Direct Digital Holdings (DRCT) investor relations material

Executive summary

• Focused on organic sales growth through expanded go-to-market channels and product innovation, including the launch of Ignition+ for programmatic media.

• Strategic shift to a unified digital advertising segment, streamlining operations to enhance customer experience and efficiency.

• Actively pursuing both organic and inorganic growth, including potential partnerships and acquisitions aligned with long-term objectives.

• Revenue for Q1 2026 was $6.7 million, down 18% year-over-year, mainly due to lower DSP customer spending.

• Gross profit margin improved to 34% from 29% in Q1 2025 despite lower revenue.

Financial highlights

• Q1 2026 consolidated revenue was $6.7 million, down from $8.2 million in Q1 2025, mainly due to a $2 million decrease in demand-side platform customer spending.

• Gross profit was $2.3 million (34% margin), up from 29% margin last year, despite lower revenue.

• Operating expenses decreased 13% to $5.5 million compared to $6.3 million in Q1 2025.

• Operating loss improved to $3.3 million from $3.9 million year-over-year.

• Net loss narrowed to $5.6 million from $5.9 million; Adjusted EBITDA loss improved to $2.6 million from $3 million.

Outlook and guidance

• Expecting continued resilience in the DMO (destination marketing organization) and local travel markets, with bullish outlook and recent new business wins.

• Anticipating margin improvement over the next few quarters as operational efficiencies and campaign management enhancements take effect.

• Ongoing focus on capital discipline, liquidity, and cost control while evaluating strategic opportunities.

• Management remains focused on organic growth, sales pipeline expansion, and product innovation.