Direct Digital Holdings, Inc. Class A (DRCT)

Direct Digital Holdings' stock price has experienced a significant decline in the past six months. On November 27, 2025, shares dropped after the company filed a Form 8-K revealing a settlement agreement with Continuation Capital Inc. On November 13, 2025, the CEO notified an intention to sell stock, and Direct Digital Holdings received a second notice of non-compliance with Nasdaq Listing Rules, though it also announced regaining compliance with Nasdaq's stockholders' equity requirement. On November 10, 2025, third-quarter 2025 earnings were released, reporting a loss per share and missing revenue estimates. Direct Digital Holdings reported a Q2 loss and lagged revenue estimates on August 5, 2025. Direct Digital Holdings reported a Q1 loss on May 6, 2025. The company reported Q4 2024 earnings on March 27, 2025.

Direct Digital Holdings' business typically experiences seasonality, with a particular strength observed in the fourth quarter.

Direct Digital Holdings, Inc. operates as an end-to-end, full-service programmatic advertising platform, providing advertising technology, data-driven campaign optimization, and solutions to underserved markets, catering to both advertisers and publishers. The company's major products and services are delivered through Huddled Masses, LLC, Colossus Media, LLC, and Orange 142, LLC. Colossus SSP is a sell-side programmatic platform, while Huddled Masses and Orange142 focus on the buy-side, providing data-optimized programmatic solutions for middle-market advertisers across various industry verticals. The platform processes over 400 billion impressions monthly across various media channels, serving over 115,000 clients monthly.

Direct Digital Holdings is headquartered in Houston, Texas, and was founded on June 21, 2018. Its subsidiary Orange 142 was founded and is headquartered in Austin. The company works with approximately 26,000 publishers across the United States.

In May 2024, Direct Digital Holdings experienced an "unexpected business disruption" among its partners, advertisers, and clients due to a "market discredited blog post" against its supply-side platform, Colossus SSP. This event significantly impacted the company's revenue, particularly for Colossus SSP, leading to a substantial year-over-year revenue decline in Q3 2024. The company has been actively working to rebuild its business back to historical revenue levels following this disruption.

Direct Digital Holdings has a mixed ownership structure, with approximately 1.05% to 4.02% institutional shareholders, 3.51% to 5.55% Direct Digital Holdings insiders, and a significant portion, around 92.30% to 95.44%, held by retail investors. Major institutional owners include Vanguard Group Inc, UBS Group AG, and Morgan Stanley. The largest individual shareholder and insider is W. Keith Smith.