Direct Digital Holdings, Inc. Financials
Financial Health Signals
Direct Digital Holdings, Inc. passes 2 of 9 financial strength tests. No profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.
For every $1 of reported earnings, Direct Digital Holdings, Inc. generates $1.39 in operating cash flow (-$8.6M OCF vs -$6.2M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Direct Digital Holdings, Inc. earns $-2.4 in operating income for every $1 of interest expense (-$13.2M vs $5.4M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
This page shows Direct Digital Holdings, Inc. (DRCT) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 4 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Direct Digital Holdings, Inc. generated $62.3M in revenue in fiscal year 2024. This represents a decrease of 60.4% from the prior year.
Direct Digital Holdings, Inc.'s EBITDA was -$13.0M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 570.7% from the prior year.
Direct Digital Holdings, Inc. reported -$6.2M in net income in fiscal year 2024. This represents a decrease of 184.2% from the prior year.
Direct Digital Holdings, Inc. earned $-1.66 per diluted share (EPS) in fiscal year 2024. This represents a decrease of 127.4% from the prior year.
Direct Digital Holdings, Inc. held $1.4M in cash against $31.6M in long-term debt as of fiscal year 2024.
Direct Digital Holdings, Inc.'s gross margin was 27.9% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is up 4.0 percentage points from the prior year.
Direct Digital Holdings, Inc.'s operating margin was -21.2% in fiscal year 2024, reflecting core business profitability. This is down 19.9 percentage points from the prior year.
Direct Digital Holdings, Inc.'s net profit margin was -10.0% in fiscal year 2024, showing the share of revenue converted to profit. This is down 8.6 percentage points from the prior year.
DRCT Income Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $8.0M-21.3% | $10.1M+24.4% | $8.2M-10.2% | $9.1M-58.4% | $21.9M-1.9% | $22.3M-45.7% | $41.0M-31.0% | $59.5M |
| Cost of Revenue | $5.8M-12.3% | $6.6M+14.2% | $5.8M-6.0% | $6.1M-61.5% | $15.9M-7.8% | $17.3M-45.5% | $31.7M-33.6% | $47.7M |
| Gross Profit | $2.2M-37.8% | $3.6M+48.8% | $2.4M-18.8% | $2.9M-50.3% | $5.9M+18.7% | $5.0M-46.3% | $9.3M-20.7% | $11.8M |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $2.5M+6.5% | $2.3M-11.5% | $2.7M-23.4% | $3.5M-9.5% | $3.8M+16.7% | $3.3M-26.8% | $4.5M+78.4% | $2.5M |
| Operating Income | -$3.9M-61.2% | -$2.4M+38.2% | -$3.9M+16.6% | -$4.7M-127.7% | -$2.1M+26.4% | -$2.8M+68.1% | -$8.8M-295.7% | $4.5M |
| Interest Expense | $1.1M-38.3% | $1.8M-3.1% | $1.8M+37.6% | $1.3M-1.2% | $1.4M+4.7% | $1.3M+1.9% | $1.3M+20.1% | $1.1M |
| Income Tax | $0 | $0 | $0 | $0+100.0% | -$274K-37.0% | -$200K-149.8% | $402K+142.2% | $166K |
| Net Income | -$2.7M-19.2% | -$2.2M+4.5% | -$2.4M-8.0% | -$2.2M-269.7% | -$590K+23.9% | -$775K+71.7% | -$2.7M-580.4% | $571K |
| EPS (Diluted) | $-0.24-4.3% | $-0.23+34.3% | $-0.35+38.6% | $-0.57-256.2% | $-0.16+27.3% | $-0.22+71.8% | $-0.78-966.7% | $0.09 |
DRCT Balance Sheet
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $22.5M-3.4% | $23.3M-2.1% | $23.8M-8.4% | $26.0M-46.4% | $48.5M-8.1% | $52.8M-23.4% | $68.9M-20.5% | $86.7M |
| Current Assets | $6.6M-1.8% | $6.7M-2.2% | $6.9M-19.4% | $8.5M-60.3% | $21.5M-16.2% | $25.6M-40.5% | $43.1M-30.0% | $61.5M |
| Cash & Equivalents | $871K-45.3% | $1.6M-11.0% | $1.8M+23.8% | $1.4M+35.2% | $1.1M-67.9% | $3.3M-34.8% | $5.1M-6.7% | $5.5M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $3.6M-7.6% | $3.9M-11.4% | $4.4M-11.7% | $5.0M-74.5% | $19.5M-8.9% | $21.4M-42.4% | $37.2M-31.9% | $54.6M |
| Goodwill | $6.5M0.0% | $6.5M0.0% | $6.5M0.0% | $6.5M0.0% | $6.5M0.0% | $6.5M0.0% | $6.5M0.0% | $6.5M |
| Total Liabilities | $29.2M-39.0% | $47.9M+1.6% | $47.1M+3.1% | $45.7M-20.1% | $57.2M-2.2% | $58.6M-21.2% | $74.4M-10.3% | $82.9M |
| Current Liabilities | $17.7M+29.8% | $13.7M+1.5% | $13.5M+1.0% | $13.3M-18.3% | $16.3M-19.4% | $20.3M-49.1% | $39.8M-28.2% | $55.5M |
| Long-Term Debt | $10.8M-67.7% | $33.5M+1.9% | $32.9M+4.0% | $31.6M-9.3% | $34.8M+7.7% | $32.4M+13.2% | $28.6M+28.0% | $22.3M |
| Total Equity | -$6.7M+72.8% | -$24.6M-5.4% | -$23.3M-18.2% | -$19.7M-87.7% | -$10.5M-39.6% | -$7.5M-38.9% | -$5.4M-184.7% | $6.4M |
| Retained Earnings | -$16.1M-20.0% | -$13.4M-20.2% | -$11.1M-26.8% | -$8.8M-124.8% | -$3.9M-17.8% | -$3.3M-30.5% | -$2.5M-1338.0% | $205K |
DRCT Cash Flow Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$1.6M+39.1% | -$2.7M+0.7% | -$2.7M-74.4% | -$1.6M+64.8% | -$4.4M+22.7% | -$5.7M-196.6% | -$1.9M-234.8% | $1.4M |
| Capital Expenditures | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Free Cash Flow | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Investing Cash Flow | $0+100.0% | -$23K-53.3% | -$15K | $0+100.0% | -$10K | $0+100.0% | -$41K | $0 |
| Financing Cash Flow | $916K-63.6% | $2.5M-17.9% | $3.1M+381.6% | -$1.1M-150.6% | $2.2M-45.1% | $3.9M+145.4% | $1.6M+199.1% | -$1.6M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
DRCT Financial Ratios
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 27.7%-7.4pp | 35.1%+5.8pp | 29.3%-3.1pp | 32.5%+5.3pp | 27.1%+4.7pp | 22.4%-0.3pp | 22.7%+2.9pp | 19.8% |
| Operating Margin | -49.0%-25.1pp | -23.9%+24.2pp | -48.1%+3.7pp | -51.8%-42.3pp | -9.4%+3.1pp | -12.6%+8.8pp | -21.4%-29.0pp | 7.6% |
| Net Margin | -33.6%-11.4pp | -22.2%+6.7pp | -28.9%-4.9pp | -24.0%-21.3pp | -2.7%+0.8pp | -3.5%+3.2pp | -6.7%-7.6pp | 1.0% |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 8.9% |
| Return on Assets | -11.9%-2.3pp | -9.6%+0.3pp | -9.9%-1.5pp | -8.4%-7.2pp | -1.2%+0.2pp | -1.5%+2.5pp | -4.0%-4.6pp | 0.7% |
| Current Ratio | 0.37-0.1 | 0.49-0.0 | 0.51-0.1 | 0.64-0.7 | 1.31+0.1 | 1.26+0.2 | 1.08-0.0 | 1.11 |
| Debt-to-Equity | -1.62-0.3 | -1.36+0.0 | -1.41+0.2 | -1.60+1.7 | -3.31+1.0 | -4.30+1.0 | -5.27-8.8 | 3.49 |
| FCF Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Note: Shareholder equity is negative (-$19.7M), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
Note: The current ratio is below 1.0 (0.64), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is Direct Digital Holdings, Inc.'s annual revenue?
Direct Digital Holdings, Inc. (DRCT) reported $62.3M in total revenue for fiscal year 2024. This represents a -60.4% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Direct Digital Holdings, Inc.'s revenue growing?
Direct Digital Holdings, Inc. (DRCT) revenue declined by 60.4% year-over-year, from $157.1M to $62.3M in fiscal year 2024.
Is Direct Digital Holdings, Inc. profitable?
No, Direct Digital Holdings, Inc. (DRCT) reported a net income of -$6.2M in fiscal year 2024, with a net profit margin of -10.0%.
What is Direct Digital Holdings, Inc.'s earnings per share (EPS)?
Direct Digital Holdings, Inc. (DRCT) reported diluted earnings per share of $-1.66 for fiscal year 2024. This represents a -127.4% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Direct Digital Holdings, Inc.'s EBITDA?
Direct Digital Holdings, Inc. (DRCT) had EBITDA of -$13.0M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Direct Digital Holdings, Inc. have?
As of fiscal year 2024, Direct Digital Holdings, Inc. (DRCT) had $1.4M in cash and equivalents against $31.6M in long-term debt.
What is Direct Digital Holdings, Inc.'s gross margin?
Direct Digital Holdings, Inc. (DRCT) had a gross margin of 27.9% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.
What is Direct Digital Holdings, Inc.'s operating margin?
Direct Digital Holdings, Inc. (DRCT) had an operating margin of -21.2% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.
What is Direct Digital Holdings, Inc.'s net profit margin?
Direct Digital Holdings, Inc. (DRCT) had a net profit margin of -10.0% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.
What is Direct Digital Holdings, Inc.'s operating cash flow?
Direct Digital Holdings, Inc. (DRCT) generated -$8.6M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.
What are Direct Digital Holdings, Inc.'s total assets?
Direct Digital Holdings, Inc. (DRCT) had $26.0M in total assets as of fiscal year 2024, including both current and long-term assets.
What is Direct Digital Holdings, Inc.'s current ratio?
Direct Digital Holdings, Inc. (DRCT) had a current ratio of 0.64 as of fiscal year 2024, which is below 1.0, which may suggest potential liquidity concerns.
What is Direct Digital Holdings, Inc.'s debt-to-equity ratio?
Direct Digital Holdings, Inc. (DRCT) had a debt-to-equity ratio of -1.60 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Direct Digital Holdings, Inc.'s return on assets (ROA)?
Direct Digital Holdings, Inc. (DRCT) had a return on assets of -24.0% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.
What is Direct Digital Holdings, Inc.'s cash runway?
Based on fiscal year 2024 data, Direct Digital Holdings, Inc. (DRCT) had $1.4M in cash against an annual operating cash burn of $8.6M. This gives an estimated cash runway of approximately 2 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
Why is Direct Digital Holdings, Inc.'s debt-to-equity ratio negative or unusual?
Direct Digital Holdings, Inc. (DRCT) has negative shareholder equity of -$19.7M as of fiscal year 2024, which causes the debt-to-equity ratio to appear negative or not meaningful. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is Direct Digital Holdings, Inc.'s Piotroski F-Score?
Direct Digital Holdings, Inc. (DRCT) has a Piotroski F-Score of 2 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Direct Digital Holdings, Inc.'s earnings high quality?
Direct Digital Holdings, Inc. (DRCT) has an earnings quality ratio of 1.39x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Direct Digital Holdings, Inc. cover its interest payments?
Direct Digital Holdings, Inc. (DRCT) has an interest coverage ratio of -2.4x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.