Direct Digital Holdings(US:DRCT) Prnewswire·2025-11-06 21:06Core Insights - Direct Digital Holdings reported a 7% increase in buy-side revenue for Q3 2025 compared to Q3 2024, reaching $7.3 million, while consolidated revenue decreased by 12% to $8.0 million [1][12] - The company successfully reduced operating expenses by 15% in Q3 2025 and 20% for the first nine months of 2025 compared to the prior year [1][12] - The sell-side segment faced challenges with revenue dropping significantly due to lower impression inventory and engagement levels [3][12] Financial Performance - Buy-side advertising revenue increased by 7% from $6.9 million in Q3 2024 to $7.3 million in Q3 2025 [12] - Sell-side advertising revenue fell from $2.2 million in Q3 2024 to $0.6 million in Q3 2025, a decrease of 73% [12] - Gross profit for Q3 2025 was $2.2 million, representing 28% of revenue, down from 39% in Q3 2024 [12] - Operating loss for Q3 2025 was ($3.9 million), slightly worse than the ($3.7 million) loss in the prior year [12] Strategic Initiatives - The company is focusing on evolving into an AI-first organization, enhancing operational efficiency and developing new customer solutions [4][8] - Direct Digital Holdings is actively exploring strategic opportunities to support growth initiatives and enhance shareholder value [5][8] - The buy-side segment served approximately 220 customers in Q3 2025, with $2.1 million of revenue coming from new verticals [12] Capital Structure - The company issued $25 million of Series A Convertible Preferred Stock at a conversion price of $2.50 per share [6] - An additional $10 million of Series A Convertible Preferred Stock was issued on October 14, 2025 [7] - As of September 30, 2025, cash and cash equivalents were $0.9 million, down from $1.4 million at the end of 2024 [12]