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Direct Digital HoldingsDRCTW 43 Net Margin % is -43.35% as of Jun. 2026. GuruFocus rates DRCTW with a GF Score™ of 43/100. The stock has 7 warning signs investors should review. Among 1,010 Media - Diversified companies, Direct Digital Holdings ranks worse than 91.39% on this metric.
Direct Digital Holdings (NAS:DRCTW) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Direct Digital Holdings Net Margin % Related Terms
Direct Digital Holdings Net Margin % Historical Data
* 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.
For the Advertising Agencies subindustry, Direct Digital Holdings's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Direct Digital Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where Direct Digital Holdings's Net Margin % falls into.
* 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 (DRCTW) has a Net Margin % of -43.35% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Direct Digital Holdings and its competitors. According to the industry distribution chart, Direct Digital Holdings ranks #923 out of 1010 companies in the Media - Diversified industry, placing it in the top 91.4%.
Is Direct Digital Holdings' Net Margin % too high?
Direct Digital Holdings' current Net Margin % is -43.35%. Based on the distribution chart, Direct Digital Holdings ranks #923 out of 1010 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, reflecting its overall financial health beyond just this single metric.
How does Direct Digital Holdings' Net Margin % compare to HAO and DBMM?
According to the Media - Diversified industry distribution chart, Direct Digital Holdings ranks #923 out of 1010 companies for Net Margin %. This places Direct Digital Holdings in the lower half of its industry. The industry median Net Margin % is 1.20. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Media - Diversified company?
The median Net Margin % among Media - Diversified companies is 1.20, based on 1,010 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Direct Digital Holdings and its competitors. For the Media - Diversified industry, the median Net Margin % is 1.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Direct Digital Holdings's current Net Margin % is -43.35%. 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?
Direct Digital Holdings (DRCTW) has a current Net Margin % of -43.35%. The current Net Margin % is -43.35%. Direct Digital Holdings' overall GF Score™ is 43/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Direct Digital Holdings (DRCTW), the current Net Margin % is -43.35% as of Jun. 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.
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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