Direct Digital Holdings, Inc.
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Range $440.00000000000006 – $440.00000000000006
Price Chart
About the company
Direct Digital Holdings, Inc. operates a comprehensive, full-service programmatic advertising platform, managing the entire digital advertising workflow from conception to execution. This sophisticated platform is specifically designed to deliver cutting-edge advertising technology and optimize campaigns using data-driven insights.
- CEO
- Mark D. Walker
- IPO
- 2022
- Employees
- 73
- HQ
- Houston, TX, US
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Similar companies
Peers in the same neighborhood.
- Market Cap
- $1.87M
- P/E
- -0.07
- PEG
- 0.00
- P/S
- 0.06
- P/B
- -0.21
- EV/EBITDA
- -0.85
- Div Yield
- 0.00%
- Gross Margin
- 19.01%
- Op Margin
- -47.19%
- Net Margin
- -74.38%
- ROE
- 570.82%
- ROIC
- -333.30%
Latest fiscal year · YoY change
- Revenue
- $34.69M-44.3%
- Gross Profit
- $10.42M-40.1%
- Op Income
- $-14,755,000
- Net Income
- $-18,946,000-203.8%
- EPS
- $-75.79-4465.7%
- OCF Growth
- -3.0%
- FCF Growth
- -3.8%
- 52W High
- $113.74
- 52W Low
- $2.17
- 50D MA
- $2.69
- 200D MA
- $10.09
- Beta
- 5.30
- RSI (14)
- 43
- Avg Volume
- 41.84K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Direct Digital Holdings reported lower second-quarter revenue as it continues a strategy shift, but management pointed to early demand for new AI and infrastructure offerings and improved year-to-date revenue excluding DSP declines.· August 12, 2026
- Q2 revenue was $7.8 million, down from $10.1 million a year ago, mainly because demand-side platform customer spending fell.
- Gross profit was $2.7 million, or 34% of revenue, versus $3.6 million and 35% last year.
- Operating expenses fell 7% to $5.6 million, but the quarter still produced a $2.9 million operating loss and $2.3 million adjusted EBITDA loss.
- Excluding reduced DSP customer spending, first-half revenue increased about 5% year over year.
- Management said AI search, GEO, AI support, and web infrastructure services are seeing strong demand and expand the addressable market.
Consolidated revenue in Q2 2026 was $7.8 million versus $10.1 million in Q2 2025. Gross profit was $2.7 million, or 34% of revenue, compared with $3.6 million, or 35% a year ago. Operating expenses were $5.6 million, down 7% from $6.0 million; operating loss was $2.9 million versus $2.4 million; net loss was $3.6 million versus $4.2 million; and adjusted EBITDA loss was $2.3 million versus $1.5 million. For the first half, revenue was $14.5 million versus $18.3 million last year, and excluding $4.5 million of lower DSP sales, revenue grew about $700,000, or 5% year over year. The company ended the quarter with $500,000 of cash and cash equivalents and $3.2 million of cash plus accounts receivable. It was not in compliance with certain financial covenants under its credit facility and has requested a waiver; no formal forward revenue or earnings guidance was provided.
Mark Walker framed the quarter as part of a broader strategy reset, saying the company has streamlined operations to focus on areas where it can create the most value. He emphasized that new AI search and GEO offerings, along with AI support and web infrastructure services, are attracting demand and expanding the company’s reach beyond traditional media support. His tone was cautiously optimistic: he acknowledged the business is still early in the transition, but said the foundation is stronger and the company is seeing measurable progress.
Diana Diaz walked through the decline in revenue and profitability, tying the Q2 top-line drop to a $2.5 million decrease in demand-side platform customer spending. She highlighted that gross margin held at 34%, operating expenses declined 7% to $5.6 million, and year-to-date revenue would have been up about 5% excluding $4.5 million of lower DSP sales. On the balance sheet, she said the company had $500,000 of cash and $3.2 million of cash plus receivables at quarter-end, and disclosed a covenant breach under the credit facility, noting that discussions with the lender about a waiver were constructive and ongoing.
There was no analyst Q&A; the operator noted there were no questions. The only additional management commentary was that discussions with the lender regarding a covenant waiver are ongoing and constructive, and the company is prioritizing operating performance and financial discipline. Management did not provide quantitative forward guidance during the call.
The bull case is that the company believes it is repositioning toward higher-value, more scalable services, with early demand already visible for AI search, GEO, AI support, and web infrastructure offerings. Management also said retention is about 80% among customers representing about 80% of revenue for the first half, and that excluding DSP declines, revenue was up about 5% year to date.
The bear case is that the business is still shrinking on a reported basis, with Q2 revenue down to $7.8 million and profitability still negative. Cash was only $500,000 at quarter-end, and the company was out of compliance with certain credit-covenant requirements, creating financing risk while the strategy transition is still early.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 94.5%
- Shares Outstanding
- 739.53K
- Float Shares
- 698.83K
of shares held by institutions
9 13F filers
Buy/sell ratio 0.00. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Vanguard Group Inc | 27.46K | ▼ 108.57K |
Held by 4 ETFs
Biggest fund positions in DRCT by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Jun 9, 26 | Leatherberry Antoinette Renee | other | 159 |
| Jun 12, 26 | Leatherberry Antoinette Renee | other | 37 |
| Jun 12, 26 | Leatherberry Antoinette Renee | sell | 23 |
| Jun 9, 26 | Leatherberry Antoinette Renee | sell | 67 |
| Jan 24, 26 | Leatherberry Antoinette Renee | other | 90 |
| Jun 12, 26 | Leatherberry Antoinette Renee | other | 37 |
| Jun 9, 26 | Cohen Richard | other | 159 |
| Jun 12, 26 | Cohen Richard | other | 37 |
| Jun 12, 26 | Cohen Richard | sell | 25 |
| Jun 9, 26 | Cohen Richard | sell | 76 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our DRCT coverage
Recent articles, reports, and earnings notes.
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Generate DRCT report →Direct Digital Holdings, Inc. (DRCT) Q2 2026 Earnings Call Transcript
seekingalpha.com · Aug 12
Direct Digital Holdings Reports Second Quarter 2026 Financial Results
prnewswire.com · Aug 12
Direct Digital Holdings to Report Second Quarter 2026 Financial Results
prnewswire.com · Aug 7
Orange 142 Drives Performance Marketing Success for the Tucson Festival of Books
prnewswire.com · Jul 28
Direct Digital (DRCT) Upgraded to Buy: Here's What You Should Know
zacks.com · Jun 25
Ohad Harlev Appointed to the Board of Directors of Direct Digital Holdings
prnewswire.com · Jun 4
Direct Digital Holdings, Inc. (DRCT) Q1 2026 Earnings Call Transcript
seekingalpha.com · May 11
Direct Digital Holdings Reports First Quarter 2026 Financial Results
prnewswire.com · May 11
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