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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 | 0.00 | 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 | -6.97M | -8.66M | 2.38M | 1.44M | 3.75M | -574.53K |
| Operating Cash Flow | -6.95M | -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 | 4.50M | 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% | |
41 Neutral | $4.60M | ― | ― | ― | -62.46% | -12.90% | |
40 Underperform | $7.34M | -2.86 | ― | ― | 95.23% | 34.97% | |
39 Underperform | $8.15M | -0.09 | -164.27% | ― | 4.59% | -920.35% | |
38 Underperform | $5.37M | -1.06 | -50.26% | ― | -66.59% | 67.63% | |
25 Underperform | $7.37M | ― | -113.86% | ― | 2482.80% | -169.59% |
Direct Digital Holdings Corporate Events
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.
The recent earnings call of Direct Digital Holdings, Inc. Class A painted a mixed picture for stakeholders. While the company showcased strategic advancements, particularly in buy-side operations and AI-driven efficiencies, there were notable challenges. A significant decline in sell-side revenue and overall financial metrics, such as gross margin and net loss, highlighted ongoing struggles. Despite these hurdles, strategic initiatives and partnerships offer potential for future growth, although the immediate financial outlook remains cautious.
Direct Digital Holdings, Inc. is a prominent advertising and marketing technology company that operates through its subsidiaries, Colossus Media and Orange 142, providing digital media strategies for brands and agencies across various platforms. In its third-quarter 2025 financial report, the company highlighted a 7% increase in buy-side revenue compared to the previous year, despite an overall 12% decline in consolidated revenue. The company also reported a significant reduction in operating expenses by 15% for the quarter and 20% for the first nine months of 2025.
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.
Direct Digital Holdings, Inc. sold 2,400,000 shares of its Class A Common Stock in unregistered transactions from September 16 to September 30, 2025, raising a total of $755,383 after discounts. These sales exceeded five percent of the total shares outstanding and were made to New Circle Principal Investments LLC under an Equity Reserve Facility, relying on exemptions from registration requirements under the Securities Act.
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.
Between August 6, 2025, and September 16, 2025, Direct Digital Holdings sold 700,000 shares of its Class A Common Stock for $275,993, with a discount of $8,997. These sales exceeded five percent of the total shares outstanding as of August 6, 2025, and were made to New Circle Principal Investments LLC under an existing Share Purchase Agreement, utilizing exemptions from registration under the Securities Act.
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.
On September 8, 2025, Direct Digital Holdings announced the repayment and termination of its Credit Agreement, which included a revolving credit facility of up to $5.0 million. The company used the proceeds from the Eighth Amendment Term Loan to settle all outstanding loans and obligations, successfully releasing the liens in favor of EWB without incurring any termination penalties.
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.