Is Direct Digital Holdings, Inc. (DRCT) Halal?

NASDAQ Communication Services United States $2M
✗ NOT HALAL
Confidence: 90/100
Direct Digital Holdings, Inc. (DRCT) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 1400.2% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Direct Digital Holdings, Inc. operates in the Communication Services sector.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 1400.2%
/ 30%
55.8%
/ 30%
244.5%
/ 30%
7.82%
/ 5%
✗ NOT HALAL
DJIM 1400.2%
/ 33%
55.8%
/ 33%
244.5%
/ 33%
7.82%
/ 5%
✗ NOT HALAL
MSCI 139.5%
/ 33%
5.6%
/ 33%
24.4%
/ 33%
7.82%
/ 5%
✗ NOT HALAL
S&P 1400.2%
/ 33%
55.8%
/ 33%
244.5%
/ 33%
7.82%
/ 5%
✗ NOT HALAL
FTSE 139.5%
/ 33%
5.6%
/ 33%
24.4%
/ 50%
7.82%
/ 5%
✗ NOT HALAL

Financial Highlights

EPS
$-73.15
P/B Ratio
-0.2
EV/EBITDA
-0.8
EV: $11M
Revenue
$62M
Growth: -12.0%
Beta
6.1
High volatility
Current Ratio
0.4

Profitability

Gross Margin 31.4%
Operating Margin -49.0%
Net Margin -26.8%
Return on Assets (ROA) -34.8%

Cash Flow & Balance Sheet

Operating Cash Flow-$9M
Free Cash Flow-$9M
Total Debt$36M
Current Ratio0.4
Total Assets$26M

Price & Trading

Last Close$0.74
50-Day MA$1.49
200-Day MA$14.41
Avg Volume2.8M
Beta6.1
52-Week Range
$0.72
$67.65

About Direct Digital Holdings, Inc. (DRCT)

CEO
Mr. Mark D. Walker
Employees
79
Sector
Communication Services
Industry
Advertising Agencies
Country
United States
Exchange
NASDAQ
Market Cap
$2M
Currency
USD

Direct Digital Holdings, Inc. operates as an end-to-end full-service advertising and marketing platform. The company's platform primarily focuses on providing advertising technology, data-driven campaign optimization, and other solutions to underserved and less efficient markets on both the buy- and sell-side of the digital advertising ecosystem. It serves various industry verticals, such as travel, education, healthcare, financial services, consumer products, and other sectors with a focus on small and mid-sized businesses. The company was founded in 2018 and is headquartered in Houston, Texas.

Related Halal Stocks in Communication Services

Frequently Asked Questions

Is Direct Digital Holdings, Inc. (DRCT) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Direct Digital Holdings, Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Direct Digital Holdings, Inc.'s debt ratio?

Direct Digital Holdings, Inc.'s debt ratio is 1400.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 139.5%.

What are Direct Digital Holdings, Inc.'s key financial metrics?

Direct Digital Holdings, Inc. has a market capitalization of $2M, and revenue of $62M. The company maintains a gross margin of 31.4% and a net margin of -26.8%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.