Direct Digital Holdings, Inc. Class A ( (DRCT) ) has released its Q3 earnings. Here is a breakdown of the information Direct Digital Holdings, Inc. Class A presented to its investors.
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Direct Digital Holdings, Inc. is a prominent advertising and marketing technology company that operates through its subsidiaries, Colossus Media and Orange 142, providing digital media strategies for brands and agencies across various platforms. In its third-quarter 2025 financial report, the company highlighted a 7% increase in buy-side revenue compared to the previous year, despite an overall 12% decline in consolidated revenue. The company also reported a significant reduction in operating expenses by 15% for the quarter and 20% for the first nine months of 2025.
Key financial metrics from the report include a buy-side advertising revenue of $7.3 million, which marked a 7% increase from the previous year, while sell-side revenue decreased significantly due to lower impression inventory. The company’s gross profit stood at $2.2 million, representing 28% of revenue, down from 39% the previous year. Despite these challenges, Direct Digital Holdings managed to improve its net loss from $6.4 million in Q3 2024 to $5.0 million in Q3 2025.
Strategically, Direct Digital Holdings is focusing on becoming an AI-first company, enhancing its internal processes and customer solutions through artificial intelligence. The company processed approximately 192 billion average monthly impressions in its sell-side segment and expanded its equity reserve facility to support growth initiatives. The issuance of Series A Convertible Preferred Stock also marked a significant financial move, aimed at strengthening the company’s capital structure.
Looking ahead, Direct Digital Holdings remains committed to evolving its business model and exploring strategic opportunities to drive long-term shareholder value. The management is optimistic about the potential growth in the buy-side segment and is actively working on rebuilding the sell-side business to previous levels, with a focus on new customer acquisition and product development.