DRCT (Direct Digital Holdings) Interest Coverage: 0 (At Loss) (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 Interest Coverage?

Direct Digital Holdings DRCT -2.11% 43 Interest Coverage is 0 (At Loss) 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. Among 602 Media - Diversified companies, Direct Digital Holdings ranks worse than 166112.79% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Direct Digital Holdings's Operating Income for the three months ended in Mar. 2026 was $-3.25 Mil. Direct Digital Holdings's Interest Expense for the three months ended in Mar. 2026 was $-0.55 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Direct Digital Holdings's Interest Coverage or its related term are showing as below:


DRCT's Interest Coverage is not ranked *
in the Media - Diversified industry.
Industry Median: 11.775
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Direct Digital Holdings  (NAS:DRCT) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Direct Digital Holdings Interest Coverage Related Terms

Direct Digital Holdings Interest Coverage Historical Data

* Premium members only.

The historical data trend for Direct Digital Holdings's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Direct Digital Holdings Interest Coverage Chart

Direct Digital Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial 1.38 2.47 0.00 0.00 0.00

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
Interest Coverage 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 0.00 0.00 0.00 0.00 0.00

DRCT vs HAO, DBMM, CNET: Interest Coverage Comparison

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

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

* The bar in red indicates where Direct Digital Holdings's Interest Coverage falls into.


DRCT
43GF Score
Direct Digital Holdings Inc DRCT
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Direct Digital Holdings Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Direct Digital Holdings's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Direct Digital Holdings's Interest Expense was $-5.20 Mil. Its Operating Income was $-14.76 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.75 Mil.

Direct Digital Holdings did not have earnings to cover the interest expense.

Direct Digital Holdings's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Direct Digital Holdings's Interest Expense was $-0.55 Mil. Its Operating Income was $-3.25 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.70 Mil.

Direct Digital Holdings did not have earnings to cover the interest expense.

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 0 (At Loss) mean?
Direct Digital Holdings (DRCT) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Direct Digital Holdings and its competitors. According to the industry distribution chart, Direct Digital Holdings ranks #999999 out of 602 companies in the Media - Diversified industry.
Is Direct Digital Holdings' Interest Coverage too high?
Direct Digital Holdings' current Interest Coverage is 0 (At Loss). Based on the distribution chart, Direct Digital Holdings ranks #999999 out of 602 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. 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' Interest Coverage compare to HAO and DBMM?
According to the Media - Diversified industry distribution chart, Direct Digital Holdings ranks #999999 out of 602 companies for Interest Coverage. This places Direct Digital Holdings in the lower half of its industry. The industry median Interest Coverage is 11.78. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Media - Diversified company?
The median Interest Coverage among Media - Diversified companies is 11.78, based on 602 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Direct Digital Holdings and its competitors. For the Media - Diversified industry, the median Interest Coverage is 11.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Direct Digital Holdings's current Interest Coverage is 0 (At Loss). 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 Interest Coverage is 0 (At Loss). 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Direct Digital Holdings (DRCT), the current Interest Coverage is 0 (At Loss) 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:

  • Interest Coverage: 0 (At Loss)
  • 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

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

$2.79
Price
$20.83
GF Value