---
schema_version: "secwatch.filing_event.v1"
accession: "0001104659-25-075879"
form_type: "8-K"
ticker: "DRCT"
cik: "0001880613"
company_name: "Direct Digital Holdings, Inc."
filed_at: "2025-08-11T23:59:59+00:00"
generated_at: "2026-05-17T15:45:57.613298+00:00"
event_type: "other_material"
sentiment: "neutral"
materiality_score: 0.8
calibrated_materiality_score: 0.8
confidence: "high"
source: SEC EDGAR
---

# Direct Digital converts $25M term loans to Series A Preferred; debt reduced to $9.4M

## Summary
- $25M of term loans exchanged for Series A Preferred stock issued to Lafayette Square; remaining term loan debt $9.36M.
- Series A Preferred carries 10% cumulative dividend, convertible at $2.50/share, and liquidation preference up to 3x after Oct 15, 2025.
- Credit parties must maintain minimum EBITDA of $1M for Q3/Q4 2025 and $500M thereafter; cash covenant set at $1.5M.
- A $25M exit fee on preferred redemption is waived if fully redeemed by Dec 31, 2026; $1M closing fee due by Sept 30, 2025.
- Preferred stock is senior to common, voting on as-converted basis, with protective provisions requiring majority holder consent for key actions.

## SEC filing metadata
- accession: 0001104659-25-075879
- form_type: 8-K
- ticker: DRCT
- cik: 0001880613
- company_name: Direct Digital Holdings, Inc.
- filed_at: 2025-08-11T23:59:59+00:00
- event_type: other_material
- sentiment: neutral
- materiality_score: 0.8
- calibrated_materiality_score: 0.8
- confidence: high
- sec_items: 1.01, 3.02, 3.03, 5.03, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1880613/000110465925075879/0001104659-25-075879-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1880613/000110465925075879/tm2523062d1_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001104659-25-075879
- JSON: https://secwatch.observer/filing/0001104659-25-075879.json
- Plain text: https://secwatch.observer/filing/0001104659-25-075879.txt

## Key facts
- Governance Changes
  Direct Digital Holdings, Inc.: Direct Digital Holdings, Inc. filed a Certificate of Designation of Series A Convertible Preferred Stock with the Delaware Secretary of State on August 8, 2025, establishing the rights, preferences, and limitations of the Series A Preferred Stock (effective 2025-08-08).
  - Change: charter amendment
  - Effective: 2025-08-08
  source text: on August 8, 2025, the Board authorized and the Company filed the Certificate of Designation of Series A Convertible Preferred Stock (the “ Certificate of Designation ’) with the Secretary of State of the State of Delaware, which established the Series A Preferred Stock.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1880613/000110465925075879/0001104659-25-075879-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.