Thank you for standing by. My name is Karen, and I will be your conference operator today. At this time, I would like to welcome everyone to the Direct Digital Holdings' Second Quarter 2025 Earnings Call. All lines have been placed on mute to prevent any background noise. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star followed by the number one on your telephone keypad. To withdraw your question, you may press star followed by the number one again. I will now turn the call over to John Nesbett from Investor Relations. Please go ahead. Good afternoon, everyone, and welcome to Direct Digital Holdings' Second Quarter 2025 Earnings Conference Call. On today's call are Direct Digital Holdings' Chairman and Chief Executive Officer, Mark Walker, and Chief Financial Officer, Diana Diaz. Information discussed today is qualified in its entirety with the Form 8-K and accompanying earnings release, which has been filed today by Direct Digital Holdings, which may be accessed at the SEC's website and the company's website. Today's call is also being webcast, and the replay will be posted on Direct Digital's Investor Relations website. Immediately following the speaker's presentation, there will be a question and answer session. Please note that the statements made during the call, including financial projections or other statements that are not historical in nature, may constitute forward-looking statements. These statements are made on the basis of Direct Digital's views and assumptions regarding future events and business performance at the time they are made, and we do not undertake any obligation to update these statements. Forward-looking statements are subject to risks, which could cause Direct Digital's actual results to differ from its historical results and forecasts, including those risks set forth in Direct Digital's filings with the Securities and Exchange Commission, and you should refer to those for more information. This cautionary statement applies to all forward-looking statements made during the call. During this call, Direct Digital will be referring to non-GAAP financial measures. These non-GAAP measures are prepared in accordance with generally accepted accounting principles. Reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in the earnings release that Direct Digital filed in its Form 8-K today. I will now hand over the conference call to Mark Walker, Chief Executive Officer. Please go ahead, Mark. Thanks, John, and thank you to everyone joining our call this evening. I'll start by reviewing some of the highlights of our operations and financial results during the second quarter before turning the call over to our Chief Financial Officer, Diana Diaz, for a more detailed look at our financial results. We'll conclude by opening the call for a brief Q&A. Our focus in the first half of 2025 has been on rebuilding and growing our business back to historical revenue levels and profitability. To that end, we saw encouraging progress in the quarter, underscored by sequential revenue growth of 24% and enhanced adjusted EBITDA when compared with the first quarter of 2025. Our buy-side segment demonstrated modest growth year- over- year, which contributed to improved gross profit margins of 35% in the quarter, and on the sell side, we continue to build back from the pause in several key sell-side relationships back in May of 2024. These partners have since resumed their relationships, but it will take some time for us to restore sell-side revenue to previous levels. With the disruption now behind us, we've set our sights firmly on what's ahead for our business. As I mentioned, buy-side revenue increased slightly in the quarter. Our buy-side segment has a lower cost of revenue than the sell side, which is reflected in our improved gross margins in the first half of this year. We're intent on driving enhanced growth in this segment going forward as we execute on our revenue diversification strategy. Our sell-side business is showing encouraging progress as we work diligently to rebuild this part of our business. Historically, our sell-side business was the key driver of our revenues and profitability. The sell side drove the double-to-triple-digit annual consolidated revenue growth we achieved from 2018 through 2023. Looking ahead, direct connections are a key priority for our sell-side segment and the main driver of our return to historical revenue levels. Colossus Connections, which we launched in the third quarter of 2024 to accelerate integration efforts with leading demand-side platforms, is performing well, and we've added several mid and top-tier DSP partners who are near completion with integration. As we stated last quarter, we expect to see the full impact on our revenues once integration is completed in the second half of 2025. While last year's disruption impacted our trajectory, we're confident that we've placed the foundational pieces to put our business back on the path to enhanced growth, value, and profitability. The back half of the year should be strong, driven by enhanced buy-side activity through Orange 142 and the ongoing recovery of the company's sell-side business as it rebuilds to historical levels. We had previously laid out a revenue target range of $90 million- $110 million for 2025. We will grow likely substantially in the back half of the year, but it now looks unrealistic that we will meet that target. For the time being, we're going to abstain from providing specific revenue guidance given some uncertainties in the macro environment and the specific timing around integrating DSP partners via Colossus Connections. We will revisit providing revenue guidance as we get better visibility on the growth of the sell side of the business. Our cost savings initiatives remain a priority as reflected in a 25% reduction in total operating expenses in the second quarter compared to the prior year. We continue to strategically evaluate our cost structure and expenses to maximize efficiencies and support the long-term growth of our business. An unexpected benefit to our belt tightening has been increased innovation, including the use of artificial intelligence or AI to supplement our reduced staffing levels during the time of rebuilding. I will now hand the call over to Diana Diaz, our Chief Financial Officer, who will walk through some of the financial highlights in further detail. Thank you, Mark, and good evening, everyone. I'll now provide a review of our second quarter results. Consolidated revenue in the second quarter of 2025 was $10.1 million, a decrease of $11.7 million compared with revenue of $21.9 million in the second quarter of last year. Sell-side revenue was $2.5 million in the second quarter compared with $14.3 million in the second quarter of 2024. The decrease in sell-side advertising revenue was primarily related to a decrease in impression inventory when compared to the second quarter of 2024, which we attribute to the unexpected business disruption amongst our partners, advertisers, and clients in May 2024, caused by a market-discredited blog post against our supply-side platform, Colossus SSP. Buy-side revenue of $7.7 million increased slightly from $7.6 million in the second quarter of 2024. While consolidated revenue was down year- over- year, revenue increased sequentially by 24% over the first quarter of 2025, demonstrating our progress in our efforts to rebuild our business back to historical revenue levels. Gross margin for the second quarter of 2025 increased to 35% compared with 27% in the second quarter of 2024. This increase in gross margin was primarily attributable to our revenue mix, as our buy-side, which has a lower cost of revenue, comprised the majority of our consolidated revenue in the quarter. Operating expenses in the second quarter of 2025 were $6 million, a decrease of 25% or just over $2 million compared with $8 million in the same period of last year, primarily related to a staff reduction and internal reorganization program that we made effective on July 1, 2024. As Mark said, expense reduction remains a key priority for our business, and we continue to strategically evaluate ways that we can efficiently minimize our cost structure while continuing to drive growth. Further, scarcity of personnel resources has contributed to increased innovation throughout our organization as we continue to rebuild. We believe this will make us stronger in the long run. Total operating loss for the second quarter was $2.4 million compared to a loss of $2.1 million in the same period of last year. Sequentially, operating loss decreased by 38% from $3.9 million in the first quarter of 2025. Net loss in the second quarter was $4.2 million or $0.23 per share compared to a net loss of $3.1 million or a loss of $0.16 per share in the second quarter of last year. Adjusted EBITDA for the second quarter was a loss of $1.5 million compared to an adjusted EBITDA loss of $1.3 million in the second quarter of last year. Importantly, our second quarter 2025 adjusted EBITDA loss improved significantly on a sequential basis compared with $3 million in the first quarter of 2025. As we continue to make strides towards rebuilding our business, we expect adjusted EBITDA to improve in tandem. Turning to the balance sheet, we ended the quarter with cash and cash equivalents of $1.6 million compared to $1.4 million as of December 31st, 2024. Total cash plus our accounts receivable balance as of June 30, 2025, was $5.5 million compared to $6.4 million at year-end 2024. From a liquidity standpoint, we continue to actively advance funding and equity financing pathways with the goal of strengthening the company's financial position and supporting key growth initiatives as we rebuild our business. We are working towards a strong back half of the year, driven by enhanced buy-side activity through Orange 142 and the ongoing recovery of the company's sell-side business as it rebuilds to historical revenue levels. We are encouraged by the revitalization of our sell-side business driven by Colossus Connections, and we've added several mid and top-tier DSP partners who are near completion with their integration. We expect to see the full impact of our revenues once integration is completed and partnership levels are fully resumed in the second half of 2025. Also, it's important to remind everyone that there is seasonality to our business, which typically sees strength, particularly in the fourth quarter. Now I'd like to turn it back over to Mark for some closing comments. Thank you, Diana, and thank you to everyone for joining. We appreciate your interest in Direct Digital Holdings and would like to now open the call for questions. Operator, please open the line. At this time, I would like to remind everyone in order to ask a question, press star then the number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster. The first question comes from Dan Kurnos from The Benchmark Company. Your line is open. Great, thanks. Good afternoon, guys. Mark, I guess obviously a couple of things just in terms of the revenue outlook. Is it taking longer to integrate DSP partners? Is it macro? Is it just certain timing issues and when they ramp? Can you just give us a sense of kind of what's changed from the last time you talked? I know obviously there's a lot of sell-side lack of visibility out there right now, but just any thoughts on sort of what's changed in terms of the guidance outlook? Yeah, I would say it's a combination of both. I mean, the macroeconomic issues and uncertainty in the marketplace definitely brought us to the decision to look at our guidance for the fourth half of the year. Historically, over the last five years, I could say that we were in a strong position to get better insight into the visibility of how Q3 and Q4 were going to play out. With a lot of the macroeconomic issues that are affecting many companies today, we thought it would be prudent for us to look at our guidance for the outcast of the year and make adjustments accordingly against that. The second piece I would also say is the integrations. Of course, in working with multiple partners upstream and downstream from us, it definitely takes time for us to be able to predict when we will be live and through testing and through all those different phases that you go through for integration. Since that pause, we had to reconstitute many of those connections and do them direct. Looking at the timing, looking at the macroeconomic issues, we thought it'd be prudent for us to pull guidance at this time. In terms of the timing of those integrations, are you seeing some slide into 2026? Do you have any line of sight on any of the big ones that you talked about? I guess just in terms of maybe it's a longer ramp, do you think there's any delta or difference in what you saw before in terms of the revenue opportunity between what you're seeing now? Yeah, no, the way that we look at it, we think it's just probably a little bit longer ramp than what we originally anticipated. We do see positive movement as it relates to the quantity of advertisers that are coming in. We're also seeing positive movement on the level of publications that we have access to and that we're actually representing at Colossus SSP. We are looking for the ramp-up of the spend from the individual to start ramping up and the algorithms to work in our favor. That ramp-up is taking a little bit more time than normal. That is what we're working through right now. We will get that sorted out, and we believe it's more of a function of time, of when more so than if. Got it. In terms of any other incremental initiatives you're working on, I know you and I have talked about some things you kind of have in the pipe, but is there anything else you'd care to share in terms of incremental opportunities, adjacencies, ways to go to market strategies that might be helpful as people think about the exit run rate when we finally get through 2025? Yeah, we think there's a couple of different opportunities. We think that in regards to the buy-side of the business, we've opened up in multiple segments, which we believe will help us with growth. We've already seen positive impact from multiple clients in the energy sector. That has been a benefit to us. We also think that with the push inside of the industry for SPO, we think that there are SPO opportunities, supply path optimization opportunities that we'll be able to dovetail into with some of the assets that we have inside the organization. We think late 2025 to 2026 will bear fruit for us. Some of those are in incubation, but we're seeing positive movement in that direction. We're looking forward to those actually contributing to the top line and to our profitability in the future. Great. Thanks, Mark. I appreciate it. Thank you. Next question comes from Pat McCann from NOBLE Capital Markets. Your line is open. Hey, thanks for taking my questions. This is Pat McCann on for Mike Kupinski. First question had to do with, I believe it's one particular key client on the sell side. Were you lost in business there? I was wondering if rebuilding volumes with that particular key client had a large part to do with your guidance, your previous guidance. Did that, were there any impacts there that affected your reasons for pulling guidance? Could you kind of give any update with regard to that key client? We had started back in 2024 looking for direct connections versus leveraging indirect partners. We had been for the last year building those direct relationships and looking at sending the majority of our revenue through those direct relationships, as well as multiple indirect partnerships that we also have in place. That specific relationship was not one that had an impact for us to actually revise our guidance for 2025. Got it. Okay. I was also just wondering, maybe kind of a little bit of an overview question with regard to direct connections. Could you do anything to quantify, could you say anything to quantify, when an ad impression is sold through a direct connection versus on a traditional exchange? What is the approximate revenue uplift? Is there a way to kind of look at how much the efficiencies from direct connection on a kind of an apples-to-apples basis improve your revenue per impression or per client relationship compared with the previous, the way you previously did it? Typically, when you leverage a direct connection, you're introducing about 5%- 10%, just giving ballpark numbers, of savings through the value chain. That typically gets extracted out. Right now, with the large push in the industry for SPO, supply path optimization, we believe having those direct relationships is actually beneficial for us. That is why, starting in 2024, we knew that for, and we had planned on for a while to work on direct connections as being, and Colossus Connections as being our primary push. We've just accelerated that initiative and we've started seeing favorable returns out of it from our partners. Gotcha. Final question, also with regard to direct connection, could you talk about to what extent that initiative is sort of you keeping current versus giving you a leg up on competitors? Could you kind of frame that initiative in the broader landscape of your peers? I would say that when we see the agency partners and brand partners, they're looking for the most efficient path to purchasing media. By us having Colossus Connections and removing as much transaction costs in the exchange of media, it actually proves to be a benefit. It has helped us win and partner with some of the large hold-co agencies. I would say it's definitely Colossus Connections has been a net add and a net positive for us in building out some of the large hold-co agency partnerships and help us get those reconstituted. Excellent. Thank you so much. Thank you. That concludes our Q&A session. I will now turn the call over to management for closing remarks. Thank you very much for participating on our Q2 2025 call, and we look forward to speaking to you next quarter. Thank you. Ladies and gentlemen, that concludes today's call. Thank you all for joining, and you may now disconnect.