Direct Digital Holdings, Inc. Q4 FY2025 earnings call

• Over the past year and a half, there's a shift in the digital advertising market prioritizing buy-side transactions and increased demand for accessible buy-side media. In 2025, buy-side revenue increased, with 28% growth in the fourth quarter of 2025 compared to the fourth quarter of 2024 and 10% year-over-year growth. - In March 2026, launched Ignition Plus, an AI-enabled programmatic media solution for large enterprise clients in the buy-side network, combining sell-side intelligence with Orange 142's technology stack. - Focus on transparency, efficiency, and cost reduction through AI-driven optimization and site security. - Restructuring operations into a single reporting segment beginning in 2026, with a strategy to return to positive platform growth and achieve break-even or better quarterly performance by the second half of 2026.

For the full year, sales were $34.7 million. In the fourth quarter of 2025, consolidated revenue was $8.4 million. Buy-side revenue in the fourth quarter of 2025 was approximately $8.2 million, an increase of ~28% compared to the fourth quarter of last year. Sell-side revenue in the fourth quarter of 2025 was $200,000 compared to $2.7 million in the same period last year. Full-year buy-side revenue grew, while sell-side revenue decreased. Buy-side revenue contribution in the fourth quarter was significant due to the 28% growth, and full-year buy-side revenue contributed to the overall sales mix with the growth observed.

• In 2026, will continue to increase focus on driving more digital marketing spend among buy-side and new enterprise customers. - Launched Ignition Plus in March 2026 to address market dynamics and capitalize on opportunities. - Aims to return to positive platform growth and achieve break-even or better quarterly performance by the second half of 2026.