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DRCT

Direct Digital Holdings, Inc.

DRCT

Direct Digital Holdings, Inc. • NASDAQ
$0.12 ▼ -21.53% (-0.03)
Market Cap $3.46 M
52w High $6.59
52w Low $0.11
Dividend Yield 0%
P/E -0.09
Volume 9.53M
Outstanding Shares 30.01M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $7.984M ▼ $6.125M ▲ $-2.68M ▼ -33.567% ▼ $-0.21 ▲ $-4.442M ▼
Q2-2025 $10.144M ▲ $5.987M ▼ $-2.249M ▲ -22.171% ▲ $-0.6 ▲ $-2.385M ▲
Q1-2025 $8.157M ▼ $6.317M ▼ $-2.355M ▼ -28.871% ▼ $-0.63 ▼ $-4.133M ▲
Q4-2024 $9.083M ▲ $7.651M ▲ $-2.181M ▲ -24.012% ▲ $-0.54 ▲ $-4.627M ▼
Q3-2024 $9.075M $7.172M $-2.69M -29.642% $-0.71 $2.248M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $871K ▼ $22.535M ▼ $29.23M ▼ $-1.169M ▲
Q2-2025 $1.593M ▼ $23.326M ▼ $47.907M ▲ $-10.58M ▼
Q1-2025 $1.789M ▲ $23.817M ▼ $47.132M ▲ $-7.335M ▼
Q4-2024 $1.445M ▼ $26.006M ▼ $45.736M ▼ $-4.988M ▼
Q3-2024 $4.087M $31.291M $46.281M $-3.097M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $0 ▲ $-1.592M ▲ $0 ▲ $916K ▼ $-722K ▼ $-1.638M ▲
Q2-2025 $-4.196M ▲ $-2.69M ▲ $-23K ▼ $2.517M ▼ $-196K ▼ $-2.713M ▼
Q1-2025 $-5.94M ▲ $-2.708M ▼ $-15K ▼ $3.067M ▲ $344K ▲ $-2.708M ▼
Q4-2024 $-6.569M ▼ $-1.553M ▼ $0 ▲ $-1.089M ▼ $-2.642M ▼ $-1.553M ▼
Q3-2024 $-6.377M $3.016M $-7K $9K $3.018M $3.009M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Buyside advertising
Buyside advertising
 $0 ▲$0 ▲$0 ▲$0 ▲
Sellside advertising
Sellside advertising
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Direct Digital’s revenue base is still small and has recently stepped back after a stronger year, suggesting some volatility in demand or client budgets. The company moved from roughly breakeven to a modest loss, with operating profit and EBITDA slipping into negative territory. Net income and earnings per share have also swung from slightly positive or flat to clearly negative. Overall, the income statement tells a story of a young, growing business that has not yet found consistent profitability and is sensitive to changes in the ad market and execution hiccups.

Balance Sheet

Balance Sheet The balance sheet is light and highly leveraged. Total assets are modest, cash on hand is limited, and debt has crept up over time to a level that appears to exceed the asset base, leaving very thin or even negative equity. This combination points to a financially fragile structure with limited cushion against shocks. It means the company’s room to absorb losses, invest heavily, or withstand a downturn without new funding looks constrained.

Cash Flow

Cash Flow Cash generation is weak and recently turned slightly negative. Operating cash flow, which had been close to flat, is now modestly in the red, and free cash flow mirrors that pattern because capital spending is minimal. This signals that the business is not yet self-funding and may need continued tight cost control, better monetization, or outside financing to support growth plans and service its obligations.

Competitive Edge

Competitive Edge Direct Digital occupies a narrow but differentiated niche in the ad-tech world. It focuses on smaller advertisers and underrepresented publishers that many larger platforms overlook, and it ties together both the buying and selling sides of digital ads in one ecosystem. This gives it a distinctive, mission-driven brand and creates useful network effects between its advertiser clients and its publisher partners. However, the broader industry is dominated by powerful, well-funded players, and the company’s small scale and limited financial resources make it vulnerable to competitive pressure, pricing squeezes, and swings in ad spending.

Innovation and R&D

Innovation and R&D The company leans heavily on innovation as its main lever for growth. It has built proprietary platforms on both the buy-side and sell-side, uses AI to optimize ad placements, and emphasizes brand safety, transparency, and curated marketplaces. Its focus on emerging channels like connected TV, retail media, and new formats such as travel and tourism networks shows a willingness to experiment at the edge of the market. Initiatives around AI governance, carbon-aware advertising, and attention metrics signal a forward-looking mindset. The main risk is execution: turning these ideas and pilots into durable, profitable products while running on a thin financial base will be challenging.

Summary

Direct Digital is an early-stage, niche ad-tech company with a clear strategic focus and a fragile financial profile. On the positive side, it has a differentiated mission serving small businesses and minority-owned publishers, integrated technology across the ad supply chain, and a pipeline of innovative initiatives in AI, connected TV, sustainable media, and new ad environments like travel. On the risk side, revenue remains small and choppy, profitability has slipped into losses, leverage is high, and cash generation is weak, leaving little margin for error. The long-term story hinges on whether management can scale its specialized ecosystem quickly and efficiently enough to overcome its current financial constraints and withstand intense competition in digital advertising.

NEWS

November 13, 2025 · 1:00 PM UTC

Direct Digital Holdings Regains Compliance with Nasdaq Stockholders' Equity Requirement

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November 6, 2025 · 4:06 PM UTC

Direct Digital Holdings Reports Third Quarter 2025 Financial Results

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November 6, 2025 · 4:05 PM UTC

Direct Digital Holdings Announces Expansion of its Equity Reserve Facility to $100 Million

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November 4, 2025 · 9:00 AM UTC

Orange 142 and ReachTV Launch First-of-Its-Kind Travel & Tourism Ad Platform

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October 29, 2025 · 8:30 AM UTC

Direct Digital Holdings to Report Third Quarter 2025 Financial Results

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