Filing Flows › Direct Digital Holdings (DRCT) › Q1 2026
Direct Digital Holdings (DRCT) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 15, 2026
Direct Digital Holdings (DRCT) reported revenue of $6.7M for the first quarter 2026 (Q1 2026), -18% from a year earlier and -21% from the quarter before. Operating margin was -48.7%, net loss $5.6M (83.4% of revenue).
Direct Digital Holdings, Q1 2026: revenue $6.7M (-18% year over year), operating margin -48.7%, net loss $5.6M, operating cash flow −$1.1M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $6.7M | -21% | -18% |
| Operating profit | −$3.3M | — | — |
| Net earnings | −$5.6M | — | — |
| Operating cash flow | −$1.1M | — | — |
What changed
Revenue was $6.7M in Q1 2026, down 18% year over year and down 21% from the previous quarter.
Gross margin was 33.9%, up 4.5 points from Q1 2025. Operating costs exceeded revenue by $3.3M, an operating margin of -48.7%. Operating expenses fell 13% while revenue fell 18%. The quarter ended with a net loss of $5.6M, narrower than the previous quarter's $12.6M loss. Minority interests bore $321K of it: to shareholders the quarter was a loss of $5.2M.
Operating cash flow was −$1.1M. Non-cash charges added back $33K of depreciation and amortization and $183K of share-based compensation. Working capital and other items added $4.3M.
Questions
What was Direct Digital Holdings' revenue in the first quarter 2026?
Direct Digital Holdings (DRCT) reported revenue of $6.7M for the first quarter 2026 (Q1 2026), -18% from a year earlier and -21% from the quarter before.
Was Direct Digital Holdings profitable in the first quarter 2026?
Operating loss was $3.3M (-48.7% of revenue) and net loss $5.6M.