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An announcement from Direct Digital Holdings ( (DRCT) ) is now available.
On December 30, 2025, Direct Digital Holdings held a special virtual shareholders’ meeting at which investors approved a broad package of capital-structure and equity-related measures. Stockholders authorized the board to execute a reverse stock split of each class of common stock at a ratio between 2-to-1 and 250-to-1 any time before December 26, 2026, and approved the potential issuance of up to 100 million Class A shares under an equity reserve facility with New Circle Principle Investments LLC. They also voted to increase the share pool under the 2022 Omnibus Incentive Plan by 9 million Class A shares and cleared the way for the issuance of up to 41.75 million Class A shares tied to a court-approved settlement and exchange. Collectively, these approvals significantly expand the company’s capacity to issue equity, giving management greater flexibility to manage financing needs, address settlement obligations and maintain exchange-listing requirements, while also signaling potential dilution for existing shareholders.
The most recent analyst rating on (DRCT) stock is a Hold with a $0.06 price target. To see the full list of analyst forecasts on Direct Digital Holdings stock, see the DRCT Stock Forecast page.
Spark’s Take on DRCT Stock
According to Spark, TipRanks’ AI Analyst, DRCT is a Neutral.
The score is driven primarily by weak financial performance (declining revenue, persistent losses, negative equity, and uneven cash flow). Technicals also weigh heavily given a strong downtrend and negative momentum. Earnings-call actions (cost reductions and debt conversion) provide some stabilization, but valuation support is limited due to negative earnings and no dividend, and corporate events add listing-risk uncertainty.
To see Spark’s full report on DRCT stock, click here.
More about Direct Digital Holdings
Average Trading Volume: 19,136,812
Technical Sentiment Signal: Sell
Current Market Cap: $2.4M
Find detailed analytics on DRCT stock on TipRanks’ Stock Analysis page.