Filing Flows › Direct Digital Holdings (DRCT) › Q3 2025
Direct Digital Holdings (DRCT) Q3 2025 earnings results (third quarter 2025)
10-Q filed Nov 12, 2025
Direct Digital Holdings (DRCT) reported revenue of $8.0M for the third quarter 2025 (Q3 2025), -12% from a year earlier and -21% from the quarter before. Operating margin was -49.0%, net loss $5.0M (62.6% of revenue).
Direct Digital Holdings, Q3 2025: revenue $8.0M (-12% year over year), operating margin -49.0%, net loss $5.0M, operating cash flow −$1.6M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $8.0M | -21% | -12% |
| Operating profit | −$3.9M | — | — |
| Net earnings | −$5.0M | — | — |
| Operating cash flow | −$1.6M | — | — |
What changed
Revenue was $8.0M in Q3 2025, down 12% year over year and down 21% from the previous quarter. Buy-side advertising was the largest line at 92% of revenue. Sell-side advertising lost $1.6M year over year (down 71%), 143% of the total change.
Gross margin was 27.7%, down 11.0 points from a year earlier. Operating costs exceeded revenue by $3.9M, an operating margin of -49.0%. Operating expenses fell 15% while revenue fell 12%. The quarter ended with a net loss of $5.0M, wider than the previous quarter's $4.2M loss. Minority interests bore $2.3M of it: to shareholders the quarter was a loss of $2.7M.
Operating cash flow was −$1.6M. Non-cash charges added back $70K of depreciation and amortization and $374K of share-based compensation. Working capital and other items added $2.9M.
Questions
What was Direct Digital Holdings' revenue in the third quarter 2025?
Direct Digital Holdings (DRCT) reported revenue of $8.0M for the third quarter 2025 (Q3 2025), -12% from a year earlier and -21% from the quarter before.
Was Direct Digital Holdings profitable in the third quarter 2025?
Operating loss was $3.9M (-49.0% of revenue) and net loss $5.0M.