Direct Digital Holdings, Inc.DRCT

Direct Digital Holdings, Inc. Segments Disclosure

10-KFiled Mar 31, 20262 min read
Note 7 — Segment Information
Revenue by business segment is as follows (in thousands):
Year Ended December 31,
20252024
Sell-side advertising$5,335 $35,660 
Buy-side advertising29,359 26,628 
Total revenues$34,694 $62,288 
Income from reportable segment operations reconciled to loss before income taxes is as follows (in thousands):
Year Ended December 31,
20252024
Sell-side advertising (1)
$(4,021)$(579)
Buy-side advertising (2)
4,954 4,001 
Income from reportable segment operations933 3,422 
Corporate office expense(28,656)(17,197)
Loss before income taxes$(27,723)$(13,775)
(1) For the year ended December 31, 2025, sell-side segment contained $0.1 million in depreciation and amortization of property, equipment and software, $0 in amortization of intangible assets and $0 in amortization of deferred financing cost and debt discount (premium), net. For the year ended December 31, 2024, sell-side segment contained $0.2 million in depreciation and amortization of property, equipment and software, $0 in amortization of intangible assets and $0 in amortization of deferred financing cost and debt discount (premium), net.
(2) For the year ended December 31, 2025, buy-side segment contained less than $0.1 million in depreciation and amortization of property, equipment and software, $1.9 million in amortization of intangible assets and $0 in amortization
of deferred financing cost and debt discount (premium), net. For the year ended December 31, 2024, buy-side segment contained less than $0.1 million in depreciation and amortization of property, equipment and software, $2.0 million in amortization of intangible assets and $0 in amortization of deferred financing cost and debt discount (premium), net.
Total assets by business segment are as follows (in thousands):
December 31,
20252024
Sell-side advertising$1,991$3,755
Buy-side advertising 16,50318,664
Assets from reportable segment operations18,49422,419
Corporate office 1,6623,587
Total assets$20,156$26,006

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 28, 2025
2023Oct 15, 2024
2022Apr 17, 2023

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

RevenueEarnings Per SharePP&ECommitmentsNew Standards