Direct Digital Holdings, Inc. (DRCT)

OTC: DRCT · Services-Advertising · Houston, TX · filing with the SEC since 2021

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Grade2.1

◀ Past 2.1● Present 2.5▶ Future 1.5

2 est.

Overview Business Financials Grade Forecast Sentiment Ownership People Filings Patents Chart

The grade of Direct Digital Holdings, Inc.

Nine metrics read from its own filings, by tense

Headline grade

2.1/10

◀ Past2.130% of the headline

● Present2.540% of the headline

▶ Future1.530% of the headline

All three tenses have at least two readings, so the archetype blend applies as printed.

Of the nine metrics, 7 read as filed from the record and 2 are SI estimates, each with its reasoning, its confidence and what would change it on its card.

◀ Past

What did they actually do?

2.1/1030% of the headline grade · 2 of 3 filed, 1 estimated

Surviving crises

as filed

0.7/10

Has it survived what it has been through?

18 warning events since 2021; the latest 2026-10-21.

weight 33% of this tense · 7th percentile among 15 sector filers · read for itself

From the record

Direct Digital Holdings, Inc.'s filings since 2021 show 18 warning events of 4 kinds: a notice about its exchange listing (8-K item 3.01, 11 times, the latest 2026-10-21); a warning not to rely on past financial statements (8-K item 4.02, the latest 2024-10-15); an auditor change (8-K item 4.01, 2 times, the latest 2024-06-10); a late-report notice (Form NT 10-K or NT 10-Q, 4 times, the latest 2024-08-15) (its current reports).

A production reading, recomputed from the filings on every data build, read from EDGAR Nov 13, 2026.

Track record

as filed

3.0/10

What has it actually done, year after year?

-2.3% a year over 5 filed years; profitable in 1 of 5.

weight 45% of this tense · 30th percentile among 14 sector filers · read for its customers

From the record

Direct Digital Holdings, Inc.'s 5 filed years say what it did: revenue went from $38 million in fiscal 2021 to $35 million in fiscal 2025, down 2.3% a year; it rose in 2 of 4 years; the deepest fall was 78% from fiscal 2023 to fiscal 2025; net income was positive in 1 of 5 of those years (its annual reports).

What it rests on

revenue growth over the filed span-2.3%bottom 32% of its family
the share of years revenue rosebottom 36% of its family
the share of filed years with a profitbottom 43% of its family
the deepest fall from a revenue peak77.9%bottom 11% of its family

A production reading, recomputed from the filings on every data build, read from EDGAR Nov 13, 2026.

Shareholder treatment

SI estimate

2.3/10

How has it treated the people who own it?

SI estimate 2.3/10, confidence 35 of 100 (one part).

weight 22% of this tense · 23rd percentile among 15 sector filers · read for its shareholders

SI estimate Inferred, not read as filed

Why it is an estimate: Read from one part only, the share count over the years, which ranks in the bottom 23% of 15 in its family; fewer than two of the parts can be read: the share count over the years, and the cash returned against a positive operating cash flow or net income.
What the record cannot read: Fewer than two of the parts can be read: the share count over the years, and the cash returned against a positive operating cash flow or net income.
How it was reasoned: one part: the share count over the years, the one part on file, ranked among 15 in its family.
Confidence: 35 of 100
What would change it: A filing that carries the missing parts replaces this estimate with the filed reading.

From the record

SI estimate, not a filed reading: Direct Digital Holdings, Inc.'s shareholder treatment is put at 2.3 of 10 with a confidence of 35 of 100, because read from one part only, the share count over the years, which ranks in the bottom 23% of 15 in its family; fewer than two of the parts can be read: the share count over the years, and the cash returned against a positive operating cash flow or net income. A filing that carries the missing parts replaces this estimate with the filed reading.

● Present

What are they doing right now?

2.5/1040% of the headline grade · 2 of 3 filed, 1 estimated

Financial health

as filed

2.5/10

Is it financially healthy right now?

Leverage 135%: owes 135¢ per asset dollar.

weight 33% of this tense · 25th percentile among 15 sector filers · read for itself

From the record

Return on equity: in the fiscal year ended 2025-12-31, Direct Digital Holdings, Inc.'s shareholders' equity was below zero, so the profit on it is not read, and gross profitability: its products earned about 52 cents per dollar of everything the company owns. Leverage: it owed about 135 cents per dollar of assets, and net share issuance: its share count grew 352.9% over the year (the filed statements).

What it rests on

what it owes per dollar of assetsbottom 10% of its family
gross profit against assetstop 46% of its family
the share count against the year beforebottom 10% of its family

A production reading, recomputed from the filings on every data build, read from EDGAR Nov 13, 2026.

Industry position

as filed

1.7/10

How strong is its position in its industry?

bottom 17% of 15 in its family; net margin -54.6%.

weight 45% of this tense · 17th percentile among 15 sector filers · read for its customers

From the record

Direct Digital Holdings, Inc.'s standing among 15 graded names in its industry family: revenue of $35 million in fiscal 2025 ranks in the bottom 25% by size; a net margin of -54.6% ranks in the bottom 23%; revenue growth of -27% a year over the last 3 filed years ranks in the bottom 3% (its annual reports).

What it rests on

revenue against the family$34.7Mbottom 25% of its family
net margin-54.6%bottom 23% of its family
three-year revenue growth-27.0%bottom 3% of its family

A production reading, recomputed from the filings on every data build, read from EDGAR Nov 13, 2026.

Leadership

SI estimate

4.1/10

What are the people in charge doing?

SI estimate 4.1/10, confidence 35 of 100 (one part).

weight 22% of this tense · 41st percentile among 12 sector filers · read for its shareholders

SI estimate Inferred, not read as filed

Why it is an estimate: Read from one part only, officer and director changes on Form 8-K over three years, against the people in charge, which ranks in the bottom 41% of 12 in its family; the record of its people begins on 2022-02-17 (a listing, a merger or a first filing under the rules) and its chief executive and most of the people in charge have filed since then, so the record shows a floor of 4.7 years and cannot see past it; a floor under five years is not read as years in charge.
What the record cannot read: The record of its people begins on 2022-02-17 (a listing, a merger or a first filing under the rules) and its chief executive and most of the people in charge have filed since then, so the record shows a floor of 4.7 years and cannot see past it; a floor under five years is not read as years in charge.
How it was reasoned: one part: officer and director changes on Form 8-K, against the people in charge, the one part on file, ranked among 12 in its family.
Confidence: 35 of 100
What would change it: A filing that carries the missing parts replaces this estimate with the filed reading.

From the record

SI estimate, not a filed reading: Direct Digital Holdings, Inc.'s leadership is put at 4.1 of 10 with a confidence of 35 of 100, because read from one part only, officer and director changes on Form 8-K over three years, against the people in charge, which ranks in the bottom 41% of 12 in its family; the record of its people begins on 2022-02-17 (a listing, a merger or a first filing under the rules) and its chief executive and most of the people in charge have filed since then, so the record shows a floor of 4.7 years and cannot see past it; a floor under five years is not read as years in charge. A filing that carries the missing parts replaces this estimate with the filed reading.

▶ Future

What are they set up to do next?

1.5/1030% of the headline grade · 3 of 3 filed

Room to expand

as filed

2.6/10

How much room does it have to grow?

bottom 26% of 15 in its family for room to expand.

weight 33% of this tense · 26th percentile among 15 sector filers · read for itself

From the record

Direct Digital Holdings, Inc.'s room to grow, from the newest filed statements (fiscal 2025): cash of $728 thousand against debt of $146 thousand leaves 2.9% of its assets as net cash, top 50% of its family; cash from operations less capital spending is -25.7% of revenue (bottom 17%); a gross margin of 30% (bottom 13%) (its annual report).

What it rests on

cash less debt against assets2.9%top 50% of its family
cash from operations less capital spending against revenue-25.7%bottom 17% of its family
gross margin30.0%bottom 13% of its family

A production reading, recomputed from the filings on every data build, read from EDGAR Nov 13, 2026.

Growth drivers

as filed

0.7/10

What could actually drive growth from here?

bottom 7% of 14 in its family for growth drivers.

weight 45% of this tense · 7th percentile among 14 sector filers · read for its customers

From the record

Direct Digital Holdings, Inc.'s growth drivers, from the filed years to fiscal 2025: revenue grew -27% a year over the last three filed years against -2.3% over all 5, slowing (bottom 11% of its family); the newest year grew -44.3% (bottom 4%) (its annual reports). Direct Digital Holdings, Inc. reported 2 lines of business in fiscal 2025: Buy Side Advertising at $29 million (85%), Sell Side Advertising at $5 million (15%); 1 of 2 grew against the year before (its annual report).

What it rests on

three-year growth against the whole span-24.7 points a yearbottom 11% of its family
the newest year's revenue growth-44.3%bottom 4% of its family

A production reading, recomputed from the filings on every data build, read from EDGAR Nov 13, 2026.

Expectations vs reality

as filed

1.3/10

Did its newest year beat what its own record pointed to?

bottom 13% of 12 in its family for expectations against reality.

weight 22% of this tense · 13th percentile among 12 sector filers · read for its shareholders

From the record

Direct Digital Holdings, Inc.'s newest year against its own record: revenue of $35 million in fiscal 2025 came in 33.3% below the $52 million its prior three years' pace pointed to (bottom 13% of its family); net income of $19 million against a prior three-year average of $3 million (bottom 4%); a net margin of -54.6% against -3.7% before (bottom 21%) (its annual reports).

What it rests on

revenue against the prior three years' pace-33.3%bottom 13% of its family
net income against the prior three years' averagefive times below its prior average or morebottom 4% of its family
net margin against its prior average-50.9 pointsbottom 21% of its family

A production reading, recomputed from the filings on every data build, read from EDGAR Nov 13, 2026.

The grade is the company against its own industry, from its filings. It is not a view on the share price. How the grade is made

SI Assistanton DRCT · research, not advice