Direct Digital Holdings, Inc.
DRCT Communication Services Advertising Agencies
Direct Digital Holdings, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $34.7 million, down 44.3% from fiscal 2024. In the quarter to June 2026, revenue fell 22.8%, EPS grew 88.6%, free cash flow grew 67.4% and total debt fell 54.1%, each against the same quarter a year earlier.
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Direct Digital Holdings, Inc. (DRCT) Beneish M-score
Direct Digital Holdings, Inc.'s Beneish M-score for fiscal 2025 is −7.11; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −7.11 | (1.20) |
| FY2024 | −5.92 | (3.37) |
| FY2023 | −2.54 | (2.14) |
| FY2022 | −0.40 | 1.52 |
| FY2021 | −1.92 | (1.33) |
| FY2020 | −0.60 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 1.13 | — | 1.04 | |
| Gross margin index | 0.93 | — | 0.49 | |
| Asset quality index | 1.15 | — | 0.46 | |
| Sales growth index | 0.56 | — | 0.50 | |
| Depreciation index | 0.94 | — | 0.11 | |
| SG&A index | 1.48 | — | −0.25 | |
| Total accruals to total assets | (0.93) | — | −4.37 | |
| Leverage index | 0.76 | — | −0.25 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −7.11 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| DRCT Direct Digital Holdings, Inc. | −7.1× |
| SOPAQ Society Pass Incorporated compare | −5.7× |
| VSME VS MEDIA Holdings Limited compare | −4.7× |
| HAO Haoxi Health Technology Limited compare | −3.0× |
| KRKR 36Kr Holdings Inc. Sponsored ADR compare | −2.7× |
| CHR Cheer Holding, Inc. compare | −2.3× |
| CNET ZW Data Action Technologies Inc. compare | −2.2× |
| TC Token Cat Limited - Sponsored ADR compare | 17.9× |
| YDKG Yueda Digital Holding compare | — |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI