Direct Digital Holdings (DRCT) Q2 FY26 earnings call

Direct Digital Holdings is undergoing a strategic shift, streamlining operations and focusing on high-value areas, including new AI-powered offerings. While this transition led to a consolidated revenue decline in Q2 FY26, primarily from reduced DSP customer activity, the company reported underlying growth when excluding this impact. Management is actively addressing covenant non-compliance and remains focused on operational efficiencies and strategic investments for long-term growth.