Direct Digital Holdings, Inc. $documentTitle

Direct Digital Holdings, Inc. recently announced a significant development for its investors: the company has successfully regained compliance with Nasdaq's minimum bid price requirement. This 8-K filing provides crucial details on how the company achieved this and what it means for shareholders.

---

1. Event Description: Regaining Nasdaq Compliance

Direct Digital Holdings announced it has successfully regained compliance with Nasdaq's minimum bid price requirement. This means the company's stock price traded above $1.00 per share for the required consecutive business days, effectively averting a potential delisting from the exchange. The company filed an 8-K to disclose this important development.

2. Key Dates and Timeline

Here's a timeline of the events leading to compliance:

• February 12, 2026: Direct Digital Holdings announced it achieved Nasdaq compliance.
• January 30, 2026: This was the prior deadline for the company to rectify its non-compliance.
• January 12, 2026: The company executed a 1-for-55 reverse stock split to increase its share price.
• At least 20 consecutive business days: The period during which the stock price consistently traded above $1.00 per share, fulfilling Nasdaq's requirement.
• February 12, 2027: Nasdaq will monitor the company for one year until this date, ensuring continued compliance.

3. Impact Assessment: Who Benefits?

This compliance achievement has several key implications:

• For Investors: Your shares continue to trade on Nasdaq, eliminating the immediate risk of delisting. However, remember that the reverse stock split changed your share count, and Nasdaq's "Panel Monitor" period means ongoing scrutiny.
• For Direct Digital Holdings: The company retains its crucial public listing, which is vital for its operations, ability to raise capital, and overall market standing.
• For Customers & Employees: They indirectly benefit from the stability and confidence associated with a publicly traded company.

4. Financial Implications

While the reverse stock split significantly altered the share price, it did not immediately change the total market value of your investment or the company itself. Regaining Nasdaq compliance, however, carries substantial financial benefits by:

• Avoiding Delisting's Negative Effects: The company sidesteps severe financial consequences such as restricted trading liquidity, diminished investor confidence, and significant difficulty in raising capital.
• Maintaining Capital Access: Direct Digital Holdings preserves its ability to conduct future capital raises, which is crucial for growth and operations.

It's important to understand that this compliance is a technical fix, not an inherent improvement in the company's underlying business fundamentals like sales or profitability.

5. Key Takeaways for Investors

For investors, here are the essential points to consider:

• Compliance Win, Not Business Win: While positive, this event addresses a technical listing requirement, not an improvement in core business performance.
• Understand the Reverse Split: Be aware of how the 1-for-55 reverse stock split impacted your share count and per-share price, even if your total investment value remained the same initially.
• The 'Panel Monitor' is Critical: Nasdaq will monitor the company for a year. This period requires continued vigilance from the company to maintain compliance.
• Focus on Fundamentals: Always evaluate the company based on its sales, profitability, growth strategies, and competitive landscape, not just its stock price compliance.
• Due Diligence is Key: Conduct thorough research before making any investment decisions, especially after significant corporate actions like a reverse stock split and compliance events.