Direct Digital Q2 revenue falls on lower DSP spending

Direct Digital Holdings

12/08/2026 21:41

Overview
US adtech platform's Q2 revenue fell 23% yr/yr, driven by lower DSP customer spending
Company posted wider adjusted EBITDA loss for Q2
Company was not in compliance with certain financial covenants as of June 30, 2026

Outlook
Company did not provide specific financial guidance for future quarters or the full year

Result Drivers
DSP CUSTOMER SPENDING - Revenue decline was driven by a $2.5 mln drop in spending by DSP customers in Q2
CORE BUSINESS GROWTH - Excluding DSP customers, revenue grew 3% in Q2, reflecting strong renewal rates, per CEO Mark D. Walker
COST CONTROL - Operating expenses fell 7% yr/yr as company streamlined operations, per President Keith Smith

Company press release: ID:nPndyLJRa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$7.83 mln
$8.84 mln (2 Analysts)
Q2 Net Loss Attributable 
 
$3.39 mln
 
Q2 Adjusted EBITDA
Miss
-$2.33 mln
-$980,500 (2 Analysts)
Q2 Operating Income
Miss
-$2.93 mln
-$1.75 mln (2 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the advertising & marketing peer group is "buy"
Wall Street's median 12-month price target for Direct Digital Holdings Inc is $32.00, about 1,063.6% above its August 11 closing price of $2.75

Reuters Recommended Reads
Aug 11 - Inuvo Q2 revenue misses on Legacy Search decline
Aug 10 - Viant Technology Q2 revenue beats estimates on attention intelligence integration
Aug 10 - Entravision Q2 revenue jumps 126% on ATS growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)