bd3b2e25e1e45b92c96_25)[Months Ended](#ic9e2456032584bd3b2e25e1e45b92c96_25)[September](#ic9e2456032584bd3b2e25e1e45b92c96_19)[30, 2025 and 2024 (Unaudited)](#ic9e2456032584bd3b2e25e1e45b92c96_25)</u> | <u>[7](#ic9e2456032584bd3b2e25e1e45b92c96_25)</u> |
|  | <u>[Notes to the Condensed Consolidated Financial Statements (Unaudited)](#ic9e2456032584bd3b2e25e1e45b92c96_28)</u> | <u>[8](#ic9e2456032584bd3b2e25e1e45b92c96_28)</u> |
| Item 2. | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#ic9e2456032584bd3b2e25e1e45b92c96_88)</u> | <u>[26](#ic9e2456032584bd3b2e25e1e45b92c96_88)</u> |
| Item 3. | <u>[Quantitative and Qualitative Disclosures About Market Risk](#ic9e2456032584bd3b2e25e1e45b92c96_91)</u> | <u>[39](#ic9e2456032584bd3b2e25e1e45b92c96_91)</u> |
| Item 4. | <u>[Controls and Procedures](#ic9e2456032584bd3b2e25e1e45b92c96_94)</u> | <u>[39](#ic9e2456032584bd3b2e25e1e45b92c96_94)</u> |
| **PART II.** | **<u>[OTHER INFORMATION](#ic9e2456032584bd3b2e25e1e45b92c96_97)</u>** |  |
| Item 1. | <u>[Legal Proceedings](#ic9e2456032584bd3b2e25e1e45b92c96_100)</u> | <u>[41](#ic9e2456032584bd3b2e25e1e45b92c96_100)</u> |
| Item 1A. | <u>[Risk Factors](#ic9e2456032584bd3b2e25e1e45b92c96_103)</u> | <u>[41](#ic9e2456032584bd3b2e25e1e45b92c96_103)</u> |
| Item 2. | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#ic9e2456032584bd3b2e25e1e45b92c96_106)</u> | <u>[43](#ic9e2456032584bd3b2e25e1e45b92c96_106)</u> |
| Item 3. | <u>[Defaults Upon Senior Securities](#ic9e2456032584bd3b2e25e1e45b92c96_109)</u> | <u>[43](#ic9e2456032584bd3b2e25e1e45b92c96_109)</u> |
| Item 4. | <u>[Mine Safety Disclosures](#ic9e2456032584bd3b2e25e1e45b92c96_112)</u> | <u>[43](#ic9e2456032584bd3b2e25e1e45b92c96_112)</u> |
| Item 5. | <u>[Other Information](#ic9e2456032584bd3b2e25e1e45b92c96_115)</u> | <u>[43](#ic9e2456032584bd3b2e25e1e45b92c96_115)</u> |
| Item 6. | <u>[Exhibits](#ic9e2456032584bd3b2e25e1e45b92c96_121)</u> | <u>[44](#ic9e2456032584bd3b2e25e1e45b92c96_121)</u> |
|  | **<u>[Signatures](#ic9e2456032584bd3b2e25e1e45b92c96_124)</u>** | <u>[45](#ic9e2456032584bd3b2e25e1e45b92c96_124)</u> |

---

------

**PART I — FINANCIAL INFORMATION**

**Item 1. Financial Statements**

**INTEGRAL AD SCIENCE HOLDING CORP.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
| **(IN THOUSANDS, EXCEPT SHARE DATA)** | **September 30, 2025** | **December 31, 2024** |
| **ASSETS** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $129204 | $84469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 294 | 506 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for credit losses of $3,845 and $7,454 as of September 30, 2025 and December 31, 2024, respectively | 79515 | 79427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unbilled receivables | 54093 | 53388 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 54093 | 36639 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from related party | 13 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 317212 | 254457 |
| Property and equipment, net | 3602 | 4004 |
| Internal use software, net | 61714 | 53636 |
| Intangible assets, net | 115631 | 140943 |
| Goodwill | 677635 | 673025 |
| Operating lease right-of-use assets, net | 20583 | 17888 |
| Deferred tax asset, net | 2439 | 1675 |
| Other long-term assets | 9002 | 5943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1207818 | $1151571 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $58447 | $72910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, current | 11357 | 10184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related party | 4 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 1834 | 1061 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 71642 | 84166 |
| Deferred tax liability, net | 8991 | 3118 |
| Long-term debt, net |  | 34189 |
| Operating lease liabilities, non-current | 13421 | 13374 |
| Other long-term liabilities | 8808 | 8713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 102862 | 143560 |
| Commitments and Contingencies (<u>[Note 14](#ic9e2456032584bd3b2e25e1e45b92c96_73)</u>) |  |  |
| Stockholders' Equity |  |  |
| Preferred Stock, $0.001 par value, 50,000,000 shares authorized at September 30, 2025; 0 shares issued and outstanding at September 30, 2025 and December 31, 2024 |  |  |
| Common Stock, $0.001 par value, 500,000,000 shares authorized, 166,863,690 and 162,871,266 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively | 166 | 163 |
| Additional paid-in-capital | 1025055 | 964765 |
| Accumulated other comprehensive income (loss) | 1540 | (3666) |
| Retained earnings | 78195 | 46749 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 1104956 | 1008011 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $1207818 | $1151571 |

---

See notes to the unaudited condensed consolidated financial statements.

------

**INTEGRAL AD SCIENCE HOLDING CORP.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**

**(UNAUDITED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| **(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)** | **2025** | **2024** | **2025** | **2024** |
| Revenue | $154358 | $133528 | $437628 | $377063 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of revenue | 35553 | 27373 | 100028 | 80628 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 36317 | 30144 | 104243 | 91541 |
| &nbsp;&nbsp;&nbsp;&nbsp;Technology and development | 22632 | 16840 | 62431 | 52305 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 33715 | 25348 | 86457 | 71407 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 17900 | 16243 | 51605 | 47032 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange loss (gain), net | 667 | (2607) | (7113) | (723) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 146784 | 113341 | 397651 | 342190 |
| Operating income | 7574 | 20187 | 39977 | 34873 |
| Interest income (expense), net | 595 | (1325) | 680 | (4787) |
| Net income before income taxes | 8169 | 18862 | 40657 | 30086 |
| Provision for income taxes | (1124) | (2773) | (9211) | (7562) |
| Net income | $7045 | $16089 | $31446 | $22524 |
| Net income per share – basic and diluted | $0.04 | $0.10 | $0.19 | $0.14 |
| Weighted average shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 166473735 | 161663506 | 165056742 | 160528610 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 169800709 | 165084108 | 168275629 | 164635076 |
| Other comprehensive income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustments | 94 | 892 | 5206 | (360) |
| Total comprehensive income | $7139 | $16981 | $36652 | $22164 |

---

See notes to the unaudited condensed consolidated financial statements.

------

**INTEGRAL AD SCIENCE HOLDING CORP.**

**CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY**

**(UNAUDITED)**

**Three Months Ended September 30, 2025**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | | | | |
| **(IN THOUSANDS, EXCEPT SHARES)** | **Shares** | **Amount** |<br>**Additional<br>paid-in<br>capital** |<br>**Accumulated other comprehensive income** |<br>**Retained earnings** |<br>**Total<br>stockholders'<br>equity** |
| **Balance, June 30, 2025** | 165273651 | $165 | $1000857 | $1446 | $71150 | $1073618 |
| RSUs and MSUs vested | 1344795 | 1 |  |  |  | 1 |
| Option exercises | 42826 |  | 185 |  |  | 185 |
| ESPP purchase | 202418 |  | 1410 |  |  | 1410 |
| Stock-based compensation |  |  | 22603 |  |  | 22603 |
| Foreign currency translation adjustment |  |  |  | 94 |  | 94 |
| Net income |  |  |  |  | 7045 | 7045 |
| **Balance, September 30, 2025** | 166863690 | $166 | $1025055 | $1540 | $78195 | $1104956 |

---

**Nine Months Ended September 30, 2025**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | | | | |
| **(IN THOUSANDS, EXCEPT SHARES)** | **Shares** | **Amount** |<br>**Additional<br>paid-in<br>capital** |<br>**Accumulated other comprehensive income (loss)** |<br>**Retained earnings** |<br>**Total<br>stockholders'<br>equity** |
| **Balance, December 31, 2024** | 162871266 | $163 | $964765 | $(3666) | $46749 | $1008011 |
| RSUs and MSUs vested | 3546776 | 3 |  |  |  | 3 |
| Option exercises | 42826 |  | 185 |  |  | 185 |
| ESPP purchase | 402822 |  | 3100 |  |  | 3100 |
| Stock-based compensation |  |  | 57005 |  |  | 57005 |
| Foreign currency translation adjustment |  |  |  | 5206 |  | 5206 |
| Net income |  |  |  |  | 31446 | 31446 |
| **Balance, September 30, 2025** | 166863690 | $166 | $1025055 | $1540 | $78195 | $1104956 |

---

See notes to the unaudited condensed consolidated financial statements.

------

**INTEGRAL AD SCIENCE HOLDING CORP.**

**CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY**

**(UNAUDITED)**

**Three Months Ended September 30, 2024**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | | | | |
| **(IN THOUSANDS, EXCEPT SHARES)** | **Shares** | **Amount** |<br>**Additional<br>paid-in<br>capital** |<br>**Accumulated other comprehensive loss** |<br>**Retained earnings** |<br>**Total<br>stockholders'<br>equity** |
| **Balance, June 30, 2024** | 160786740 | $161 | $934194 | $(2168) | $15389 | $947576 |
| RSUs and MSUs vested | 995796 | 1 |  |  |  | 1 |
| ESPP purchase | 172615 |  | 1478 |  |  | 1478 |
| Stock-based compensation |  |  | 16451 |  |  | 16451 |
| Foreign currency translation adjustment |  |  |  | 892 |  | 892 |
| Net income |  |  |  |  | 16089 | 16089 |
| **Balance, September 30, 2024** | 161955151 | $162 | $952123 | $(1276) | $31478 | $982487 |

---

**Nine Months Ended September 30, 2024**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | | | | |
| **(IN THOUSANDS, EXCEPT SHARES)** | **Shares** | **Amount** |<br>**Additional<br>paid-in<br>capital** |<br>**Accumulated other comprehensive loss** |<br>**Retained earnings** |<br>**Total<br>stockholders'<br>equity** |
| **Balance, December 31, 2023** | 158757620 | $159 | $901259 | $(916) | $8954 | $909456 |
| RSUs and MSUs vested | 2827628 | 3 |  |  |  | 3 |
| Option exercises | 44049 |  | 313 |  |  | 313 |
| ESPP purchase | 325854 |  | 3373 |  |  | 3373 |
| Stock-based compensation |  |  | 47178 |  |  | 47178 |
| Foreign currency translation adjustment |  |  |  | (360) |  | (360) |
| Net income |  |  |  |  | 22524 | 22524 |
| **Balance, September 30, 2024** | 161955151 | $162 | $952123 | $(1276) | $31478 | $982487 |

---

See notes to the unaudited condensed consolidated financial statements.

------

**INTEGRAL AD SCIENCE HOLDING CORP.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(UNAUDITED)** 

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| **(IN THOUSANDS)** | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $31446 | $22524 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 51605 | 47032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 56994 | 47185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency gain, net | (7723) | (1775) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax provision (benefit) | 5109 | (15457) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 355 | 348 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Reversal of) allowance for credit losses | (2119) | 949 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of assets | 48 | 37 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in accounts receivable | 4464 | (7028) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in unbilled receivables | 186 | (1723) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in prepaid expenses and other current assets | (14799) | (18668) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in operating leases, net | (1544) | (1169) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in other long-term assets | (1201) | (696) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accounts payable and accrued expenses and other long-term liabilities | (13878) | (21958) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in deferred revenue | 768 | 768 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in due to/from related party | 8 | (119) |
| Net cash provided by operating activities | 109719 | 50250 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | (863) | (1594) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition and development of internal use software and other | (32218) | (28868) |
| Net cash used in investing activities | (33081) | (30462) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of long-term debt | (35000) | (90000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments for debt issuance costs | (1845) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options | 185 | 313 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash received from Employee Stock Purchase Program | 2263 | 2329 |
| Net cash used in financing activities | (34397) | (87358) |
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 42241 | (67570) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2364 | (113) |
| Cash, cash equivalents and restricted cash at beginning of period | 87335 | 127290 |
| **Cash, cash equivalents, and restricted cash at end of period** | $131940 | $59607 |
| **Supplemental Disclosures:** |  |  |
| Net cash (received) paid during the period for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | $(1015) | $4613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes | $16860 | $29942 |
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment acquired included in accounts payable | $5 | $47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Internal use software acquired included in accounts payable | $599 | $966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities arising from right-of-use assets | $10994 | $6110 |

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See notes to the unaudited condensed consolidated financial statements.

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**INTEGRAL AD SCIENCE HOLDING CORP.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)**

**(UNAUDITED)** 

**1.&nbsp;&nbsp;&nbsp;&nbsp;Description of business**

Integral Ad Science Holding Corp. and its wholly-owned subsidiaries (together, the "Company" or "IAS") is a leading global digital advertising verification company by revenue. The Company's mission is to be the global benchmark for trust and transparency in digital media quality for the world's leading brands, publishers, and platforms. The Company's cloud-based technology platform provides actionable insights and delivers independent measurement and verification of digital advertising across all devices, channels, and formats, including desktop, mobile, connected TV ("CTV"), social, display, and video. The Company's proprietary and Media Rating Council (the "MRC") accredited Quality Impressions<sup>®</sup> metric is designed to verify that digital ads are served to a real person rather than a bot in a brand-safe and suitable environment within the correct geography. The Company is an independent, trusted partner for buyers and sellers of digital advertising to increase accountability, transparency, and effectiveness in the market. The Company helps advertisers optimize their ad spend and better measure consumer engagement with campaigns across platforms, while enabling publishers to improve their inventory yield and revenue.

The Company operates within the United States ("U.S.") in New York, California, and Illinois. Operations outside the U.S. include but are not limited to countries such as the United Kingdom ("U.K."), Ireland, France, Germany, Spain, Italy, Singapore, Australia, Japan, India, and the Nordics.

On September 24, 2025, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Igloo Group Parent, Inc., a Delaware corporation ("Parent"), and Igloo Group Acquisition Company, Inc., a Delaware corporation and a wholly owned subsidiary of Parent ("Merger Sub"). Parent and Merger Sub are affiliates of investment funds managed by Novacap Management Inc. Pursuant to the Merger Agreement, Merger Sub will be merged with and into the Company (the "Merger"), with the Company surviving the Merger as a wholly owned subsidiary of Parent.

Upon the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger (the "Effective Time"), each share of common stock, par value $0.001 per share, of the Company (the "common stock") that is issued and outstanding as of immediately prior to the Effective Time (other than any shares of common stock held by the Company as treasury stock, held by any subsidiary of the Company or owned by Parent or any of its subsidiaries (including Merger Sub), or any shares of common stock as to which appraisal rights have been properly exercised in accordance with Delaware law) will be automatically cancelled, extinguished and converted into the right to receive cash in an amount equal to $10.30, without interest thereon.

The Merger Agreement contains certain customary termination rights for the Company and Parent, including (i) if the Merger is not consummated on or before March 24, 2026, (ii) if the other party breaches its representations, warranties or covenants in a manner that would cause the conditions to the closing of the transactions contemplated by the Merger Agreement to not be satisfied and fails to cure such breach within the applicable cure period, or (iii) if any law, order or judgment preventing or prohibiting the Merger has become final and non-appealable. If the Merger Agreement is terminated under certain circumstances, the Company would be required to pay Parent a termination fee of $52.5 million. Parent would be required to pay to the Company a termination fee of $100.0 million if the Merger Agreement is terminated under certain other circumstances.

The Merger is expected to close in the fourth quarter of 2025, subject to customary closing conditions and regulatory approvals, but not prior to November 23, 2025, without the prior written consent of Parent. Upon consummation of the Merger, the Company will become a privately held company and the common stock will no longer be listed on any public market.

The Company prepared and filed with the Securities and Exchange Commission ("SEC") on October 27, 2025, a Preliminary Information Statement on Schedule 14C, which contains additional information about the Merger Agreement and the Merger.

Transaction costs related to the Merger are recorded in general and administrative expenses within the Condensed Consolidated Statements of Operations and Comprehensive Income.

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**2.&nbsp;&nbsp;&nbsp;&nbsp;Basis of presentation and summary of significant accounting policies**

This summary of significant accounting policies is presented to assist in understanding the Company's condensed consolidated financial statements. These accounting policies have been consistently applied in the preparation of the condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a) Basis of presentation***

The Company's condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and reflect the financial position, results of operations and cash flows for all periods presented. The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP.

The accompanying interim Condensed Consolidated Balance Sheets as of September 30, 2025, the Condensed Consolidated Statements of Operations and Comprehensive Income, of Cash Flows and of Changes in Stockholders' Equity for the three and nine months ended September 30, 2025 and September 30, 2024, and the related footnote disclosures are unaudited. These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in management's opinion, include all adjustments necessary to state fairly the consolidated financial position of the Company. All adjustments made were of a normal recurring nature. The results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025, or for any future period.

The Company's significant accounting policies are discussed in Note 2 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025 (the "2024 Form 10-K") and these unaudited condensed consolidated financial statements should be read in conjunction with the 2024 Form 10-K.

During the third quarter of 2025, the Company identified immaterial misstatements in its previously issued September 30, 2023 unaudited interim condensed consolidated, December 31, 2023 and December 31, 2024 annual audited consolidated and June 30, 2025 unaudited interim condensed consolidated financial statements related to the reversal of previously recognized share-based compensation expense in connection with Return-Target Options (as defined below). The Company assessed the materiality of the effect of the misstatements on its financial statements, including qualitative and quantitative factors, and determined the misstatements are immaterial to the aforementioned periods. Consequently, the Company recorded a cumulative catch up out-of-period adjustment of $4,014 and $3,160 for the three and nine months ended September 30, 2025, respectively, within operating expenses and additional paid-in-capital in the unaudited interim condensed consolidated financial statements to correct the misstatements. Refer to Note 12, Stock-based compensation, for additional information on the Company's stock-based incentive compensation plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b) Basis of consolidation***

The condensed consolidated financial statements include the accounts of Integral Ad Science Holding Corp. and its wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c) Use of estimates***

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Significant estimates include the estimated useful lives of intangible assets and internal use software, the allowance for credit losses, goodwill impairment testing, assumptions used to calculate equity-based compensation, and the realization of deferred tax assets. The Company bases its estimates on past experience, market conditions, and other assumptions that the Company believes are reasonable under the circumstances, and the Company evaluates these estimates on an ongoing basis. Actual results may differ from these estimates due to risks and uncertainties, including the continued uncertainty surrounding the stability of economic conditions due to new and proposed tariffs and uncertainty in the global trade environment, high inflation, changes to fiscal and monetary policy, high interest rates, currency fluctuations, fluctuations and instability in the financial and capital markets and disruptions in European economies as a result of the war in Ukraine and other geopolitical issues.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d) Foreign currency***

The reporting currency of the Company is the U.S. dollar. The functional currency of our foreign subsidiaries is the currency of the primary economic environment in which they operate, which is their local currency. The financial statements of these subsidiaries are translated into U.S. dollars using month-end rates of exchange for assets and liabilities, and average rates of exchange for revenue, costs and expenses. Translation gains and losses are recorded in accumulated other comprehensive income (loss) within stockholders' equity. Transaction gains and losses including those on intercompany transactions denominated in a currency other than the functional currency of the entity involved are included in foreign exchange loss (gain), net in the Condensed Consolidated Statements of Operations and Comprehensive Income.

For the three months ended September 30, 2025, and September 30, 2024, foreign exchange loss (gain), net consists of unrealized foreign exchange losses of $1,070 and gains of $3,339, respectively, and realized transaction gains of $403 and losses of $732, respectively. For the nine months ended September 30, 2025, and September 30, 2024, foreign exchange loss (gain), net consists of unrealized foreign exchange gains of $7,723 and $1,775, respectively, and realized transaction losses of $610 and $1,052, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e) Cash, cash equivalents, and restricted cash***

Cash and cash equivalents include money market accounts and other highly liquid investments with an original maturity date of three months or less at the time of purchase. Cash amounts with restrictions are classified as restricted cash within the Condensed Consolidated Balance Sheets.

The Company generated interest income of $868 and $661 during the three months ended September 30, 2025, and September 30, 2024, respectively, and $2,121 and $2,342 during the nine months ended September 30, 2025, and September 30, 2024, respectively.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Condensed Consolidated Balance Sheets to the amounts shown in the Condensed Consolidated Statements of Cash Flows.

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| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Cash and cash equivalents | $129204 | $84469 |
| Short-term restricted cash | 294 | 506 |
| Long-term restricted cash (held in other long-term assets) | 2442 | 2360 |
| Total cash, cash equivalents, and restricted cash shown in the Condensed Consolidated Statements of Cash Flows | $131940 | $87335 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(f) Accounts receivable, net***

Accounts receivable are carried at the original invoiced amount less an allowance for credit losses. The allowance is estimated by pooling accounts receivables based on similar risk characteristics, and expected credit loss exposure is evaluated for each accounts receivable pool. Invoices are typically issued with net 30-days to net 90-days terms. Account balances are considered delinquent if payment is not received by the due date, and the receivables are written off when deemed uncollectible. The allowance for credit losses is recorded in general and administrative expenses within the Condensed Consolidated Statements of Operations and Comprehensive Income.

The activity in our allowance for credit losses consists of the following:

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| | | |
|:---|:---|:---|
| | **September 30, 2025** | **September 30, 2024** |
| Balance, beginning of period | $7454 | $8645 |
| Change in provision | (2119) | 949 |
| Receivables written-off and impact of exchange rates | (1490) | (278) |
| Balance, end of period | $3845 | $9316 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(g) Stock-based compensation***

Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period. The Company accounts for forfeitures as they occur. The fair value of restricted stock units ("RSUs") that vest over a period of time subject to continued employment is determined on the grant date based on the grant date closing stock price. The Company used the assumptions below in valuing its time-based service options, which vest over a period of time subject to continued employment ("Time-Based Options"), return-target options ("Return-Target Options"), which vest upon a realized cash return of the equity investment of Vista Equity Partners ("Vista"), and funds controlled by Vista and registration of the shares held by Vista, market stock units ("MSUs"), and shares to be purchased under the 2021 Employee Stock Purchase Plan ("ESPP").

*Expected term* — For time-based awards, the estimated expected term of options granted is generally calculated as the vesting period plus the midpoint of the remaining contractual term, as the Company does not have sufficient historical information to develop reasonable expectations surrounding future exercise patterns and post-vesting employment termination behavior. For awards subject to market and performance conditions, the expected term represents the period of time that the options granted are expected to be outstanding.

*Expected volatility* — Volatility is estimated based upon observed option-implied volatilities for the Company in addition to a group of peer companies. The Company believes this is the best estimate of the expected volatility over the weighted-average expected term of its option grants.

*Risk-free interest rate* — The risk-free interest rate is based on the implied yield currently available on U.S. Treasury instruments with terms approximately equal to the expected term of the option.

*Expected dividend* — The expected dividend assumption was based on the Company's history and expectation of dividend payouts. The Company currently has no history or expectation of paying cash dividends on its units.

*Fair value* — The Company's shares are traded in the public market, and accordingly the Company uses the applicable closing price of its common stock to determine fair value.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **September 30, 2025** | **September 30, 2025** | **September 30, 2024** | **September 30, 2024** |
| Estimated fair value | $2.44 | $11.49 | $3.19 | $14.86 |
| Expected volatility (%) | 56% | 60% | 50% | 66% |
| Expected term (in years) | 0.50 | 4.00 | 0.50 | 4.00 |
| Risk-free interest rate (%) | 3.89% | 4.23% | 4.26% | 5.15% |
| Dividend yield |  |  |  |  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(h) Accounting pronouncements not yet adopted***

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which requires companies to disclose more detailed information in their reconciliation of their statutory tax rate to their effective tax rate. The ASU also requires entities to disclose more detailed information about income taxes paid, including by jurisdiction, pretax income (or loss) from continuing operations and income tax expense (or benefit). The updated standard is effective for annual reporting periods, beginning after December 15, 2024. The Company does not expect the adoption of ASU 2023-09 to have a material impact on its consolidated financial statement disclosures.

In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)," which requires companies to disclose, in the notes to financial statements, specified information about certain costs and expenses. The amendments require that at each interim and annual reporting period an entity: (i) disclose the amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization, (ii) include certain amounts that are already required to be disclosed under current U.S. GAAP in the same disclosure as the other disaggregation requirements, (iii) disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, and (iv) disclose the total amount of selling expenses and, in annual reporting periods, an entity's definition of selling expenses. The updated standard is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is

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currently evaluating the provisions of this guidance and assessing the potential impact of the rule on its consolidated financial statement disclosures.

In July 2025, the FASB issued ASU 2025-05 "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets," which provides (i) all entities with a practical expedient and (ii) entities other than public business entities with an accounting policy election when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Revenue from Contract with Customers Topic 606. ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025 and interim reporting periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. The Company is currently evaluating the provisions of this guidance and assessing any potential impact it may have on its consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software" which modernizes the accounting for internal-use software costs by increasing the operability of the recognition guidance considering different methods of software development. ASU 2025-06, which can be applied prospectively, retrospectively, or with a modified transition approach, is effective for the Company for annual reporting as well as interim period reporting beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the provisions of this guidance and assessing any potential impact of the standard on its consolidated financial statements and disclosures.

**3. &nbsp;&nbsp;&nbsp;&nbsp;Revenue**

The following table disaggregates revenue by channel:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Optimization revenue | $73716 | $61118 | $206378 | $172053 |
| Measurement revenue | 57134 | 52903 | 162551 | 151904 |
| Publisher revenue | 23508 | 19507 | 68699 | 53106 |
| Total revenue | $154358 | $133528 | $437628 | $377063 |

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***Remaining Performance Obligations***

Remaining performance obligations represent the transaction price of contracts for services that have not yet been performed. As of September 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations to be recognized over the next one to three years was $19,678. For customers contracting with us on a usage-based pricing model, the Company elected to disclose only the contractual minimum attributed to these performance obligations. For contracts that have a duration of one year or less, the Company has not disclosed the remaining performance obligation.

**4.&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net**

Property and equipment consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Estimated<br>useful life<br>(in years)** | **Estimated<br>useful life<br>(in years)** | **September 30, 2025** | **December 31, 2024** |
| Computer and office equipment | 1 | 3 years | $4437 | $3893 |
| Leasehold improvements | Various | Various | 2991 | 2794 |
| Furniture | 5 years | 5 years | 615 | 573 |
| Total property and equipment |  |  | 8043 | 7260 |
| Less: accumulated depreciation |  |  | (4441) | (3256) |
| Total property and equipment, net |  |  | $3602 | $4004 |

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Depreciation and amortization expense of property and equipment for the three months ended September 30, 2025 and September 30, 2024 was $346 and $347, respectively. Depreciation expense and amortization of property and equipment for the nine months ended September 30, 2025 and September 30, 2024 was $1,076 and $990, respectively.

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**5.&nbsp;&nbsp;&nbsp;&nbsp;Internal use software, net**

Internal use software consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Estimated<br>useful life<br>(in years)** | **Estimated<br>useful life<br>(in years)** | **September 30, 2025** | **December 31, 2024** |
| Internal use software | 3 | 5 years | $134875 | $101326 |
| Less: asset impairments |  |  | (48) | (170) |
| Less: accumulated amortization |  |  | (73113) | (47520) |
| Total internal use software, net |  |  | $61714 | $53636 |

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Amortization expense related to internal use software for the three months ended September 30, 2025 and September 30, 2024 was $8,991 and $6,565, respectively. Amortization expense related to internal use software for the nine months ended September 30, 2025 and September 30, 2024 was $24,892 and $17,747, respectively. During the nine months ended September 30, 2025 and September 30, 2024, the Company wrote-off $48 and $37, respectively, of costs related to projects that are no longer being implemented, which the Company recorded in general and administrative expenses within the Condensed Consolidated Statements of Operations and Comprehensive Income.

**6.&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net**

The gross book value, accumulated amortization, net book value and amortization periods of the intangible assets were as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| | **Estimated<br>useful life** | **Estimated<br>useful life** | **Gross book<br>value** | **Accumulated<br>amortization** | **Net book value** | **Weighted<br>average<br>remaining<br>useful life** |
| Customer relationships | 6 | 15 years | $300800 | $(191088) | $109712 | 7.1 years |
| Developed technology | 5 years | 5 years | 23292 | (20128) | 3164 | 1.1 years |
| Trademarks | 5 | 9 years | 19700 | (16945) | 2755 | 1.7 years |
| Total |  |  | $343792 | $(228161) | $115631 |  |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Estimated<br>useful life** | **Estimated<br>useful life** | **Gross book<br>value** | **Accumulated<br>amortization** | **Net book value** | **Weighted<br>average<br>remaining<br>useful life** |
| Customer relationships | 5 | 15 years | $301921 | $(171150) | $130771 | 7.7 years |
| Developed technology | 5 years | 5 years | 136889 | (131300) | 5589 | 1.8 years |
| Trademarks | 5 | 9 years | 19700 | (15117) | 4583 | 2.4 years |
| Total |  |  | $458510 | $(317567) | $140943 |  |

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Amortization expense related to intangibles for the three months ended September 30, 2025 and September 30, 2024 was $8,563 and $9,331, respectively. Amortization expense related to intangibles for the nine months ended September 30, 2025 and September 30, 2024 was $25,637 and $28,295, respectively. During the nine months ended September 30, 2025, the Company wrote-off $1,169 and $114,559 of fully amortized customer relationship and developed technology assets and the corresponding accumulated amortization.

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Amortization expense for the subsequent five years and thereafter is as follows:

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| | |
|:---|:---|
| 2025 (remaining three months) | $8565 |
| 2026 | 30028 |
| 2027 | 20616 |
| 2028 | 14340 |
| 2029 | 12617 |
| 2030 | 11103 |
| 2031 and thereafter | 18362 |
| Total | $115631 |

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**7.&nbsp;&nbsp;&nbsp;&nbsp;Goodwill**

The following table provides a roll forward of the changes in the goodwill balance:

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| | |
|:---|:---|
| Goodwill as of December 31, 2024 | $673025 |
| Impact of exchange rates and other | 4610 |
| Goodwill as of September 30, 2025 | $677635 |

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**8.&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses and other long-term liabilities**

Accounts payable and accrued expenses consisted of the following:

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| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Accounts payable | $3371 | $16205 |
| Accrued payroll | 6532 | 7123 |
| Accrued professional fees | 8643 | 3780 |
| Accrued bonuses and commissions | 18710 | 19781 |
| Accrued revenue sharing | 4664 | 4500 |
| Taxes payable | 3369 | 6673 |
| Accrued hosting fees | 5437 | 6006 |
| Other accrued expenses | 7721 | 8842 |
| Total accounts payable and accrued expenses | $58447 | $72910 |

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Other long-term liabilities consisted of the following:

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| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Security deposit received | $672 | $672 |
| Uncertain tax positions | 8136 | 8041 |
| Total Other long-term liabilities | $8808 | $8713 |

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**9.&nbsp;&nbsp;&nbsp;&nbsp;Long-term debt**

On September 29, 2021, a subsidiary of the Company entered into a credit agreement with various lenders, which was most recently amended on June 17, 2025 (as amended, the "Credit Agreement"). The Credit Agreement provides for $300,000 in commitments for revolving credit loans (the "Revolver"), which amount may be increased to at least $550,000 pursuant to the accordion feature, or decreased under specific circumstances, with a $30,000 letter of credit sublimit, a $100,000 alternative currency sublimit and a $30,000 swingline loan sublimit. In addition, the Credit Agreement provides for the ability to request incremental term loan facilities, in a minimum amount of $5,000 for each facility. Borrowings pursuant to the Credit Agreement may be used for working capital, capital expenditures and other general corporate purposes, including for acquisitions permitted under the Credit Agreement. In connection with amending the credit agreement on June 17, 2025, the Company incurred costs of $1,845 that were included in Other long-term assets, in the Condensed Consolidated Balance Sheet as of September 30, 2025. In connection with entry into the original Revolver on September 29, 2021, the Company incurred costs of $2,318 that were included in Long-term debt, net, in the Condensed Consolidated Balance Sheet as of December 31, 2024. Unamortized debt issuance costs associated with the original Revolver were $596, in connection with amending the credit agreement, these costs were reclassified as Other long-term assets following the execution of the amendment on June 17, 2025.

As of September 30, 2025, and December 31, 2024, unamortized debt issuance costs were $2,301 and $811, respectively. During the nine months ended September 30, 2025, the Company had no draw downs and paid down $35,000 on the Revolver, and as a result, it had no principal outstanding on the Revolver as of September 30, 2025, and $35,000 principal outstanding as of December 31, 2024.

Borrowings under the Credit Agreement are scheduled to mature on June 17, 2030. The Credit Agreement contains certain customary events of default including failure to make payments when due thereunder, and failure to observe or perform certain covenants.

The interest rates for the Revolver under the Credit Agreement (i) for U.S. dollar loans are equal to the applicable rate for base rate loans ranging from 0.50% to 1.25% per annum, (ii) for Term SOFR Loans and Daily SOFR Loans (each as defined in the Credit Agreement) from 1.50% to 2.25% per annum, (iii) for RFR Loans (as defined in the Credit Agreement) denominated in sterling ranging from 1.5326% to 2.2826%, and (iv) for RFR Loans denominated in euro ranging from 1.5456% to 2.2956%, in each case, based on the Total Net Leverage Ratio (as defined in the Credit Agreement). Base rate borrowings may only be made in dollars. The borrower is required to pay a commitment fee during the term of the Credit Agreement ranging from 0.175% to 0.30% per annum of the average daily undrawn portion of the revolving commitments based on the Total Net Leverage Ratio (as defined in the Credit Agreement).

Any borrowings under the Credit Agreement may be repaid, in whole or in part, at any time and from time to time without premium or penalty other than customary breakage costs, and any amounts repaid may be reborrowed. No mandatory prepayments will be required other than when borrowings and letter of credit usage exceed the aggregate commitment of all lenders.

The Credit Agreement contains covenants requiring certain financial information to be submitted quarterly and annually. In addition, the Company is also required to comply with certain financial covenants such as maintaining a Total Net Leverage Ratio (as defined in the Credit Agreement) of 3.50 to 1.00 or lower and maintaining a minimum Interest Coverage Ratio (as defined in the Credit Agreement) of 2.50 to 1.00. As of September 30, 2025, the Company was in compliance with all covenants contained in the Credit Agreement.

Amortization expense related to debt issuance costs was $122 and $116 during three months ended September 30, 2025 and September 30, 2024, respectively. Amortization expense related to debt issuance costs was $355 and $348 during the nine months ended September 30, 2025 and September 30, 2024, respectively. Amortization of debt issuance costs is recorded to Interest income (expense), net on the Company's Condensed Consolidated Statements of Operations and Comprehensive Income. The Company recognized interest expense of $151 and $1,870 during the three months ended September 30, 2025 and September 30, 2024, respectively. The Company recognized interest expense of $1,086 and $6,781 during the nine months ended September 30, 2025 and September 30, 2024, respectively.

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**10.&nbsp;&nbsp;&nbsp;&nbsp;Income taxes**

At the end of each interim period, the Company estimates the annual expected effective income tax rate and applies that rate to its ordinary year-to-date earnings or loss. The income tax provision or benefit related to significant, unusual, or extraordinary items, if applicable, that will be separately reported or reported net of their related tax effects are individually computed and recognized in the interim period in which they occur. In addition, the effect of changes in enacted tax laws or rates, tax status, judgment on the realizability of a beginning-of-the-year deferred tax asset in future years or unrecognized tax benefits is recognized in the interim period in which the change occurs.

The computation of the annual expected effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year, projections of the proportion of income (and/or loss) earned and taxed in foreign jurisdictions, permanent and temporary differences, and the likelihood of the realization of deferred tax assets generated in the current year. The accounting estimates used to compute the provision or benefit for income taxes may change as new events occur, more experience is acquired, additional information is obtained or the Company's tax environment changes. To the extent that the expected annual effective income tax rate changes during a quarter, the effect of the change on prior quarters is included in income tax provision in the quarter in which the change occurs.

For the three months ended September 30, 2025 and 2024, the Company recorded an income tax provision of $1,124 and $2,773, respectively. The Company's effective tax rate for the three months ended September 30, 2025 and 2024 was 13.8% and 14.7%, respectively. The Company's effective tax rate for the three months ended September 30, 2025 is lower than for the respective three months ended September 30, 2024, primarily due to permanent tax differences and discrete items.

For the nine months ended September 30, 2025 and 2024, the Company recorded an income tax provision of $9,211 and $7,562, respectively. The Company's effective tax rate for the nine months ended September 30, 2025 and 2024 was 22.7% and 25.1%, respectively. The Company's effective tax rate for the nine months ended September 30, 2025 is lower than the nine months ended September 30, 2024, primarily due to permanent tax differences and discrete items.

The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in the income tax provision. The Company is subject to periodic tax audits by authorities in the jurisdictions where it operates and any ongoing audits are not expected to result in a material impact on the Company's financial position or results.

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act ("OBBB"). The OBBB makes key elements of the Tax Cuts and Jobs Act permanent, including 100% bonus depreciation, domestic research cost expensing and the business interest expense limitation. Accounting Standards Codification Topic No. 740, "Income Taxes", requires that entities recognize the effects of changes in tax rates and laws in the period in which the legislation is enacted. Consequently, the Company recorded a reduction to the 2025 tax expense for the period ended September 30, 2025 primarily due to changes in tax laws related to research and development expenditures.

**11.&nbsp;&nbsp;&nbsp;&nbsp;Segment data**

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker ("CODM"), in deciding how to allocate resources and in assessing performance. The Company's Chief Executive Officer is the CODM.

The Company manages its operations as a single operating and reportable segment for the purpose of assessing and making operating decisions. The Company's CODM makes decisions on resource allocation, assesses performance of the business, and monitors budget versus actuals using net income and revenue among other measures of performance. The Company's CODM does not review assets in evaluating the results of the Company. The accounting policies of the segment are the same as those described in the summary of significant accounting policies.

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The following table presents the significant expense categories regularly provided to the CODM used in the determination of consolidated net income as reported in the Condensed Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2025 and September 30, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Revenue | $154358 | $133528 | $437628 | $377063 |
| Less: |  |  |  |  |
| &nbsp;&nbsp;Cost of revenue (excluding compensation expense) | 34299 | 26214 | 95982 | 76924 |
| &nbsp;&nbsp;Compensation expense | 65792 | 53633 | 184261 | 158873 |
| &nbsp;&nbsp;Non-compensation expense | 28793 | 17251 | 65803 | 59361 |
| &nbsp;&nbsp;Depreciation and amortization | 17900 | 16243 | 51605 | 47032 |
| &nbsp;&nbsp;Interest (income) expense, net | (595) | 1325 | (680) | 4787 |
| &nbsp;&nbsp;Provision for income taxes | 1124 | 2773 | 9211 | 7562 |
| Net income | $7045 | $16089 | $31446 | $22524 |

---

The following table summarizes revenue by geographic area based on selling location:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| North and South America ("Americas") | $110289 | $92681 | $307404 | $260074 |
| Europe, Middle East and Africa ("EMEA") | 35020 | 31492 | 103092 | 89524 |
| Asia and Pacific Rim ("APAC") | 9049 | 9355 | 27132 | 27465 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $154358 | $133528 | $437628 | $377063 |

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For the three months ended September 30, 2025 and September 30, 2024, revenue in the U.S. was $105,387 and $87,689, respectively. For the nine months ended September 30, 2025 and September 30, 2024, revenue in the U.S. was $294,133 and $246,471, respectively.

The following table summarizes long lived assets (including property and equipment, net and operating lease right-of-use assets), net by geographic area:

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| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Americas | $10617 | $10506 |
| EMEA | 10637 | 7367 |
| APAC | 2931 | 4019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total long-lived assets | $24185 | $21892 |

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As of September 30, 2025 and December 31, 2024, long lived assets, net in the U.S. were $10,617 and $10,506, respectively. As of September 30, 2025 and December 31, 2024 long lived assets, net in the U.K. were $6,566 and $6,651, respectively.

**12.&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation**

Total stock-based compensation expense for all equity arrangements for the three and nine months ended September 30, 2025 and September 30, 2024 were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Cost of revenue | $82 | $80 | $258 | $286 |
| Sales and marketing | 7261 | 4829 | 18379 | 14002 |
| Technology and development | 8486 | 4941 | 18692 | 14139 |
| General and administrative | 6796 | 6593 | 19665 | 18758 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $22625 | $16443 | $56994 | $47185 |

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The Company maintains multiple stock-based incentive compensation plans. Expense relating to outstanding awards under such plans is summarized as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | | **Weighted<br>Average Vesting Term** |
| | **2025** | **2024** | **2025** | **2024** | **Unamortized Expense as of**<br>**September 30, 2025** | **Weighted<br>Average Vesting Term** |
| Time-Based Options |  |  |  |  |  |  |
| &nbsp;&nbsp;2018 Plan | $— | $111 | $— | $747 |  |  |
| &nbsp;&nbsp;2021 Plan |  | 536 | 933 | 1605 |  |  |
| Total Time-Based Options Expense | $— | $647 | $933 | $2352 | $— | 0.0 years |
| Return-Target Options |  |  |  |  |  |  |
| &nbsp;&nbsp;2018 Plan | $3617 | $— | $2763 | $— |  |  |
| &nbsp;&nbsp;2021 Plan | 397 |  | 397 |  |  |  |
| Total Return-Target Options Expense | $4014 | $— | $3160 | $— | $— | 0.0 years |
| Other Equity Awards Under 2021 Plan |  |  |  |  |  |  |
| &nbsp;&nbsp;Restricted Stock Units ("RSUs") | $12309 | $10444 | $36009 | $30529 | $106383 | 2.8 years |
| &nbsp;&nbsp;Market Stock Units ("MSUs") | 5934 | 4976 | 15693 | 13000 | 26332 | 3.3 years |
| Other Equity Awards Under 2021 Plan Expense | $18243 | $15420 | $51702 | $43529 | $132715 |  |
| Employee Stock Purchase Plan ("ESPP") | $368 | $376 | $1199 | $1304 |  |  |
| Total Stock-Based Compensation Expense | $22625 | $16443 | $56994 | $47185 | $132715 |  |

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***Integral Ad Science Holding Corp. Amended and Restated 2018 Non-Qualified Stock Option Plan***

On August 1, 2018, the Company adopted the 2018 Non-Qualified Stock Option Plan ("2018 Plan"). Under the 2018 Plan, the Company issued (i) Time-Based Options that vested over four years with 25% vesting after twelve months and an additional 6.25% vesting at the end of each successive quarter thereafter; and (ii) Return-Target Options.

In connection with the Company's initial public offering ("IPO"), the 2018 Plan was amended and restated ("Amended and Restated 2018 Plan") with the following modifications: (i) the provision to repurchase the Time-Based Options at cost upon resignation of the employee was removed and (ii) the Return-Target Options were modified to include vesting upon a sale of shares by Vista following the IPO resulting in Vista realizing a cash return on its investment in the Company equaling or exceeding $1.17 billion.

The Return-Target Options vest and become exercisable following both (i) a registration of shares of common stock held by Vista and (ii) Vista realizing a cash return on its investment in the Company equaling or exceeding $1.17 billion. During the second quarter of 2023, with the filing of a "shelf" registration statement on Form S-3 and under then-current market conditions, the implied performance condition relating to the Return-Target Options was deemed to be probable and the Company recorded $23,450 of stock-based compensation expense at that time.

The total number of Time-Based Options and Return-Target Options outstanding under the Amended and Restated 2018 Plan as of September 30, 2025 were 2,149,893 and 1,220,893, respectively. The Company does not expect to issue any additional awards under the Amended and Restated 2018 Plan.

***2021 Omnibus Incentive Plan ("2021 Plan")***

On June 29, 2021, the Company adopted the 2021 Plan to incentivize executive officers, management, employees, consultants and directors of the Company and to align the interests of the participants with those of the Company's stockholders. As of September 30, 2025, there were 51,202,752 shares reserved for issuance under the 2021 Plan and the total number of shares reserved for issuance under the 2021 Plan is increased on January 1 of each of the first 10 calendar years during the term of the 2021 Plan, by the lesser of (i) 5% of the total number of shares of common stock outstanding on each

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December 31 immediately prior to the date of increase or (ii) such number of shares of common stock determined by our Board or compensation committee.

As of September 30, 2025, there were 1,002,162 total options outstanding under the 2021 Plan, consisting of 667,866 Time-Based Options and 334,296 Return-Target Options. The vesting conditions for the options issued under the 2021 Plan are identical to those described under the Amended and Restated 2018 Plan.

***Time-Based Service Option activity***

Time-Based Service Option activity is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Options** | **Weighted<br>Average<br>Exercise Price** | **Weighted Average<br>Remaining<br>Contractual Life<br>(years)** | **Intrinsic<br>Value** |
| **Outstanding as of December 31, 2024** | 2887810 | $7.39 | 4.61 | $13859 |
| Canceled or forfeited | (27225) | 8.58 |  |  |
| Exercised | (42826) | 4.32 |  |  |
| **Outstanding as of September 30, 2025** | 2817759 | $7.42 | 3.86 | $12965 |
| Vested as of September 30, 2025 | 2817759 | $7.42 | 3.86 | $12965 |
| Exercisable as of September 30, 2025 | 2817759 | $7.42 | 3.86 | $12965 |

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***Return-Target Options activity***

Return-Target Option activity is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Options** | **Weighted<br>Average<br>Exercise Price** | **Weighted Average<br>Remaining<br>Contractual Life<br>(years)** | **Intrinsic<br>Value** |
| **Outstanding as of December 31, 2024** | 1627789 | $7.24 | 4.71 | $7743 |
| Canceled or forfeited | (72600) | 8.58 |  |  |
| Exercised |  |  |  |  |
| **Outstanding as of September 30, 2025** | 1555189 | $7.17 | 3.91 | $7278 |
| Vested and expected to vest as of September 30, 2025 | 1555189 | $7.17 | 3.91 | $7278 |
| Exercisable as of September 30, 2025 |  | $— |  | $— |

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***Restricted Stock Units***

The RSUs under the 2021 Plan granted prior to May 2022 vest 25% each year and become fully vested after four years of service. RSUs under the 2021 Plan granted during or after May 2022 vest 6.25% at the end of each successive quarter and become fully vested after four years of service.

RSU activity for the nine months ended September 30, 2025 is as follows:

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| | | |
|:---|:---|:---|
| | **RSUs** | **RSUs** |
| | **Number of Shares** | **Weighted Average Grant Date Fair Value** |
| **Outstanding as of December 31, 2024** | 9564119 | $11.59 |
| Granted | 6674246 | 8.31 |
| Canceled or forfeited | (1053117) | 10.96 |
| Vested | (2961041) | 11.80 |
| **Outstanding as of September 30, 2025** | 12224207 | $9.80 |
| Expected to vest as of September 30, 2025 | 12224207 |  |

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***Market Stock Units***

The Company granted MSUs under the 2021 Plan to certain executive officers. MSUs vest over four years, 25% on the first anniversary of the vesting commencement date and 6.25% at the end of each quarter thereafter. The number of MSUs eligible to vest is based on the performance of the Company's common stock over each applicable vesting period. The number of shares eligible to vest is calculated based on a payout factor. The payout factor is calculated by dividing (i) the average closing price of the Company's stock during the ten trading days immediately preceding the applicable vesting date by (ii) the closing price of the Company's stock on the vesting commencement date. The payout factor is zero if the quotient is less than 0.60 and is capped at 2.25. This quotient is then multiplied by the target number of MSUs granted to the relevant officer to determine the number of shares to be issued to the officer at vesting. The grant date fair value of the MSUs was determined using a Monte-Carlo simulation. The Company uses the accelerated attribution method to account for these awards.

MSU activity for the nine months ended September 30, 2025 is as follows:

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| | | |
|:---|:---|:---|
| | **MSUs** | **MSUs** |
| | **Number of Shares** | **Weighted Average <br>Grant Date Fair Value** |
| **Outstanding as of December 31, 2024** | 2029171 | $16.09 |
| Granted | 2401004 | 11.49 |
| Canceled or forfeited |  |  |
| Change in awards based on performance | (167390) | 17.36 |
| Vested | (585735) | 15.90 |
| **Outstanding as of September 30, 2025** | 3677050 | $13.24 |
| Expected to vest as of September 30, 2025 | 3677050 |  |

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***2021 Employee Stock Purchase Plan ("ESPP")***

The Company adopted the ESPP for the primary purpose of incentivizing employees in future periods. As of September 30, 2025, 7,789,746 shares of common stock are reserved for issuance under the ESPP, and the number of shares available for issuance is increased on January 1 of each calendar year, beginning in 2022 and ending in and including 2031, by an amount equal to the lesser of (i) 1% of the shares outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as is determined by our Board, subject to a maximum of 16,000,000 shares of our common stock for the portion of the ESPP intended to qualify as an employee stock purchase plan under Section 423 of the Internal Revenue Code. All Company employees and employees of designated subsidiaries are eligible to participate in the ESPP and may purchase shares through payroll deductions of up to 15% of their eligible compensation, subject to a maximum of $25 in any annual period for the portion of the ESPP intended to qualify as an employee purchase plan under Section 423 of the Internal Revenue Code.

The ESPP provides eligible employees the opportunity to purchase shares of the Company's common stock through payroll deductions at a price equal to 85% of the fair market value of the shares on (i) the first business day of the offering period or (ii) the last business day of the offering period, whichever is lower. The ESPP is offered to employees in six-month windows, with phases beginning on February 1 and August 1 of each calendar year. For the window that ended on January 31, 2025, employees purchased 200,404 shares at a price of $8.43 per share. For the window that ended on July 31, 2025, employees purchased 202,418 shares at a price of $6.97 per share. For the window that ended on January 31, 2024, employees purchased 153,239 shares at a price of $12.37 per share. For the window that ended on July 31, 2024, employees purchased 172,615 shares at a price of $8.65 per share. As of September 30, 2025, 6,787,501 shares were available for future purchase under the ESPP.

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**13.&nbsp;&nbsp;&nbsp;&nbsp;Stockholders' equity**

As of September 30, 2025, our authorized common stock consists of 500,000,000 shares of common stock, par value $0.001 per share and 50,000,000 preferred stock, par value $0.001 per share.

For the three months ended September 30, 2025, the Company issued 1,344,795 shares of common stock for vested RSUs and MSUs, employees exercised stock options in exchange for 42,826 shares of common stock for $185, and employees purchased 202,418 shares of common stock through the ESPP. For the nine months ended September 30, 2025, the Company issued 3,546,776 shares of common stock for vested RSUs and MSUs, employees exercised stock options in exchange for 42,826 shares of common stock for $185, and employees purchased 402,822 shares of common stock through the ESPP.

For the three months ended September 30, 2024, the Company issued 995,796 shares of common stock for vested RSUs and MSUs and employees purchased 172,615 shares of common stock through the ESPP. For the nine months ended September 30, 2024, the Company issued 2,827,628 shares of common stock for vested RSUs and MSUs, employees exercised stock options in exchange for 44,049 shares of common stock for $313, and employees purchased 325,854 shares of common stock through the ESPP.

**14.&nbsp;&nbsp;&nbsp;&nbsp;Commitments and contingencies**

***Indemnifications***

In its normal course of business, the Company has made certain indemnities, commitments, and guarantees under which it may be required to make payments in relation to certain transactions. Those indemnities include intellectual property indemnities to the Company's customers, indemnities to directors and officers of the Company to the maximum extent permitted under the laws of the State of Delaware, and indemnifications related to the Company's lease agreements. In addition, the Company's advertiser and distribution partner agreements contain certain indemnification provisions which are generally consistent with those prevalent in the Company's industry. The Company has not incurred any obligations under indemnification provisions historically and currently does not expect to incur significant obligations in the future. Accordingly, the Company has not recorded any liability for these indemnities, commitments, and guarantees in the accompanying balance sheets.

***Purchase commitments***

In the ordinary course of business, the Company enters into various purchase commitments primarily related to third-party cloud hosting and data services, and information technology operations. Total non-cancelable purchase commitments as of September 30, 2025 were approximately $376,809 for periods through 2029.

***Legal Proceedings***

In June 2025, the Oklahoma Firefighters Pension and Retirement System was appointed as lead plaintiff and filed, on behalf of itself and a purported class of stockholders of the Company, an amended securities class action complaint in the U.S. District Court for the Southern District of New York. Plaintiffs assert claims against the Company, certain of its current and former officers, and Vista Equity Partners Management, LLC and certain of its affiliates ("Vista"), alleging violations of Sections 10(b), 20(a) and 20A of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 thereunder, in connection with alleged material false and misleading statements and omissions and Vista's trading of the Company's securities. The amended complaint seeks various forms of relief, including unspecified compensatory damages and disgorgement of insider profits. The Company intends to vigorously defend itself against these allegations. At this time, the Company is unable to assess the likelihood of any potential loss or estimate the amount or range of potential losses, if any, from this matter.

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**15.&nbsp;&nbsp;&nbsp;&nbsp;Net income per share**

Basic and diluted income per share is computed by dividing net income by the weighted-average shares outstanding:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Numerator:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $7045 | $16089 | $31446 | $22524 |
| **Denominator:** |  |  |  |  |
| Basic Shares: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted-average shares outstanding | 166473735 | 161663506 | 165056742 | 160528610 |
| Diluted Shares: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic weighted-average shares outstanding | 166473735 | 161663506 | 165056742 | 160528610 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dilutive effect of stock-based awards | 3326974 | 3420602 | 3218887 | 4106466 |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted-average diluted shares outstanding | 169800709 | 165084108 | 168275629 | 164635076 |
| &nbsp;&nbsp;Net income per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.04 | $0.10 | $0.19 | $0.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.04 | $0.10 | $0.19 | $0.14 |

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The following potential outstanding equity awards were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented given that their inclusion would have been anti-dilutive. Since the conditions associated with the vesting of the Return Target Options have not occurred as of the reporting date, such equity awards are excluded from the table below.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Options to purchase common stock | 1002162 | 1175071 | 1038329 | 1187222 |
| Restricted stock units | 5190939 | 544113 | 6208353 | 3309333 |
| Market stock units |  | 4447652 | 232603 | 1630057 |
| Total | 6193101 | 6166836 | 7479285 | 6126612 |

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**16.&nbsp;&nbsp;&nbsp;&nbsp;Fair value disclosures**

***Assets and liabilities measured at fair value on a recurring basis***

The Company invests in money market funds, which are measured and recorded at fair value on a recurring basis at each reporting period. Money market funds are valued based on quoted market prices in active markets and classified within Level 1 of the fair value hierarchy.

The following table summarizes our cash equivalents measured at fair value on a recurring basis:

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| | | |
|:---|:---|:---|
| | **Fair value hierarchy** | **Fair value** |
| Money market funds |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;September 30, 2025 | Level 1 | $16565 |
| &nbsp;&nbsp;&nbsp;&nbsp;December 31, 2024 | Level 1 | $16055 |

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The carrying value of cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximated fair value due to their short maturities.

***Financial instruments***

Financial instruments are valued based on observable inputs and classified within Level 2 of the fair value hierarchy. The carrying value of long-term debt approximates its fair value based on Level 2 inputs as the principal amounts outstanding are subject to variable interest rates that are based on market rates (see Note 9, "Long-term debt").

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**17.&nbsp;&nbsp;&nbsp;&nbsp;Related-party transactions**

The Company incurs various travel and other expenses related to services provided by Vista Equity Partners Management, LLC ("VEP"). For the three months ended September 30, 2025 and September 30, 2024, the Company incurred expenses of $5 and $2, respectively. For the nine months ended September 30, 2025 and September 30, 2024, the Company incurred expenses of $21 and $20, respectively. These costs were included in general and administrative expenses. There were no amounts due to VEP as of September 30, 2025 and December 31, 2024.

In January 2024, underwriters exercised their option to purchase an additional 1,650,000 shares of the Company's common stock from funds affiliated with Vista, in connection with the secondary offering completed in December 2023. The Company did not receive any proceeds from these sales.

In connection with entering into the Merger Agreement, on September 24, 2025, Parent and the Company entered into a support agreement (the "Support Agreement") with VEP and certain investment funds affiliated with VEP. Under the Support Agreement, the stockholders party thereto agreed to vote or execute consents with respect to all of their shares of common stock in favor of the Merger and the other transactions contemplated by the Merger Agreement, subject to certain terms and conditions contained therein. Pursuant to the Support Agreement, the parties thereto also agreed to terminate certain agreements between VEP and its affiliates, on the one hand, and the Company, on the other hand, and to modify certain surviving provisions contained therein. On September 24, 2025, VEP, the other parties to the Support Agreement and Atlas Venture Fund VIII, L.P. delivered a written consent approving and adopting in all respects the Merger Agreement and the transactions contemplated by the Merger Agreement.

The Company had other related party transactions with companies controlled by Vista Equity Partners that are immaterial individually and in aggregate to the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations and Comprehensive Income.

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**FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q ("Quarterly Report") contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this Quarterly Report are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance, and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "will," "should," "can have," "likely," and other words and terms of similar meaning in connection with any discussion of the timing or nature of future events or operating or financial performance. For example, all statements we make relating to our expectations relating to the Merger and the transactions contemplated by the Merger Agreement, our estimated and projected costs, expenditures, cash flows, growth rates and financial results or our plans and objectives for future operations, growth initiatives, or strategies are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk that the Merger may not be completed in a timely manner or at all, which may adversely affect our business and the price of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the timing to consummate the Merger, or the occurrence of any event, change, or other circumstances that could give rise to the termination of the Merger Agreement, including circumstances requiring a party to pay the other party a termination fee pursuant to the Merger Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the failure to satisfy the conditions to the consummation of the Merger, and the other transactions contemplated thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk that a governmental or regulatory approval that may be required for the Merger is not obtained or is obtained subject to conditions that are not anticipated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effect of the pendency of the Merger on our business relationships, operating results and business generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain restrictions during the pendency of the Merger that may impact our ability to pursue certain business opportunities or strategic transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks that the Merger disrupts current plans and operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to diverting management's attention from our ongoing business operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the outcome of any legal proceedings that may be instituted against the parties to the Merger Agreement or their respective directors, managers or officers, including the effects of any outcomes related thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to retain, hire and integrate skilled personnel, and maintain relationships with key business partners and customers, and others with whom we do business, in light of the proposed Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unexpected costs, charges or expenses resulting from the Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks that the benefits of the Merger are not realized when and as expected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• factors that affect the amount of advertising spending, such as economic downturns and marketability, uncertainty surrounding the stability of economic conditions due to new and proposed tariffs and uncertainty in the global trade environment, instability in geopolitical or market conditions generally, and any changes in tax treatment of advertising expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our failure to innovate or make the right investment decisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to provide digital or cross-platform analytics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to sustain our profitability and revenue growth rate, particularly if our revenue growth continues to decline;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our dependence on integrations with advertising platforms, demand side providers ("DSPs"), proprietary platforms and ad severs that we do not control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• issues in the development and use of artificial intelligence and machine learning;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our failure to maintain or achieve industry accreditation standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain high impression volumes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks that our customers do not pay or choose to dispute their invoices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our dependence on the overall demand for advertising;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to compete successfully with our current or future competitors in an intensely competitive market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our international expansion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to expand into new channels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks of material changes to revenue share agreements with certain DSPs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to effectively manage our growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact that any acquisitions we have completed in the past and may consummate in the future, strategic investments, or alliances may have on our business, financial condition, and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to successfully execute our international plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risks associated with the seasonality of our market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the difficulty in evaluating our future prospects given our short operating history;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• uncertainty in how the market for buying digital advertising verification solutions will evolve;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk that a perceived failure to comply with laws and industry self-regulation may damage our reputation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interruption by man-made problems such as terrorism, computer viruses, or social disruption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk of failures in the systems and infrastructure supporting our solutions and operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to avoid operational, technical, and performance issues with our platform;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with any unauthorized access to user, customer, or inventory and third-party provider data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to provide the non-proprietary technology, software, products, and services that we use;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk that we are sued by third parties for alleged infringement, misappropriation, or other violation of their proprietary rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to obtain, maintain, protect, or enforce intellectual property and proprietary rights that are important to our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our involvement in lawsuits to protect or enforce our intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks that our employees, consultants, or advisors have wrongfully used or disclosed alleged trade secrets of their current or former employers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks that our trademarks and trade names are not adequately protected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of unforeseen changes to privacy and data protection laws and regulation on digital advertising;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain our corporate culture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks posed by earthquakes, fires, floods, public health crisis and other natural catastrophic events; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other factors disclosed in the section entitled "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024 and this Quarterly Report on Form 10-Q.

We derive many of our forward-looking statements from our operating budgets and forecasts, which are based on many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. Important factors that could cause actual results to differ materially from our expectations, or cautionary statements, are disclosed under the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2024, as well as in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Quarterly Report. All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements as well as other cautionary statements that are made from time to time in our other SEC filings and public communications. You should evaluate all forward-looking statements made in this Quarterly Report in the context of these risks and uncertainties.

We caution you that the important factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our operations in the way we expect. The forward-looking statements included in this Quarterly Report are made only as of the date hereof. We undertake no obligation to update

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or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

**Item 2.&nbsp;&nbsp;&nbsp;&nbsp;Management's Discussion and Analysis of Financial Condition and Results of Operations**

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q. The following discussion and analysis contains forward-looking statements that involve risks and uncertainties. When reviewing the discussion below, you should keep in mind the substantial risks and uncertainties that could impact our business. In particular, we encourage you to review the risks and uncertainties described in the sections titled "Risk Factors" and "Forward-Looking Statements" included in our 2024 Form 10-K and in this Quarterly Report on Form 10-Q. These risks and uncertainties could cause actual results to differ materially from those projected in forward-looking statements contained in this report or implied by past results and trends. Our historical results are not necessarily indicative of the results that may be expected for any period in the future, and our interim results are not necessarily indicative of the results we expect for the full fiscal year or any other period. Unless the context otherwise requires, the terms "Company," "Integral Ad Science Holding Corp.," "IAS," "we," "us," "our," or similar terms refer to Integral Ad Science Holding Corp. and, where appropriate, its subsidiaries.*

**Overview** 

We are a leading global media measurement and optimization platform. Through our cloud-based technology platform and the actionable insights it provides, we deliver independent measurement and verification of digital advertising across all devices, channels, and formats, including desktop, mobile, connected TV ("CTV"), social, display, video and emerging media like audio and gaming. Our proprietary and Media Rating Council (the "MRC") accredited Quality Impressions<sup>®</sup> metric is designed to verify that digital ads are served to a real person rather than a bot in a brand-safe and suitable environment within the correct geography.

Without an independent evaluation of digital advertising quality, brands and their agencies previously relied on a wide range of publishers and ad platforms to self-report and measure the effectiveness of campaigns without a global benchmark or holistic reporting platform to understand success. We are an independent, trusted partner for buyers and sellers of digital advertising to increase accountability, transparency, and effectiveness in the market. We help advertisers optimize their ad spend and better measure consumer engagement with campaigns across platforms, while enabling publishers to improve their inventory yield and revenue.

As a leading global media measurement and optimization platform, we are deeply integrated with all the major advertising and technology platforms including Meta (which includes Facebook and Instagram), Google, YouTube, LinkedIn, Amazon, Microsoft, Pinterest, Snap, Spotify, TikTok, Reddit, The Trade Desk, X (formerly known as Twitter), and Yahoo. Our platform leverages customized, internally developed artificial intelligence and machine learning technologies to process over 280 billion digital interactions daily, on average, as of December 31, 2024. With this vast wealth of data, we provide actionable insights through our intuitive reporting tool, IAS Signal™, helping brands, agencies, publishers, and platform partners improve media quality.

Our pre-bid optimization and post-bid measurement and blocking solutions enable advertisers to measure campaign performance and value across viewability and attention, ad fraud prevention, brand safety and suitability, MFA, and contextual targeting for ads across platforms and environments like desktop, mobile in-app, social, and CTV platforms. Our pre-bid solution is directly integrated with DSPs to help optimize return on ad spend ("ROAS") by directing budget to the best available inventory. Our contextual ability is enabled through our deep integrations with all major DSPs. In addition, our targeting and pre-bid solutions extend to the social platforms. Additionally, our Total Visibility<sup>®</sup> offering provides marketers with actionable insights to optimize their campaign spend and drive higher yield by focusing on the most efficient and cost-effective pathways. Our solutions help hundreds of publishers globally deliver high quality ad inventory that is fraud free, viewable, brand safe and suitable, and geographically targeted.

**Pending Take-Private Merger**

On September 24, 2025, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Igloo Group Parent, Inc., a Delaware corporation ("Parent"), and Igloo Group Acquisition Company, Inc., a Delaware corporation and a wholly owned subsidiary of Parent ("Merger Sub"). Parent and Merger Sub are affiliates of investment funds

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managed by Novacap Management Inc. Pursuant to the Merger Agreement, Merger Sub will be merged with and into the Company (the "Merger"), with the Company surviving the Merger as a wholly owned subsidiary of Parent.

Upon the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger (the "Effective Time"), each share of common stock, par value $0.001 per share, of the Company (the "common stock") that is issued and outstanding as of immediately prior to the Effective Time (other than any shares of common stock held by the Company as treasury stock, held by any subsidiary of the Company or owned by Parent or any of its subsidiaries (including Merger Sub), or any shares of common stock as to which appraisal rights have been properly exercised in accordance with Delaware law) will be automatically cancelled, extinguished and converted into the right to receive cash in an amount equal to $10.30, without interest thereon.

The Merger Agreement contains certain customary termination rights for the Company and Parent, including (i) if the Merger is not consummated on or before March 24, 2026 (the "Termination Date"), (ii) if the other party breaches its representations, warranties or covenants in a manner that would cause the conditions to the closing of the transactions contemplated by the Merger Agreement to not be satisfied and fails to cure such breach within the applicable cure period, or (iii) if any law, order or judgment preventing or prohibiting the Merger has become final and non-appealable. If the Merger Agreement is terminated under certain circumstances, the Company would be required to pay Parent a termination fee of $52.5 million. Parent would be required to pay to the Company a termination fee of $100.0 million if the Merger Agreement is terminated under certain other circumstances.

The Merger is expected to close in the fourth quarter of 2025, subject to customary closing conditions and regulatory approvals, but not prior to November 23, 2025, without the prior written consent of Parent. Upon consummation of the Merger, the Company will become a privately held company and the common stock will no longer be listed on any public market.

The Company prepared and filed with the Securities and Exchange Commission ("SEC") on October 27, 2025, a Preliminary Information Statement on Schedule 14C, which contains additional information about the Merger Agreement and the Merger.

**Macroeconomic and Geopolitical Conditions**

During the first nine months of 2025, the U.S. economy experienced continued GDP growth, a modest increase in unemployment from prior periods, growth in real wages, and a modest deceleration in inflation. However, the macroeconomic environment remains uncertain, with the U.S. Federal Reserve reducing interest rates during the three months ended September 30, 2025. We have not experienced material impacts from macroeconomic conditions in the first nine months of 2025. Our operating expenses are denominated in the currencies of the countries in which our operations are located, and our consolidated results of operations and cash flows are, therefore, subject to fluctuations due to changes in foreign currency exchange rates. In that regard, over the last few years, we incurred foreign exchange gains and losses resulting from fluctuations primarily attributable to the British Pound and Euro currency movements relative to the U.S. dollar.

Our business depends on the overall demand for advertising and on the economic health of advertisers that benefit from our platform. Economic downturns, recessions or unstable market conditions, including as a result of global trade uncertainty, are difficult to predict and could cause advertisers to decrease their advertising budgets, which in turn reduces spend through our platform, or could impair the ability of advertisers to pay for services they purchased from us, in each case impacting our results.

**Our Business Model**

We generate revenue based on the volume of purchased digital ads that our solution measures. Advertisers and publishers use our media quality solutions for ad viewability, brand safety and suitability, optimization, context control, and ad fraud prevention. Our customers primarily pay us based on usage, where the customer pays a fee based on the total volume of ads measured. Certain contracts with customers utilize other pricing arrangements, including minimum commitments, overages based on tiered pricing, or flat fees. We maintain an expansive set of integrations across the digital advertising ecosystem, including with leading programmatic and social platforms, which enables us to cover all key channels, formats and devices.

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**Key Factors Affecting Our Performance**

Our historical financial performance has been, and we expect our financial performance in the future to be, driven by our ability to:

***Innovate and Develop New Products for Key High-Growth Segments***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Optimization*. We aim to deliver greater performance on programmatic ad buying via innovative solutions including, contextual targeting and brand safety and suitability. These solutions include traditional open-web media buying and select retail-media platforms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Social*. Our objective is to develop deeper integrations with social platforms, also known as Walled Gardens, including video-based brand safety and suitability, to deliver continued transparency and actionability to our customers through both measurement and optimization solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *CTV*. We are committed to meeting the evolving needs of advertisers and publishers in the CTV segment. For advertisers, IAS aims to deliver transparency, brand safety, and performance-driven insights, including industry-first MRC accreditations for viewability and invalid traffic detection in CTV. For publishers, our Publica by IAS CTV Ad Server is designed for streaming platforms to maximize yield and deliver seamless, high-quality ad experiences. Together, these solutions aim to drive trust and efficiency across the CTV ecosystem.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Adjacent Product Expansion*. We continue to expand our platforms and integrations to address new media protection and performance needs for our clients.

***Increase Sales Within Our Existing Customer Base***

We strive to increase the use of our products among existing customers across more campaigns and impressions. Given our comprehensive product portfolio, we believe we can cross-sell additional or new solutions to our existing customers in order to better provide end-to-end coverage to more clients from pre-bid protection and targeting post-bid verification, fraud prevention, safety, suitability, and other media quality reporting.

***Acquire New Customers and Increase Market Share***

Our ability to acquire new customers and increase our market share is dependent upon a number of factors, including the effectiveness of our solutions, marketing and sales to drive new business prospects and execution, client digital marketing investment adoption, new products and feature offerings, macroeconomic conditions that impact advertising spending budgets, global reach and the growth of the market for digital ad verification. In 2024, we invested resources to pursue new accounts that were previously serviced by Oracle who announced their exit from the advertising business.

***Expand Customer Base Internationally***

Our ability to expand our customer base internationally is dependent upon a number of factors, including effectively implementing our business processes and go-to-market strategy, our ability to adapt to market or cultural differences, the general competitive landscape, our ability to invest in our sales and marketing channels, the maturity and growth trajectory of our services by region and our brand awareness and perception. Global marketers are becoming increasingly cognizant of the value of sophisticated verification strategies and, as such, we believe there is growing demand for our services internationally. Our investments in international markets resulted in a 13% growth in international revenue year-over-year for the year ended December 31, 2024. We believe that Latin America, EMEA and APAC regions may represent substantial growth opportunities, and we are continually investing in developing our business in those markets by way of expanded in-market customer service investment and by leveraging our global relationships. We aim to continue to grow outside the U.S. in Europe and expand our international operations in other established markets such as China, Australia and Japan and view ourselves as best positioned to continue penetrating these markets given our market-leading global footprint.

***Seasonality***

We experience fluctuations in revenue that coincide with seasonal fluctuations in the digital ad spending of our customers. The global advertising industry experiences seasonal trends that affect the vast majority of participants in the digital advertising ecosystem. Most notably, advertisers have historically spent relatively more in the fourth quarter of the calendar year to coincide with the holiday shopping season, and relatively less in the first quarter. We expect seasonality trends to

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continue, and our ability to manage our resources in anticipation of these trends will affect our operating results. Consequently, the fourth quarter usually reflects the highest level of measurement activity, and the first quarter reflects the lowest level of activity. Our revenue, cash flow, operating results and other key operating and performance metrics may vary from quarter to quarter due to the seasonal nature of our clients' spending on advertising campaigns. While our revenue is highly re-occurring, seasonal fluctuations in ad spend may impact quarter-over-quarter results. We believe that the year-over-year comparison of results more appropriately reflects the overall performance of the business.

**Key Business Metrics**

In addition to our financial information prepared in conformity with the generally accepted accounting principles in the United States ("GAAP"), we review a number of operating and financial metrics, including the following key metrics, to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. The key business metrics presented are based on our advertising customers, as revenue from these customers represents substantially all of our revenue.

The following table sets forth our key performance indicators for the periods set forth below:

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| | | |
|:---|:---|:---|
| | **September 30,** | **September 30,** |
| | **2025** | **2024** |
| Net revenue retention of advertising customers (%) (as of the end of the period) | 111% | 108% |
| Total number of large advertising customers (as of the end of the period) | 248 | 232 |

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***Net revenue retention of advertising customers***

We define net revenue retention of advertising customers as a metric to reflect the expansion or contraction of our advertising customers' revenue by measuring the period-over-period change in trailing-twelve-month revenues from customers who were also advertising customers in the prior trailing-twelve-month period. As such, this metric includes the impact of any churned, or lost, advertising customers from the prior trailing-twelve-month period as well as any increases or decreases in their spend, including the positive revenue impacts of selling new services to an existing advertising customer. The numerator and denominator include revenue from all advertising customers that we served and from which we recognized revenue in the earlier of the two trailing-twelve-month periods being compared. For purposes of discussing our key business metrics, we define an advertising customer as any advertiser account that spends at least $3,000 in the applicable trailing-twelve-month periods. We calculate our net revenue retention of advertising customers as follows:

**Numerator**: The total revenue earned during the current trailing-twelve-month period from the cohort of advertising customers in the prior trailing-twelve-month period.

**Denominator**: The total revenue earned during the immediately preceding trailing-twelve-month period from such cohort of advertising customers in such trailing-twelve-month period.

The quotient obtained from this calculation is our net revenue retention rate of advertising customers. Our calculation of net revenue retention of advertising customers may differ from similarly titled metrics presented by other companies.

Our net revenue retention of advertising customers increased to 111% for the trailing-twelve-month period ended September 30, 2025 from 108% for the trailing-twelve-month period ended as of September 30, 2024, primarily due to higher advertising revenue growth during the trailing-twelve-month period of 13% in 2025 compared to 12% revenue growth in 2024.

***Total number of large advertising customers***

Historically, our revenue has been primarily driven by large advertising customers. Increasing awareness of our solutions, further developing our sales and marketing expertise, and continuing to build solutions that address the unique needs of the top 500 global advertisers have increased our number of large advertising customers. We determine our number of large advertising customers by counting the total number of advertising accounts who have spent at least $200,000 per year. We believe our ability to recruit and cross-sell our products to large advertising customers is critical to our long-term success. Our total number of large advertising customers increased to 248 as of September 30, 2025 from 232 as of September 30, 2024. Revenue from large advertising customers represented 87% of our total advertising revenue (measurement and optimization revenue) for the trailing-twelve-month period ended September 30, 2025, 85% for the trailing-twelve-month period ended December 31, 2024, and 85% for the trailing-twelve-month period ended September 30, 2024. As macroeconomic conditions

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remain uncertain with inflation, global trade conditions, changes to fiscal and monetary policy, and currency fluctuations, there is no guarantee that we will continue to see an increase of large advertising customers.

**Components of Results of Operations**

***Revenue***

We derive revenue primarily from advertisers (buy-side) and publishers (sell-side). Our post-bid measurement solutions enable advertisers to measure campaign performance and value across viewability, ad fraud prevention, brand safety and suitability for ads on desktop, mobile, CTV, social, display, audio, gaming and video platforms. Our pre-bid optimization solutions are directly integrated with DSPs to help optimize return on ad spend by directing budgets to the best available inventory. Our publisher solutions drive yield by identifying high quality ad inventory that is fraud free, viewable, brand safe and suitable, and geographically targeted on a global basis.

We recognize revenue when control of the promised services are transferred to customers. We recognize revenue by multiplying the cost per thousand impressions ("CPM") and the number of impressions measured. An impression is measured by the platform when a digital ad is served to a real person rather than a bot in a brand-safe and suitable environment within the correct geography. Contracts with our customers primarily utilize a usage-based structure, where the customer pays a fee to the Company based on the total ads measured. Depending on our customer needs, our contracts may utilize other pricing arrangements, including minimum commitments, overages based on tiered pricing, or flat fees. As our business continues to evolve, we are seeing an increase in the mix of pricing arrangements, including minimum commitments, overages based on tiered pricing, or flat fees that provide greater flexibility and access to our platforms.

***Operating Expenses***

*Cost of revenue.* Cost of revenue consists of data center costs, hosting fees, revenue share with our DSP partners and personnel costs. Personnel costs include salaries, bonuses, equity-based compensation, and employee benefit costs, primarily attributable to our customer operations group. Our customer operations group is responsible for onboarding, integration of new clients and providing support for existing customers, including technical support for our technology platform and product offering. We allocate overhead such as rent and occupancy and information technology infrastructure charges based on headcount.

*Sales and marketing*. Sales and marketing expense consists primarily of personnel costs, including salaries, bonuses, equity-based compensation, employee benefits costs and commission costs, for our sales and marketing personnel. Sales and marketing expense also includes costs for advertising, promotional and other marketing activities. We allocate overhead such as rent and occupancy and information technology infrastructure charges based on headcount. Sales commissions are expensed as incurred.

*Technology and development*. Technology and development expenses consist primarily of personnel costs of our engineering, product, and data sciences activities. Personnel costs including salaries, bonuses, equity-based compensation and employee benefits costs, third-party consultant costs associated with the ongoing development and maintenance of our technology platform and product offering. We allocate overhead such as rent and occupancy and information technology infrastructure charges based on headcount. Technology and development costs are expensed as incurred, except to the extent that such costs are associated with software development that qualifies for capitalization, which are then recorded as capitalized software development costs included in internal use software, net on our Consolidated Balance Sheet.

*General and administrative*. General and administrative expenses consist of personnel costs, including salaries, bonuses, equity-based compensation, and employee benefits costs for our executive, finance, legal, human resources, information technology, and other administrative employees. General and administrative expenses also include outside consulting, legal and accounting services and allocated facilities costs.

*Depreciation and amortization*. Depreciation and amortization expense consists primarily of depreciation and amortization expenses related to customer relationships, developed technologies, trademarks, favorable leases, equipment, leasehold improvements and other tangible and intangible assets. We depreciate and amortize our assets in accordance with our accounting policies. Maintenance and repairs, which do not extend the useful life of the respective assets, are charged to expense as incurred. Intangible assets are amortized on a straight-line basis over their estimated useful lives or using an accelerated method. Useful lives of intangible assets range from five years to fifteen years.

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*Foreign exchange loss (gain), net.* Foreign exchange loss (gain), net, is impacted by fluctuations in exchange rates and the amount of foreign-currency denominated cash, receivables, intercompany balances, and payables.

***Interest income (expense), net***

*Interest income (expense), net .* Interest income (expense) consists primarily of interest income earned on cash accounts. Interest expense relates to payments on our outstanding borrowings under our Credit Agreement (as defined below under "Liquidity and Capital Resources"), commitment fees on the undrawn portion of the Revolver and amortization of related debt issuance costs.

***Provision for income taxes***

*Provision for income taxes*. The income tax provision resulted from pre-tax book income multiplied by statutory tax rate, increased by non-deductible expenses relating to stock-based compensation, other discrete items and offset by research and development and other tax credits.

**Results of Operations**

The following table sets forth our consolidated statement of operations for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| ***(in thousands, except percentages)*** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenue | $154358 | $133528 | $437628 | $377063 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of revenue | 35553 | 27373 | 100028 | 80628 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 36317 | 30144 | 104243 | 91541 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Technology and development | 22632 | 16840 | 62431 | 52305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 33715 | 25348 | 86457 | 71407 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 17900 | 16243 | 51605 | 47032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange loss (gain), net | 667 | (2607) | (7113) | (723) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 146784 | 113341 | 397651 | 342190 |
| Operating income | 7574 | 20187 | 39977 | 34873 |
| Interest income (expense), net | 595 | (1325) | 680 | (4787) |
| Net income before income taxes | 8169 | 18862 | 40657 | 30086 |
| Provision for income taxes | (1124) | (2773) | (9211) | (7562) |
| Net income | $7045 | $16089 | $31446 | $22524 |
| Net income margin | 5% | 12% | 7% | 6% |

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The following table sets forth our consolidated statement of operations data expressed as a percentage of total revenue for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Revenue | 100% | 100% | 100% | 100% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of revenue | 23% | 20% | 23% | 21% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 24% | 23% | 24% | 24% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Technology and development | 15% | 13% | 14% | 14% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 22% | 19% | 20% | 19% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 12% | 12% | 12% | 12% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange loss (gain), net | —% | (2)% | (2)% | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 95% | 85% | 91% | 91% |
| Operating income | 5% | 15% | 9% | 9% |
| Interest income (expense), net | —% | (1)% | —% | (1)% |
| Net income before income taxes | 5% | 14% | 9% | 8% |
| Provision for income taxes | (1)% | (2)% | (2)% | (2)% |
| Net income | 5% | 12% | 7% | 6% |

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**Comparison of the Three Months Ended September 30, 2025 and September 30, 2024**

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| | | | | |
|:---|:---|:---|:---|:---|
| ***(in thousands, except percentages)*** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
|  | **2025** | **2024** | **$change** | **%<br>change** |
| Revenue | $154358 | $133528 | $20830 | 16% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of revenue | 35553 | 27373 | 8180 | 30% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 36317 | 30144 | 6173 | 20% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Technology and development | 22632 | 16840 | 5792 | 34% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 33715 | 25348 | 8367 | 33% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 17900 | 16243 | 1657 | 10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange loss (gain), net | 667 | (2607) | 3274 | (126)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 146784 | 113341 | 33443 | 30% |
| Operating income | 7574 | 20187 | (12613) | (62)% |
| Interest income (expense), net | 595 | (1325) | 1920 | (145)% |
| Net income before income taxes | 8169 | 18862 | (10693) | (57)% |
| Provision for income taxes | (1124) | (2773) | 1649 | (59)% |
| Net income | $7045 | $16089 | $(9044) | (56)% |

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***Revenue***

Total revenue increased by $20.8 million, or 16%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| ***(in thousands, except percentages)*** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
|  | **2025** | **2024** | **$change** | **%<br>change** |
| Optimization revenue | $73716 | $61118 | $12598 | 21% |
| Measurement revenue | 57134 | 52903 | 4231 | 8% |
| Publisher revenue | 23508 | 19507 | 4001 | 21% |
| Total revenue | $154358 | $133528 | $20830 | 16% |

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Total revenue increased for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024 primarily due to an increase in our optimization revenue of $12.6 million, or 21%, reflecting an increase of 15% in average CPMs. Volume of impressions were consistent for optimization when compared to the three months ended September 30, 2024. Measurement revenue increased $4.2 million, or 8%, reflecting growth in volume of impressions of 20%, offset in part by a 9% decline in average CPMs. Publisher revenue increased by $4.0 million, or 21%, primarily due to the growth of Publica, for the three months ended September 30, 2025.

***Operating expenses***

*Cost of Revenue.* Cost of revenue increased by $8.2 million, or 30%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. This increase was primarily driven by an increase in hosting fees of $5.1 million and an increase in revenue share to our DSP partners related to our growth in optimization revenue of $3.1 million.

*Sales and marketing*. Sales and marketing expenses increased by $6.2 million, or 20%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. This increase was due to an increase in compensation and related expenses of $3.2 million to support revenue growth and an increase in stock-based compensation expense of $2.4 million. The remaining change in sales and marketing expenses is aggregated from several other immaterial items.

*Technology and development*. Technology and development expenses increased by $5.8 million, or 34%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. This increase was due to an increase in stock-based compensation expense of $3.5 million, an increase in compensation and related expenses of $2.0 million and an increase in software application expenses of $0.9 million, partially offset by a decrease in professional services of $0.1 million. The remaining change in technology and development expenses is aggregated from several other immaterial items.

*General and administrative*. General and administrative expenses increased by $8.4 million, or 33%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. This increase was due to an increase of $7.5 million related to professional services, of which $6.1 million related to the Merger, a $1.0 million increase in compensation related expenses and a $0.2 million increase in stock-based compensation expense. These increases were partially offset by a $0.3 million decrease in bad debt expense.

*Depreciation and amortization*. Depreciation and amortization expenses increased by $1.7 million, or 10%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. This increase was primarily due to an increase in amortization expense related to capitalization of internal-use software of $2.4 million, partially offset by a decrease in amortization expense for intangible assets of $0.8 million.

*Foreign exchange loss (gain), net.* Foreign exchange loss, net increased $3.3 million, or 126% for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The loss in the current period resulted from fluctuations primarily attributable to the Euro and British Pound currency movements relative to the U.S. Dollar.

***Interest income (expense), net***

*Interest income (expense), net*. Interest income (expense), net decreased by $1.9 million, or 145%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The decrease was primarily driven by a $1.7 million decrease in interest expense attributable to having no borrowings on the Revolver during the three months ended September 30, 2025, compared to a higher average outstanding balance on the Revolver in the prior year period. Also contributing to the decrease is a $0.2 million increase in interest income on our cash balances.

***Provision for income taxes***

*Provision for income taxes*. Provision for income taxes decreased by $1.6 million, or 59%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The tax provision in the current year resulted mainly from lower net income generated during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, and non-deductible stock-based compensation, offset by R&D and other tax credits and discrete items.

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**Comparison of the Nine Months Ended September 30, 2025 and September 30, 2024**

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| | | | | |
|:---|:---|:---|:---|:---|
| ***(in thousands, except percentages)*** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **$change** | **%<br>change** |
| Revenue | $437628 | $377063 | $60565 | 16% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of revenue | 100028 | 80628 | 19400 | 24% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 104243 | 91541 | 12702 | 14% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Technology and development | 62431 | 52305 | 10126 | 19% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 86457 | 71407 | 15050 | 21% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 51605 | 47032 | 4573 | 10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange gain, net | (7113) | (723) | (6390) | 884% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 397651 | 342190 | 55461 | 16% |
| Operating income | 39977 | 34873 | 5104 | 15% |
| Interest income (expense), net | 680 | (4787) | 5467 | (114)% |
| Net income before income taxes | 40657 | 30086 | 10571 | 35% |
| Provision for income taxes | (9211) | (7562) | (1649) | 22% |
| Net income | $31446 | $22524 | $8922 | 40% |

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***Revenue***

Total revenue increased by $60.6 million, or 16%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| ***(in thousands, except percentages)*** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **$change** | **%<br>change** |
| Optimization revenue | $206378 | $172053 | $34325 | 20% |
| Measurement revenue | 162551 | 151904 | 10647 | 7% |
| Publisher revenue | 68699 | 53106 | 15593 | 29% |
| Total revenue | $437628 | $377063 | $60565 | 16% |

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Total revenue increased for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 primarily due to an increase in our optimization revenue of $34.3 million, or 20%, reflecting growth in volume of impressions of 9% and an increase in average CPMs of 8%. Measurement revenue increased $10.6 million, or 7%, reflecting growth in volume of impressions of 22%, offset in part by an 9% decline in average CPMs. Publisher revenue increased by $15.6 million, or 29%, primarily due to the growth of Publica, for the nine months ended September 30, 2025.

***Operating expenses***

*Cost of Revenue.* Cost of revenue increased by $19.4 million, or 24%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. This increase was driven by an increase in hosting fees of $11.2 million, an increase of $7.6 million in revenue share to our DSP partners commensurate with growth in optimization revenue, a $0.4 million increase in compensation related expenses and a $0.3 million increase in professional services. The remaining change in cost of revenue expenses is aggregated from several other immaterial items.

*Sales and marketing*. Sales and marketing expenses increased by $12.7 million, or 14%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. This increase was due to an increase in compensation expenses of $7.1 million to support revenue growth, an increase in stock-based compensation expense of $4.4 million and increases in advertising and travel expenses of $0.6 million. The remaining change in sales and marketing expenses is aggregated from several other immaterial items.

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*Technology and development*. Technology and development expenses increased by $10.1 million, or 19% for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. This increase was due to an increase in stock-based compensation expense of $4.6 million, an increase in compensation and related expenses of $4.5 million and an increase in software application expenses of $1.6 million. These increases were partially offset by a decrease in professional services of $0.3 million. The remaining change in technology and development expenses is aggregated from several other immaterial items.

*General and administrative*. General and administrative expenses increased by $15.1 million, or 21%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. This increase was due to a $10.7 million increase related to professional services, of which $6.1 million related to the Merger, an increase of $4.3 million in compensation related expenses, an increase in software application expenses of $1.2 million and an increase in stock-based compensation expense of $0.9 million. These increases were partially offset by a $3.1 million decrease in bad debt expense. The remaining change in general and administrative expenses is aggregated from several other immaterial items.

*Depreciation and amortization*. Depreciation and amortization expenses increased by $4.6 million, or 10%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. This increase results from an increase in amortization expense related to capitalization of internal-use software of $7.1 million and an increase in depreciation expense for property and equipment of $0.1 million, partially offset by a decrease in amortization expense for intangible assets of $2.7 million.

*Foreign exchange gain, net.* Foreign exchange gain, net increased $6.4 million, or 884% for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The gain in the current period resulted from fluctuations primarily attributable to the Euro and British Pound currency movements relative to the U.S. Dollar.

***Interest income (expense), net***

*Interest income (expense), net*. Interest income (expense), net decreased by $5.5 million, or 114%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The decrease was due to a $5.7 million decrease in interest expense resulting from a lower average outstanding balance on the Revolver combined with a decrease in the interest rate on the Revolver. The decrease in interest expense was partially offset by a $0.2 million decrease in interest income, as compared to the prior year period.

***Provision for income taxes***

*Provision for income taxes*. Provision for income taxes increased by $1.6 million, or 22%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The tax provision in the current year resulted mainly from higher net income generated during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, and non-deductible stock-based compensation, offset by R&D and other tax credits and discrete items.

**Non-GAAP Financial Measures**

We use supplemental measures of our performance, which are derived from our consolidated financial information, but which are not presented in our consolidated financial statements prepared in accordance with U.S. GAAP. Adjusted EBITDA is the primary financial performance measure used by management to evaluate our business and monitor ongoing results of operations. We define Adjusted EBITDA as net income before depreciation and amortization, stock-based compensation, interest income (expense), net, provision for income taxes, acquisition, restructuring and integration costs, foreign exchange gains and losses, asset impairments and other one-time, non-recurring costs. Adjusted EBITDA margin represents the Adjusted EBITDA for the applicable period divided by the revenue for that period presented in accordance with U.S. GAAP.

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We use non-GAAP financial measures to supplement financial information presented on a U.S. GAAP basis. We believe that excluding certain items from our U.S. GAAP results allows management to better understand our consolidated financial performance from period to period and better project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare U.S. GAAP-based financial measures. Moreover, we believe these non-GAAP financial measures provide our stockholders with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period-to-period comparisons. Although we believe these measures are useful to investors and analysts for the same reasons they are useful to management, these measures are not a substitute for, or superior to, U.S. GAAP financial measures or disclosures and should be read only in conjunction with financial information presented on a U.S. GAAP basis. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes.

A reconciliation of Adjusted EBITDA to its most directly comparable U.S. GAAP financial measure, net income, is presented below. We encourage you to review the reconciliations in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future fiscal periods, we may exclude such items and may incur income and expenses similar to these excluded items.

***Adjusted EBITDA***

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| | | | | |
|:---|:---|:---|:---|:---|
| ***(in thousands, except percentages)*** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net income | $7045 | $16089 | $31446 | $22524 |
| Depreciation and amortization | 17900 | 16243 | 51605 | 47032 |
| Stock-based compensation | 22625 | 16443 | 56994 | 47185 |
| Interest (income) expense, net | (595) | 1325 | (680) | 4787 |
| Provision for income taxes | 1124 | 2773 | 9211 | 7562 |
| Acquisition, restructuring and integration costs | 411 | 290 | 760 | 1465 |
| Foreign exchange loss (gain), net | 667 | (2607) | (7113) | (723) |
| Merger related costs | 6093 |  | 6093 |  |
| Asset impairments and other costs |  | 90 | 48 | 90 |
| Adjusted EBITDA | $55270 | $50646 | $148364 | $129922 |
| Revenue | $154358 | $133528 | $437628 | $377063 |
| Net income margin | 5% | 12% | 7% | 6% |
| Adjusted EBITDA margin | 36% | 38% | 34% | 34% |

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**Liquidity and Capital Resources**

***General***

As of September 30, 2025, our principal sources of liquidity were cash and cash equivalents totaling $129.2 million, which was held for working capital purposes, as well as the available balance on our Revolver, as defined below.

Our principal commitments consist of obligations under operating leases for office space and our purchase commitments related to hosting and data services. We lease office space under operating leases, which expire on various dates through November 2032 and the total noncancellable payments under these leases were $26.3 million as of September 30, 2025, $12.4 million of which will be paid within the next 12 months and $13.9 million thereafter. Total noncancellable rentals under subleases were $4.5 million as of September 30, 2025, $3.0 million will be received in the next 12 months and $1.5 million thereafter. Total noncancellable purchase commitments related to hosting services as of September 30, 2025 were $376.8 million for periods through 2029, of which $89.0 million is committed for the next 12 months and $287.8 million thereafter.

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We have financed our operations primarily through cash on our balance sheet and debt financing. We believe our existing cash and cash equivalents, our Revolver and cash provided by operations will continue to be sufficient to meet our working capital and capital expenditure and cash needs for the next twelve months and the foreseeable future. Our future capital requirements will depend on many factors including the timing and closing of the Merger, the costs related to the Merger, our growth rate, the timing and extent of spending to support development efforts, the expansion of sales and marketing activities, the introduction of new and enhanced products and services offerings, the continuing market acceptance of our products, and global trade and market conditions. In the future, we may enter into arrangements to acquire or invest in complementary businesses, services and technologies, including intellectual property rights.

We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital or generate cash flows necessary to expand our operations and invest in new technologies, it could reduce our ability to compete successfully and harm our results of operations.

Some of our customers pay in advance for subscriptions, a portion of which is recorded as deferred revenue. Deferred revenue consists of the unearned portion of billed fees, which is recognized as revenue in accordance with our revenue recognition policy. As of September 30, 2025, we had deferred revenue of $1.8 million, all of which was recorded as a current liability and is expected to be recorded as revenue in the next twelve months, provided all other revenue recognition criteria have been met.

***Credit Agreement***

On June 17, 2025, we amended our credit agreement with various lenders (as amended, the "Credit Agreement"), which provides for $300.0 million in commitments for revolving credit loans (the "Revolver"), which amount may be increased to at least $550.0 million pursuant to the accordion feature, or decreased under specific circumstances, with a $30.0 million letter of credit sublimit, a $100.0 million alternative currency sublimit and a $30.0 million swingline loan sublimit, with a maturity date of June 17, 2030. In addition, the Credit Agreement provides for the ability to request incremental term loan facilities, in a minimum amount of $5.0 million for each facility. Borrowings under the Credit Agreement may be used for working capital, capital expenditures and other general corporate purposes, including for acquisitions permitted under the Credit Agreement.

The market interest rate on outstanding borrowings is based on SOFR with an applicable rate ranging from 1.50% to 2.25% per annum. We also pay a commitment fee during the term of the Credit Agreement ranging from 0.175% to 0.30% per annum of the average daily undrawn portion of the revolving commitments based on the Total Net Leverage Ratio (as defined in the Credit Agreement).

The Credit Agreement contains covenants requiring certain financial information to be submitted quarterly and annually. In addition, we are also required to comply with certain financial covenants such as maintaining a Total Net Leverage Ratio (as defined in the Credit Agreement) of 3.50 to 1.00 or lower and maintaining a minimum Interest Coverage Ratio (as defined in the Credit Agreement) of 2.50 to 1.00. As of September 30, 2025, the Company was in compliance with all covenants contained in the Credit Agreement. Based upon current facts and circumstances, we believe existing cash coupled with the cash flows generated from operations will be sufficient to meet our cash needs and comply with covenants.

*Restrictions on Subsidiaries under the Credit Agreement*

The Company is a holding company that conducts substantially all its activities through its subsidiaries and has no material operations of its own or direct outstanding debt obligations. The Company's wholly-owned subsidiaries are subject to the terms and restrictions set forth in the Credit Agreement, which among other things, limit the ability of the Company's subsidiaries to make loans or advances or to pay dividends or distributions. As is customary, these restrictions are subject to specific exceptions set forth in the Credit Agreement. The restrictions placed on the Company's subsidiaries under the Credit Agreement have not had, nor are they expected to have, an impact on the Company's ability to meet its cash obligations because substantially all of the Company's consolidated cash obligations are obligations of the Company's subsidiaries, which payment is generally permitted under the terms of the Credit Agreement.

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***Cash Flows***

The table below presents a summary of our consolidated cash flows from operating, investing and financing activities for the periods indicated.

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| | | |
|:---|:---|:---|
| ***(in thousands)*** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** |
| Net cash provided by operating activities | $109719 | $50250 |
| Net cash used in investing activities | (33081) | (30462) |
| Net cash used in financing activities | (34397) | (87358) |
| Net increase (decrease) in cash, cash equivalents, and restricted cash | $42241 | $(67570) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2364 | (113) |
| Cash, cash equivalents and restricted cash, at beginning of period | 87335 | 127290 |
| Cash, cash equivalents and restricted cash, at end of period | $131940 | $59607 |

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*Operating Activities*

For the nine months ended September 30, 2025, net cash provided by operating activities was $109.7 million, resulting from a net income of $31.4 million adjusted for non-cash expenses of depreciation and amortization of $51.6 million, stock-based compensation of $57.0 million, a deferred tax provision of $5.1 million and amortization of debt issuance costs of $0.4 million, partially offset by a decrease in working capital of $26.0 million, unrealized foreign currency gains of $7.7 million, and a $2.1 million reversal of credit losses. The decrease in working capital primarily reflects unfavorable timing of payments for operating expenses and taxes, as well as the payment of the annual employee bonus liability.

For the nine months ended September 30, 2024, net cash provided by operating activities was $50.3 million, resulting from a net income of $22.5 million adjusted for non-cash expenses of depreciation and amortization of $47.0 million, stock-based compensation of $47.2 million, bad debt expense of $0.9 million and amortization of debt issuance costs of $0.3 million, partially offset by a decrease in working capital of $50.6 million and a deferred tax benefit of $15.5 million, and unrealized foreign currency gains of $1.8 million. The decrease in working capital primarily reflects unfavorable timing of payments for operating expenses and taxes, as well as the payment of the annual employee bonus liability.

*Investing Activities*

Cash used in investing activities was $33.1 million for the nine months ended September 30, 2025, reflecting capitalized costs related to our internal use software of $32.2 million, and the purchase of property and equipment of $0.9 million.

Cash used in investing activities was $30.5 million for the nine months ended September 30, 2024, reflecting capitalized costs related to our internal use software of $28.9 million, and the purchase of property and equipment of $1.6 million.

*Financing Activities*

Cash used in financing activities was $34.4 million for the nine months ended September 30, 2025, due to a repayment of outstanding long-term debt of $35.0 million and debt issuance costs of $1.8 million, partially offset by proceeds of $2.3 million for share purchases under the ESPP and $0.2 million for stock options exercised.

Cash used in financing activities was $87.4 million for the nine months ended September 30, 2024, due to repayments of outstanding long-term debt of $90.0 million, partially offset by proceeds of $2.3 million for share purchases under the ESPP and $0.3 million for stock options exercised.

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*Indemnification Agreements*

In the ordinary course of business, we enter into agreements of varying scope and terms pursuant to which we agree to indemnify customers, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by us or from intellectual property infringement claims made by third parties. In addition, we have entered into indemnification agreements with our directors and certain officers and employees that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon us to provide indemnification under such agreements and there are no claims that we are aware of that could have a material effect on our Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations and Comprehensive Income, or Condensed Consolidated Statements of Cash Flows.

**Critical Accounting Estimates**

The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, revenue and expenses and related disclosures of contingent assets and liabilities at the date of our financial statements. Actual results may differ from these estimates under different assumptions or conditions, impacting our reported results of operations and financial condition.

There have been no material changes to our critical accounting estimates as compared to the critical accounting estimates described in "Note 2—Basis of presentation and summary of significant accounting policies" to our consolidated financial statements appearing in our 2024 Form 10-K.

**Recent Accounting Pronouncements**

For a description of recently issued accounting pronouncements not yet adopted, see Note 2(h) to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

**Item 3.&nbsp;&nbsp;&nbsp;&nbsp;Quantitative and Qualitative Disclosures about Market Risk**

Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily a result of exposure due to potential changes in inflation or interest rates. We do not hold financial instruments for trading purposes.

Market risks at September 30, 2025 have not materially changed from those discussed in the Annual Report on Form 10-K for the year ended December 31, 2024 under the heading Part II, Item 7A "Quantitative and Qualitative Disclosures about Market Risk."

**Item 4.&nbsp;&nbsp;&nbsp;&nbsp;Controls and Procedures**

***Evaluation of Disclosure Controls and Procedures***

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 as of September 30, 2025. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at a reasonable assurance level as of September 30, 2025.

***Changes in Internal Control over Financial Reporting***

There were no changes during the three months ended September 30, 2025, in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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***Inherent Limitations on Effectiveness of Controls***

Because of its inherent limitations, disclosure controls and procedures and internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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**PART II**

**OTHER INFORMATION**

**Item 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal Proceedings**

From time to time, we have been and may be involved in various legal proceedings and claims. See Note 14 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

**Item 1A.&nbsp;&nbsp;&nbsp;&nbsp;Risk Factors**

For a discussion of the material risk factors that affect our Company, please see the risk factors disclosed in Part 1, Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, in addition to the risks set forth below and the other information set forth in this Quarterly Report on Form 10-Q.

***Uncertainties associated with the Merger could adversely affect our business, results of operations, financial condition and the trading price of our common stock.***

On September 24, 2025, the Company entered into the Merger Agreement with Parent and Merger Sub, pursuant to which Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation and a wholly owned subsidiary of Parent. At closing of the Merger, our common stock will be delisted from The Nasdaq Global Select Market and we will cease to be a reporting company. Completion of the Merger is subject to various customary closing conditions, including receipt of required regulatory approvals. The failure to satisfy these closing conditions could jeopardize or delay the consummation of the Merger. The parties to the Merger Agreement may not receive the necessary approvals for the transaction or receive them within the expected timeframe. In addition, the Merger may fail to close for other reasons. We have incurred significant legal, accounting and other transaction costs, which are required to be paid regardless of whether the Merger is consummated.

The pendency of the Merger, as well as any delays in the expected timeframe, could cause disruption to our ongoing operations and create uncertainties, any of which could have an adverse effect on our business, results of operations, financial condition, and trading price of our common stock, regardless of whether the Merger is completed. These risks include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an adverse effect on our relationship with vendors, customers and employees, including if our vendors, customers or others attempt to negotiate changes in existing business relationships, consider entering into business relationships with parties other than us, delay or defer decisions concerning their business with us, or terminate their existing business relationships with us during the pendency of the Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a diversion of a significant amount of management time and resources toward the completion of the Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• being subject to certain restrictions on the conduct of our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possibly foregoing certain business opportunities that we might otherwise pursue absent the pending Merger; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulties attracting and retaining key employees.

The adverse effects of the pendency of the Merger could be exacerbated by any delays in completion of the Merger or by termination of the Merger Agreement.

Even if successfully completed, there are certain risks to our stockholders from the Merger, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the per share consideration is fixed and will not be adjusted for changes in our business, assets, liabilities, prospects, outlook, financial condition or operating results or in the event of any change in the market price of, analyst estimates of, or projections relating to, our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the fact that the exchange of common stock for cash pursuant to the Merger will be a taxable transaction for United States federal income tax purposes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the fact that, if the Merger is completed, our stockholders will not participate in any future growth potential or benefit from any future increase in the value of our Company.

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***Failure to complete the Merger could adversely affect our business and the market price of our shares of common stock.*** &nbsp;&nbsp;&nbsp;&nbsp;

The closing of the Merger may not occur on the expected timeline or at all. The Merger Agreement contains certain termination rights for us and Parent, including (i) if the Merger is not consummated on or before March 24, 2026, (ii) if the other party breaches its representations, warranties or covenants in a manner that would cause the conditions to the closing of the transactions contemplated by the Merger Agreement to not be satisfied and fails to cure such breach within the applicable cure period, or (iii) if any law, order or judgment preventing or prohibiting the Merger has become final and non-appealable. If the Merger Agreement is terminated and the Merger is not consummated, the price of our common stock may decline, we may experience negative reactions from the financial markets, including negative stock price impacts, or we may experience negative reactions from our business partners, and you may not recover your investment or receive a price for your shares of common stock similar to what has been offered pursuant to the Merger.

In addition, if the Merger Agreement is terminated by Parent under certain circumstances set forth in the Merger Agreement, the Company will be required to pay Parent a termination fee of $52.5 million. If the Company is required to pay this termination fee, such fee, together with costs incurred to execute the Merger Agreement and pursue the Merger, could have a material adverse effect on the Company's financial condition and results of operations.

***The Merger Agreement contains provisions that limit our ability to pursue alternatives to the Merger.*** 

Under the Merger Agreement, we are restricted from soliciting or engaging in discussions or negotiations with respect to any alternative business combination transaction. These provisions could discourage a third party that may have an interest in acquiring all or a significant part of our business from considering or proposing an acquisition, even if such third party were prepared to pay consideration with a higher value than the value of the consideration provided for in the Merger Agreement.

***We are subject to certain restrictions on the conduct of our business under the terms of the Merger Agreement.*** 

Under the terms of the Merger Agreement, we have agreed to certain restrictions on the operations of our business. We have agreed to limit the conduct of our business to those actions undertaken in the ordinary course of business and to refrain from, among other things, incurring debt; entering into, establishing, adopting, amending, modifying or terminating any Company employee benefit plan; increasing the compensation or employee benefits of any employee, contractor or service provider or hiring or terminating employees, contractors or service providers under certain circumstances (other than for cause); settling, releasing, waiving or compromising certain legal proceedings; materially changing our methods, principles or practices of financial accounting; and incurring certain capital expenditures. Because of these restrictions, we may be prevented from undertaking certain actions with respect to the conduct of our business that we might otherwise have taken if not for the Merger Agreement.

***We and our directors may be subject to litigation challenging the Merger, and an unfavorable judgment or ruling in any such lawsuit could prevent or delay the consummation of the Merger and/or result in substantial costs.*** 

Putative stockholder complaints, including stockholder class action complaints, and other complaints that may be filed against us, our Board, parties involved in the Merger and others in connection with the transactions contemplated by the Merger Agreement may delay or prevent the consummation of the Merger. The outcome of any such demands and complaints or any litigation is uncertain, and we may not be successful in defending against these claims. Whether or not any claims are successful, this type of litigation could delay or prevent the Merger, divert the attention of our management and employees from our day-to-day business, and otherwise adversely affect our business, results of operations, and financial condition. Additionally, if a plaintiff is successful in obtaining an injunction prohibiting completion of the Merger, then that injunction may delay or prevent the Merger from being completed, which may exacerbate the other risks described herein and adversely affect our business, operating results and financial condition.

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**Item 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unregistered Sales Of Equity Securities And Use Of Proceeds**

None.

**Item 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defaults Upon Senior Securities**

None.

**Item 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mine Safety Disclosures**

Not applicable.

**Item 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Information**

**Insider Trading Arrangements**

During the three months ended September 30, 2025, none of our directors or officers (as defined in Section 16 of the Exchange Act), adopted, modified or terminated a "Rule 10b5-1 trading arrangement" (as defined in Item 408 of Regulation S-K of the Exchange Act).

------

**Item 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits**

The following is a list of all exhibits filed or furnished as part of this report:

---

| | |
|:---|:---|
| **Exhibit<br>Number** | **Description** |
| 2.1† | <u>[Agreement and Plan of Merger, dated as of September 24, 2025, by and among Integral Ad Science Holding Corp., Igloo Group Parent, Inc. and Igloo Group Acquisition Company, Inc. (incorporated by reference to Exhibit 2.1 to the Company's Form 8-K filed on September 24, 2025).](https://www.sec.gov/Archives/edgar/data/1842718/000119312525215824/d26134dex21.htm)</u> |
| 3.1 | <u>[Certificate of Incorporation of Integral Ad Science Holding Corp., dated June 29, 2021 (incorporated by reference to Exhibit 3.1 to the Company's Form 8-K filed on July 2, 2021).](https://www.sec.gov/Archives/edgar/data/0001842718/000119312521207757/d197951dex31.htm)</u> |
| 3.2 | <u>[Bylaws of Integral Ad Science Holding Corp., dated June 29, 2021 (incorporated by reference to Exhibit 3.2 to the Company's Form 8-K filed on July 2, 2021).](https://www.sec.gov/Archives/edgar/data/0001842718/000119312521207757/d197951dex32.htm)</u> |
| 10.1 | <u>[Support Agreement, dated as of September 24, 2025, by and among Integral Ad Science Holding Corp., Igloo Group Parent, Inc., Vista Equity Partners Management, LLC and the other parties thereto (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed on September 24, 2025).](https://www.sec.gov/Archives/edgar/data/1842718/000119312525215824/d26134dex101.htm)</u> |
| 10.2 | <u>[Restricted Stock Unit Award Agreement, dated as of August 6, 2025, by and between Integral Ad Science Holding Corp. and Alpana Wegner (incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q filed on August 7, 2025).](https://www.sec.gov/Archives/edgar/data/1842718/000184271825000098/ex-103xalpanarsuagreement.htm)</u> |
| 31.1 | <u>[Certification of the Chief Executive Officer pursuant to Exchange Act Rules Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.](ex-311q325.htm)</u> |
| 31.2 | <u>[Certification of the Chief Financial Officer pursuant to Exchange Act Rules Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.](ex-312q325.htm)</u> |
| 32.1\*\* | <u>[Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, furnished herewith.](ex-321q325.htm)</u> |
| 32.2\*\* | <u>[Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, furnished herewith.](ex-322q325.htm)</u> |
| 101.INS | Inline XBRL Instance Document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |

---

---

| | |
|:---|:---|
| \*\* | The certifications furnished in Exhibit 32.1 and Exhibit 32.2 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference. |
| † | Schedules and exhibits to the Merger Agreement have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company hereby agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon its request. |

---

------

**SIGNATURES**

&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **Integral Ad Science Holding Corp. (Registrant)** | **Integral Ad Science Holding Corp. (Registrant)** |
| Date: November 4, 2025 | By: | /s/ Alpana Wegner |
|  |  | Alpana Wegner |
|  |  | Chief Financial Officer<br>(Principal Financial Officer) |
|  | By: | /s/ Alexis Gil II |
|  |  | Alexis Gil II |
|  |  | Chief Accounting Officer<br>(Principal Accounting Officer) |

---

## Exhibit 31.1

**Exhibit 31.1**

**Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Lisa Utzschneider, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Integral Ad Science Holding Corp.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 4, 2025

---

| |
|:---|
| /s/ Lisa Utzschneider |
| Lisa Utzschneider |
| *Director and Chief Executive Officer* |

---

## Exhibit 31.2

**Exhibit 31.2**

**Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Alpana Wegner, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Integral Ad Science Holding Corp.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 4, 2025

---

| |
|:---|
| /s/ Alpana Wegner |
| Alpana Wegner |
| *Chief Financial Officer* |

---

## Exhibit 32.1

**Exhibit 32.1**

**Certification of the Chief Executive Officer**

**Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

In connection with the Quarterly Report on Form 10-Q of Integral Ad Science Holding Corp. (the "Company") for the period ended September 30, 2025, as filed with the U.S. Securities and Exchange Commission on the date hereof (the "Report"), I, Lisa Utzschneider, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Date: November 4, 2025 | /s/ Lisa Utzschneider |
| | Lisa Utzschneider |
| | *Director and Chief Executive Officer* |

---

## Exhibit 32.2

**Exhibit 32.2**

**Certification of the Chief Financial Officer**

**Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

In connection with the Quarterly Report on Form 10-Q of Integral Ad Science Holding Corp. (the "Company") for the period ended September 30, 2025, as filed with the U.S. Securities and Exchange Commission on the date hereof (the "Report"), I, Alpana Wegner, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Date: November 4, 2025 | /s/ Alpana Wegner |
| | Alpana Wegner |
| | *Chief Financial Officer* |

---

<br>