HOUSTON, Jan. 8, 2026 /PRNewswire/ -- Direct Digital Holdings, Inc. (NASDAQ:DRCT) ("Direct Digital Holdings" or the "Company"), a leading advertising and marketing technology platform operating through its companies Colossus Media, LLC ("Colossus SSP") and Orange 142, LLC ("Orange 142"), today announced a 55-to-1 reverse stock split of all classes of its common stock. The Company expects the Class A common stock to begin trading on a split-adjusted basis on The Nasdaq Stock Market as of the commencement of trading on January 12, 2026. The reverse stock split is intended to allow the Company to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share.

The reverse stock split was approved by Direct Digital Holdings' Board of Directors and subsequently by its stockholders on December 30, 2025, with the authorization to determine the final ratio having been granted to, and determined by, the Board. As a result of the reverse stock split, every 55 shares of the Company's common stock issued and outstanding will be automatically converted into one share of common stock, with no change in the $0.001 par value per share or authorized number of shares of common stock. The number of outstanding shares of Class A common stock, which is traded on Nasdaq, will be reduced from approximately 68.9 million to approximately 1.3 million, and the number of outstanding shares of Class B common stock, which is exchangeable and votes with the Class A common stock, will be reduced from approximately 9.3 million to approximately 0.2 million.

The Company's Class A common stock will continue to trade on Nasdaq under the symbol "DRCT." The new CUSIP number for the Class A common stock following the reverse split is 25461T204.

Mark Walker, Chief Executive Officer of Direct Digital Holdings, commented, "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. Our Nasdaq listing is a key asset for our business and provides our common stock with heightened visibility among institutional investors to build and maintain a strong investor base, which is foundational to our go-forward strategy as we look ahead to 2026 and beyond."

No fractional shares will be issued if, as a result of the reverse stock split, a stockholder would otherwise become entitled to a fractional share because the number of shares of common stock they hold before the reverse stock split is not evenly divisible by the split ratio. Instead, each stockholder will be entitled to receive a proportional cash payment in lieu of a fractional share. The Company's transfer agent, Equiniti Trust Company, is acting as the exchange and paying agent for the reverse stock split. The Company does not expect that stockholders holding their shares in book-entry form or through a bank, broker or other nominee need to take any action in connection with the reverse stock split. Beneficial holders are encouraged to contact their bank, broker or other ...