Direct Digital Q1 revenue falls 18% on lower DSP spending

Direct Digital Holdings

11/05/2026 13:38

Overview

US ad tech platform's Q1 revenue fell 18% yr/yr, driven by lower DSP customer spending

Adjusted EBITDA loss improved yr/yr, reflecting reduced operating expenses

Company says it is focused on cost control and capital discipline amid ongoing execution

Outlook

Company did not provide specific guidance for the current quarter or full year in its press release

Result Drivers

DSP CUSTOMER SPENDING - Co said Q1 revenue decrease was primarily due to a $2.0 mln drop in demand side platform customer spending

Company press release: ID:nPn1BXc5pa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$6.68 mln
$6.82 mln (2 Analysts)
Q1 Net Income
Miss
-$5.57 mln
-$925,000 (1 Analyst)
Q1 Adjusted EBITDA
Miss
-$2.60 mln
-$1.63 mln (2 Analysts)
Q1 Operating Income
Miss
-$3.25 mln
-$2.54 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 694% above its May 8 closing price of $4.03

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.)