Direct Digital Holdings, Inc. Receives Nasdaq Delisting Determination

Direct Digital Holdings, Inc. received a determination letter from The Nasdaq Stock Market LLC indicating non-compliance with Nasdaq Listing Rule 5550(b)(1) due to a stockholders' deficit of ($7.0 million) as reported in its Form 10-K for the year ended December 31, 2025. This failure to meet the minimum stockholders' equity requirement of $2.5 million, or alternative listing standards, places the Company at risk of delisting. Although the Company had previously regained compliance with the Bid Price Rule, it remains subject to a Panel Monitor until February 12, 2027, which imposes stricter conditions for continued listing. The Company intends to request a hearing before the Nasdaq Hearings Panel by April 9, 2026, to appeal the delisting determination and is committed to taking necessary measures to regain compliance and maintain its listing on the Nasdaq Capital Market. However, there is no guarantee of a successful outcome.