Direct Digital reported Q2 2025 GAAP revenue of $10.1 million, missing the estimated $11.836 million by 14.7%. This shortfall was attributed to the ongoing challenges in recovering the sell-side advertising business disrupted in 2024. Revenue was less than half compared to the previous year, reflecting lingering effects of the prior year's interruption. Although operating margins improved and expenses decreased due to cost-control efforts, the company withdrew its full-year revenue guidance, pointing to market uncertainty and incomplete business recovery. Overall, despite some sequential progress, concerns remain about the pace of a sustainable turnaround.
Direct Digital's Q2 2025 earnings revealed a significant revenue shortfall, with GAAP revenue at $10.1 million, missing estimates by approximately 14.7%, indicating ongoing recovery challenges from 2024's disruptions.
Operating margins showed improvement due to cost-control measures, yet the company withdrew its full-year revenue guidance due to market uncertainty and incomplete recovery of its business.
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