Direct Digital Holdings Implements 4-to-1 Reverse Stock Split to Comply with Nasdaq Requirements

Direct Digital Holdings Announces Reverse Stock Split

Houston, April 23, 2026 – Direct Digital Holdings, Inc. (Nasdaq: DRCT), a leader in advertising and marketing technology, has officially announced a 4-to-1 reverse stock split of its common stock, which will take effect before the market opens on April 27, 2026. This decision stems from the company's commitment to adhering to Nasdaq's minimum bid price requirement of $1.00 per share, a necessity for maintaining its prestigious listing on the exchange.

Background of the Move

The reverse stock split, which reduces the total number of shares available to investors while maintaining the same overall market capitalization, is not an isolated event. Earlier this year, the company executed a more drastic reverse split of 55-to-1 on January 12, 2026. The actions taken are part of a broader strategy approved by Direct Digital Holdings' Board of Directors and its shareholders, which includes the potential for multiple reverse splits with ratios up to 250-to-1 before the end of 2026.

Mark Walker, the company's Chief Executive Officer, stated, "Our Nasdaq listing is an important asset, and this reverse split positions us to continue to meet the listing requirements of Nasdaq. This will help support institutional and long-term investor interest."

Details of the Split

With this 4-to-1 reverse stock split, the outstanding shares of Class A common stock will decrease from approximately 2.8 million to about 0.7 million, while Class B common stock will be reduced from around 0.17 million to approximately 0.04 million. Each holder of four shares will automatically receive one share following the split, and the par value of $0.001 will remain unchanged. Notably, fractional shares will not be issued; instead, stockholders will be compensated with a proportional cash payment.

The reverse stock split is designed to maintain a healthy public float and drive interest among investors, contributing to the company’s overarching goal of leveraging its advanced advertising technology capabilities for growth.

Future Outlook

Looking ahead, Direct Digital Holdings aims to harness its experience and capabilities, particularly in artificial intelligence, to propel its growth strategy. Walker expressed optimism about the company’s future, emphasizing a commitment to expanding its reach and enhancing the effectiveness of the advertising solutions provided to clients.

Direct Digital Holdings operates through two key platforms: Colossus Media, focusing on sell-side solutions, and Orange 142, which targets buy-side advertising strategies. These two entities provide a comprehensive suite of services that help brands achieve their marketing goals, catering to a wide array of industries including Energy, Healthcare, Travel, and Financial Services.

The company's Class A common stock will continue to trade under the symbol 'DRCT' on Nasdaq, maintaining its position within the digital advertising market. As the company prepares for the changes initiated by the reverse stock split, investor relations remain a focal point to ensure clarity and understanding during this transition.

In conclusion, while the move to implement a reverse stock split may create initial adjustments within the market, Direct Digital Holdings views this as a strategic step towards sustainable growth, continued compliance, and ultimately, enhanced shareholder value.