Direct Digital Holdings, Inc.
For the period ended Dec 31, 2025. Filed Mar 31, 2026.
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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Mar 31, 2026
DRCT$0.91-39.7%Stored close · as of Oct 2, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 8. Consolidated Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| For the Year Ended December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Cash Flows Used In Operating Activities: | ||
| Net loss | $(27,723) | $(19,907) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||
| Amortization of deferred financing cost and debt discount (premium), net | 3,162 | 1,092 |
| Amortization of intangible assets | 1,879 | 1,954 |
| Reduction in carrying amount of right-of-use assets | 182 | 156 |
| Depreciation and amortization of property, equipment and software | 262 | 275 |
| Stock-based compensation | 1,470 | 1,552 |
| Deferred income taxes | — | 6,132 |
| Derecognition of tax receivable agreement liability | — | (5,201) |
| Loss on debt extinguishment | 3,769 | — |
| Loss on Exit Fee | 3,608 | — |
| Loss on settlement of accounts payable | 267 | — |
| Interest paid in kind | 1,100 | — |
| Commitment shares and expenses for Equity Reserve Facility | — | 532 |
| Provision for credit losses/bad debt expense | 6 | 619 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | 1,841 | 31,615 |
| Prepaid expenses and other assets | (27) | (60) |
| Accounts payable | 911 | (26,269) |
| Accrued liabilities and TRA payable | 638 | (1,103) |
| Income taxes payable | (65) | (34) |
| Deferred revenues | 6 | 126 |
| Operating lease liability | (193) | (127) |
| Net cash used in operating activities | (8,907) | (8,648) |
| Cash Flows Used In Investing Activities: | ||
| Cash paid for capitalized software and property and equipment | (87) | (17) |
| Net cash used in investing activities | (87) | (17) |
| Cash Flows Provided by Financing Activities: | ||
| Proceeds from note payable | 3,804 | 4,000 |
| Payments on term loan | — | (373) |
| Proceeds from line of credit | — | 6,700 |
| Payments on line of credit | (3,700) | (6,000) |
| Payment of expenses for Equity Reserve Facility | (198) | (382) |
| Payment of deferred financing cost | — | (26) |
| Proceeds from issuance of Class A Common Stock | 8,688 | 1,646 |
| Payments on financed insurance premiums | (317) | — |
| Payment of tax related to shares withheld upon vesting | — | (878) |
| Proceeds from options exercised | — | 92 |
| Proceeds from warrants exercised | — | 215 |
| Net cash provided by financing activities | 8,277 | 4,994 |
| Net decrease in cash and cash equivalents | (717) | (3,671) |
| Cash and cash equivalents, beginning of the period | 1,445 | 5,116 |
| Cash and cash equivalents, end of the period | $728 | $1,445 |
| Supplemental Disclosure of Cash Flow Information: | ||
| Cash paid for taxes | $3 | $388 |
| Cash paid for interest | $835 | $4,300 |
| Non-cash Activities: | ||
| Conversion of term loan into preferred stock net of premium | $30,748 | $— |
| Accrued term loan amendment closing fees | $— | $3,000 |
| Settlement of accounts payable through issuance of common stock | $941 | $— |
| Financed insurance premiums | $291 | $129 |
| Non-cash funding of debt issuance costs | $63 | $— |
| Accrued dividends | $55 | $— |
| Funding of interest reserve through debt | $— | $2,000 |
| Common stock issued for subscription receivable | $— | $1,362 |
| Issuance of stock in lieu of cash bonus, net of tax withholdings | $— | $906 |
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