Filing Flows › Direct Digital Holdings (DRCT) › Q2 2025
Direct Digital Holdings (DRCT) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 6, 2025
Direct Digital Holdings (DRCT) reported revenue of $10.1M for the second quarter 2025 (Q2 2025), -54% from a year earlier and +24% from the quarter before. Operating margin was -23.9%, net loss $4.2M (41.4% of revenue).
Direct Digital Holdings, Q2 2025: revenue $10.1M (-54% year over year), operating margin -23.9%, net loss $4.2M, operating cash flow −$2.7M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $10.1M | +24% | -54% |
| Operating profit | −$2.4M | — | — |
| Net earnings | −$4.2M | — | — |
| Operating cash flow | −$2.7M | — | — |
What changed
Revenue was $10.1M in Q2 2025, down 54% year over year and up 24% from the previous quarter. Buy-side advertising was the largest line at 76% of revenue. Sell-side advertising lost $11.8M year over year (down 83%), 101% of the total change.
Gross margin was 35.1%, up 8.0 points from a year earlier. Operating costs exceeded revenue by $2.4M, an operating margin of -23.9%. Operating expenses fell 25% while revenue fell 54%. The quarter ended with a net loss of $4.2M, narrower than the previous quarter's $5.9M loss. Minority interests bore $1.9M of it: to shareholders the quarter was a loss of $2.2M.
Operating cash flow was −$2.7M. Non-cash charges added back $77K of depreciation and amortization and $389K of share-based compensation. Working capital and other items added $1.0M.
Questions
What was Direct Digital Holdings' revenue in the second quarter 2025?
Direct Digital Holdings (DRCT) reported revenue of $10.1M for the second quarter 2025 (Q2 2025), -54% from a year earlier and +24% from the quarter before.
Was Direct Digital Holdings profitable in the second quarter 2025?
Operating loss was $2.4M (-23.9% of revenue) and net loss $4.2M.