DoubleVerify Holdings, Inc. Fair Value Disclosure
8. Fair Value Measurement
The following tables present the Company’s financial instruments that are measured at fair value on a recurring basis:
As of December 31, 2025 | ||||||||||||
Quoted Market | ||||||||||||
Prices in Active | Significant | |||||||||||
Markets for | Significant Other | Unobservable | ||||||||||
Identical Assets | Observable Inputs | Inputs | Total Fair Value | |||||||||
(in thousands) | | (Level 1) | | (Level 2) | | (Level 3) | | Measurements | ||||
Assets: | | | | | ||||||||
Cash equivalents | $ | 9,336 | $ | — | $ | — | $ | 9,336 | ||||
As of December 31, 2024 | ||||||||||||
Quoted Market | ||||||||||||
Prices in Active | Significant | |||||||||||
Markets for | Significant Other | Unobservable | ||||||||||
Identical Assets | Observable Inputs | Inputs | Total Fair Value | |||||||||
(in thousands) | | (Level 1) | | (Level 2) | | (Level 3) | | Measurements | ||||
Assets: | | | | | ||||||||
Cash equivalents: | $ | 67,645 | $ | — | $ | — | $ | 67,645 | ||||
Short-term investments | $ | 17,805 | $ | — | $ | — | $ | 17,805 | ||||
As of December 31, 2025, Cash equivalents consisted of money market funds of $9.3 million. As of December 31, 2024, Cash equivalents consisted of treasury bills with original maturities at the date of purchase of three months or less and money market funds of $67.6 million.
As of December 31, 2025, the Company had no Short-term investments. As of December 31, 2024, Short-term investments consisted of treasury bills and treasury notes of $17.8 million. As of December 31, 2024, all of the Company’s Short-term investments were contractually due within one year.
As of December 31, 2024, the amortized cost of the Company’s treasury bills and treasury notes approximated fair value. The Company did not record any unrealized gains, unrealized losses, or credit losses for the years ended December 31, 2025 and 2024.
Contingent consideration relates to potential payments that the Company may be required to make associated with a business combination. To the extent that the valuations of these liabilities are based on inputs that are less observable or not observable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for measures categorized in Level 3.
There was no activity for contingent consideration during the years ended December 31, 2025 and 2024. Rollforward of the fair value measurements of the contingent consideration categorized with Level 3 inputs for the year ended December 31, 2023 is as follows:
(in thousands) | | ||
Balance as of January 1, 2023 | $ | — | |
Fair value at date of acquisition | (1,193) | ||
Fair value adjustments | 1,193 | ||
Balance as of December 31, 2023 | | $ | — |
The fair value of contingent consideration from the Scibids Contingent Payment related to the achievement of certain performance metrics have been estimated using a Black-Scholes option pricing model. As of the acquisition date, forecasted amounts for the Earn-Out Period were taken and discounted to the valuation date using a risk adjusted discount rate of 11.3%. Additional significant assumptions include volatility of 25.0% and operating leverage of 160%. Volatility was estimated based on asset volatilities of comparable companies, which were calculated based on observed equity volatilities, adjusted for financial leverage using the Merton Model. Operating leverage of the seller was calculated as the ratio of the present value of the forecasted fixed cost and EBITDA.
The Earn-out Period concluded on December 31, 2023. For the year-ended December 31, 2023, there was a decrease in fair value of $1.2 million recorded as a gain in Other income, net on the Consolidated Statements of Operations and Comprehensive Income in relation to the Scibids Contingent Payment. The decrease in fair value was due to the actual performance metrics during the Earn-out Period not exceeding a certain threshold.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2023 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.