Latest Ratios: P/E Ratio -0.0x · EV/EBITDA N/A · ROE N/A. (2019–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $2M | $4M | $1.3B | $9.8B | $7.8B | — | — | — |
| Enterprise Value | $14M | $17M | $1.3B | $9.8B | $7.8B | — | — | — |
| P/E Ratio → | -0.04 | — | — | — | 2662.00 | — | — | — |
| P/S Ratio | 0.04 | 0.13 | 21.10 | 62.26 | 87.57 | — | — | — |
| P/B Ratio | — | — | — | — | 1398.55 | — | — | — |
| P/FCF | — | — | — | 4109.88 | 5686.70 | — | — | — |
| P/OCF | — | — | — | 3823.89 | 3791.14 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.48 | 21.66 | 62.42 | 87.80 | — | — | — |
| EV / EBITDA | — | — | — | 52727.72 | 776.47 | — | — | — |
| EV / EBIT | — | — | — | — | 1015.72 | — | — | — |
| EV / FCF | — | — | — | 4120.74 | 5701.61 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 30.0% | 30.0% | 27.9% | 23.9% | 32.8% | 48.3% | 41.5% | 27.7% |
| Operating Margin | -42.5% | -42.5% | -21.2% | -1.4% | 8.9% | 11.5% | -6.8% | -13.9% |
| Net Profit Margin | -54.6% | -54.6% | -10.0% | -1.4% | 0.2% | -4.0% | -7.3% | -14.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | -229.4% | 7.9% | -151.2% | -165.5% | — |
| ROA | -82.1% | -82.1% | -12.9% | -3.4% | 0.4% | -4.5% | -5.2% | -20.9% |
| ROIC | -108.9% | -108.9% | -53.3% | -6.8% | 28.6% | 22.0% | -9.6% | — |
| ROCE | -462.0% | -462.0% | -60.8% | -6.8% | 26.7% | 17.4% | -7.0% | -815.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | 4.39 | — | 5.65 | — |
| Debt / EBITDA | — | — | — | 166.42 | 2.43 | 3.28 | — | — |
| Net Debt / Equity | — | — | — | — | 3.67 | — | 4.97 | — |
| Net Debt / EBITDA | — | — | — | 138.92 | 2.03 | 2.55 | — | — |
| Debt / FCF | — | — | — | 10.86 | 14.90 | 4.30 | — | 1.77 |
| Interest Coverage | -4.33 | -4.33 | -1.55 | -0.43 | 2.39 | 0.55 | -0.04 | -13.79 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.18 | 0.18 | 0.64 | 1.08 | 1.27 | 1.42 | 0.98 | 0.43 |
| Quick Ratio | 0.18 | 0.18 | 0.64 | 1.08 | 1.27 | 1.42 | 0.98 | 0.43 |
| Cash Ratio | 0.03 | 0.03 | 0.11 | 0.13 | 0.16 | 0.48 | 0.24 | 0.21 |
| Asset Turnover | — | 1.72 | 2.40 | 2.22 | 1.54 | 1.06 | 0.41 | 1.48 |
| Inventory Turnover | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 32.89 | 29.14 | 86.44 | 107.65 | 75.33 | 136.88 | 48.55 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | 0.0% | 0.0% | — | — | — |
| Payout Ratio | — | — | — | — | 825.9% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | 0.0% | — | — | — |
| FCF Yield | — | — | — | 0.0% | 0.0% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | — | — | — |
| Shares Outstanding | — | $308000 | $4M | $3M | $15M | $4M | $3M | $3M |
Imminent liquidity and solvency
As reported in recent financial statements, the company's gross margin plummeted to -18.8% in 2026Q1, a stark reversal from the 38.7% peak observed in 2024Q3, indicating that the current programmatic take-rate model is failing to cover the direct costs of publisher inventory in a highly competitive environment.
The shift to negative gross margins suggests that the company is effectively subsidizing ad-spend to maintain volume, which is unsustainable for a firm of this size. Investors should interpret the persistent operating margin of -48.7% as evidence that the fixed cost base is far too heavy for the current revenue scale, necessitating a fundamental restructuring of the business model.
Based on the provided financial data, the company's ROIC has consistently trended in negative territory, reaching -40.0% in 2026Q1, which demonstrates that the firm is not only failing to compound capital but is actively eroding the value of its invested assets through persistent operational losses.
The negative ROIC trend, which has worsened from -5.8% in 2024Q2, highlights a structural inability to generate returns above the cost of capital. This decay in efficiency appears to be driven by the combination of shrinking margins and an inability to optimize asset turnover, which has fallen to 0.34, suggesting that the company's technology stack is underutilized.
According to the latest balance sheet filings, the current ratio has deteriorated to a precarious 0.16 as of 2026Q1, signaling that the company lacks the liquid assets necessary to meet its short-term obligations without immediate and potentially dilutive external financing or a rapid improvement in cash collections.
The rapid decline in the current ratio from 1.31 in 2024Q2 reflects a severe depletion of working capital that leaves the firm with virtually no margin for error. Given the negative cash flow trajectory, the current liquidity position appears insufficient to support ongoing operations, warranting extreme caution regarding the company's near-term solvency.
As indicated by the reported figures, the company's DSO has fluctuated significantly, reaching 40 days in 2026Q1, while the DPO has remained elevated at 91 days, suggesting that the firm is relying on extended payment terms to suppliers to manage its strained cash position.
The reliance on stretching payables to manage liquidity is a common indicator of financial stress in the advertising technology sector. This strategy appears to be a temporary stopgap rather than a sustainable operational efficiency, as the company's inability to convert revenue into cash remains a primary driver of its ongoing liquidity crisis.
The market's reliance on P/S multiples to value this business model is fundamentally flawed, as it obscures the company's negative gross margins and the high variable costs associated with programmatic ad-tech, which render top-line revenue a poor proxy for the firm's actual economic health or earning potential.
Investors should instead focus on 'Net Revenue' or 'Gross Profit' multiples, which account for the significant payouts to publishers that are inherent in the SSP model. By ignoring these costs, the P/S ratio provides a misleadingly optimistic view of the company's scale, failing to capture the reality that the firm is currently paying more to acquire inventory than it earns from advertisers.
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Quick answers to the most common questions about buying DRCT stock.
Direct Digital Holdings, Inc.'s current P/E ratio is -0.0x. This places it at the 50th percentile of its historical range.
Based on historical data, Direct Digital Holdings, Inc. is trading at a P/E of -0.0x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Direct Digital Holdings, Inc. has 30.0% gross margin and -42.5% operating margin.