Direct Digital Holdings Inc (NAS:DRCT)

Q2 2026 Direct Digital Holdings Inc Earnings Call Transcript

Aug 12, 2026 / 09:00 PM GMT

Release Date Price: $2.77 (+0.73%)

Transcript 10-Q8-K

Key Points

Positve

Excluding reduced DSP spending, total revenue increased approximately 5% year-to-date, indicating underlying growth in the core business.
Successfully launched AI search and geo offerings, which are seeing strong demand from both existing and prospective clients.
Client retention rate is strong at approximately 80% among clients representing about 80% of revenue for the first half of 2026.
Operating expenses decreased 7% year-over-year in Q2 2026, reflecting improved cost management.
Net loss improved to $3.6 million in Q2 2026 from $4.2 million in Q2 2025, showing progress in reducing losses.

Negative

Total revenue declined to $7.8 million in Q2 2026 from $10.1 million in Q2 2025, driven by a $2.5 million decrease in DSP customer spending.
Adjusted EBITDA loss widened to $2.3 million in Q2 2026 from $1.5 million in Q2 2025.
Cash and cash equivalents fell to $500,000 at June 30, 2026, from $700,000 at the end of 2025, indicating tight liquidity.
The company was not in compliance with certain financial covenants under its credit facility as of the end of Q2 2026, and a waiver request is still pending.
Operating loss increased to $2.9 million in Q2 2026 from $2.4 million in Q2 2025, reflecting ongoing operational challenges.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

DRCT.OQ - Direct Digital Holdings Inc
Q2 2026 Direct Digital Holdings Inc Earnings Call
Aug 12, 2026 / 09:00PM GMT

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Presentation
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Unidentified_1 [1]
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Well, good day, everyone, and welcome to the Direct Digital Holdings second quarter 2026 conference call. As a reminder, this call is being recorded. At this time, I would like to hand things over to Walter Frank, Investor Relations. Please go ahead.

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Unidentified_2 [2]
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Thank you.

Good afternoon, everyone, and welcome to Direct Digital Holdings second quarter 2026 earnings conference call.

On today's call are Direct Digital Holdings Chairman and Chief Executive Officer Mark Walker and Chief Financial Officer Diana Diaz.

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