This work presents a parametric-solver algorithm for estimating atmospheric stability and friction velocity from floating Doppler wind lidar (FDWL) observations close to the mast of IJmuiden in the North Sea. The focus of the study was two-fold: (i) to examine the sensitivity of the computational algorithm to the retrieved variables and derived stability classes (the latter through confusion-matrix theory), and (ii) to present data screening procedures for FDWLs and fixed reference instrumentation. The performance of the stability estimation algorithm was assessed with reference to wind speed and temperature observations from the mast. A fixed-to-mast Doppler wind lidar (DWL) was also available, which provides a reference for wind-speed observations free from sea-motion perturbations. When comparing FDWL- and mast-derived mean wind speeds, the obtained determination coefficient was as high as that of the fixed-to-mast DWL against the mast (ρ2=0.996) with a root mean square error (RMSE) of 0.25 m/s. From the 82-day measurement campaign at IJmuiden (10,833 10 min records), the parametric algorithm showed that the atmosphere was neutral (31% of the cases), stable (28%), or near-neutral stable (19%) during most of the campaign. These figures satisfactorily agree with values estimated from the mast measurements (31%, 27%, and 19%, respectively).