Integral Ad Science Holding Corp. (IAS): A Bull Case Theory
We came across a bullish thesis on Integral Ad Science Holding Corp. on P14 Capital’s Substack. In this article, we will summarize the bulls’ thesis on IAS. Integral Ad Science Holding Corp.'s share was trading at $10.20 as of October 6th. IAS’s trailing and forward P/E were 30.03 and 24.33 respectively according to Yahoo Finance.
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Integral Ad Science Holding Corp. (IAS) continues to demonstrate resilience and growth in an ad-tech environment where many ad-spend dependent peers struggle. The company delivered strong 2Q25 results, with revenue of $149.2M (+15.7% Y/Y) and GAAP EPS of $0.10, beating estimates. IAS raised FY25 revenue guidance to $597–605M (+13.4% Y/Y) and adjusted EBITDA to $208–214M (35.2% margin), reflecting top-line acceleration and favorable mix shifts, including Optimization (+16% Y/Y), Publisher (+36%), and Measurement (+8.3%).
The company benefits from pricing power in Optimization CPMs (~+10% Y/Y), broad QSP adoption, and strong Moat/Oracle cross-sell, while Publisher growth outpaced peers through OEM and CTV wins, including Samsung, a major German publisher, and Australia’s SBS. IAS is also gaining share versus incumbents across global apparel, luxury, and media clients, supported by TMQ, Pre-bid Social Optimization, and AI-driven operational improvements, which have dramatically increased labeling speed and accuracy.
Social measurement remains a key growth driver, with international adoption accelerating, especially in EMEA, and large advertiser spend consolidating toward IAS’s high-performance offerings. Despite elevated opex and gross margin pressures (77% in Q2), adjusted EBITDA margins expanded to 35%, highlighting operational efficiency.
IAS trades at a notable discount to peers like DV, with EV/EBITDA ~3.7x lower and EV/Sales ~1.0x lower, while the new CFO hire and Vista’s tenure suggest potential PE acquisition upside. Even in a conservative scenario, IAS offers compelling growth, pricing leverage, and international optionality, with a base-case 2026 price target reflecting continued outperformance and margin expansion, while a best-case takeout could meaningfully exceed current valuations.
Previously we covered a bullish thesis on Integral Ad Science Holding Corp. (IAS) by P14 Capital in May 2025, which highlighted the company’s strong market position, high advertiser stickiness, international growth, and potential for re-rating or acquisition. The stock has appreciated ~41% since coverage. The thesis still stands as IAS continues to outperform. P14 Capital shares a similar view but emphasizes 2Q25 results, guidance upgrades, and AI-driven operational tailwinds.
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