Loan & DebtMay 21, 2026, 04:08 PM
Direct Digital Holdings Amends Term Loan, Waives Covenant Breaches
AI Summary
Direct Digital Holdings, Inc. announced amendments to its Term Loan Facility, including a waiver of non-compliance with several financial covenants for Q1 2026 and non-payment of interest for April 2026. The amendments also adjusted the minimum quarterly consolidated EBITDA covenant to $200,000 for Q2 2026 and removed the minimum sell-side revenue requirement, with a $0.1 million amendment fee due. Additionally, the company amended its Committed Equity Facility with Roth Principal Investments for expense reimbursements and updated its 2025 Form 10-K to reflect a change in reportable segments from two to one (digital marketing) and a previously reported 4-to-1 reverse stock split.
Key Highlights
- Term loans outstanding under the facility total $14.8 million.
- A $0.1 million amendment fee is due on May 31, 2026.
- Waiver granted for Q1 2026 non-compliance with minimum cash, EBITDA, and sell-side revenue covenants.
- Waiver granted for non-payment of interest for the fiscal month ending April 30, 2026.
- Minimum quarterly consolidated EBITDA covenant set at $200,000 for Q2 2026.
- Requirement for minimum sell-side advertising business revenue was removed.
- Roth Principal Investments to reimburse 0.6% of VWAP for equity purchase expenses.
- 2025 Form 10-K updated to reflect change to one digital marketing segment and 4-to-1 reverse stock split.
Price Impact
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