Direct Digital Holdings reported its second quarter 2025 earnings on August 5, 2025. GAAP revenue was $10.1 million, missing analyst estimates of $11.836 million by approximately 14.7%. This revenue figure was also less than half the $21.9 million achieved in the prior year period, representing a 54% year-over-year decline.
The primary reason for the shortfall was an incomplete recovery in the sell-side segment, which was disrupted in 2024 due to reputational issues. Sell-side advertising revenue totaled $2.5 million, an 83% decrease from the prior year, although it showed sequential improvement over Q1 2025.
The buy-side segment, Orange 142, showed stability with $7.7 million in revenue, flat year-over-year, including $1 million from new customer verticals. Operating expenses fell sharply by 25% compared to Q2 2024, reaching $6.0 million, due to cost-saving efforts. However, the company remained in a net loss position, generating a GAAP net loss of $4.2 million.
Management withdrew full-year revenue guidance, citing ongoing market uncertainty and the timing of the sell-side business rebuild. The company stated it is unable to provide specific revenue guidance at this time and intends to reinstate it once greater visibility on the sell-side recovery emerges.
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