Direct Digital Holdings disclosed it was not in compliance with certain financial covenants as of the end of the second quarter of 2026 and has requested a waiver from its lender. The company reported second quarter revenue of $7.8 million, down from $10.1 million a year earlier, and a net loss of $3.6 million. Management highlighted early demand for its newly launched AI search and GEO offerings, but noted the strategic shift is still in its early stages. Cash and cash equivalents fell to $500,000 at quarter-end, with total cash plus accounts receivable of $3.2 million.
Direct Digital Holdings IncCovenant breach, revenue decline, net loss, and low cash position
