Net Loss Per Share

9 Months Ended

Sep. 30, 2025

Note 8 — Net Loss Per Share

The Company has two classes of common stock, Class A and Class B, and one class of preferred stock, Series A Convertible Preferred Stock. The holders of Series A Convertible Preferred Stock are contractually entitled to receive a cumulative dividend, whether or not declared. In calculating the net loss attributable to Class A shareholders, the numerator for basic and diluted EPS is adjusted for the impact of the contractual amount of dividends payable to holders of Series A Convertible Preferred Stock. Neither shares of the Company’s Class B Common Stock nor the Company's Class A Convertible Preferred Stock share in the earnings or losses attributable to Direct Digital Holdings, Inc. and are therefore not participating securities. The following table sets forth the computation of the Company’s basic and diluted net loss per share (in thousands, except per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Net loss attributable to Class A shareholders and Series A preferred stockholders	$	(2,680)	$	(2,690)	$	(7,284)	$	(4,055)
Less: net income allocated to Series A preferred stockholders	363		—		363		—
Net loss allocated to Class A shareholders	$	(3,043)	$	(2,690)	$	(7,647)	$	(4,055)

Weighted average common shares outstanding - basic and diluted	12,867		3,793		9,855		3,667
Net loss per common share, basic and diluted	$	(0.24)	$	(0.71)	$	(0.78)	$	(1.11)

The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
Series A convertible preferred stock	5,761	—	1,941	—
Class B Common Stock	10,277	10,868	10,637	10,868
Options to purchase common stock	907	346	770	362
Restricted stock units	942	268	822	402
Total excludable from net loss per share attributable to common stockholders - diluted	17,887	11,482	14,170	11,632