Direct Digital

Q2 FY2026 EarningsQ2 FY26 results missed consensus across most key financial metrics, with revenue of $7.8M falling short of the $8.8M estimate. Normalized EPS of -$5.78, while appearing to beat the -$9.61 consensus, was significantly impacted by an increased share count from equity facilities. Operating performance remains challenged by a 23% YoY revenue decline and a narrowed gross margin of 34.0% vs. 40.3% expected, though the company is seeing initial net growth from new verticals and its Ignition+ product launch.