Direct Digital Holdings, Inc. Financials
Direct Digital Holdings, Inc. (DRCT) reported $34.7M in revenue for fiscal year 2025, down 44.3% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 5 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).
Shrinking revenue is colliding with short-term balance-sheet pressure, leaving improved gross margin unable to offset fixed costs.
The striking shift is that gross-margin recovery did not improve the economics of the whole company: revenue dropped from$62.3M to$34.7M , so a slightly richer spread on each sale was overwhelmed by too little volume to cover overhead. That is why cash burn stayed heavy even as unit economics improved, pointing to a scale and working-capital problem more than a pure cost-of-revenue problem.
By FY2025, near-term obligations dominated the balance sheet:
Revenue has been falling faster than the cost base can reset, which is classic operating deleverage rather than a simple gross-margin collapse. A
Financial Health Signals
Direct Digital Holdings, Inc. does not currently provide enough eligible data for a peer-relative financial health score, so none is published. The signals and metrics below are current.
Direct Digital Holdings, Inc. scores -3.87, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($1.9M) relative to total liabilities ($27.2M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Direct Digital Holdings, Inc. passes 3 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 1 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
Direct Digital Holdings, Inc. reported a net loss of $18.9M while operations used $8.9M of cash. With neither figure positive, the ratio between the two carries no quality signal.
Direct Digital Holdings, Inc. reported an operating loss of $14.8M against $5.2M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
Direct Digital Holdings, Inc. generated $34.7M in revenue in fiscal year 2025. This represents a decrease of 44.3% from the prior year.
Direct Digital Holdings, Inc.'s EBITDA was -$14.5M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 11.8% from the prior year.
Direct Digital Holdings, Inc. reported -$18.9M in net income in fiscal year 2025. This represents a decrease of 203.8% from the prior year.
Direct Digital Holdings, Inc. earned -$75.79 per diluted share (EPS) in fiscal year 2025.
Cash & Balance Sheet
Direct Digital Holdings, Inc. held $728K in cash against $146K in long-term debt as of fiscal year 2025, with $26.4M of liabilities due within a year.
Not reported for fiscal year 2025.
Not reported for fiscal year 2025.
Margins & Returns
Direct Digital Holdings, Inc.'s gross margin was 30.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 2.1 percentage points from the prior year.
Direct Digital Holdings, Inc.'s operating margin was -42.5% in fiscal year 2025, reflecting core business profitability. This is down 21.3 percentage points from the prior year.
Direct Digital Holdings, Inc.'s net profit margin was -54.6% in fiscal year 2025, showing the share of revenue converted to profit. This is down 44.6 percentage points from the prior year.
Not reported for fiscal year 2025.
Capital Allocation
None of these metrics is reported for fiscal year 2025.
DRCT Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 |
|---|---|---|---|---|---|---|
| Revenue | $30.9M | $34.7M-44.3% | $62.3M-60.4% | $157.1M+75.8% | $89.4M+134.3% | $38.1M |
| Cost of Revenue | $21.5M | $24.3M-45.9% | $44.9M-62.4% | $119.5M+99.1% | $60.0M+204.6% | $19.7M |
| Gross Profit | $9.4M | $10.4M-40.1% | $17.4M-53.7% | $37.6M+28.1% | $29.3M+59.1% | $18.4M |
| SG&A Expenses | $10.5M | $10.7M-25.0% | $14.2M+7.8% | $13.2M+82.8% | $7.2M+30.7% | $5.5M |
| Operating Income | -$14.6M | -$14.8M-11.5% | -$13.2M-505.6% | -$2.2M-127.4% | $8.0M+82.0% | $4.4M |
| Interest Expense | $2.9M | $5.2M-3.8% | $5.4M+23.6% | $4.4M+35.5% | $3.2M+1.5% | $3.2M |
| Income Tax | $0 | $0-100.0% | $6.1M+979.6% | $568K+130.9% | $246K | $0 |
| Net Income | -$23.0M | -$18.9M-203.8% | -$6.2M-184.2% | -$2.2M-1170.2% | $205K+113.6% | -$1.5M |
| EPS (Diluted) | — | -$75.79 | -$91.26 | -$0.73 | $0.11 | -$44.09 |
Not reported in any period shown, so not listed: R&D Expenses.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
DRCT Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 |
|---|---|---|---|---|---|
| Total Assets | $20.2M-22.5% | $26.0M-62.3% | $68.9M+18.6% | $58.1M+61.5% | $36.0M |
| Current Assets | $4.7M-44.4% | $8.5M-80.2% | $43.1M+37.7% | $31.3M+127.0% | $13.8M |
| Cash & Equivalents | $728K-49.6% | $1.4M-71.8% | $5.1M+26.4% | $4.0M-13.6% | $4.7M |
| Accounts Receivable | $3.1M-37.1% | $5.0M-86.6% | $37.2M+41.2% | $26.4M+234.8% | $7.9M |
| Goodwill | $6.5M0.0% | $6.5M0.0% | $6.5M0.0% | $6.5M0.0% | $6.5M |
| Total Liabilities | $27.2M-40.6% | $45.7M-38.5% | $74.4M+41.5% | $52.5M+44.4% | $36.4M |
| Current Liabilities | $26.4M+97.9% | $13.3M-66.5% | $39.8M+62.0% | $24.6M+152.7% | $9.7M |
| Long-Term Debt | $146K-99.5% | $31.6M+10.6% | $28.6M+23.9% | $23.1M | N/A |
| Total Equity | -$7.0M+64.4% | -$19.7M-264.1% | -$5.4M-337.6% | $2.3M+708.5% | -$375K |
| Retained Earnings | -$27.7M-215.9% | -$8.8M-245.7% | -$2.5M-637.8% | -$344K+92.6% | -$4.7M |
Not reported in any period shown, so not listed: Inventory.
DRCT Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 |
|---|---|---|---|---|---|---|
| Operating Cash Flow | -$5.4M | -$8.9M-3.0% | -$8.6M-438.1% | $2.6M+23.9% | $2.1M-45.0% | $3.8M |
| Investing Cash Flow | -$49K | -$87K-411.8% | -$17K+90.4% | -$178K+74.1% | -$688K | N/A |
| Financing Cash Flow | $4.4M | $8.3M+65.7% | $5.0M+480.9% | -$1.3M+34.9% | -$2.0M-196.6% | -$679K |
Not reported in any period shown, so not listed: Capital Expenditures, Free Cash Flow, Dividends Paid, Share Buybacks.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
DRCT Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 |
|---|---|---|---|---|---|
| Gross Margin | 30.0%+2.1pp | 27.9%+4.0pp | 23.9%-8.9pp | 32.8%-15.5pp | 48.3% |
| Operating Margin | -42.5%-21.3pp | -21.2%-19.9pp | -1.4%-10.3pp | 8.9%-2.6pp | 11.5% |
| Net Margin | -54.6%-44.6pp | -10.0%-8.6pp | -1.4%-1.6pp | 0.2%+4.2pp | -4.0% |
| Return on Equity | N/A | N/A | N/A | 9.0% | N/A |
| Return on Assets | -94.0%-70.0pp | -24.0%-20.8pp | -3.2%-3.5pp | 0.4%+4.5pp | -4.2% |
| Current Ratio | 0.18-0.5x | 0.64-0.4x | 1.08-0.2x | 1.27-0.1x | 1.42 |
| Debt-to-Equity | N/A | N/A | N/A | 10.11 | N/A |
Not reported in any period shown, so not listed: FCF Margin.
Note: Shareholder equity is negative (-$7.0M), 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 (0.18), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Where Direct Digital Holdings, Inc. Ranks
Frequently Asked Questions
What is Direct Digital Holdings, Inc.'s annual revenue?
Direct Digital Holdings, Inc. (DRCT) reported $34.7M in total revenue for fiscal year 2025. This represents a -44.3% 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 44.3% year-over-year, from $62.3M to $34.7M in fiscal year 2025.
Is Direct Digital Holdings, Inc. profitable?
No, Direct Digital Holdings, Inc. (DRCT) reported a net income of -$18.9M in fiscal year 2025, with a net profit margin of -54.6%.
What is Direct Digital Holdings, Inc.'s EBITDA?
Direct Digital Holdings, Inc. (DRCT) had EBITDA of -$14.5M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Direct Digital Holdings, Inc. have?
As of fiscal year 2025, Direct Digital Holdings, Inc. (DRCT) had $728K in cash and equivalents against $146K in long-term debt.
What is Direct Digital Holdings, Inc.'s gross margin?
Direct Digital Holdings, Inc. (DRCT) had a gross margin of 30.0% in fiscal year 2025, 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 -42.5% in fiscal year 2025, 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 -54.6% in fiscal year 2025, 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) recorded an outflow of $8.9M in operating cash flow during fiscal year 2025, representing cash used by core business activities.
What are Direct Digital Holdings, Inc.'s total assets?
Direct Digital Holdings, Inc. (DRCT) had $20.2M in total assets as of fiscal year 2025, 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 0.18 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is Direct Digital Holdings, Inc.'s return on assets (ROA)?
Direct Digital Holdings, Inc. (DRCT) had a return on assets of -94.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Direct Digital Holdings, Inc.'s cash runway?
Based on fiscal year 2025 data, Direct Digital Holdings, Inc. (DRCT) had $728K in cash against an annual operating cash burn of $8.9M. This gives an estimated cash runway of approximately 1 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 not reported?
Direct Digital Holdings, Inc. (DRCT) has negative shareholder equity of -$7.0M as of fiscal year 2025, so no debt-to-equity ratio is reported: dividing debt by equity that is not positive produces a number that cannot be read as leverage. 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 Altman Z-Score?
Direct Digital Holdings, Inc. (DRCT) has an Altman Z-Score of -3.87, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Direct Digital Holdings, Inc.'s Piotroski F-Score?
Direct Digital Holdings, Inc. (DRCT) has a Piotroski F-Score of 3 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 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) reported a net loss of $18.9M while operations used $8.9M of cash. With neither figure positive, the ratio between the two carries no quality signal. 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) reported an operating loss of $14.8M against $5.2M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. 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.