The company's financial foundation has eroded significantly, with total assets falling to $19.3 million and shareholder equity slipping into a $4.6 million deficit by 2026Q1.
| Total Current Assets | 4.4M | 4.74M | 8.54M | 43.08M | 31.28M | 13.78M | 6.51M | 1.78M |
| Cash & Short-Term Investments | 796K | 728K | 1.45M | 5.12M | 4.05M | 4.68M | 1.61M | 882.29K |
| Cash Only | 796K | 728K | 1.45M | 5.12M | 4.05M | 4.68M | 1.61M | 882.29K |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 2.78M | 3.13M | 4.97M | 37.21M | 26.35M | 7.87M | 4.68M | 834.07K |
| Days Sales Outstanding | 36.79 | 32.89 | 29.14 | 86.44 | 107.65 | 75.33 | 136.88 | 48.55 |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - | - | - | - | - | - |
| Other Current Assets | 826K | 890K | 2.12M | 759K | 883K | 0 | 0 | 0 |
| Total Non-Current Assets | 14.86M | 15.41M | 17.47M | 27.59M | 26.84M | 22.22M | 24.18M | 2.44M |
| Property, Plant & Equipment | 788K | 868K | 1.17M | 1.39M | 1.47M | 0 | 0 | 0 |
| Fixed Asset Turnover | 36.94x | 39.97x | 53.10x | 113.27x | 60.71x | - | - | - |
| Goodwill | 6.52M | 6.52M | 6.52M | 6.52M | 6.52M | 6.52M | 6.52M | 2.42M |
| Intangible Assets | 7.44M | 7.85M | 9.73M | 11.68M | 13.64M | 15.59M | 17.55M | 0 |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 370.79K |
| Other Non-Current Assets | 109K | 172K | 48K | 1.87M | 47K | 107.66K | 115.72K | -355.29K |
| Total Assets | 19.26M | 20.16M | 26.01M | 70.67M | 58.13M | 36M | 30.7M | 4.22M |
| Asset Turnover | 1.56x | 1.72x | 2.40x | 2.22x | 1.54x | 1.06x | 0.41x | 1.48x |
| Asset Growth % | -121.5% | -22.49% | -63.2% | 21.58% | 61.46% | 17.28% | 626.81% | - |
| Total Current Liabilities | 28.29M | 26.43M | 13.35M | 39.8M | 24.57M | 9.72M | 6.63M | 4.12M |
| Accounts Payable | 8.29M | 7.82M | 7.66M | 33.93M | 17.7M | 6.71M | 3.26M | 3.1M |
| Days Payables Outstanding | 106.12 | 117.58 | 62.25 | 103.59 | 107.58 | 124.27 | 163.05 | 249.13 |
| Short-Term Debt | 16.77M | 12M | 3.7M | 1.48M | 655K | 620.8K | 1.59M | 0 |
| Deferred Revenue (Current) | 2.41M | 513K | 507K | 381K | 547K | 1.35M | 308.68K | 41.95K |
| Other Current Liabilities | 2.44M | 502K | 1.3M | 1.07M | 3.31M | 406.51K | 482.44K | 80.29K |
| Current Ratio | 0.16x | 0.18x | 0.64x | 1.08x | 1.27x | 1.42x | 0.98x | 0.43x |
| Quick Ratio | 0.16x | 0.18x | 0.64x | 1.08x | 1.27x | 1.42x | 0.98x | 0.43x |
| Cash Conversion Cycle | -69.33 | - | - | - | - | - | - | - |
| Total Non-Current Liabilities | 695K | 754K | 32.39M | 34.55M | 27.96M | 26.65M | 21.69M | 1.38M |
| Long-Term Debt | 145K | 146K | 31.6M | 28.58M | 23.06M | 20.2M | 11.78M | 1.25M |
| Capital Lease Obligations | 2.55M | 608K | 783K | 773K | 745K | 0 | 0 | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 | 5.2M | 4.15M | 6.46M | 9.91M | 124.37K |
| Total Liabilities | 28.98M | 27.18M | 45.74M | 74.35M | 52.53M | 36.37M | 28.33M | 5.49M |
| Total Debt | 17.47M | 12.98M | 36.27M | 30.95M | 24.56M | 20.82M | 13.37M | 1.25M |
| Net Debt | 16.67M | 12.25M | 34.83M | 25.84M | 20.51M | 16.13M | 11.76M | 371.11K |
| Debt / Equity | -1.80x | - | - | - | 4.39x | - | 5.65x | - |
| Debt / EBITDA | -1.47x | - | - | 166.42x | 2.43x | 3.28x | - | - |
| Net Debt / EBITDA | -1.40x | - | - | 138.92x | 2.03x | 2.55x | - | - |
| Interest Coverage | -7.84x | -4.33x | -1.55x | -0.43x | 2.39x | 0.55x | -0.04x | -13.79x |
| Total Equity | -9.72M | -7.02M | -19.73M | -3.68M | 5.59M | -374.86K | 2.37M | -1.27M |
| Equity Growth % | -2.17% | 64.4% | -435.85% | -165.81% | 1592.57% | -115.83% | 286.36% | - |
| Book Value per Share | -16.91 | -22.80 | -5.25 | -1.23 | 0.38 | -0.09 | 0.85 | -0.45 |
| Total Shareholders' Equity | -4.57M | -1.91M | -4.99M | 543K | 2.28M | -374.86K | 2.37M | -1.27M |
| Common Stock | 1K | 1K | 17K | 14K | 14K | 4.29M | 4.29M | 200 |
| Retained Earnings | -32.97M | -27.72M | -8.77M | -2.54M | -344K | -4.67M | -1.93M | -900.25K |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -370.79K |
| Minority Interest | -5.16M | -5.12M | -14.74M | -4.22M | 3.31M | 0 | 0 | 0 |
Imminent liquidity and solvency
As reported in recent quarterly filings, total assets have plummeted from $68.9 million in 2023Q4 to $19.3 million by 2026Q1, signaling a severe contraction in the company's resource base that reflects a deteriorating business trajectory and a loss of operational scale within the programmatic advertising market.
The consistent decline in total assets alongside a shift into negative equity territory suggests that the company is consuming its capital base to fund ongoing operating losses. This trajectory indicates that the firm's current business model is failing to generate the necessary returns to maintain its asset base, warranting significant concern regarding long-term viability.
Based on the latest balance sheet data, cash and equivalents have dwindled to $796,000 as of 2026Q1, representing a precarious liquidity buffer that appears insufficient to sustain the company's ongoing operating burn rate without immediate access to external capital or a drastic reduction in cash outflows.
The current ratio of 0.16 highlights an extreme inability to cover short-term obligations, suggesting that the company is effectively operating on a day-to-day basis. Investors should monitor this liquidity position closely, as the lack of a meaningful cash cushion leaves the firm highly susceptible to even minor operational disruptions or market volatility.
According to financial statements, the company's equity position has deteriorated into a deficit of $4.6 million as of 2026Q1, a trend driven by the persistent accumulation of retained losses that now exceed the total value of the firm's assets and capital contributions.
The transition to negative equity indicates that the company has effectively exhausted its book value, which may complicate future financing efforts and increase the cost of capital. This erosion of equity quality underscores the severity of the company's financial distress and the potential for significant dilution if management attempts to recapitalize through equity issuance.
As indicated by the balance sheet, the company carries $6.5 million in goodwill, which has remained static despite the 44% revenue decline and the firm's overall financial deterioration, suggesting a potential risk of future impairment charges that could further erode the already negative equity position.
The persistence of this goodwill value in the face of declining operational performance warrants further investigation into whether the carrying value of these intangible assets remains justifiable. If an impairment event were to occur, it would likely trigger a significant write-down, further weakening the balance sheet and potentially violating existing debt covenants.
Quick answers to the most common questions about buying DRCT stock.
As of 2025, Direct Digital Holdings, Inc. (DRCT) had total assets of $20.2M including $4.7M in current assets.
Direct Digital Holdings, Inc. (DRCT) carries total debt of $13.0M, offset by $0.7M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Direct Digital Holdings, Inc. (DRCT) has total shareholders' equity (book value) of $-1.9M ($-22.80 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Direct Digital Holdings, Inc. (DRCT) reported a current ratio of 0.18x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.