Direct Digital Q3 revenue drops

Direct Digital Holdings

06/11/2025 22:21

Overview

Direct Digital Q3 revenue decreased 12%, missing analyst expectations

Net loss improved but missed analyst estimates

Buy-side advertising revenue grew 7% yr/yr, driven by new verticals

Outlook

Company expects stronger Q4 compared to last year

Result Drivers

BUY-SIDE GROWTH - Focus on profitable buy-side segment led to 7% revenue increase, driven by new verticals

SELL-SIDE CHALLENGES - Sell-side revenue declined due to lower impression inventory and engagement levels

COST SAVINGS - Operating expenses reduced by 15% due to cost-saving initiatives from 2024

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$7.98 mln
$22.25 mln (2 Analysts)
Q3 Net Income
Miss
-$5 mln
$435,500 (2 Analysts)
Q3 Adjusted EBITDA
Miss
-$3 mln
$576,000 (2 Analysts)
Q3 Operating Income
Miss
-$3.91 mln
-$409,000 (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 $6.00, about 94.6% above its November 5 closing price of $0.33

Press Release: ID:nPnc3tWNxa

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(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.)