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Direct Digital Holdings
(NASDAQ:DRCT)
Direct Digital Holdings (DRCT) vs. SPDR S&P 500 ETF (SPY)
Direct Digital Holdings Business Overview & Revenue Model
Direct Digital Holdings Earnings Call Summary
Direct Digital Holdings Financial Statement Overview
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 35.37M | 62.29M | 157.11M | 89.36M | 38.14M | 12.48M |
| Gross Profit | 11.12M | 17.39M | 37.57M | 29.32M | 18.43M | 5.17M |
| EBITDA | -15.59M | -5.98M | 473.00K | 9.85M | 3.69M | 457.44K |
| Net Income | -9.46M | -6.24M | -2.19M | 205.00K | -1.51M | -908.19K |
Balance Sheet | ||||||
| Total Assets | 22.54M | 26.01M | 70.67M | 58.13M | 36.00M | 30.70M |
| Cash, Cash Equivalents and Short-Term Investments | 871.00K | 1.45M | 5.12M | 4.05M | 4.68M | 1.61M |
| Total Debt | 16.63M | 36.27M | 30.95M | 24.56M | 20.82M | 13.37M |
| Total Liabilities | 29.23M | 45.74M | 74.35M | 52.53M | 36.37M | 28.33M |
| Stockholders Equity | -1.17M | -4.99M | 543.00K | 2.28M | -374.86K | 2.37M |
Cash Flow | ||||||
| Free Cash Flow | -8.61M | -8.66M | 2.38M | 1.44M | 3.75M | -574.53K |
| Operating Cash Flow | -8.59M | -8.65M | 2.56M | 2.13M | 3.75M | -574.53K |
| Investing Cash Flow | -38.00K | -17.00K | -178.00K | -687.96K | 0.00 | -10.99M |
| Financing Cash Flow | 5.41M | 4.99M | -1.31M | -2.08M | -678.72K | 12.29M |
Direct Digital Holdings Technical Analysis
Direct Digital Holdings Risk Analysis
Direct Digital Holdings Peers Comparison
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
44 Neutral | $4.05M | -1.42 | -50.26% | ― | -66.59% | 67.63% | |
39 Underperform | ― | -0.03 | ― | ― | -62.46% | -12.90% | |
39 Underperform | $6.24M | -2.45 | ― | ― | 95.23% | 34.97% | |
38 Underperform | $6.26M | -0.73 | -164.27% | ― | 4.59% | -920.35% | |
25 Underperform | $5.87M | >-0.01 | -113.86% | ― | 2482.80% | -169.59% |
Direct Digital Holdings Corporate Events
On January 9, 2026, Direct Digital Holdings filed an amendment to its Delaware charter to implement a 55‑to‑1 reverse stock split of its Class A and Class B common stock, following shareholder and board approvals on December 30, 2025, with the split becoming effective just after midnight on January 12, 2026. The move, announced in a January 8, 2026 press release, reduces the outstanding Class A shares from roughly 68.9 million to about 1.3 million and Class B shares from about 9.3 million to 0.2 million, keeps the Nasdaq ticker “DRCT” intact but assigns a new CUSIP, and replaces fractional entitlements with cash payments, a restructuring aimed at lifting the share price to meet Nasdaq’s $1.00 minimum bid requirement and preserving the company’s listing and visibility among institutional investors.
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.
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.
On December 26, 2025, Direct Digital Holdings, Inc. convened a special meeting of stockholders but failed to achieve a quorum, as stockholders representing less than the required voting power for the company’s Class A and Class B common stock and Series A preferred stock were present or represented by proxy. As a result, no business was conducted, and the meeting was adjourned and rescheduled to reconvene virtually on January 2, 2026, with the original November 26, 2025 record date and previously submitted proxies remaining valid, underscoring the importance of greater shareholder participation for the company to proceed with voting on its outstanding proposals.
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.
Direct Digital Holdings, Inc. announced that between September 30, 2025, and December 5, 2025, it sold 12,600,000 shares of its Class A Common Stock for a total of $1,324,380. These sales were made to New Circle Principal Investments LLC under an Equity Reserve Facility, and the transactions exceeded five percent of the total outstanding shares as of September 30, 2025, prompting the filing of a Current Report on Form 8-K.
The most recent analyst rating on (DRCT) stock is a Sell with a $0.10 price target. To see the full list of analyst forecasts on Direct Digital Holdings stock, see the DRCT Stock Forecast page.
On November 20, 2025, Direct Digital Holdings, Inc. entered into a Settlement Agreement with Continuation Capital, Inc., agreeing to issue up to 50,000,000 shares of Class A Common Stock in exchange for the release of certain claims related to third-party vendor payables amounting to $3,020,932. The agreement, approved by a court on November 21, 2025, allows the issuance of securities to be exempt from registration under the Securities Act of 1933, with shares sold at 76% of the lower of specified market prices.
The most recent analyst rating on (DRCT) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Direct Digital Holdings stock, see the DRCT Stock Forecast page.
Direct Digital Holdings, Inc. received a notice from Nasdaq on May 12, 2025, due to its Class A common stock trading below $1.00 per share for 30 consecutive business days, failing to meet the minimum bid price requirement. Despite a second notice on November 13, 2025, indicating continued non-compliance, the company’s securities remain listed on Nasdaq. The Nasdaq Hearings Panel granted an extension until January 30, 2026, for the company to meet the bid price requirement, with potential delisting if compliance is not achieved. The company is exploring options like a reverse stock split to maintain its listing.
The most recent analyst rating on (DRCT) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Direct Digital Holdings stock, see the DRCT Stock Forecast page.
Direct Digital Holdings announced that the shares of Class A Common Stock, issuable upon the exchange of Series A Preferred Stock, will be issued without registration under the Securities Act of 1933. This decision leverages exemptions for transactions not involving a public offering, potentially impacting the company’s financial operations and stakeholder interests.
The most recent analyst rating on (DRCT) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Direct Digital Holdings stock, see the DRCT Stock Forecast page.
Direct Digital Holdings has amended its Series A Convertible Preferred Stock, increasing the number of shares from 25,000 to 35,000, with a face value of $1,000 per share. The amendment, filed on October 15, 2025, outlines the rights and preferences of the Series A Preferred Stock, including a 10% annual dividend rate, voting rights, and seniority over other stock classes. The changes are expected to impact the company’s financial structure and shareholder dynamics, as the preferred stockholders gain significant influence over corporate decisions and potential liquidation events.
The most recent analyst rating on (DRCT) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Direct Digital Holdings stock, see the DRCT Stock Forecast page.
Direct Digital Holdings, Inc. held a virtual special meeting on October 13, 2025, where stockholders approved amendments to increase authorized shares and issue new shares under an equity line of credit. The company has been addressing compliance issues with Nasdaq, including stockholders’ equity and minimum bid price requirements, through strategic transactions and amendments to its loan agreements. These efforts aim to regain compliance and maintain its Nasdaq listing.
The most recent analyst rating on (DRCT) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Direct Digital Holdings stock, see the DRCT Stock Forecast page.