DRCT (Direct Digital Holdings) Effective Interest Rate on Debt %: 14.32% (As of Mar. 2026)


DRCT Direct Digital Holdings Inc DRCT
43 GF Score
Price $2.76
GF Value $20.83
Valuation Possible Value Trap
! 6 Warning Signs
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What is Direct Digital Holdings Effective Interest Rate on Debt %?

Direct Digital Holdings DRCT -3.16% 43 Effective Interest Rate on Debt % is 14.32% 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.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Direct Digital Holdings's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was $2.18 Mil. Direct Digital Holdings's average total debt for the quarter that ended in Mar. 2026 was $15.22 Mil. Therefore, Direct Digital Holdings's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 14.32%.


Direct Digital Holdings  (NAS:DRCT) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Direct Digital Holdings Effective Interest Rate on Debt % Related Terms


Direct Digital Holdings Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Direct Digital Holdings's Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % Chart

Direct Digital Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial 18.63 14.24 15.77 16.09 21.13

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
Effective Interest Rate on Debt % 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 19.89 18.60 12.30 12.54 14.32

DRCT vs HAO, DBMM, CNET: Effective Interest Rate on Debt % Comparison

For the Advertising Agencies subindustry, Direct Digital Holdings's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Direct Digital Holdings's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Direct Digital Holdings's Effective Interest Rate on Debt % falls into.


DRCT
43GF Score
Direct Digital Holdings Inc DRCT
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Direct Digital Holdings Effective Interest Rate on Debt % Calculation

Direct Digital Holdings's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -5.203/( (36.274+12.978)/ 2 )
=-1  *  -5.203/24.626
=21.13 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=32.386 + 3.888
=36.274

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0.754 + 12.224
=12.978

Direct Digital Holdings's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -2.18/( (12.978+17.47)/ 2 )
=-1  *  -2.18/15.224
=14.32 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0.754 + 12.224
=12.978

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0.695 + 16.775
=17.47

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 14.32% mean?
Direct Digital Holdings (DRCT) has a Effective Interest Rate on Debt % of 14.32% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Direct Digital Holdings and its competitors.
Is Direct Digital Holdings' Effective Interest Rate on Debt % too high?
Direct Digital Holdings' current Effective Interest Rate on Debt % is 14.32%. 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' Effective Interest Rate on Debt % compare to HAO and DBMM?
Direct Digital Holdings' Effective Interest Rate on Debt % of 14.32% 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 Effective Interest Rate on Debt % for a Media - Diversified company?
A good Effective Interest Rate on Debt % depends on the Media - Diversified industry context. However, Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Direct Digital Holdings and its competitors. Direct Digital Holdings's current Effective Interest Rate on Debt % is 14.32%. 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 $2.76 — trading 86.7% below its estimated fair value. The current Effective Interest Rate on Debt % is 14.32%. 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 Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Direct Digital Holdings (DRCT), the current Effective Interest Rate on Debt % is 14.32% 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 $2.76 is trading 86.7% below its estimated GF Value™ of $20.83. GuruFocus considers Direct Digital Holdings to be Possible Value Trap.

Key valuation signals for DRCT:

  • Effective Interest Rate on Debt %: 14.32%
  • GF Value™: $20.83 vs. price of $2.76 (86.7% 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

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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$2.76
Price
$20.83
GF Value