DRCT (Direct Digital Holdings) EBIT: $-23.70 Mil (TTM As of Mar. 2026)


DRCT Direct Digital Holdings Inc DRCT
43 GF Score
Price $2.79
GF Value $20.83
Valuation Possible Value Trap
! 6 Warning Signs
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What is Direct Digital Holdings EBIT?

Direct Digital Holdings DRCT -2.11% 43 EBIT is $-23.70 Mil as of Mar. 2026. GuruFocus rates DRCT with a GF Score™ of 43/100 and a GF Value™ of $20.83 (Possible Value Trap). The stock has 6 warning signs investors should review.

Direct Digital Holdings's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $-5.03 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $-23.70 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Direct Digital Holdings's annualized ROC % for the quarter that ended in Mar. 2026 was -42.64%. Direct Digital Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -2,428.02%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Direct Digital Holdings's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -174.49%.

Direct Digital Holdings  (NAS:DRCT) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Direct Digital Holdings's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=-13.004 * ( 1 - 0% )/( (28.19 + 32.811)/ 2 )
=-13.004/30.5005
=-42.64 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=20.156 - 13.647 - ( 0.728 - max(0, 26.425 - 4.744+0.728))
=28.19

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=19.259 - 10.329 - ( 0.796 - max(0, 28.285 - 4.404+0.796))
=32.811

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Direct Digital Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-20.104/( ( (0.868 + max(-10.185, 0)) + (0.788 + max(-7.902, 0)) )/ 2 )
=-20.104/( ( 0.868 + 0.788 )/ 2 )
=-20.104/0.828
=-2,428.02 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(3.126 + 0 + 0.89) - (13.647 + 0.513 + 0.040999999999997)
=-10.185

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2.782 + 0 + 0.826) - (10.329 + 0.776 + 0.405)
=-7.902

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Direct Digital Holdings's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=-23.701/13.583
=-174.49 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Direct Digital Holdings EBIT Related Terms

Direct Digital Holdings EBIT Historical Data

* Premium members only.

The historical data trend for Direct Digital Holdings's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Direct Digital Holdings EBIT Chart

Direct Digital Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial 1.74 7.72 -1.90 -8.37 -22.52

Direct Digital Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.09 -2.41 -4.15 -12.12 -5.03

DRCT vs HAO, DBMM, CNET: EBIT Comparison

For the Advertising Agencies subindustry, Direct Digital Holdings's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Direct Digital Holdings EV-to-EBIT vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Direct Digital Holdings's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Direct Digital Holdings's EV-to-EBIT falls into.


DRCT
43GF Score
Direct Digital Holdings Inc DRCT
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Direct Digital Holdings EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-23.70 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $-23.70 Mil mean?
Direct Digital Holdings (DRCT) has a EBIT of $-23.70 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Direct Digital Holdings.
Is Direct Digital Holdings' EBIT too high?
Direct Digital Holdings' current EBIT is $-23.70 Mil. Overall, Direct Digital Holdings has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Direct Digital Holdings' EBIT compare to HAO and DBMM?
Direct Digital Holdings' EBIT of $-23.70 Mil can be compared against companies in the Media - Diversified industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Media - Diversified company?
A good EBIT depends on the Media - Diversified industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Direct Digital Holdings. Direct Digital Holdings's current EBIT is $-23.70 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Direct Digital Holdings stock overvalued right now?
Based on GuruFocus' analysis, Direct Digital Holdings (DRCT) is currently considered Possible Value Trap. The stock's GF Value™ is $20.83, compared to a current price of $2.79 — trading 86.6% below its estimated fair value. The current EBIT is $-23.70 Mil. Direct Digital Holdings' overall GF Score™ is 43/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Direct Digital Holdings (DRCT), the current EBIT is $-23.70 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Direct Digital Holdings (DRCT) Overvalued in 2026?

Based on GuruFocus' analysis, Direct Digital Holdings stock appears to be undervalued. The current stock price of $2.79 is trading 86.6% below its estimated GF Value™ of $20.83. GuruFocus considers Direct Digital Holdings to be Possible Value Trap.

Key valuation signals for DRCT:

  • EBIT: $-23.70 Mil
  • GF Value™: $20.83 vs. price of $2.79 (86.6% below fair value)
  • GF Score™: 43/100 with 6 warning signs

No single metric tells the full story. See the DRCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Direct Digital Holdings Business Description

Address 1177 West Loop South, Suite 1310, Houston, TX, USA, 77027
Direct Digital Holdings Inc is an end-to-end, full-service programmatic advertising platform focused on providing advertising technology, data-driven campaign optimization, and other solutions to underserved and less efficient markets on both the buy-side and sell-side of the digital advertising ecosystem. The company operates two reportable segments: sell-side advertising, which includes the results of Colossus Media, and buy-side advertising, which includes the results of Orange 142 and Huddled Masses. All of the company's revenues are attributed to the United States.
43GF Score

Get the complete analysis for DRCT

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$2.79
Price
$20.83
GF Value