Direct Digital Holdings Reports Second Quarter 2025 Financial Results
Direct Digital Holdings (Nasdaq: DRCT) reported Q2 2025 financial results showing sequential improvement but year-over-year declines. Revenue reached $10.1 million, down 54% YoY but up 24% from Q1 2025. The company achieved 35% gross margin, improving from 29% in Q1 2025.
Key operational metrics include 182 billion monthly impressions through sell-side advertising, a 30% increase in sell-side advertisers YoY, and over 220 buy-side customers. The company reduced operating expenses by 25% compared to Q2 2024. Net loss was $4.2 million, with Adjusted EBITDA loss of $1.5 million.
Management is focused on rebuilding the business following 2024 disruptions, particularly in the sell-side segment, and expects stronger performance in H2 2025 driven by full integration of direct connections.
Direct Digital Holdings (Nasdaq: DRCT) ha riportato i risultati finanziari del secondo trimestre 2025 mostrando un miglioramento sequenziale ma un calo rispetto all'anno precedente. I ricavi hanno raggiunto 10,1 milioni di dollari, in diminuzione del 54% su base annua ma in aumento del 24% rispetto al primo trimestre 2025. L'azienda ha ottenuto un margine lordo del 35%, in crescita rispetto al 29% del primo trimestre 2025.
I principali indicatori operativi includono 182 miliardi di impression mensili attraverso la pubblicità lato venditore, un incremento del 30% degli inserzionisti lato venditore su base annua e oltre 220 clienti lato acquirente. L'azienda ha ridotto le spese operative del 25% rispetto al secondo trimestre 2024. La perdita netta è stata di 4,2 milioni di dollari, con una perdita di EBITDA rettificato di 1,5 milioni di dollari.
La direzione è concentrata sulla ricostruzione del business dopo le difficoltà del 2024, in particolare nel segmento lato venditore, e prevede una performance più solida nella seconda metà del 2025 grazie all'integrazione completa delle connessioni dirette.
Direct Digital Holdings (Nasdaq: DRCT) informó los resultados financieros del segundo trimestre de 2025 mostrando una mejora secuencial pero una disminución interanual. Los ingresos alcanzaron los 10.1 millones de dólares, una caída del 54% interanual pero un aumento del 24% respecto al primer trimestre de 2025. La compañía logró un margen bruto del 35%, mejorando desde el 29% del primer trimestre de 2025.
Los principales indicadores operativos incluyen 182 mil millones de impresiones mensuales a través de publicidad del lado vendedor, un incremento del 30% en anunciantes del lado vendedor interanual y más de 220 clientes del lado comprador. La empresa redujo los gastos operativos en un 25% en comparación con el segundo trimestre de 2024. La pérdida neta fue de 4.2 millones de dólares, con una pérdida de EBITDA ajustado de 1.5 millones de dólares.
La dirección está enfocada en reconstruir el negocio tras las interrupciones de 2024, especialmente en el segmento del lado vendedor, y espera un mejor desempeño en la segunda mitad de 2025 impulsado por la integración completa de las conexiones directas.
Direct Digital Holdings (나스닥: DRCT)는 2025년 2분기 재무 실적을 발표하며 전분기 대비 개선되었으나 전년 동기 대비 감소를 보였습니다. 매출은 1,010만 달러로 전년 대비 54% 감소했으나 2025년 1분기 대비 24% 증가했습니다. 회사는 35%의 총이익률을 기록하며 2025년 1분기의 29%에서 개선되었습니다.
주요 운영 지표로는 판매측 광고를 통한 월간 1,820억 건의 노출, 판매측 광고주가 전년 대비 30% 증가, 그리고 220개 이상의 구매측 고객이 포함됩니다. 회사는 2024년 2분기 대비 운영비를 25% 절감했습니다. 순손실은 420만 달러, 조정 EBITDA 손실은 150만 달러였습니다.
경영진은 2024년 혼란 이후 사업 재건에 집중하고 있으며, 특히 판매측 부문에서 하반기 2025년에는 직접 연결의 완전한 통합으로 더 강한 실적을 기대하고 있습니다.
Direct Digital Holdings (Nasdaq : DRCT) a publié ses résultats financiers du deuxième trimestre 2025 montrant une amélioration séquentielle mais une baisse d'une année sur l'autre. Le chiffre d'affaires a atteint 10,1 millions de dollars, en baisse de 54 % sur un an mais en hausse de 24 % par rapport au premier trimestre 2025. La société a réalisé une marge brute de 35%, en amélioration par rapport à 29 % au premier trimestre 2025.
Les principaux indicateurs opérationnels comprennent 182 milliards d'impressions mensuelles via la publicité côté vendeur, une augmentation de 30% des annonceurs côté vendeur sur un an, et plus de 220 clients côté acheteur. La société a réduit ses dépenses d'exploitation de 25% par rapport au deuxième trimestre 2024. La perte nette s'est élevée à 4,2 millions de dollars, avec une perte d'EBITDA ajusté de 1,5 million de dollars.
La direction se concentre sur la reconstruction de l'entreprise après les perturbations de 2024, notamment dans le segment côté vendeur, et prévoit une meilleure performance au second semestre 2025 grâce à l'intégration complète des connexions directes.
Direct Digital Holdings (Nasdaq: DRCT) meldete die Finanzergebnisse für das zweite Quartal 2025 mit einer sequenziellen Verbesserung, aber rückläufigen Zahlen im Jahresvergleich. Der Umsatz erreichte 10,1 Millionen US-Dollar, was einem Rückgang von 54 % im Jahresvergleich, aber einem Anstieg von 24 % gegenüber dem ersten Quartal 2025 entspricht. Das Unternehmen erzielte eine Bruttomarge von 35%, eine Verbesserung gegenüber 29 % im ersten Quartal 2025.
Wichtige operative Kennzahlen umfassen 182 Milliarden monatliche Impressionen über Sell-Side-Werbung, eine 30% Steigerung der Sell-Side-Werbetreibenden im Jahresvergleich und über 220 Buy-Side-Kunden. Das Unternehmen reduzierte die Betriebskosten um 25% im Vergleich zum zweiten Quartal 2024. Der Nettoverlust betrug 4,2 Millionen US-Dollar, mit einem bereinigten EBITDA-Verlust von 1,5 Millionen US-Dollar.
Das Management konzentriert sich darauf, das Geschäft nach den Störungen im Jahr 2024 wieder aufzubauen, insbesondere im Sell-Side-Segment, und erwartet eine stärkere Leistung in der zweiten Hälfte 2025, angetrieben durch die vollständige Integration direkter Verbindungen.
- Sequential revenue growth of 24% from Q1 2025
- Gross margin improved to 35% from 29% in Q1 2025
- Operating expenses reduced by 25% YoY through strategic cost-saving initiatives
- 30% increase in sell-side advertisers compared to Q2 2024
- Buy-side segment generated $1.0M from new vertical customers
- Operating loss decreased 38% from Q1 2025
- Revenue declined 54% YoY to $10.1M in Q2 2025
- Sell-side advertising revenue dropped 83% YoY to $2.5M
- Net loss increased to $4.2M from $3.1M in Q2 2024
- Low cash position of $1.6M as of June 30, 2025
- Company unable to provide specific revenue guidance due to market uncertainty
- Substantial doubt about ability to continue as going concern noted in risks
Insights
DRCT shows sequential revenue growth but remains significantly below 2024 levels; still working to rebuild after sell-side disruption.
Direct Digital Holdings posted
The gross margin picture provides a silver lining, improving to
Despite these efforts, DRCT still posted a net loss of
The company's cash position remains precarious at just
On the operational front, the company processed 182 billion monthly impressions through its sell-side segment, increased sell-side advertisers by
Management is betting on direct connections integration in the latter half of 2025 to revitalize the sell-side business, but withheld specific revenue guidance due to market uncertainty and the ongoing rebuild of the sell-side business. The sequential improvements suggest a potential turnaround is underway, but the company remains in recovery mode with significant financial challenges ahead.
Revenues Increased
Reduced Operating Expenses by
Net Loss and Adjusted EBITDA1 Loss Improved Sequentially Over Q1 2025 by
Mark D. Walker, Chairman and Chief Executive Officer, commented, "Our focus in the first half of 2025 has been on rebuilding and growing our business following the disruption that substantially impacted our sell-side business in 2024. We delivered a sequential revenue increase of
Keith Smith, President, commented, "Through a challenging period, we are successfully implementing our plan to return the business to growth and value creation and remain focused on delivering improved performance in the back half of 2025."
Second Quarter 2025 Highlights
- Processed approximately 182 billion average monthly impressions through the sell-side advertising segment.
- Number of sell-side advertisers increased over
30% compared to the second quarter of 2024. - Average sell-side media properties of 30,000 per month in the second quarter of 2025 increased
5% compared to the second quarter of 2024; increased34% over the same period in 2023; and increased26% sequentially compared to the first quarter of 2025. - Buy-side advertising segment served over 220 customers in the second quarter of 2025.
- Buy-side advertising revenue for the second quarter of 2025 included
$1.0 million - Continued to consider strategic opportunities to support key growth initiatives and drive long term value for shareholders.
Second Quarter 2025 Financial Results
- Revenue of
$10.1 million 54% compared to$21.9 million 24% compared to first quarter 2025. - Sell-side advertising segment revenue of
$2.5 million 83% compared to$14.3 million - Buy-side advertising segment revenue of
$7.7 million $7.6 million - Gross profit was
$3.6 million 35% of revenue, compared to$5.9 million 27% of revenue, in the second quarter of 2024. Gross profit also increased compared to$2.4 million 29% of revenue, in the first quarter of 2025. - Operating expenses of
$6.0 million $2.0 million 25% , compared with$8.0 million - Operating loss was
$2.4 million $2.1 million 38% from$3.9 million - Net loss was
$4.2 million $3.1 million - Adjusted EBITDA loss was
$1.5 million $1.3 million $3.0 million - As of June 30, 2025, the Company held cash and cash equivalents of
$1.6 million $1.4 million
Six Months Ended June 30, 2025 Financial Results
- Revenue of
$18.3 million 59% compared to$44.1 million - Sell-side advertising segment revenue of
$4.5 million 85% compared to$30.8 million - Buy-side advertising segment revenue of
$13.8 million 3% compared to$13.3 million - Gross profit was
$6.0 million 33% of revenue, compared to$10.9 million 25% of revenue, in the first six months of 2024. - Operating expenses of
$12.3 million $3.5 million 22% , compared with$15.8 million - Operating loss was
$6.4 million $4.9 million - Net loss was
$10.1 million $7.0 million - Adjusted EBITDA1 loss was
$4.5 million $3.0 million
Financial Outlook
"We are pleased with the progress thus far this year and are positioned to deliver a strong back half of the year. Due to uncertainty in the market as a whole as well as the timing of our continued rebuild of the sell-side business, we are unable to provide specific revenue guidance at this time. Once we have better visibility on the sell-side of our business, it is our intention to reinstate revenue guidance in the future," Mr. Walker commented.
Diana Diaz, Chief Financial Officer, commented, "We are working toward a strong back half of the year driven by enhanced buy side activity through Orange 142 and the ongoing recovery of the Company's sell-side business as it rebuilds to historical levels. We believe that we are well positioned to continue driving cost reductions, innovation, operational efficiencies, and revenue growth as we rebuild our business back to profitability."
Conference Call and Webcast Details
Direct Digital will host a conference call today, August 5, 2025, at 5:00 p.m. Eastern Time to discuss the Company's second quarter 2025 financial results. The live webcast and replay can be accessed at https://ir.directdigitalholdings.com/news-events/ir-calendar. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software. For those who cannot access the webcast, a replay will be available at https://ir.directdigitalholdings.com/.
__________________________________ |
1"Adjusted EBITDA" is a non-GAAP financial measure. The section titled "Non-GAAP Financial Measures" below describes our usage of non- |
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws that are subject to certain risks, trends and uncertainties. We use words such as "could," "would," "may," "might," "will," "expect," "likely," "believe," "continue," "anticipate," "estimate," "intend," "plan," "project" and other similar expressions to identify forward-looking statements, but not all forward-looking statements include these words. All of our forward-looking statements involve estimates and uncertainties that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Accordingly, any such statements are qualified in their entirety by reference to the information described under the caption "Risk Factors" and elsewhere in our most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the "Form 10-K") and subsequent periodic and or current reports filed with the Securities and Exchange Commission (the "SEC").
The forward-looking statements contained in this press release are based on assumptions that we have made in light of our industry experience and our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. As you read and consider this press release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (many of which are beyond our control) and assumptions.
Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual operating and financial performance and cause our performance to differ materially from the performance expressed in or implied by the forward-looking statements. We believe these factors include, but are not limited to, the following: the restrictions and covenants imposed upon us by our credit facilities; the substantial doubt about our ability to continue as a going concern, which may hinder our ability to obtain future financing; our ability to secure additional financing to meet our capital needs; our ineligibility to file short-form registration statements on Form S-3, which may impair our ability to raise capital; our failure to satisfy applicable listing standards of the Nasdaq Capital Market resulting in a potential delisting of our common stock; costs, risks and uncertainties related to restatement of certain prior period financial statements; any significant fluctuations caused by our high customer concentration; risks related to non-payment by our clients; reputational and other harms caused by our failure to detect advertising fraud; operational and performance issues with our platform, whether real or perceived, including a failure to respond to technological changes or to upgrade our technology systems; restrictions on the use of third-party "cookies," mobile device IDs or other tracking technologies, which could diminish our platform's effectiveness; unfavorable publicity and negative public perception about our industry, particularly concerns regarding data privacy and security relating to our industry's technology and practices, and any perceived failure to comply with laws and industry self-regulation; our failure to manage our growth effectively; the difficulty in identifying and integrating any future acquisitions or strategic investments; any changes or developments in legislative, judicial, regulatory or cultural environments related to information collection, use and processing; challenges related to our buy-side clients that are destination marketing organizations and that operate as public/private partnerships; any strain on our resources or diversion of our management's attention as a result of being a public company; the intense competition of the digital advertising industry and our ability to effectively compete against current and future competitors; any significant inadvertent disclosure or breach of confidential and/or personal information we hold, or of the security of our or our customers', suppliers' or other partners' computer systems; as a holding company, we depend on distributions from Direct Digital Holdings, LLC ("DDH LLC") to pay our taxes, expenses (including payments under the Tax Receivable Agreement) and any amount of any dividends we may pay to the holders of our common stock; the fact that DDH LLC is controlled by DDM, whose interest may differ from those of our public stockholders; any failure by us to maintain or implement effective internal controls or to detect fraud; and other factors and assumptions discussed in our Form 10-K and subsequent periodic and current reports we may file with the SEC.
Should one or more of these risks or uncertainties materialize, or should any of these assumptions prove to be incorrect, our actual operating and financial performance may vary in material respects from the performance projected in these forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and except as required by law, we undertake no obligation to update any forward-looking statement contained in this press release to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. New factors that could cause our business not to develop as we expect emerge from time to time, and it is not possible for us to predict all of them. Further, we cannot assess the impact of each currently known or new factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
About Direct Digital Holdings
Direct Digital Holdings (Nasdaq: DRCT) combines cutting-edge sell-side and buy-side advertising solutions, providing data-driven digital media strategies that enhance reach and performance for brands, agencies, and publishers of all sizes. Our sell-side platform, Colossus SSP, offers curated access to premium, growth-oriented media properties throughout the digital ecosystem. On the buy-side, Orange 142 delivers customized, audience-focused digital marketing and advertising solutions that enable mid-market and enterprise companies to achieve measurable results across a range of platforms, including programmatic, search, social, CTV, and influencer marketing. With extensive expertise in high-growth sectors such as Energy, Healthcare, Travel & Tourism, and Financial Services, our teams deliver performance strategies that connect brands with their ideal audiences.
At Direct Digital Holdings, we prioritize personal relationships by humanizing technology, ensuring each client receives dedicated support and tailored digital marketing solutions regardless of company size. This empowers everyone to thrive by generating billions of monthly impressions across display, CTV, in-app, and emerging media channels through advanced targeting, comprehensive data insights, and cross-platform activation. DDH is "Digital advertising built for everyone."
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and par value amounts) | |||
June 30, 2025 | December 31, 2024 | ||
(Unaudited) | |||
ASSETS | |||
CURRENT ASSETS | |||
Cash and cash equivalents | $ 1,593 | $ 1,445 | |
Accounts receivable, net of provision for credit losses of | 3,891 | 4,973 | |
Prepaid expenses and other current assets | 1,243 | 2,117 | |
Total current assets | 6,727 | 8,535 | |
Property, equipment and software, net | 234 | 341 | |
Goodwill | 6,520 | 6,520 | |
Intangible assets, net | 8,753 | 9,730 | |
Operating lease right-of-use assets | 794 | 832 | |
Other long-term assets | 298 | 48 | |
Total assets | $ 23,326 | $ 26,006 | |
LIABILITIES AND STOCKHOLDERS' DEFICIT | |||
CURRENT LIABILITIES | |||
Accounts payable | $ 6,457 | $ 7,657 | |
Accrued liabilities | 1,816 | 1,257 | |
Liability related to tax receivable agreement, current portion | 41 | 41 | |
Current maturities of long-term debt | 4,542 | 3,700 | |
Deferred revenues | 570 | 507 | |
Operating lease liabilities, current portion | 208 | 188 | |
Income taxes payable | 41 | — | |
Total current liabilities | 13,675 | 13,350 | |
Long-term debt, net of current portion, deferred financing cost and debt discount | 33,510 | 31,603 | |
Operating lease liabilities, net of current portion | 722 | 783 | |
Total liabilities | 47,907 | 45,736 | |
COMMITMENTS AND CONTINGENCIES | |||
STOCKHOLDERS' DEFICIT | |||
Class A Common Stock, | 12 | 6 | |
Class B Common Stock, | 11 | 11 | |
Additional paid-in capital | 2,775 | 3,769 | |
Accumulated deficit | (13,378) | (8,774) | |
Noncontrolling interest | (14,001) | (14,742) | |
Total stockholders' deficit | (24,581) | (19,730) | |
Total liabilities and stockholders' deficit | $ 23,326 | $ 26,006 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except per-share data) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Revenues | |||||||
Sell-side advertising | $ 2,483 | $ 14,298 | $ 4,511 | $ 30,799 | |||
Buy-side advertising | 7,661 | 7,557 | 13,790 | 13,331 | |||
Total revenues | 10,144 | 21,855 | 18,301 | 44,130 | |||
Cost of revenues | |||||||
Sell-side advertising | 2,851 | 13,209 | 5,489 | 28,016 | |||
Buy-side advertising | 3,732 | 2,715 | 6,858 | 5,185 | |||
Total cost of revenues | 6,583 | 15,924 | 12,347 | 33,201 | |||
Gross profit | 3,561 | 5,931 | 5,954 | 10,929 | |||
Operating expenses | |||||||
Compensation, taxes and benefits | 3,639 | 4,166 | 7,303 | 8,690 | |||
General and administrative | 2,348 | 3,830 | 5,001 | 7,112 | |||
Total operating expenses | 5,987 | 7,996 | 12,304 | 15,802 | |||
Loss from operations | (2,426) | (2,065) | (6,350) | (4,873) | |||
Other income (expense) | |||||||
Other income | 19 | 8 | 47 | 92 | |||
Expenses for Equity Reserve Facility | — | — | (198) | — | |||
Interest expense | (1,789) | (1,358) | (3,635) | (2,655) | |||
Total other expense, net | (1,770) | (1,350) | (3,786) | (2,563) | |||
Loss before income taxes | (4,196) | (3,415) | (10,136) | (7,436) | |||
Income tax benefit | — | (274) | — | (475) | |||
Net loss | (4,196) | (3,141) | (10,136) | (6,961) | |||
Net loss attributable to noncontrolling interest | (1,947) | (2,551) | (5,532) | (5,596) | |||
Net loss attributable to Direct Digital Holdings, Inc. | $ (2,249) | $ (590) | $ (4,604) | $ (1,365) | |||
Net loss per common share attributable to Direct Digital Holdings, | |||||||
Basic | $ (0.23) | $ (0.16) | $ (0.55) | $ (0.38) | |||
Diluted | $ (0.23) | $ (0.16) | $ (0.55) | $ (0.38) | |||
Weighted-average number of shares of common stock outstanding: | |||||||
Basic | 9,937 | 3,701 | 8,324 | 3,604 | |||
Diluted | 9,937 | 3,701 | 8,324 | 3,604 | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) | |||
Six Months Ended June 30, | |||
2025 | 2024 | ||
Cash Flows Used In Operating Activities: | |||
Net loss | $ (10,136) | $ (6,961) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Amortization of deferred financing cost and debt discount | 2,900 | 372 | |
Amortization of intangible assets | 977 | 977 | |
Reduction in carrying amount of right-of-use assets | 90 | 76 | |
Depreciation and amortization of property, equipment and software | 145 | 137 | |
Stock-based compensation | 705 | 662 | |
Deferred income taxes | — | (475) | |
Expenses for Equity Reserve Facility | 198 | — | |
Provision for credit losses/bad debt expense | — | (13) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 1,082 | 17,704 | |
Prepaid expenses and other assets | (842) | (130) | |
Accounts payable | (1,491) | (21,554) | |
Accrued liabilities and tax receivable agreement payable | 962 | (1,226) | |
Income taxes payable | 41 | 10 | |
Deferred revenues | 63 | 350 | |
Operating lease liability | (92) | (40) | |
Net cash used in operating activities | (5,398) | (10,111) | |
Cash Flows Used In Investing Activities: | |||
Cash paid for capitalized software and property and equipment | (38) | (10) | |
Net cash used in investing activities | (38) | (10) | |
Cash Flows Provided by Financing Activities: | |||
Payments on term loan | — | (372) | |
Proceeds from line of credit | — | 6,700 | |
Payments on shares withheld for taxes | — | (551) | |
Payment of expenses for Equity Reserve Facility | (198) | — | |
Proceeds from issuance of Class A Common Stock | 5,942 | — | |
Payment of deferred financing cost | (46) | — | |
Payments on financed insurance premiums | (114) | — | |
Proceeds from options exercised | — | 82 | |
Proceeds from warrants exercised | — | 215 | |
Net cash provided by financing activities | 5,584 | 6,074 | |
Net increase (decrease) in cash and cash equivalents | 148 | (4,047) | |
Cash and cash equivalents, beginning of the period | 1,445 | 5,116 | |
Cash and cash equivalents, end of the period | $ 1,593 | $ 1,069 | |
Non-cash Financing Activities: | |||
Financed insurance premiums | $ 291 | $ — | |
NON-GAAP FINANCIAL MEASURES
In addition to our results determined in accordance with
In addition to operating income and net income, we use Adjusted EBITDA as a measure of operational efficiency. We believe that this non-GAAP financial measure is useful to investors for period-to-period comparisons of our business and in understanding and evaluating our operating results for the following reasons:
- Adjusted EBITDA is widely used by investors and securities analysts to measure a company's operating performance without regard to items such as depreciation and amortization, interest expense, provision for income taxes, stock-based compensation and certain one-time items such as acquisition transaction costs and costs for the Equity Reserve Facility that can vary substantially from company to company depending upon their financing, capital structures and the method by which assets were acquired;
- Our management uses Adjusted EBITDA in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of operating performance and the effectiveness of our business strategies and in communications with our board of directors concerning our financial performance; and
- Adjusted EBITDA provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.
Our use of this non-GAAP financial measure has limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under GAAP. The following table presents a reconciliation of Adjusted EBITDA to net loss for each of the periods presented:
NON-GAAP FINANCIAL METRICS (unaudited, in thousands) | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | |||||||
2025 | 2024 | 2025 | 2024 | 2025 | |||||
Net loss | $ (4,196) | $ (3,141) | $ (10,136) | $ (6,961) | $ (5,940) | ||||
Add back (deduct): | |||||||||
Interest expense | 1,789 | 1,358 | 3,635 | 2,655 | 1,846 | ||||
Amortization of intangible assets | 489 | 488 | 977 | 977 | 488 | ||||
Stock-based compensation | 389 | 158 | 705 | 662 | 316 | ||||
Depreciation and amortization of property, | 77 | 68 | 145 | 137 | 68 | ||||
Expenses for Equity Reserve Facility | — | — | 198 | — | 198 | ||||
Income tax benefit | — | (274) | — | (475) | — | ||||
Adjusted EBITDA | $ (1,452) | $ (1,343) | $ (4,476) | $ (3,005) | $ (3,024) | ||||
Contacts:
Investors:
IMS Investor Relations
Walter Frank/Jennifer Belodeau
(203) 972-9200
investors@directdigitalholdings.com
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SOURCE Direct Digital Holdings
FAQ
What were Direct Digital Holdings (DRCT) key financial results for Q2 2025?
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What was DRCT's buy-side advertising performance in Q2 2025?
