Direct Digital Holdings Announces 55-to-1 Reverse Stock Split
Direct Digital Holdings, Inc. (Nasdaq: DRCT), a prominent advertising and marketing technology platform, has announced a significant reverse stock split as part of its strategy to meet Nasdaq listing requirements.
Reverse Stock Split Details
On December 30, 2025, the Board of Directors of Direct Digital Holdings approved a 55-to-1 reverse stock split for all classes of common stock. This action aims to ensure compliance with Nasdaq's minimum bid price requirement of $1.00 per share. The reverse stock split will take effect when the Class A common stock begins trading on a split-adjusted basis on January 12, 2026.
The split will convert every 55 shares of common stock into one share, with no alterations to the $0.001 par value per share or the total authorized shares. Post-split, the outstanding shares of Class A common stock will decrease from approximately 68.9 million to about 1.3 million, while Class B common stock will reduce from roughly 9.3 million to 0.2 million.
Trading Under Symbol "DRCT"
Following the reverse stock split, the Company’s Class A common stock will retain its designation on Nasdaq under the symbol DRCT. The new CUSIP number associated with the Class A common stock will be 25461T204.
Statements from Management
Mark Walker, CEO of Direct Digital Holdings, emphasized the importance of this move: "Executing this reverse split is an important next step in our path forward and enables us to regain compliance with the continued listing requirements for Nasdaq. Our Nasdaq listing is a key asset for our business and provides our common stock with heightened visibility among institutional investors to build and maintain a strong investor base, which is foundational to our go-forward strategy as we look ahead to 2026 and beyond."
Impact on Shareholders
No fractional shares will be issued due to the reverse stock split. Instead, shareholders entitled to a fractional share will receive a proportional cash payment. Equiniti Trust Company will serve as the exchange and paying agent for this split. Most shareholders should not need to take any action; however, beneficial holders are advised to consult their brokers for specific instructions.
For further details regarding the reverse stock split, shareholders can refer to the definitive proxy statement on Schedule 14A filed with the SEC on December 15, 2025.
Cautionary Note on Forward-Looking Statements
This announcement includes forward-looking statements related to Direct Digital Holdings. These statements involve risks and uncertainties that could impact the Company's actual performance, including compliance with financial covenants and access to capital markets. The Company advises stakeholders to consult the "Risk Factors" section in its most recent Annual Report on Form 10-K for an extensive review of these factors.