Direct Digital Holdings Executes 55-to-1 Reverse Stock Split to Meet Nasdaq Requirements

Direct Digital Holdings Implements a Reverse Stock Split

On January 8, 2026, Direct Digital Holdings, Inc. (Nasdaq: DRCT), a prominent player in the advertising and marketing tech industry, declared its decision to execute a reverse stock split at a ratio of 55-to-1. The company, which operates through subsidiaries like Colossus Media, LLC and Orange 142, is taking this step to ensure compliance with Nasdaq's minimum bid price requirement of $1.00 per share.

Background

The announcement came after a successful approval from both the company's Board of Directors and its shareholders on December 30, 2025. By adopting this reverse stock split, Direct Digital Holdings aims to convert every 55 shares of its common stock into a single share. The split will not alter the par value of the shares, which will remain at $0.001. Following this change, the total volume of outstanding shares for Class A common stock is expected to decrease from roughly 68.9 million to about 1.3 million. Meanwhile, Class B common stock will reduce from about 9.3 million shares to approximately 0.2 million shares.

Trading Adjustments

Starting January 12, 2026, the Class A common stock will resume trading on the Nasdaq following the reverse split under the symbol “DRCT.” Holders of the affected shares will not receive fractional shares as a result of the split. Instead, any stockholder who ends up with a fractional share will receive a proportional cash payment based on the predetermined stock split ratio.

Mark Walker, the CEO of Direct Digital Holdings, expressed the strategic significance of this move. He stated, “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.” He emphasized how retaining their Nasdaq listing is crucial as it elevates the company’s visibility among institutional investors, which is an essential foundation for building a robust investor base moving forward into 2026 and beyond.

Forward-Looking Statements and Caution

The announcement included forward-looking statements, which are common in corporate communications but carry certain risks and uncertainties. Direct Digital Holdings highlighted that actual performance may significantly differ due to various factors, including financial performance inconsistencies, regulatory issues, and operational challenges.

The company urged investors and stakeholders to review its comprehensive financial reports and the risk factors contained within its Form 10-K submissions to the Securities and Exchange Commission (SEC), providing more context on potential uncertainties and business dynamics that could impact the company's trajectory.

About Direct Digital Holdings

As a modern conglomerate in the digital media landscape, Direct Digital Holdings specializes in data-driven strategies that maximize reach and performance across multiple platforms. With innovative solutions through its sell-side platform Colossus SSP and its buy-side counterpart Orange 142, the company fosters relationships with brands, agencies, and publishers of varied sizes. Their expertise spans high-growth sectors like Energy, Healthcare, and Travel, demonstrating a commitment to delivering tailored digital marketing solutions.

The company emphasizes the human side of technology, ensuring dedicated support and personalized marketing approaches for clients, fostering growth, and driving billions of impressions through diverse digital channels. Their slogan, “Digital advertising built for everyone,” encapsulates their mission of democratizing access to advanced marketing strategies.

In short, the reverse stock split is not merely a regulatory compliance measure but a strategic decision aimed at solidifying the company's position in the competitive advertising landscape as it prepares for a promising 2026 and beyond.