Filing Flows › Direct Digital Holdings (DRCT) › Q1 2025
Direct Digital Holdings (DRCT) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 7, 2025
Direct Digital Holdings (DRCT) reported revenue of $8.2M for the first quarter 2025 (Q1 2025), -63% from a year earlier and -10% from the quarter before. Operating margin was -48.1%, net loss $5.9M (72.8% of revenue).
Direct Digital Holdings, Q1 2025: revenue $8.2M (-63% year over year), operating margin -48.1%, net loss $5.9M, operating cash flow −$2.7M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $8.2M | -10% | -63% |
| Operating profit | −$3.9M | — | — |
| Net earnings | −$5.9M | — | — |
| Operating cash flow | −$2.7M | — | — |
What changed
Revenue was $8.2M in Q1 2025, down 63% year over year and down 10% from the previous quarter. Buy-side advertising was the largest line at 75% of revenue. Sell-side advertising lost $14.5M year over year (down 88%), 103% of the total change.
Gross margin was 29.3%, up 6.9 points from a year earlier. Operating costs exceeded revenue by $3.9M, an operating margin of -48.1%. Operating expenses fell 19% while revenue fell 63%. The quarter ended with a net loss of $5.9M, narrower than the previous quarter's $6.6M loss. Minority interests bore $3.6M of it: to shareholders the quarter was a loss of $2.4M.
Operating cash flow was −$2.7M. Non-cash charges added back $68K of depreciation and amortization and $316K of share-based compensation. Working capital and other items added $2.8M.
Questions
What was Direct Digital Holdings' revenue in the first quarter 2025?
Direct Digital Holdings (DRCT) reported revenue of $8.2M for the first quarter 2025 (Q1 2025), -63% from a year earlier and -10% from the quarter before.
Was Direct Digital Holdings profitable in the first quarter 2025?
Operating loss was $3.9M (-48.1% of revenue) and net loss $5.9M.