US Market News
18時間前
Ohad Harlev Appointed to the Board of Directors of Direct Digital HoldingsJune 4, 2026 4:05 PM
PR Newswire (US) HOUSTON, June 4, 2026 /PRNewswire/ -- Direct Digital Holdings, Inc. (Nasdaq: DRCT) ("Direct Digital Holdings," "DDH," or the "Company"), a leading advertising and marketing technology platform operating through its companies Colossus Media, LLC ("Colossus SSP") and Orange 142, LLC ("Orange 142"), today announced the appointment of Ohad Harlev to the Company's Board of Directors.Mr. Harlev brings extensive experience in executive leadership, business scaling and transformation, product development, and organic and inorganic growth strategies across diverse industries including satellite and telecommunications technology, space technology, and fintech. His background demonstrates a proven track record of building high-performing teams and efficiently deploying capital to support long-term growth.Mr. Harlev has held senior leadership roles at both public and private companies throughout his career. He currently serves as co-founder and CEO of Gizat Global Communications, developing the company from initial concept into a profitable business with consistent year-over-year earnings growth. Prior to this role, he served as co-founder and CEO of LyteLoop Technologies, Inc., where he developed and promoted a transformative data storage technology that has secured over 30 patents worldwide, and led the company's fundraising efforts. He also previously served as COO of World-Link Communications, Inc., where he spearheaded the strategic acquisition and integration of a telecommunications business that doubled the company's size, oversaw day-to-day operations, and managed a multimillion-dollar capital expenditure budget. Mr. Harlev also served as president of RRSat Global Communications Network, where he grew the business into a major player in the US television market and significantly enhanced revenue over an 18-month period.Mr. Harlev has experience as general and corporate counsel, and holds a Bachelor of Laws degree from Radzyner Law School, as well as a Master of Business Administration from the Arison School of Business in Herzliya, Israel.Mark Walker, Chief Executive Officer and Chairman of the Board of Directors of Direct Digital Holdings, commented, "On behalf of the Board of Directors, I am pleased to welcome Ohad Harlev to our Board. Ohad brings a wealth of expertise across M&A and organic growth strategy, business scaling, and new product development that align closely with our long-term strategic vision. We're confident that his experience will be a valuable addition as we continue to explore new organic and inorganic growth opportunities and develop cutting edge technologies that drive long-term growth and value for our shareholders."About Direct Digital HoldingsDirect Digital Holdings (Nasdaq: DRCT) is an end-to-end, AI-powered advertising technology and media solutions provider. The Company combines advanced technology with award-winning media and marketing expertise to enhance reach and drive performance for brands, agencies, and publishers of all sizes. Through Orange 142, a leading digital marketing and advertising agency, the Company delivers customized, audience-focused campaigns that enable mid-market and enterprise companies to achieve measurable results across programmatic, search, social, CTV, influencer marketing, and more. The Company also provides curated access to premium digital media inventory through its proprietary media-buying platform. With expertise across high-growth sectors—including Energy, Higher Education, Travel & Tourism, and Financial Services—Direct Digital Holdings helps brands reach and engage audiences more effectively across the evolving digital media ecosystem.Cautionary Note Regarding Forward Looking StatementsThis 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, 2025 (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 ability to realize the benefit of our strategic shift to focusing on driving digital marketing spend among historical buyers of managed advertising campaigns and new enterprise customers; 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 ability to regain and maintain compliance with the listing standards of the Nasdaq Capital Market; 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 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; 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. For more information, visit: https://directdigitalholdings.com.Contacts: Investors:
IMS Investor Relations
Walter Frank/Jennifer Belodeau
(203) 972-9200
investors@directdigitalholdings.com View original content to download multimedia:https://www.prnewswire.com/news-releases/ohad-harlev-appointed-to-the-board-of-directors-of-direct-digital-holdings-302791991.htmlSOURCE Direct Digital Holdings Original: Ohad Harlev Appointed to the Board of Directors of Direct Digital Holdings
US Market News
2月前
Direct Digital Holdings Reports Fourth Quarter and Full Year 2025 Financial ResultsMarch 31, 2026 7:08 PM
PR Newswire (US)
Fourth Quarter 2025 Buy-side Revenue Increased 28%Fourth Quarter 2025 Consolidated Revenue Decreased 7%Reduced Operating Expenses by 12% in Q4 2025 Compared to Q4 2024 and by 18% in FY 2025 Compared to FY 2024HOUSTON, March 31, 2026 /PRNewswire/ -- Direct Digital Holdings, Inc. (Nasdaq: DRCT) ("Direct Digital Holdings" or the "Company"), a leading advertising and marketing technology platform operating through its companies Orange 142, LLC ("Orange 142") and Colossus Media, LLC ("Colossus SSP"), today announced financial results for the fourth quarter and full year ended December 31, 2025.Mark D. Walker, Chairman and Chief Executive Officer, commented, "We're encouraged by our ability to drive double digit growth in the buy-side of our business, driven primarily by new customers and increased demand we're seeing from new verticals. As we move through 2026, we are strategically shifting our focus on driving digital marketing spend among buy-side and new enterprise customers. To that end, in March of 2026 we launched Ignition+, an AI-enabled programmatic media solution providing enhanced accessibility for large enterprise clients in the buy-side network, while also prioritizing transparency, efficiency, and cost reduction through AI-driven optimization, insights and curation. In connection with this strategic shift, we are currently aggregating our operations to streamline our operating structure and enable us to more efficiently go to market and drive value creation for our shareholders."Keith Smith, President, commented, "Our strategic pivot allows us to center our resources to enhance Direct Digital's buyside presence and drive continued success winning new customers and capturing market share. We look forward to executing on our refocused business model."Fourth Quarter 2025 HighlightsBuy-side advertising segment served about 195 customers in the fourth of 2025.Buy-side advertising revenue for the fourth quarter of 2025 included $1.7 million from customers in new verticals, reflecting the Company's ongoing expansion efforts.Processed approximately 85 billion average monthly impressions through the sell-side advertising segment.Executing on strategic pivot and reallocating resources to more streamlined and profitable business model focused on buy-side growth.Fourth Quarter 2025 Financial ResultsRevenue of $8.4 million decreased 7% compared to $9.1 million in the fourth quarter of 2024.Buy-side advertising segment revenue of $8.2 million increased 28% compared to $6.4 million in the fourth quarter of 2024.Sell-side advertising segment revenue of $0.2 million decreased as compared to $2.7 million in the fourth quarter of 2024, primarily related to a decrease in impression inventory when compared to the fourth quarter of 2024.Gross profit was $2.3 million, or 27% of revenue, compared to $2.9 million, or 32% of revenue, in the fourth quarter of 2024.Operating expenses of $6.7 million decreased 12% compared to $7.7 million in the fourth quarter of 2024.Operating loss was ($4.5 million), compared to ($4.7 million) in the fourth quarter of 2024.Net loss was ($12.6 million) compared to net loss of ($6.6 million) in the fourth quarter of 2024Adjusted EBITDA[1] loss was ($3.6 million) in the fourth quarter of 2025 compared to a loss of ($3.4 million) in the fourth quarter of 2024.As of December 31, 2025, the Company held cash and cash equivalents of $0.7 million compared to $1.4 million as of December 31, 2024.Full Year 2025 Financial ResultsRevenue of $34.7 million decreased 44% compared to $62.3 million in full year 2024.Buy-side advertising segment revenue of $29.4 million increased 10% compared to $26.6 million in full year 2024.Sell-side advertising segment revenue of $5.3 million decreased 85% compared to $35.7 million in full year 2024, primarily related to a decrease in impression inventory when compared to the prior year period.Gross profit was $10.4 million, or 30% of revenue, compared to $17.4 million, or 28% of revenue, in full year 2024.Operating expenses of $25.2 million decreased $5.4 million, or 18%, compared to $30.6 million in full year 2024.Operating loss was ($14.8 million), compared to operating loss of ($13.2 million) in full year 2024.Net loss was ($27.7 million) compared to net loss of ($19.9 million) in full year 2024.Adjusted EBITDA[1] loss was ($11.1 million) in full year 2025 compared to a loss of ($9.3 million) in full year 2024.Direct Digital Holdings took several steps throughout 2025 to strengthen its balance sheet and enhance its capital structure and access to capital.In the third quarter of 2025, the Company announced the issuance of $25 million of a new series of Series A Convertible Preferred Stock, at a premium conversion price of $2.50 per share of Class A Common Stock. The investment was made through the conversion of a portion of existing debt into the new class of perpetual convertible preferred stock. The preferred stock is redeemable in whole or in part at the Company's direction, votes on an as-converted basis with the Class A common stock, and carries a 10% cumulative annual dividend payable if, as and when declared by the Company's board of directors.In the fourth quarter of 2025, the Company issued an additional $10 million of Series A Convertible Preferred Stock. At the end of October 2025, the Company expanded its Equity Reserve Facility by 50 million shares, approved by stockholders, to a total facility amount of $100 million. The Company raised $7.3 million through the Equity Reserve Facility in the twelve months ended December 31, 2025.Subsequent to the fourth quarter of 2025, the Company implemented a 55-to-1 reverse stock split of all classes of its common stock. The reverse stock split was approved by Direct Digital Holdings' Board of Directors and subsequently by its stockholders on December 30, 2025, allowing the Company to regain compliance with the Nasdaq minimum bid price and maintain its Nasdaq listing. This listing is a key asset and provides heightened visibility among institutional investors, which is foundational to the Company's go forward strategy to build and maintain a strengthened investor base.Diana Diaz, Chief Financial Officer, commented, "We took several steps in the fourth quarter of 2025 and throughout the year to strengthen our balance sheet and enhance our access to capital, successfully returning Direct Digital Holdings to Nasdaq compliance. Revenue growth on the buy-side of our business in 2025 was encouraging, and with the support of our strategic pivot to a more efficient model, we believe that we are well positioned to deliver improved results in 2026."Conference Call and Webcast Details Direct Digital Holdings will host a conference call on Tuesday, April 7, 2026, at 5:00 p.m. Eastern Time to discuss the Company's fourth quarter and full year 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/.Cautionary Note Regarding Forward Looking StatementsThis 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, 2025 (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 ability to realize the benefits of our strategic shift to focusing on driving digital marketing spend among buy-side and new enterprise customers; 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 ability to maintain compliance with the listing standards of the Nasdaq Capital Market; 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; 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 HoldingsDirect 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." DIRECT DIGITAL HOLDINGS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(in thousands, except share and par value amounts)
December 31,
2025
2024ASSETS
CURRENT ASSETS
Cash and cash equivalents$ 728
$ 1,445Accounts receivable, net of provision for credit losses of $944 and $9783,126
4,973Prepaid expenses and other current assets890
2,117Total current assets4,744
8,535
Property, equipment and software, net166
341Goodwill6,520
6,520Intangible assets, net7,852
9,730Operating lease right-of-use assets702
832Other long-term assets172
48Total assets$ 20,156
$ 26,006
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable$ 7,820
$ 7,657Accrued liabilities2,164
1,257Accrued liabilities - related party3,663
—Liability related to tax receivable agreement, current portion41
41Current maturities of long-term debt—
3,700Current maturities of long-term debt - related party12,003
—Deferred revenues513
507Operating lease liabilities, current portion221
188Total current liabilities26,425
13,350
Long-term debt, net of current portion, deferred financing cost and debt discount146
31,603Operating lease liabilities, net of current portion608
783Total liabilities27,179
45,736
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIT
Series A Convertible Preferred Stock, $0.001 par value per share, 10,000,000 shares authorized, 27,077 and 0 shares issued and outstanding, respectively—
—Class A Common Stock, $0.001 par value per share, 760,000,000 and 160,000,000 shares authorized, respectively, 1,324,307 and 99,100 shares issued and outstanding, respectively1
—Class B Common Stock, $0.001 par value per share, 20,000,000 shares authorized, 168,645 and 197,600 shares issued and outstanding—
—Additional paid-in capital25,811
3,786Accumulated deficit(27,720)
(8,774)Noncontrolling interest(5,115)
(14,742)Total stockholders' deficit(7,023)
(19,730)Total liabilities and stockholders' deficit$ 20,156
$ 26,006 DIRECT DIGITAL HOLDINGS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per-share data)
(Unaudited)
For the Three Months Ended December 31,
For the Year Ended December 31,
2025
2024
2025
2024Revenues
Sell-side advertising$ 182
$ 2,659
$ 5,335
$ 35,660Buy-side advertising8,226
6,424
29,359
26,628Total revenues8,408
9,083
34,694
62,288
Cost of revenues
Sell-side advertising1,103
3,393
8,049
34,063Buy-side advertising5,055
2,743
16,226
10,834Total cost of revenues6,158
6,136
24,275
44,897Gross profit2,250
2,947
10,419
17,391
Operating expenses
Compensation, taxes and benefits3,585
4,186
14,512
16,402General and administrative3,160
3,465
10,662
14,222Total operating expenses6,745
7,651
25,174
30,624Loss from operations(4,495)
(4,704)
(14,755)
(13,233)
Other income (expense)
Other income16
9
77
199Expenses and commitment shares for Equity Reserve Facility—
(532)
(198)
(532)Loss on settlement of accounts payable(267)
—
(267)
—Loss on debt extinguishment(3,769)
—
(3,769)
—Loss on Exit Fee(3,608)
—
(3,608)
—Derecognition of tax receivable agreement liability—
—
—
5,201Interest expense and amortization of deferred financing cost and debt discount (premium), net(464)
(1,342)
(5,203)
(5,410)Total other expense, net(8,092)
(1,865)
(12,968)
(542)
Loss before income taxes(12,587)
(6,569)
(27,723)
(13,775)Income tax expense—
—
—
6,132Net loss(12,587)
(6,569)
(27,723)
(19,907)
Net loss attributable to noncontrolling interest(925)
(4,388)
(8,777)
(13,671)Net loss attributable to Direct Digital Holdings, Inc.$ (11,662)
$ (2,181)
$ (18,946)
$ (6,236)
Net loss per common share attributable to Direct Digital Holdings, Inc.:
Basic$ (22.00)
$ (29.88)
$ (75.79)
$ (91.26)Diluted$ (22.00)
$ (29.88)
$ (75.79)
$ (91.26)
Weighted-average number of shares of common stock outstanding:
Basic691
73
308
68Diluted691
73
308
68 DIRECT DIGITAL HOLDINGS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)
For the Year Ended December 31,
20252024Cash Flows Used In Operating Activities:
Net loss$ (27,723)$ (19,907)Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of deferred financing cost and debt discount (premium), net3,1621,092Amortization of intangible assets1,8791,954Reduction in carrying amount of right-of-use assets182156Depreciation and amortization of property, equipment and software262275Stock-based compensation1,4701,552Deferred income taxes—6,132Derecognition of tax receivable agreement liability—(5,201)Loss on debt extinguishment3,769—Loss on Exit Fee3,608—Loss on settlement of accounts payable267—Interest paid in kind1,100—Commitment shares and expenses for Equity Reserve Facility—532Provision for credit losses/bad debt expense6619Changes in operating assets and liabilities:
Accounts receivable1,84131,615Prepaid expenses and other assets(27)(60)Accounts payable911(26,269)Accrued liabilities and TRA payable638(1,103)Income taxes payable, (65)(34)Deferred revenues6126Operating lease liability(193)(127)Net cash used in operating activities(8,907)(8,648)
Cash Flows Used In Investing Activities:
Cash paid for capitalized software and property and equipment(87)(17)Net cash used in investing activities(87)(17)
Cash Flows Provided by Financing Activities:
Proceeds from note payable3,8044,000Payments on term loan—(373)Proceeds from lines of credit—6,700Payments on lines of credit(3,700)(6,000)Payment of expenses for Equity Reserve Facility(198)(382)Payment of deferred financing costs—(26)Proceeds from issuance of Class A Common Stock8,6881,646Payments on financed insurance premiums(317)—Payment of tax related to shares withheld upon vesting—(878)Proceeds from options exercised—92Proceeds from warrants exercised—215Net cash provided by financing activities8,2774,994
Net decrease in cash, cash equivalents and restricted cash(717)(3,671)Cash, cash equivalents and restricted cash, beginning of the period1,4455,116Cash, cash equivalents and restricted cash, end of the period$ 728$ 1,445
Supplemental Disclosure of Cash Flow Information:
Cash paid for taxes$ 3$ 388Cash paid for interest$ 835$ 4,300
Non-cash Activities:
Conversion of term loan into preferred stock net of premium$ 30,748$ —Accrued term loan amendment closing fees$ —$ 3,000Settlement of accounts payable through issuance of common stock$ 941$ —Financed insurance premiums$ 291$ 129Non-cash funding of debt issuance costs$ 63$ —Accrued dividends$ 55$ —Funding of interest reserve through debt$ —$ 2,000Common stock issued for subscription receivable$ —$ 1,362Issuance of stock in lieu of cash bonus, net of tax withholdings$ —$ 906NON-GAAP FINANCIAL MEASURESIn addition to our results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), including, in particular operating income, net cash provided by operating activities, and net income, we believe that earnings before interest, taxes, depreciation and amortization, as adjusted for stock-based compensation, expenses and commitment shares for the Equity Reserve Facility, losses on debt extinguishment, Exit Fee, settlement of accounts payable and derecognition of tax receivable agreement liability ("Adjusted EBITDA"), a non-GAAP measure, is useful in evaluating our operating performance. The most directly comparable GAAP measure to Adjusted EBITDA is net income. The following table (in thousands) presents a reconciliation of Adjusted EBITDA to net loss for each of the periods presented (unaudited):
Three Months Ended
December 31,
Year Ended
December 31,
2025
2024
2025
2024Net loss $ (12,587)
$ (6,569)
$ (27,723)
$ (19,907)Add back (deduct):
Interest expense and amortization of deferred financing cost and debt discount (premium), net464
1,342
5,203
5,410Amortization of intangible assets414
489
1,879
1,954Stock-based compensation391
741
1,470
1,552Depreciation and amortization of property, equipment and software47
70
262
275Loss on debt extinguishment3,769
—
3,769
—Loss on Exit Fee3,608
—
3,608
—Loss on settlement of accounts payable267
—
267
—Expenses and commitment shares for Equity Reserve Facility—
532
198
532Income tax expense—
—
—
6,132Derecognition of tax receivable agreement liability—
—
—
(5,201)Adjusted EBITDA$ (3,627)
$ (3,395)
$ (11,067)
$ (9,253)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 items such as acquisition transaction costs, losses from financing activities (including debt extinguishment and Exit Fee) 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; andAdjusted 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 it in isolation or as a substitute for analysis of our financial results as reported under GAAP.Contacts: Investors:
IMS Investor Relations
Walter Frank/Jennifer Belodeau
(203) 972-9200
investors@directdigitalholdings.com 1 "Adjusted EBITDA" is a non-GAAP financial measure. The section titled "Non-GAAP Financial Measures" below describes our usage of non-GAAP financial measures and provides reconciliations between historical GAAP and non-GAAP information contained in this press release.
View original content to download multimedia:https://www.prnewswire.com/news-releases/direct-digital-holdings-reports-fourth-quarter-and-full-year-2025-financial-results-302730708.htmlSOURCE Direct Digital Holdings
Original: Direct Digital Holdings Reports Fourth Quarter and Full Year 2025 Financial Results
US Market News
4月前
Direct Digital Holdings Regains Compliance with Nasdaq Bid Price RequirementFebruary 12, 2026 1:30 PM
PR Newswire (US)
HOUSTON, Feb. 12, 2026 /PRNewswire/ -- Direct Digital Holdings, Inc. (Nasdaq: DRCT) ("Direct Digital Holdings" or the "Company"), a leading advertising and marketing technology platform operating through its companies Colossus Media, LLC ("Colossus SSP") and Orange 142, LLC ("Orange 142"), today announced that the Company has received formal notice from The Nasdaq Stock Market LLC ("Nasdaq") confirming that the Company has regained compliance with Nasdaq Listing Rule 5550(a)(2), which requires a minimum bid price of $1.00 per share, and otherwise satisfies all applicable criteria for continued listing on The Nasdaq Capital Market.Mark Walker, CEO of Direct Digital Holdings, commented, "Evidencing full compliance with the Nasdaq listing criteria represents an important step on our path forward and the continued execution on our strategic goals."The Company's common stock will continue to trade on Nasdaq under the ticker symbol "DRCT."Cautionary Note Regarding Forward Looking StatementsThis 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 ability to maintain compliance with applicable listing standards of the Nasdaq Capital Market; 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; 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 HoldingsDirect 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."Contacts: Investors:
IMS Investor Relations
Walter Frank/Jennifer Belodeau
(203) 972-9200
investors@directdigitalholdings.com
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Original: Direct Digital Holdings Regains Compliance with Nasdaq Bid Price Requirement
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1年前
Direct Digital Holdings Reports Q4 & Full-Year 2024 Financial Results
Full Year Revenue of $62.3 Million In-Line with Revised Revenue Guidance
Continued to Diversify Customer Base with Leading Sell-Side Partners and Buy-Side Customers in New Verticals
Management to Host Conference Call at 5:00 PM ET Today
HOUSTON, March 27, 2025 /PRNewswire/ -- Direct Digital Holdings, Inc. (Nasdaq: DRCT) ("Direct Digital Holdings" or the "Company"), a leading advertising and marketing technology platform operating through its companies Colossus Media, LLC ("Colossus SSP") and Orange 142, LLC ("Orange 142"), today announced financial results for the fourth quarter and full year ended December 31, 2024.
Mark D. Walker, Chairman and Chief Executive Officer, commented, "We are pleased to announce that despite the challenges faced this past year, we delivered fourth quarter results in-line with our revised revenue guidance range. The combination of our revenue optimization strategies and cost-saving initiatives has positioned Direct Digital Holdings for future growth as we look to rebuild to previous levels. Starting last year, we began further expanding sources of our revenue and conducting a cost savings review, which has resulted in a more diversified and efficient business model reflecting significant operating expense reduction sequentially when compared to the first half of the year."
Walker continued, "In the third quarter of 2024, we announced the launch of Colossus Connections, an aggressive initiative to accelerate our direct integration efforts with leading demand-side platforms and that we have already signed up two of the leading partners in the marketplace. We are expecting to see revenue impacts as we move through 2025, once integration is complete in the second half of 2025. On the buy-side, since we unified our two divisions, Orange 142 and Huddled Masses, we have been keenly focused on small- and mid-sized clients, who are increasingly shifting advertising budgets to digital and require support to navigate its complexities and optimize their ad spend. We have already brought on clients in new verticals which are expected to generate additional incremental revenue of $5 million to $10 million in 2025, with full impact starting in the second quarter of this year."
"As we look ahead to 2025, we are reiterating revenue guidance of $90 million to $110 million, underscoring our confidence in our ability to scale up both our buy- and sell-side businesses," said Walker. "In particular, we expect the second half of the year to deliver strong gains as we experience the full effect of new direct sell-side partners coming online. While our first quarter tends to be slower than the fourth quarter related to seasonality in our sell-side business, we are seeing sequential improvement in the first quarter of this year over November and December of last year, and we remain confident that our recalibrated approach will continue to enable us to capture market share and strengthen our leading advertising and marketing technology offering."
Keith Smith, President, added, "In addition to our optimized business model, our $20 million Equity Reserve Facility with New Circle Principal Investments, announced in October, has also provided us with enhanced financial flexibility to execute on our various strategic initiatives while also strengthening our balance sheet. This new financing source supports both our technology investments and growth objectives as we continue to evolve our platform capabilities and position Direct Digital Holdings for sustainable, long-term growth."
On the topic of recent litigation, Smith commented, "I am thrilled to report that earlier this month, we secured a significant victory in the courts. Our defamation lawsuit against those who intentionally distributed misinformation about our business last May was validated with a court ruling that our case may continue despite attempts by the other party to have our complaint dismissed. We believe this decision speaks to the substance of our allegations regarding inaccurate and false statements targeting our technologies and we look forward to running our business while we continue to pursue a judgment in the case."
Fourth Quarter and Year-to-Date Updates
For the fourth quarter ended December 31, 2024, Direct Digital Holdings processed approximately 200 billion average monthly impressions through its sell-side advertising segment, a decrease of 49% over the same period of 2023 but an increase of 53% over the same period of 2022 and a 7% sequential increase over the third quarter ended September 30, 2024.
In addition, the Company's sell-side advertising platform processed over 500 billion average monthly bid requests and received about 6 billion average monthly bid responses in the fourth quarter of 2024, a decrease of 47% and 79%, respectively, over the same period in 2023 but consistent with the same period of 2022 and the third quarter of 2024.
Sell-side advertisers for the fourth quarter of 2024 increased 137% compared to the same period of 2023, increased 18% compared to the same period of 2022 and increased 13% sequentially compared to the third quarter of 2024.
Sell-side media properties of 28,000 average per month for the fourth quarter of 2024 were up 24% compared to the same period of 2023 and up 1% sequentially compared to the third quarter of 2024.
The Company's buy-side advertising segment served about 230 customers in the fourth quarter of 2024, consistent with the prior year.
Colossus Connections Launch: Enhanced direct integration on sell-side, optimizing supply path efficiency and securing partnerships with leading marketplace platforms.
Orange 142 Momentum: Secured major new account wins on the buy-side for 2025 with a focus on small-and mid-sized advertisers and high-growth advertising opportunities in connected TV, social media and retail media, enhancing client-agency relationships and delivering premium service to clients.
AI Expertise: Integrating advanced artificial intelligence capabilities to meet increasing client demand and enhance solutions and insights.
Award Recognition: Recognized as the 101st fastest growing company in North America by Deloitte Technology Fast 500TM, received Silver Award for Influencer Marketing from Adrian Awards; received two Gold MARCOM Awards for display and social media ad campaigns; recognized in the Longhorn 100 as one of the fastest growing Longhorn-run businesses.
Operational Optimizations: Undertook cost-saving and operational optimization strategies resulting in a more diversified business model.
Securing Strategic Financing: Actively advancing multiple funding and equity financing pathways with the goal that these efforts will restore Nasdaq compliance, strengthen the Company's financial position and support key growth initiatives.
Fourth Quarter 2024 Financial Highlights:
For the fourth quarter of 2024, revenue was $9.1 million, a decrease of $31.9 million, or a 78% decline compared to $41.0 million in the same period of 2023.Sell-side advertising segment revenue fell to $2.7 million compared to $33.4 million in the same period of 2023, a 92% decrease year-over-year. The key driver for this reduction was the suspension by one of our large customers following the defamatory article against the Company. This customer has since restored its connection and is continuing to scale.Buy-side advertising segment revenue fell to $6.4 million compared to $7.6 million in the same period of 2023, a 15% year-over-year decline.
Gross profit was $2.9 million, or 32% of revenue, in the fourth quarter of 2024 compared to $9.3 million, or 23% of revenue, in the same period of 2023.
Operating expenses were $7.7 million in the fourth quarter of 2024, a decrease of $10.5 million, or 58%, over $18.1 million in the same period of 2023.
Operating loss was $4.7 million, compared to operating loss of $8.8 million in the same period of 2023, a $4.1 million or 46% improvement.
Net loss was $6.6 million in the fourth quarter, compared to net loss of $10.1 million in the same period of 2023.
Adjusted EBITDA(1) loss was $3.4 million in the fourth quarter of 2024, a $3.2 million or 48% improvement compared to the $6.6 million Adjusted EBITDA(1) loss in the fourth quarter of 2023.
As of December 31, 2024, the Company held cash and cash equivalents of $1.4 million compared to $5.1 million as of December 31, 2023.
Full-Year 2024 Financial Highlights
Revenue in fiscal year 2024 was $62.3 million, a decrease of $94.8 million, or a 60% decrease over $157.1 million in fiscal year 2023.Sell-side advertising segment revenue was $35.7 million compared to $122.4 million in fiscal year 2023.Buy-side advertising segment revenue was $26.6 million compared to $34.7 million in fiscal year 2023.
Operating expenses were $30.6 million in 2024, a decrease of $9.1 million, or 23%, over $39.8 million in 2023. Operating expenses were negatively impacted in 2023 by an unusual charge for $8.8 million related to payments to a few publishers and in 2024 by $1.7 million in costs to regain compliance with respect to delinquent SEC filings. Adjusted Operating Expenses(1) (which excludes these unusual items) of $28.9 million in 2024 decreased $2.0 million, or 7%, from $31.0 million in 2023. Adjusted Operating Expenses for the second half of 2024 of $13.5 million decreased by $1.9 million, or 12%, from $15.4 million for the first half of 2024.
Operating loss in fiscal year 2024 was $13.2 million compared to operating loss of $2.2 million in fiscal year 2023.
Net loss for fiscal year 2024 was $19.9 million, compared to net loss of $6.8 million in fiscal year 2023.
Adjusted EBITDA(1) loss was $9.3 million in fiscal year 2024, compared to positive Adjusted EBITDA(1) of $2.4 million in fiscal year 2023.
Financial Outlook
Assuming the U.S. economy does not experience any major economic conditions that deteriorate or otherwise significantly reduce advertiser demand, and subject to certain uncertainties related to the ramp-up of our businesses and general market conditions, Direct Digital Holdings reiterates its full-year revenue guidance of $90 million to $110 million for FY 2025 as the Company rebuilds to previous levels.
Diana Diaz, Chief Financial Officer, stated, "As we continue to refocus the company, our lower cost structure, optimized performance and focus on driving efficiencies across the business are key to our accelerated path to return to profitability. We continue to be judicious in adding any new costs and we remain confident in our business to deliver strong performance for our shareholders this year."
Conference Call and Webcast Details
Direct Digital will host a conference call on March 27, 2025 at 5:00 PM ET to discuss the Company's fourth quarter and full year 2024 financial results. The live webcast and replay can be accessed at https://ir.directdigitalholdings.com/. 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/ for a period of twelve months.
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(1) "Adjusted EBITDA" and "Adjusted Operating Expenses" are non-GAAP financial measures. The section titled "Non-GAAP Financial Measures" below describes our usage of non-GAAP financial measures and provides reconciliations between historical GAAP and non-GAAP information contained in this press release.
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 (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: our ability to sell Class A common stock under our equity reserve facility; 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; failure to remedy any listing deficiencies noted in the deficiency letters from the Listing Qualifications Department of The Nasdaq Stock Market LLC; 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 t