DDI

On August 11, DoubleDown Interactive (NASDAQ:DDI) reported second-quarter results that make the stock look almost too cheap to be true. Profit for the period jumped 50.5% to $32.9 million, translating into earnings per fully diluted share of $13.27, up from $8.82 a year earlier. Revenue for the quarter ended June 30 climbed 11.2% to $94.3 million. Yet the company's future ownership is still an open question, one that has nothing to do with any of these numbers. The clearest driver of that profit jump is where DoubleDown's social casino revenue is coming from. Direct-to-consumer sales, the transactions that flow straight through the company's own web storefronts rather than through app store cuts, nearly quadrupled to $40.5 million in the quarter from $10.7 million a year earlier. That channel now makes up 52.4% of social casino revenue, versus just 15.4% in the second quarter of 2025. Skipping the platform toll on more than half of that business is a structural reason costs came down, and profit outran revenue growth. SuprNation, the company's European iGaming arm, added another leg to the story. Its revenue rose 9.8% year over year to $17 million, powered by the newer Los Vegas brand rather than the older parts of the portfolio. Adjusted EBITDA across the whole company rose 17.2% to $39.3 million, with margin expanding to 41.6% from 39.5%. And none of it is on paper only. Operating cash flow reached $24.6 million in the quarter and $71 million for the first half of 2026, leaving DoubleDown sitting on a net cash position of $521 million. The audience behind these numbers also got bigger and more willing to pay. Average monthly active users rose to 1.252 million from 1.163 million, and the share of players converting into paying customers climbed to 9.4% from 7.0%. Average revenue per daily active user rose to $1.42 from $1.33. Much of that lift traces back to WHOW Games, the German developer DoubleDown acquired on July 14, 2025, whose player base converts at a higher rate than DoubleDown's legacy titles. Growth came with a bigger expense base attached. Total operating expenses rose to $57.8 million from $52.4 million, largely because WHOW Games' own cost structure is now consolidated into the results, with additional spending going toward supporting SuprNation's expansion. And not every metric tied to WHOW moved in DoubleDown's favor. Average monthly revenue per payer fell to $218 from $286, since WHOW's players simply spend less individually than DoubleDown's existing base, even though more of them are converting. Part of the earnings jump also came from outside the core business. The company attributed some of the profit increase to a higher unrealized gain on foreign currency, a line item that swings with exchange rates rather than with how many people are playing DoubleDown's games. That makes the 50.5% profit growth figure somewhat less repeatable than it looks at first glance. Then there is the unresolved question hanging over the stock since April 29, when DoubleU Games, DoubleDown's controlling shareholder, made a non-binding offer to buy out the remaining shares it does not already own for $11.25 per ADS in cash. A special committee is still reviewing that proposal, and DoubleDown says it has nothing further to announce until the committee decides otherwise. Until it does, per-share results like this quarter's $13.27 in fully diluted earnings sit somewhat disconnected from a stock price shaped more by deal speculation than by fundamentals. 11 hedge funds held DoubleDown Interactive heading into the most recent quarter, up from 9 funds the quarter before, a modest but real sign of accumulating institutional conviction. Short interest sits at just 0.13% of the float, about as close to zero organized skepticism as a stock can get. The forward price-to-earnings ratio is 4.89, as of September 8, a multiple more often seen in companies expected to shrink than ones that just grew profit by half. That gap between a rock-bottom multiple and rising hedge fund interest suggests investors are still pricing in the buyout uncertainty more than the earnings. DoubleDown delivered a quarter where nearly every operating measure, from adjusted EBITDA to payer conversion to cash on hand, moved in the right direction. Yet the stock's rock-bottom forward earnings multiple reflects a company whose ownership is still unsettled, not one the market has overlooked. The DTC shift and SuprNation's growth will need to keep compounding once WHOW Games stops accounting for most of the improvement in the numbers. While we acknowledge the potential of DDI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In. Disclosure: None. Follow Insider Monkey on Google News.

This article first appeared on GuruFocus. Revenue: $94.3 million in Q2 2026, up approximately 11% year-over-year. Social Casino Revenue: $77.3 million, up 11.5% year-over-year. iGaming Revenue: $17 million, up 10% year-over-year. Adjusted EBITDA: $39.3 million, up 17% year-over-year. Adjusted EBITDA Margin: 41.6% in Q2 2026, compared to 39.5% in Q2 2025. Net Cash Flow from Operations: $24.6 million in Q2 2026, up 25% year-over-year; $71 million for the first half of 2026. Profit (excluding noncontrolling interest): $32.9 million, up 50% year-over-year. Earnings per Share: $13.27 per fully diluted common share, or $0.66 per ADS, in Q2 2026. Operating Expenses: $57.8 million in Q2 2026, compared to $52.4 million in Q2 2025. Sales and Marketing Expenses: $13.9 million in Q2 2026, compared to $13.1 million in Q2 2025. Direct-to-Consumer (DTC) Revenue: Accounted for 52% of total Social Casino revenue in Q2 2026, up from just over 15% in Q2 2025 and 44% in Q1 2026. Payer Conversion Rate: Increased to 9.4% in Q2 2026, compared to 7.0% in Q2 2025. Average Revenue per Daily Active User (ARPDAU): $1.42 in Q2 2026, up from $1.33 in Q2 2025. Average Monthly Revenue per Payer: $218 in Q2 2026, down from $286 in the prior-year period. Cash Position: $553.8 million in cash, cash equivalents, and short-term investments at quarter end, with a net cash position of approximately $521.3 million. Warning! GuruFocus has detected 5 Warning Sign with DDI. Is DDI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. DoubleDown Interactive Co Ltd (NASDAQ:DDI) delivered strong Q2 2026 results with consolidated revenue of $94.3 million, up 11% year-over-year, and adjusted EBITDA of $39.3 million, up 17% year-over-year. The company achieved a record milestone with direct-to-consumer (DTC) revenue accounting for 52% of total Social Casino revenue, up from just over 15% in Q2 2025, driving higher margins and profitability. Social Casino revenue grew 11.5% year-over-year to $77.3 million, outperforming the broader market, which is expected to decline over 5% in 2026, thanks to strong performance from WHOW Games and the core DoubleDown business. The iGaming segment (SuprNation) grew revenue by 10% year-over-year to $17 million, successfully mitigating the impact of the higher UK gambling tax through product changes, marketing adjustments, and expense controls. The company generated significant free cash flow, with net cash flow from operations of $24.6 million in Q2 2026 (up 25% year-over-year) and $71 million for the first half of 2026, ending the quarter with a strong net cash position of $521.3 million. The payer conversion rate in Social Casino increased to 9.4% in Q2 2026 from 7.0% in Q2 2025, indicating improved monetization and player engagement. The global social casino market is projected to decline over 5% in 2026, creating a challenging environment for growth and requiring constant outperformance to maintain revenue levels. The iGaming business faced a significant headwind from the newly introduced higher UK gambling tax rate, which forced the company to reduce player acquisition spending and moderate sequential revenue growth in Q2 2026. Average monthly revenue per payer in Social Casino declined to $218 in Q2 2026 from $286 in Q2 2025, reflecting a shift in revenue mix due to WHOW Games and DTC, which may indicate lower spending per user. Operating expenses increased to $57.8 million in Q2 2026 from $52.4 million in Q2 2025, primarily due to the inclusion of WHOW Games expenses and higher costs associated with SuprNation's revenue growth. The company is in the midst of an ongoing evaluation of a nonbinding expression of interest from its controlling shareholder, DoubleU Games, to acquire all outstanding shares at $11.25 per ADS, creating uncertainty for unaffiliated shareholders. Sales and marketing expenses were reduced at SuprNation in response to the UK tax increase, which could limit future player acquisition and growth potential in the iGaming segment. Q: Can you break out the organic Social Casino growth if we strip out WHOW? Are you currently trending in line with the industry expectations (which project a decline of over 5% in 2026) or a little bit better? A: CFO Joe Sigrist stated that without quantifying it directly, the company is "really quite happy" with the first half of the year on the Social Casino side. Both the traditional DoubleDown business and the WHOW side have been able to "more than hold their own" relative to a declining market, performing incrementally better than the industry so far in the first half of the year. Q: The direct-to-consumer (DTC) crossing the 50% threshold stood out. Is there a realistic ceiling in place, or what is your expectation for where that could wind up by year-end? A: CEO In Keuk Kim stated that the 50% DTC share is already an industry benchmark, but the company sees more room for further growth. The strategy is to migrate valued users step-by-step to their own platform while maintaining a healthy balance across mobile app stores. He emphasized they are "not just reducing fees, but deepening users' trust" through investments in owned channels, direct CRM, and payment infrastructure, expecting this focus to drive steady, incremental growth. Q: Can you talk about how trends were post the UK tax increase as you layered on your mitigation? How should we be thinking about the trajectory of SuprNation going forward in terms of both revenues and profits? A: CFO Joe Sigrist explained that they are trying to balance revenue growth with profit and returns in light of the significant increase in the cost of doing business in the UK. After observing larger iGaming competitors over the past 4.5 months, they feel they have "struck a good balance between revenue and profit." They will continue to invest in acquiring players but will make appropriate product adjustments, such as RTP and bonus rates, to balance the revenue and profit equation. Q: With regard to marketing, especially for SuprNation, do you expect to stay at these reduced marketing levels? Or do you see opportunities to increase that in the back half? A: CFO Joe Sigrist stated that marketing spend over the last two quarters has been "fairly constant" and expects that to be true for the rest of the year. He noted they make real-time adjustments based on ROIs from various markets, but believes the recent run rate is pretty much where they will be for the remainder of the year. Q: Is there anything in particular that drove the quarter-over-quarter decline in iGaming? Could it be related to user acquisition costs or the UK tax changes? A: CFO Joe Sigrist clarified that Q2 was down very slightly, essentially flat from Q1. The company had to deal with a significant increase in the UK tax rate starting April 1, prompting product and marketing adjustments. They spent significantly less on player acquisition in Q2 to see how larger competitors dealt with the tax change, which moderated sequential revenue growth, but they were pleased with player retention and cost consciousness, mitigating the impact of the tax increase on the profit side. Q: You had a nice year-over-year improvement in free cash flow in the first half. Should we see more of a headwind due to income tax timing in 2H? How should we think about free cash flow for the year? A: CFO Joe Sigrist explained that Q2 generally is when tax payments are due, so it is a form of seasonality. He noted that over the last few years, Q2 tends to be a "low watermark" for quarterly cash flow due to tax payment timing. Q: As you saw in 2Q, the industry leader plans to curtail some spend in the back half in terms of promotions. Is that a sign that the industry is becoming more rational? And given the environment, could that be beneficial for you to lean into acquiring users? A: CFO Joe Sigrist stated that the company has been spending within a fairly narrow range on the Social Casino side for quite some time. He noted they saw better ROAS at the end of Q1 and leaned into it, but pulled back in Q2 as it mitigated. He emphasized the company prides itself on being "quite disciplined" in acquiring new players, using near real-time calculations of returns (3-, 7-, 21-day) to inform spending, and will continue to be judicious. Q: Can you speak to any balancing act with D2C in revenue growth? We've seen some checks citing smaller operators outperforming larger ones. Is that some of that leaning into D2C by the bigger players? A: CFO Joe Sigrist stated that the dramatic growth in DTC is not on the back of just giving more benefits. The company is very sensitive to not wanting to overly inflate the economy or be too generous with offers and incentives. A lot of what they have done is to implement DTC well and reduce or nearly eliminate the friction of the alternative payment path. While there is some additional benefit to the payer, it has not negatively impacted revenue. Q: I know you're not going to give any commentary on the reviews for the special committee, but is there anything you'd say about the timeline? Is there a potential resolution expected before the next earnings report? A: IR adviser Joseph Jaffoni reiterated that there is nothing to report regarding the work of the special committee on the DoubleU Games proposal. The special committee is working diligently, and the company is committed to communicating any and all progress when it is appropriate. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 4:30 p.m. ET Chief Executive Officer - In Keuk Kim Chief Financial Officer - Joseph A. Sigrist Investor Relations Advisor - Joseph N. Jaffoni Operator: Good afternoon, and welcome to DoubleDown Interactive's Earnings Conference Call for the Second Quarter Ended June 30, 2026. My name is Liz, and I will be your operator this afternoon. Prior to this call, Double Down issued its financial results for the second quarter of 26 in a press release, a copy of which is available in the Investor Relations section of the company's website at www.doubledowninteractive.com. You can find a link to the investor relations section at the top of the home page. Joining us on today's call are Double Down's CEO, Mr. In Keuk Kim and its CFO, Mr. Joseph A. Sigrist. Following their remarks, we will open the call for questions. Before we begin, Joe Jaffoni, the company's Investor Relations Advisor, will make a brief introductory statement Mr. Jaffoni? Joseph N. Jaffoni: Thank you, Liz. Before management begins their formal remarks, we need to remind everyone that some of management's comments today will be forward looking statements within the meaning of Section 27A of the Securities Act of 1.93 thousand as amended and Section 21E of the Securities Exchange Act of 1.93 thousand as amended. And we hereby claim the protection of the safe harbor provisions of the Private Securities Litigation Reform Act of 2 thousand. Forward looking statements are statements about future events and include the expectations and projections, not present or historical facts, and can be identified by the use of words such as may, might, will, expect, assume, believe, intend, estimate, continue, should, anticipate, or other such similar terms. Forward looking statements include and are not limited to those regarding the company's future plans, mergers and acquisition strategy, strategic and financial objectives, expected performance, and financial outlook. Forward looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially and adversely from what the company expects. Therefore, you should exercise caution in interpreting and relying on them. We refer you to Double Down's annual report on form 20 f filed with the SEC on 03/31/2026 and other SEC filings for a more detailed discussion of the risks that could impact future operating results and financial condition. These forward looking statements are made only as of the date of this call. The company does not undertake and expressly disclaims any obligation to update or alter the forward looking statements whether as a result of new information, future events or otherwise, except as required by law. During today's call, management will discuss non-IFRS financial measures, which management believes to be useful in evaluating the company's operating performance. These measures should not be considered superior to in isolation or as a substitute for the financial results prepared in accordance with IFRS. Full reconciliation of these measures to the most directly comparable IFRS measure is available in the earnings release issued this afternoon. In addition, on April 29, 2026, Double Down issued a press release acknowledging the receipt of a nonbinding expression of interest from WGames. Its controlling shareholder, to acquire all the outstanding double down common shares, including ADRs not currently owned by them, at a price of $11.25 per ADS in cash. As noted in that press release, the company has formed a special committee to evaluate and negotiate with the controlling shareholder and determine the next steps that would be in the best interest of the company and its unaffiliated shareholders. As a result of this ongoing process, the company has no additional updates or further comments to discuss on today's call. I would like to remind everyone that today's call is being recorded and will be made available for replay via a link in the Investor Relations section of Double Down's website. Thank you for your patience with that, and it is now my pleasure to turn the call over to Double Down's CEO In Keuk Kim. Operator: Please go ahead. In Keuk Kim: Thank you, Joe. Good afternoon, everyone. We are delighted to be with you today. To discuss DoubleDown Interactive second quarter 2026 results Key highlights include delivering revenue consistency and resiliency as we execute on our growth and geographical diversification strategies. Marked by solid contributions across both social casino and iGaming. Delivering a record contribution of over 50% of our total social casino revenue from direct to consumer payer activity and delivering another quarter of strong profitability and significant free cash flow generation. These results further reinforce our confidence in our business model as we drive operational excellence across our portfolio. Let's start with the financial results. This afternoon, we reported second quarter consolidated revenue of $94.3 million up approximately 11% year over year. This top line growth helped drive second quarter adjusted EBITDA of $39.3 million marking 17% year over year growth. In Q2, we extended our track record of driving a high conversion of revenue to profit and cash flow. Net cash flow from operations was $24.6 million in the quarter, up 25% from the same period 1 year ago. As a result, we generated total of $71 million in net cash flow from operations. For the first half of 2026. Our social casino segment remains the primary engine of Double Down's profit and cash flow generation. In the second quarter, social casino revenue grew 11.5% year over year to $77.3 million driven by the contribution from WHOW Games, as well as the strong performance of the DoubleDown Traditional social casino business. A key highlight this quarter is the continued growth of our direct to consumer or DTC component a major contributor to our strong growth in profitability. In the second quarter, DTC accounted for 52% of total social casino revenue compared to just over 15% in second quarter of 2025. and 44% in the first quarter of 2026. At the same time, industry analysts at Eilers recently forecast that the global social casino market will decline over 5% in 2026. That said, our focus continues to be on outperforming the overall market through precise execution of our product development initiatives around player and pay retention. Optimization of marketing and live ops activity, to maximize payer conversion and purchasing activity. And continued maximization of the direct to consumer opportunity. Turning to our iGaming business. SuprNation's Q2 2026 revenue was $17 million an increase of 10% year over year. Our newest iGaming casino title Las Vegas, again contributed to the strong SuprNation result in the quarter. During the second quarter, the SuprNation team did an excellent job in managing around the recently introduced higher UK gambling tax rate through a combination of product changes, marketing adjustment, and efficient controls. This allowed our iGaming business to effectively mitigate much of the impact of the tax increase. Our second quarter results highlight how prudent targeted investments are uncovering growth opportunities, which is enabling Double Down to extend our long-term record, our strong profitability, and cash flow generation. We are successfully integrating previous acquisitions while optimizing our core double down business. M&A remains a strategic priority as we continue to evaluate opportunities in online gaming and mobile entertainment that meet our criteria to enhance long-term shareholder value. Now I will turn the call over to our CFO, Joe Sigrist, to walk us through the financials before providing my closing remarks. Joe? Joseph A. Sigrist: Thank you, IK, and good afternoon, everyone. To review revenues for the second quarter of 2026, were $94.3 million This compares to total company revenues of $84.8 million in the second quarter of 2025 and $94.1 million in Q1 of 2026. Our social casino segment grew 11.5% from the second quarter 25 to $77.3 million reflecting the inclusion of revenue from WHOW Games, we acquired in July of last year. IGaming revenues grew by $1.5 million or 10% year over year to $17 million. Regarding our overall social casino KPIs, we previously mentioned that the metrics from WHOW Games are somewhat different from those of Double Down Casino. Specifically, WHOW Games experiences a higher pair conversion rate and lower average monthly revenue per payer. With this in mind, overall social casino KPI highlights for the second quarter include the payer conversion rate, which is the percentage of players who pay within the social casino apps, increased to 9.4% in Q2 2026 compared to 7.0% in Q2 2025. The average revenue per daily active user or ARPDAU of $1.42 up from $1.33 in Q2 2025. And an average monthly revenue per payer at $218 in Q2 2026, down from $286 in the prior year period. In the second quarter of 2026, operating expenses were $57.8 million compared to $52.4 million in the second quarter of 2025. The increase primarily reflects the inclusion of WHOW Games expenses. Sales and marketing expenses for the second quarter of 26 were $13.9 million compared to $13.1 million in the second quarter of 2025, which again, did not include WHOW Games. Conversely, sales and marketing expenses in the second quarter were down from Q1 2026, primarily due to a reduction in player acquisition spending at SuprNation in light of the revised iGaming tax rate in The UK. Profit excluding noncontrolling interest for the second quarter of 26 increased 50% to $32.9 million or earnings per fully diluted common share of $13.27 or $0.66 per ADS. In the second quarter of 26 compared to profit for the interim period of $21.8 million or earnings per fully diluted common share of $8.82 or $0.44 per ADS in Q2 2025. The increase primarily reflects higher revenue, the lower cost of revenue attributable to a higher proportion of DTC revenue, and a higher unrealized gain on foreign currency, partially offset by higher overall operating expenses primarily due to the inclusion of WHOW Games and increased costs associated with revenue growth from SuprNation. Adjusted EBITDA for the second quarter of 26 rose to $39.3 million compared to $33.5 million for the second quarter of 2025 and $38.2 million for Q1 26. Adjusted EBITDA margin was 41.6% for Q2 26, as compared to 39.5% in Q2 25 and 40.6% in Q1 26. Net cash flows provided by operating activities in Q2 26 were $24.6 million compared to $19.7 million in Q2 25 due to higher profit and lower income tax paid. And as IK mentioned, net cash flows provided by operations $71 million for the first half of 2026. In light of Q2 2026's meaningful cash generation, at quarter's end, we had $554 million in cash equivalents, and short term investments with a net cash position of approximately $521 million or approximately $10.52 per ADS. Now I will turn the call back to IK for closing remarks. In Keuk Kim: Thank you, Joe. DoubleDown Interactive powered by our core social casino and iGaming businesses. Delivered another quarter of strong profitability and cash flow. Building on our solid first half of 2026, we remain committed to innovation and disciplined, high ROI investments. And to drive DTC revenues, which collectively optimize social casino margin Finally, our strong balance sheet and cash position provide us the financial flexibility to pursue strategic growth opportunities. As well as additional value building initiatives and transactions for our shareholders. We are now happy to take your questions. Liz? Operator: If you would like to ask a question at this time, please and wait for your name to be announced. Our first question comes from Eric Handler with ROTH Capital. Eric Handler: Hey, guys. This is Jack Weissberger on for Eric. Thanks for taking our question. I want to focus on iGaming. Is there anything in particular that drove down the quarter over quarter decline could have been related to user acquisition costs, maybe The UK tax changes, anything on that would be helpful. Joseph A. Sigrist: Yeah. Sure, Jack. that is fine. I mean, essentially, Q2 was down very slightly. Essentially flat from Q1. And we certainly in Q1, as IK, you know, earlier expressed you know, had to, as we started Q2, deal with the significant increase in the in the tax rate starting on April 1. In The UK. And so we made certain product adjustments and marking adjustments as I think I mentioned, we spent significantly less in player acquisition investment in Q2 as we wanted to see how the various competitive larger competitors played out as they also dealt with The UK tax change. And so all that put together you know, kind of moderated our certainly moderated our sequential growth in revenue. But at the same time, you know, we are quite pleased with you know, the impact on player retention and, you know, how we remained, I think, you know, very cost conscious during the quarter you know, recognizing the increase in the tax rate, so that, I think, was earlier mentioned, you know, we were able to mitigate at least on the expense side and certainly on the profit side, the impact of the tax increase. Eric Handler: That all makes sense. Then also on free cash flow, you had nice year over year improvement in the first half. I know you mentioned some income tax timing or maybe there is some seasonality as well. Should we see more of a headwind due to that income tax timing year over year in 2H? Should we think about free cash flow for the year? Joseph A. Sigrist: Yeah. I mean, Q2, generally is when we have tax payments due. So it really is guess, you could call it seasonality. I mean, we have seen this over the last you know, few years that from a cash flow generation standpoint because of tax payment timing, Q2 tends to be kind of a low watermark when it comes to quarterly cash flow. Got it. Thank you very much, guys. Thanks, Jeff. Operator: Our next question comes from Aaron Lee with Macquarie. Aaron Lee: Hey, guys. Good afternoon. Thanks for taking the question. I am curious to hear more about The UK tax increase Can you just talk bit about how trends were post the tax increase as you layered on your mitigation there been any change in how you are thinking about mitigation? And maybe to tie it all together, how should we be thinking about the trajectory of SuprNation going forward in terms of both revenues and profits? Thank you. Joseph A. Sigrist: Yeah, Aaron. No. it is really important to understand that we are trying to balance with a significant change essentially increase in the cost of doing business in The UK, trying to balance you know, revenue growth with you know, profit. And with you know, returns on, you know, the business that we, you know, purchase a few years ago. And so, you know, as we look you know, over the last well, now it is been, what, 4.5 months since the tax increase occurred. And since we are able to observe what again, some of our larger iGaming competitors are doing in the market. We feel like we have struck a good balance between revenue and profit. And, you know, we do not wanna lose sight of you know, the fact that, you know, we are going to still invest in acquiring players but we are also going to, you know, make sure that we, you know, appropriately you know, spend the money to get the returns that we need relative to that investment. And, make the right product adjustments, whether it be you know, RTP, bonus rates, those kinds of things, to also kind of balance the revenue and profit equation. Aaron Lee: Okay. Got it. That makes sense. And then with regard to marketing, especially with for SuprNation marketing, you expect to stay at these reduced marketing levels, or do you see opportunities to kind of increase that in the back half? And just any general thoughts on how you are thinking about marketing the second half of the year would be helpful. Joseph A. Sigrist: Yeah. I mean, you know, if you look at our marketing spend over the last few quarters, it is really been, you know, fairly constant. And, you know, we are as a company, And, you know, we see that being true for the rest of the year at least. And we are looking, again, to kind of balance we need to invest on our iGaming side versus on the social casino side. And, you know, recognizing that, you know, we have to invest you know, to acquire new players in both businesses. And, you know, a lot of what we as I have mentioned in the past, what we do is make real literally, you know, real time adjustments based on the, you know, the ROIs that we are seeing from various markets with various agencies. Etcetera, etcetera. You know, but I do think that, you know, our kind of more recent run rate is pretty much where we are going to be for the rest of the year. Perfect. Thank you very much. Operator: Our next question comes from Josh Nichols with B. Riley. Josh Nichols: Yes. Thanks for taking my question. You know, the direct to consumer crossing, the 50% threshold stood out that is well excess of where you thought you would be. At this time of the year. Is there I guess, a realistic ceiling in place or a point where you think? some of those additional gains may stop dropping to the to the margin line? Or what is your expectation for where that could wind up by, say, year end? In Keuk Kim: Hi, Josh. Let me take the question. Our 50% ratio share is already an industry benchmark. But we have seen more room for further growth Our consistent strategy is to-- migrate, actually, migrate valued users step by step to our own platform while maintaining a healthy balance across mobile app store by combining strong in house DTC related technology with real time targeted features, We are not just reducing fees, but deepening user trust. So we have been proactively investing in our DTC capability. Particularly in owned channel, direct CRM, and payment infrastructure, which allow us to communicate and transact with valued players more efficiently outside of traditional platform constraints. We are not just reducing fees but deepening user trust. I expect this focus on DTC integration to drive steady incremental growth and sustain our leadership. in the market. Hope this helps. Thanks. No, that thanks for the granularity. There. Josh Nichols: Can you break out, you touched on a little bit, but like what is the organic social casino growth if we strip out Wow. I know you did mention, like, E and K. it is projecting social casino revenue generally to be, like, down 5% this year, but also that you noted that you expect to outperform that. Are you currently trending, you know, in line with the industry expectations or a little bit better, or how should we think about that? Joseph A. Sigrist: Yeah. I mean, without quantifying it directly, I mean, listen. We are really quite happy with the first half of the year. On the social casino side. And where you know, both on the traditional double down side as well as on the wow side, you know, we have we have pretty much been able to more than hold our own relative to what is a declining market. I will say and so yeah. I think, you know, obviously, the market is contracting based on you know, both what Eilers & Krejcik say, but also what some of our competitors have already publicly reported. But, you know, we have been able to do incrementally better at least in the so far in the first half of the year. that is good to hear. Josh Nichols: And then last question for me. I know you are not going to give any commentary on some of the reviews for the special committee, but is there anything you could say about the timeline? I mean, is there a potential resolution expected before, like, the next earnings report? Joseph A. Sigrist: Yeah. As, you know, Joe mentioned upfront, you know, we just have nothing to report regarding the work of the special committee on the WGames proposal. You know, the special committee is working diligently, and we certainly look forward you know, to hearing from them when progress has been made. And there is, you know, certainly, we are committed, obviously, with the special committee to communicate any and all progress you know, when it is appropriate. Thanks. I will jump back in the queue. Yeah. Thanks, Josh. Operator: Our next question comes from David Bain with Texas Capital Bank. David Bain: Great. Thank you. First, IK and Joe, great execution for the quarter. Maybe first to follow-up on Aaron's question, As you saw in 2Q, the industry leader plan to curtail some spend in the back half in terms of promotions. So I am just wondering if that is a sign that you know, the industry generally is becoming more rational or is it reactive to some sort of new consumer indicator And I know, Joe, you mentioned the run rate for you guys will likely stay the same. But just given the environment, you know, could that be beneficial? You know? And can you lean into that potentially in the back half to acquire users? Joseph A. Sigrist: I am I am sorry, David. Do you meant on the iGaming side or Social Casino? David Bain: No. On the Social Casino side. Joseph A. Sigrist: The Social Casino side. Yeah. I mean, you know, we have been spending within a certain fairly narrow range on the social casino side for, I think, quite some time. I think I mentioned on the last call that towards the end of Q1, we started to see ROAS at our ROI on acquiring new players. it is getting better. And so we leaned into it a bit. You know, that mitigated a bit in as we got into the rest, you know, Q2, and so we pulled back a bit. I mean, you know, I do not think there is a huge variation from quarter to quarter in social casino, at least from our perspective. In how we view what we do in acquiring new players because as I said, it is all based on real near real time calculation of returns. Right? For 21 day returns on acquiring new players, and that informs our spending. I would say that I think in general, we have all we pride ourselves in being quite disciplined in that. I will not compare us to competitors, but I will say that we have we have always been, I think, know, very judicious as it relates to acquiring new players, and we will continue know, to be that way. David Bain: Okay. Great. And then and then a follow-up on the D2C comments. Obviously, again, in social, obviously, you know, you guys are higher than the high that has been reported in the past. I am just wondering if you could speak to sort of any sort of balancing act with D2C you know, and revenue growth. I mean, we have seen some checks citing smaller operators outperforming larger for the first time in a in a long time in social. And I was wondering if maybe that was, you know, some of that leaning into D2C by the bigger players or is it not are you not seeing any sort of revenue balancing that needs to occur at this point? Joseph A. Sigrist: Yeah. I mean, to be honest, to be, I mean, it is a good question. Right? To be honest, we have we, and IK had mentioned this. Right? You know, our growth in DTC, which has been quite dramatic, frankly, is not on the back of just getting more benefits. And, you know, we are very have always been very sensitive to you know, not wanting to overly inflate our economy or you know, you know, be too generous in an inappropriate way relative to the offers that we give. And that includes in the incentives that we give for direct to consumer. A lot of what we have done is we think in order to get this kind of growth that we have seen is to implement DTC really well and to reduce or even near eliminate the friction of the alternative pay path payment path, if you will. And, yes, there is some, you know, some additional benefits for the payer, but it is it is nothing that we think has to directly answer your question, really impact negatively impacted our revenue? Okay. Awesome. Thank you. Thanks, David. Operator: Thank you. This concludes today's conference call. Thank you for joining us today. You may now disconnect. Before you buy stock in DoubleDown Interactive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and DoubleDown Interactive wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. DoubleDown Interactive (DDI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in DoubleDown Interactive Co., Ltd. Sponsored ADR? Here are five stocks we like better. Strong quarterly performance: DoubleDown Interactive’s Q2 2026 revenue rose 11% year over year to $94.3 million, while adjusted EBITDA increased 17% to $39.3 million and operating cash flow grew 25% to $24.6 million. Direct-to-consumer expansion drove social casino growth: Social casino revenue increased 11.5% to $77.3 million, with DTC revenue reaching 52% of the segment, up from just over 15% a year earlier. Management said the shift is improving payment efficiency and reducing reliance on app stores. iGaming faced U.K. tax pressure, but the balance sheet remains strong: SuprNation revenue rose 10% year over year, although growth was limited by the U.K.’s higher gambling tax rate. DoubleDown ended the quarter with approximately $521.3 million in net cash and continues to consider acquisitions and other shareholder-value initiatives. One Value, One Growth, and One Momentum Stock For Diversification DoubleDown Interactive (NASDAQ:DDI) reported second-quarter 2026 revenue of $94.3 million, up approximately 11% from a year earlier, as growth in its social casino and iGaming operations supported higher profitability and operating cash flow. Adjusted EBITDA rose 17% year over year to $39.3 million, producing an adjusted EBITDA margin of 41.6%, compared with 39.5% in the second quarter of 2025. Net cash flow from operating activities increased 25% to $24.6 million, bringing first-half operating cash flow to $71 million. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat DraftKings vs. DoubleDown: Growth in the Online Gambling Boom CEO In Keuk Kim said the results reflected “revenue consistency and resiliency” as the company pursued growth and geographic diversification. He also highlighted the expanding contribution from direct-to-consumer, or DTC, payer activity within the company’s social casino business. Social casino revenue increased 11.5% year over year to $77.3 million in the quarter. CFO Joe Sigrist said the increase reflected the inclusion of WHOW Games, acquired in July 2025, as well as performance from DoubleDown’s traditional social casino business. → 3 Dividend Champion Utilities for a Market That Can't Sit Still DTC revenue represented 52% of total social casino revenue during the quarter, up from just over 15% in the second quarter of 2025 and 44% in the first quarter of 2026. Kim described the more-than-50% DTC share as an industry benchmark and said the company sees further room for growth. Kim said DoubleDown is seeking to move valued users to its own platform while maintaining a balance with mobile app stores. The company has invested in owned channels, direct customer relationship management and payment infrastructure, which it said enable more efficient communication and transactions outside traditional platform constraints. → Is Wingstop's Growth Story Losing Steam? Sigrist said the company’s DTC growth has not primarily depended on offering substantially greater incentives to players. Instead, he said the company has focused on implementing the direct payment option effectively and reducing friction in the alternative payment process. Overall social casino payer conversion increased to 9.4% in the second quarter from 7.0% a year earlier. Average revenue per daily active user rose to $1.42 from $1.33, while average monthly revenue per payer declined to $218 from $286. Sigrist noted that WHOW Games has a higher payer conversion rate and lower average monthly revenue per payer than DoubleDown Casino, affecting the combined metrics. Management said industry analyst Eilers & Krejcik has forecast a decline of more than 5% in the global social casino market in 2026. Without quantifying organic growth excluding WHOW Games, Sigrist said DoubleDown’s traditional social casino business and WHOW Games had “more than held our own” relative to a contracting market during the first half. iGaming revenue, generated through SuprNation, increased 10% year over year to $17 million. The company said its Los Vegas casino title again contributed to the segment’s quarterly performance. Revenue was essentially flat sequentially from the first quarter, according to Sigrist, who said growth was moderated by the U.K.’s higher gambling tax rate, which took effect April 1. SuprNation responded with product changes, marketing adjustments and expense controls, including reduced spending on player acquisition during the quarter. Sigrist said management used the period to assess how larger competitors responded to the tax change. The company aimed to balance revenue growth, profitability and investment returns, while adjusting elements such as return-to-player rates and bonus rates. “We feel like we have struck a good balance between revenue and profit,” Sigrist said, adding that DoubleDown still intends to invest in player acquisition but will seek appropriate returns on those investments. Sales and marketing expense totaled $13.9 million, compared with $13.1 million a year earlier. The company said the year-over-year increase reflected the addition of WHOW Games, while the sequential decline was primarily due to lower SuprNation player-acquisition spending following the U.K. tax revision. Sigrist said the company expects its more recent overall marketing-spend run rate to remain broadly consistent for the rest of the year, with spending adjusted in near real time based on returns. Profit excluding non-controlling interests rose 50% to $32.9 million, or $0.66 per ADS, from $21.8 million, or $0.44 per ADS, in the prior-year quarter. Sigrist attributed the improvement to higher revenue, lower cost of revenue associated with a greater proportion of DTC revenue, and a higher unrealized foreign-currency gain. Those factors were partly offset by higher operating expenses tied to WHOW Games and SuprNation’s revenue growth. Operating expenses were $57.8 million, compared with $52.4 million a year earlier, primarily due to the inclusion of WHOW Games expenses. At quarter-end, DoubleDown held $553.8 million in cash equivalents and short-term investments, with a net cash position of approximately $521.3 million, or about $10.52 per ADS. Kim said the company’s balance sheet provides flexibility to pursue strategic growth opportunities and other shareholder-value initiatives. He said mergers and acquisitions remain a strategic priority in online gaming and mobile entertainment, subject to the company’s investment criteria. Management did not provide an update on the special committee’s review of a non-binding proposal from controlling shareholder DoubleU Games to acquire outstanding DoubleDown shares not already owned by DoubleU Games for $11.25 per ADS in cash. Sigrist said the special committee was working diligently and that the company would communicate progress when appropriate. DoubleDown Interactive (NASDAQ: DDI) is a digital entertainment company that specializes in the development and publishing of social casino games. The company's portfolio centers around free-to-play titles that emulate the experience of land-based casino games such as slots, video poker, bingo and table games. By blending high-quality graphics, engaging gameplay features and real-time social mechanics, DoubleDown Interactive aims to deliver a virtual casino environment accessible via web, mobile and social media platforms. The company's flagship offering, DoubleDown Casino, serves as a hub for multiple slot and table-style games, enabling millions of registered players to compete in tournaments, unlock new machines and purchase virtual coins through in-app transactions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "DoubleDown Interactive Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

SEOUL, South Korea, Aug. 11, 2026 (GLOBE NEWSWIRE) -- DoubleDown Interactive Co., Ltd. (NASDAQ: DDI) (“DoubleDown” or the “Company”), a leading developer and publisher of digital games on mobile and web-based platforms, today announced unaudited financial results for the second quarter ended June 30, 2026. Second Quarter 2026 vs. Second Quarter 2025 Summary: Revenue rose 11.2% to $94.3 million in the second quarter of 2026 compared to $84.8 million in the second quarter of 2025. Operating expenses were $57.8 million in the second quarter of 2026 compared to $52.4 million in the second quarter of 2025, primarily due to the inclusion of operating expenses of WHOW Games. Profit for the interim period (excluding non-controlling interest) rose 50.5% to $32.9 million, or earnings per fully diluted common share of $13.27 ($0.66 per American Depositary Share (“ADS”)), in the second quarter of 2026, compared to $21.8 million, or earnings per fully diluted common share of $8.82 ($0.44 per ADS), in the second quarter of 2025. Beginning in the fourth quarter of 2025, social casino KPIs are inclusive of those from WHOW Games. Net cash flows from operating activities increased to $24.6 million in the second quarter of 2026 from $19.7 million in the second quarter of 2025. The increase is primarily due to lower income taxes paid. _____________________1 Direct-to-Consumer revenue represents revenue from purchases made through Company-owned channels, including web storefront transactions and other direct payment flows. "Our double-digit year-over-year revenue and adjusted EBITDA growth in the second quarter reflect our team’s continued focus on operational excellence," said In Keuk Kim, Chief Executive Officer of DoubleDown. "These strong quarterly results highlight ongoing growth in our Direct-to-Consumer segment, which now accounts for over 50% of total social casino revenue. Performance was driven by contributions from WHOW Games, solid growth in our core social casino business that we believe outpaced the broader market, and continued year-over-year momentum from SuprNation, our iGaming business, following the successful launch of our 'Los Vegas' brand. "Our ability to consistently drive a high conversion of revenue to cash flow remains a top operating priority, resulting in $24.6 million of net cash flow from operations in the second quarter and a total of $71.0 million for the first half of 2026. As we look to the second half of 2026, we are well positioned to build upon our success. With an aggregate net cash position of $521 million, DoubleDown's strong balance sheet provides us with substantial financial flexibility to pursue strategic growth opportunities as well as additional value-building initiatives and transactions for our shareholders." Summary Operating Results for DoubleDown Interactive (Unaudited) (1)    Social casino/free-to-play games only. The KPIs for the three and six months ended June 30, 2026 in the table above are inclusive of WHOW Games, which was acquired on July 14, 2025. Update on Unsolicited Non-Binding Expression of Interest from Controlling Shareholder We refer you to our April 29, 2026 press release, in which we announced that the Company received a non-binding expression of interest from DoubleU Games Co. Ltd., our controlling shareholder, to acquire all of the outstanding common shares (including American Depositary Shares) not currently owned thereby, at a price of $11.25 per ADS in cash. We noted in that press release that the Company formed a special committee to evaluate and negotiate with the controlling shareholder and determine the next steps that would be in the best interests of the Company and its unaffiliated shareholders. As a result, while we appreciate there are many questions from our shareholders about this proposal, neither the Company nor its management intends to make any further announcements unless and until the Company or the special committee determine otherwise. The communications and inquiries received by the Company from shareholders are being forwarded to the special committee, which (in consultation with its legal and financial advisors) will evaluate as part of its ongoing review and evaluation process. The special committee will handle the proposal and there can be no assurance that a transaction will or will not occur and, if so, on what terms. Meanwhile, the Company continues to conduct its business and operations in the ordinary course. Conference Call DoubleDown will hold a conference call today (August 11, 2026) at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow management’s presentation. To access the call, please use the following link: DoubleDown Second Quarter 2026 Earnings Call. After registering, an email will be sent, including dial-in details and a unique conference call access code required to join the live call. To ensure you are connected prior to the beginning of the call, please register a minimum of 15 minutes before the start of the call. A simultaneous webcast of the conference call will be available with the following link: DoubleDown Second Quarter 2026 Earnings Webcast, or via the Investor Relations page of the DoubleDown website at ir.doubledowninteractive.com. For those not planning to ask a question on the conference call, the Company recommends listening via the webcast. A replay will be available on the Company’s Investor Relations website shortly after the event. About DoubleDown Interactive DoubleDown Interactive Co., Ltd. is a leading developer and publisher of digital games on mobile and web-based platforms. We are the creators of multi-format interactive entertainment experiences for casual players, bringing authentic Vegas entertainment to players around the world through an online social casino experience. The Company’s flagship social casino title, DoubleDown Casino, has been a fan-favorite game on leading social and mobile platforms for years, entertaining millions of players worldwide with a lineup of classic and modern games. DoubleDown’s social casino platform was expanded with WHOW Games GmbH, a developer headquartered in Hamburg, Germany, acquired in 2025. The Company’s subsidiary, SuprNation, operates four real-money iGaming sites in Western Europe. Safe Harbor Statement Certain statements contained in this press release are “forward-looking statements” about future events and expectations for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our beliefs, assumptions, and expectations of industry trends, our future financial and operating performance, and our growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Therefore, you should not place undue reliance on such statements. Words such as “anticipates,” “believes,” “continues,” “estimates,” “expects,” “goal,” “objectives,” “intends,” “may,” “opportunity,” “plans,” “potential,” “near-term,” long-term,” “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” “trends,” “should,” “could,” “would,” “will,” and similar expressions are intended to identify such forward-looking statements. We qualify any forward-looking statements entirely by these cautionary factors. We assume no obligation to update or revise any forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Use and Reconciliation of Non-IFRS Financial Measures In addition to our results determined in accordance with IFRS, we believe the following non-IFRS financial measure is useful in evaluating our operating performance. We present “adjusted earnings before interest, taxes, depreciation and amortization” (“Adjusted EBITDA”) because we believe it assists investors and analysts by facilitating comparison of period-to-period operational performance on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. The items excluded from the Adjusted EBITDA may have a material impact on our financial results. Certain of those items are non-recurring, while others are non-cash in nature. Accordingly, the Adjusted EBITDA is presented as supplemental disclosure and should not be considered in isolation of, as a substitute for, or superior to, the financial information prepared in accordance with IFRS, and should be read in conjunction with the condensed consolidated interim financial statements furnished in our report on Form 6-K filed with the SEC. In our reconciliation from our reported IFRS “profit before income tax” to our Adjusted EBITDA, we eliminate the impact of the following four line items: (i) depreciation and amortization; (ii) finance income; (iii) finance cost; and (iv) other (income) expense. The below table sets forth the full reconciliation of our non-IFRS measures: The key differences between reconciliations of Adjusted EBITDA and Adjusted EBITDA margin under IFRS and under GAAP arise from the treatment of certain adjustments, particularly in the areas of depreciation and amortization, finance income, and finance cost per the respective accounting standards. For reconciliation of Adjusted EBITDA and Adjusted EBITDA margin under IFRS, depreciation related to right-of-use assets is included within the depreciation and amortization, and as such, is added back to Adjusted EBITDA in the reconciliation. In contrast, for reconciliation of Adjusted EBITDA and Adjusted EBITDA margin under GAAP, depreciation related to right-of-use assets is classified under general and administrative expenses, and thus, is excluded from Adjusted EBITDA in the reconciliation. The designation of finance income and finance cost in reconciliation under IFRS reflects a change in the classification of non-operating (income) expense in reconciliation under GAAP. Specifically, the non-operating (income) expense accounts under GAAP have been renamed to finance income and finance cost under IFRS. We encourage investors and others to review our financial information in its entirety and not to rely on any single financial measure. Company Contact: Joe Sigrist [email protected] +1 (702) 761-6899Chief Financial Officer https://www.doubledowninteractive.com Investor Relations Contact: Joseph Jaffoni and Christin ArmacostJCIR +1 (212) [email protected]

Interested in DoubleDown Interactive Co., Ltd. Sponsored ADR? Here are five stocks we like better. DoubleDown Interactive posted strong Q1 results, with revenue rising nearly 13% year over year to $94.1 million and adjusted EBITDA increasing 24% to $38.2 million. Management said the quarter reflected growth from acquired businesses, a higher direct-to-consumer mix, and continued cash generation. Social casino remained the core profit engine, generating $76.9 million in revenue, up 9.5% from a year earlier. The direct-to-consumer share of social casino revenue climbed to 44% from 33% in Q4, showing the company’s ongoing shift away from platform-based purchases. SuprNation and the balance sheet also improved, with iGaming revenue up 30% year over year to $17.2 million and operating cash flow reaching $46.4 million. DoubleDown ended the quarter with about $500 million in net cash, and management said M&A remains a priority. One Value, One Growth, and One Momentum Stock For Diversification DoubleDown Interactive (NASDAQ:DDI) reported higher first-quarter revenue and profit, with management pointing to growth from acquired businesses, a larger direct-to-consumer revenue mix in social casino and continued cash generation across the company. For the quarter ended March 31, 2026, the company reported consolidated revenue of $94.1 million, up nearly 13% from $83.5 million in the prior-year quarter. Adjusted EBITDA rose 24% year over year to $38.2 million, compared with $30.8 million a year earlier. Adjusted EBITDA margin was 40.6%, up from 36.9% in the first quarter of 2025, but below 42.4% in the fourth quarter of 2025. → MercadoLibre Boldly Invests in Growth: Discount Deepens DraftKings vs. DoubleDown: Growth in the Online Gambling Boom CEO In Keuk Kim said the quarter represented “a solid start to 2026,” citing the highest quarterly revenue at SuprNation since DoubleDown acquired the business in 2023, continued growth in direct-to-consumer social casino revenue and “another quarter of delivering consistent profitability and significant free cash flow.” DoubleDown’s social casino segment generated revenue of $76.9 million in the first quarter, up 9.5% year over year. Kim said the increase was driven by the contribution from WHOW Games, which DoubleDown acquired in the third quarter of 2025. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Management emphasized that social casino remains the company’s primary source of profit and cash flow, even as the broader global social casino market is estimated to be in secular decline. Kim said DoubleDown’s priorities in the segment include product development focused on player and payer retention, marketing and live operations to maximize payer conversion and purchasing activity, and further expansion of direct-to-consumer purchases. The company said direct-to-consumer revenue accounted for 44% of total social casino revenue in the first quarter, up from 33% in the fourth quarter of 2025. Kim said the direct-to-consumer portion of DoubleDown Casino revenue exceeded 40% during the quarter, reflecting acceleration in the company’s transition away from platform-based purchases. → 3 Small-Cap Stocks to Buy as the Russell 2000 Extends Its Rally CFO Joseph Sigrist said WHOW Games has historically had a larger direct-to-consumer component because of its web-based history. He said the sequential increase in total social casino direct-to-consumer mix was “primarily based on the growth of DTC in DoubleDown Casino,” adding that it is difficult to predict how much further the mix can rise. Sigrist said social casino key performance indicators were affected by the inclusion of WHOW Games, whose business has a higher payer conversion rate and lower average monthly revenue per payer than DoubleDown Casino. Payer conversion rate increased to 9.7% in the first quarter of 2026 from 6.9% in the first quarter of 2025. Average revenue per daily active user rose to $1.34 from $1.29 a year earlier. Average monthly revenue per payer declined to $207 from $276 in the prior-year period. Sigrist said the company saw an opportunity during the quarter to increase advertising investment in DoubleDown Casino based on positive return-on-investment trends. He said customer acquisition costs improved from the fourth quarter, while newly acquired player cohorts showed the ability to monetize. DoubleDown’s iGaming segment, SuprNation, reported first-quarter revenue of $17.2 million, up 30% year over year and 6% from the fourth quarter of 2025. Kim said the recent launch of the Las Vegas iGaming brand contributed to the strong results, and the company plans to continue acquiring new players through marketing and advertising investments. Sigrist said SuprNation had a “very strong quarter” and reached breakeven while turning “a bit of a profit” before the impact of a higher U.K. gambling tax rate, which began April 1. He said DoubleDown remains focused on making the iGaming business profitable and growing profit over time. Kim said the company is working to offset the higher U.K. tax rate through product adjustments, including reducing bonusing rates, and said early results have been positive. He also said SuprNation is using real-time data analytics to optimize user acquisition costs and retention while navigating regulatory and tax changes. Operating expenses were $58.7 million in the first quarter, compared with $53.9 million a year earlier, primarily due to the addition of WHOW Games expenses. Sales and marketing expenses rose to $17.4 million from $14.1 million, reflecting the inclusion of WHOW Games and additional investment in SuprNation’s new brand and DoubleDown Casino advertising. Profit excluding non-controlling interest increased 48% to $35.4 million, or $14.28 per fully diluted common share and $0.71 per American depositary share. That compared with $23.8 million, or $9.62 per fully diluted common share and $0.48 per ADS, in the first quarter of 2025. Sigrist said the increase reflected higher revenue and a higher unrealized gain on foreign currency, partly offset by higher operating expenses. Net cash provided by operating activities was $46.4 million, up from $41.1 million a year earlier. Sigrist said the increase was driven by higher profit and lower income taxes paid. As of March 31, DoubleDown had $533.4 million in cash equivalents and short-term investments, with a net cash position of about $500 million, or approximately $10.10 per ADS. Kim said mergers and acquisitions remain a strategic priority as DoubleDown evaluates opportunities in online gaming and mobile entertainment. Sigrist said the company is continuing to analyze potential deals and that management is operating “business as usual” while a special committee reviews a proposal referenced by analysts during the call. Asked about that proposal, Sigrist said DoubleDown’s board formed a special committee of independent, disinterested directors after receiving it. He said the committee’s objective is to review, evaluate and determine next steps in the interests of the company and its unaffiliated shareholders, but he declined to provide further details on timing or process. On the broader acquisition environment, Sigrist said deals are still available and valuation expectations have declined, which he said is positive for DoubleDown as a buyer. He noted that some available opportunities are smaller and said the company would expect its next transaction to be a “step up” from prior deals, while continuing to apply a disciplined approach. DoubleDown Interactive (NASDAQ: DDI) is a digital entertainment company that specializes in the development and publishing of social casino games. The company's portfolio centers around free-to-play titles that emulate the experience of land-based casino games such as slots, video poker, bingo and table games. By blending high-quality graphics, engaging gameplay features and real-time social mechanics, DoubleDown Interactive aims to deliver a virtual casino environment accessible via web, mobile and social media platforms. The company's flagship offering, DoubleDown Casino, serves as a hub for multiple slot and table-style games, enabling millions of registered players to compete in tournaments, unlock new machines and purchase virtual coins through in-app transactions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "DoubleDown Interactive Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

SEOUL, South Korea, May 12, 2026 (GLOBE NEWSWIRE) -- DoubleDown Interactive Co., Ltd. (NASDAQ: DDI) (“DoubleDown” or the “Company”), a leading developer and publisher of digital games on mobile and web-based platforms, today announced unaudited financial results for the first quarter ended March 31, 2026. First Quarter 2026 vs. First Quarter 2025 Summary: Revenue rose 12.7% to $94.1 million in the first quarter of 2026 compared to $83.5 million in the first quarter of 2025. Revenue from the Company’s social casino/free-to-play games was $76.9 million in the first quarter of 2026, a 9.5% increase from the first quarter of 2025. The increase was primarily due to the contribution of revenue from WHOW Games GmbH (“WHOW Games”), which was acquired by the Company in July 2025. Direct-to-Consumer (“DTC”)1 revenue rose to $34.0 million in the first quarter of 2026, compared to $9.0 million in the first quarter of 2025. DTC revenue as a percentage of total social casino revenue increased to 44.2% in the first quarter of 2026 from 12.8% in the first quarter of 2025. Revenue from SuprNation, the Company’s iGaming subsidiary, increased 30.0% year over year to $17.2 million, primarily as a result of the Company’s launch of a new brand, Los Vegas, in October 2025. Operating expenses were $58.7 million in the first quarter of 2026 compared to $53.9 million in the first quarter of 2025, primarily due to the inclusion of operating expenses of WHOW Games. Profit for the interim period (excluding non-controlling interest) rose 48.4% to $35.4 million, or earnings per fully diluted common share of $14.28 ($0.71 per American Depositary Share (“ADS”)), in the first quarter of 2026, compared to profit for the interim period (excluding non-controlling interest) of $23.8 million, or earnings per fully diluted common share of $9.62 ($0.48 per ADS), in the first quarter of 2025. The increase was primarily due to higher revenue and higher unrealized gain on foreign currency, partially offset by higher overall operating expenses, which was primarily due to the inclusion of WHOW Games, and increased costs associated with revenue growth from SuprNation. Each ADS represents 0.05 share of a common share. Adjusted EBITDA rose 24.0% to $38.2 million for the first quarter of 2026 compared to $30.8 million in the first quarter of 2025. Adjusted EBITDA margin was 40.6% in the first quarter of 2026 compared to 36.9% in the first quarter of 2025. Beginning in the fourth quarter of 2025, social casino KPIs are inclusive of those from WHOW Games. Payer Conversion ratio for the Company’s social casino/free-to-play games increased to 9.7% in the first quarter of 2026 from 6.9% in the first quarter of 2025, primarily as a result of the inclusion of WHOW Games, which has a higher Payer Conversion ratio. Average Revenue Per Daily Active User (“ARPDAU”) for the Company’s social casino/free-to-play games increased to $1.34 in the first quarter of 2026 from $1.29 in the first quarter of 2025, primarily as a result of the inclusion of WHOW Games, which has a higher ARPDAU. Average monthly revenue per payer for the social casino/free-to-play games decreased to $207 in the first quarter of 2026 from $276 in the first quarter of 2025, primarily as a result of the inclusion of WHOW Games, which has a lower average revenue per payer. Net cash flows from operating activities increased to $46.4 million in the first quarter of 2026 from $41.1 million in the first quarter of 2025. The increase is primarily due to higher operating profit and lower income taxes paid. ____________________________ 1 Direct-to-Consumer revenue represents revenue from purchases made through Company-owned channels, including web storefront transactions and other direct payment flows. “Our first quarter results demonstrate a solid start to 2026 as we continue to execute on our strategic initiatives to expand and diversify the company across products and geographies, said In Keuk Kim, Chief Executive Officer at DoubleDown. We achieved year-over-year quarterly revenue growth in both our social casino and iGaming segments. The growth in social casino reflects revenue contributions from WHOW Games, while Direct-to-Consumer revenue in this segment continued to grow, accounting for over 40% of total social casino revenue. SuprNation, our iGaming operation, reached its highest quarterly revenue since its acquisition in 2023, driven by the recent launch of the 'Los Vegas' brand. “Our ability to consistently drive a high conversion of revenue to cash flow remains a top operating priority, and resulted in $46.4 million of net cash flow from operations in the first quarter. DoubleDown's balance sheet remains solid, providing us with financial flexibility to pursue additional value-building transactions that can further diversify our revenue sources and geographic footprint.” Summary Operating Results for DoubleDown Interactive (Unaudited) (1) Social casino/free-to-play games only. The KPIs for the three months ended March 31, 2026 in the table above are inclusive of WHOW Games, which was acquired on July 14, 2025. Update on Unsolicited Non-Binding Expression of Interest from Controlling Shareholder We refer you to our press release of April 29, 2026, in which we announced that the Company has received a non-binding expression of interest from DoubleU Games Co. Ltd., our controlling shareholder, to acquire all of the outstanding common shares (including American Depositary Shares) not currently owned thereby, at a price of $11.25 per ADS in cash. We noted in that press release that the Company has formed a special committee to evaluate and negotiate with the controlling shareholder and determine the next steps that would be in the best interests of the Company and its unaffiliated shareholders. As a result, while we appreciate there are many questions from our shareholders about this proposal, neither the Company nor its management expect to make any further announcements unless and until the Company or the special committee determine otherwise. The communications and inquiries received by the Company from shareholders are being forwarded to the special committee, which (in consultation with its legal and financial advisors) will evaluate as part of its ongoing review and evaluation process. The special committee will handle the transaction and there can be no assurance that a transaction will or will not occur and, if so, on what terms. Meanwhile, the company continues to conduct its business and operations in the ordinary course. Conference Call DoubleDown will hold a conference call today (May 12, 2026) at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow management’s presentation. To access the call, please use the following link: DoubleDown First Quarter 2026 Earnings Call. After registering, an email will be sent, including dial-in details and a unique conference call access code required to join the live call. To ensure you are connected prior to the beginning of the call, please register a minimum of 15 minutes before the start of the call. A simultaneous webcast of the conference call will be available with the following link: DoubleDown First Quarter 2026 Earnings Webcast, or via the Investor Relations page of the DoubleDown website at ir.doubledowninteractive.com. For those not planning to ask a question on the conference call, the Company recommends listening via the webcast. A replay will be available on the Company’s Investor Relations website shortly after the event. About DoubleDown Interactive DoubleDown Interactive Co., Ltd. is a leading developer and publisher of digital games on mobile and web-based platforms. We are the creators of multi-format interactive entertainment experiences for casual players, bringing authentic Vegas entertainment to players around the world through an online social casino experience. The Company’s flagship social casino title, DoubleDown Casino, has been a fan-favorite game on leading social and mobile platforms for years, entertaining millions of players worldwide with a lineup of classic and modern games. DoubleDown recently expanded its social casino platform with the acquisition of WHOW Games GmbH, a developer headquartered in Hamburg, Germany. The Company’s subsidiary, SuprNation, also operates three real-money iGaming sites in Western Europe. Safe Harbor Statement Certain statements contained in this press release are “forward-looking statements” about future events and expectations for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our beliefs, assumptions, and expectations of industry trends, our future financial and operating performance, and our growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Therefore, you should not place undue reliance on such statements. Words such as “anticipates,” believes,” “continues,” “estimates,” “expects,” “goal,” “objectives,” “intends,” “may,” “opportunity,” “plans,” potential,” “near-term,” long-term,” “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” “trends,” “should,” “could,” “would,” “will,” and similar expressions are intended to identify such forward-looking statements. We qualify any forward-looking statements entirely by these cautionary factors. We assume no obligation to update or revise any forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Use and Reconciliation of Non-IFRS Financial Measures In addition to our results determined in accordance with IFRS, we believe the following non-IFRS financial measure is useful in evaluating our operating performance. We present “adjusted earnings before interest, taxes, depreciation and amortization” (“Adjusted EBITDA”) because we believe it assists investors and analysts by facilitating comparison of period-to-period operational performance on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. The items excluded from the Adjusted EBITDA may have a material impact on our financial results. Certain of those items are non-recurring, while others are non-cash in nature. Accordingly, the Adjusted EBITDA is presented as supplemental disclosure and should not be considered in isolation of, as a substitute for, or superior to, the financial information prepared in accordance with IFRS, and should be read in conjunction with the condensed consolidated interim financial statements furnished in our report on Form 6-K filed with the SEC. In our reconciliation from our reported IFRS “profit before income tax” to our Adjusted EBITDA, we eliminate the impact of the following four line items: (i) depreciation and amortization; (ii) finance income; (iii) finance cost; and (iv) other (income) expense. The below table sets forth the full reconciliation of our non-IFRS measures: The key differences between reconciliations of Adjusted EBITDA and Adjusted EBITDA margin under IFRS and under GAAP arise from the treatment of certain adjustments, particularly in the areas of depreciation and amortization, finance income, and finance cost per the respective accounting standards. For reconciliation of Adjusted EBITDA and Adjusted EBITDA margin under IFRS, depreciation related to right-of-use assets is included within the depreciation and amortization, and as such, is added back to Adjusted EBITDA in the reconciliation. In contrast, for reconciliation of Adjusted EBITDA and Adjusted EBITDA margin under GAAP, depreciation related to right-of-use assets is classified under general and administrative expenses, and thus, is excluded from Adjusted EBITDA in the reconciliation. The designation of finance income and finance cost in reconciliation under IFRS reflects a change in the classification of non-operating (income) expense in reconciliation under GAAP. Specifically, the non-operating (income) expense accounts under GAAP have been renamed to finance income and finance cost under IFRS. We encourage investors and others to review our financial information in its entirety and not to rely on any single financial measure. Company Contact: Joe Sigrist [email protected] +1 (702) 761-6899 Chief Financial Officer https://www.doubledowninteractive.com Investor Relations Contact: Joseph Jaffoni and Christin Armacost JCIR +1 (212) 835-8500 [email protected]

This article first appeared on GuruFocus. Revenue: $94.1 million, up nearly 13% year-over-year. Adjusted EBITDA: $38.2 million, up 24% year-over-year. Net Cash Flow from Operations: $46.4 million in Q1 2026. Social Casino Revenue: $76.9 million, a 9.5% increase year-over-year. Direct-to-Consumer Revenue: 44% of total social casino revenue in Q1 2026, up from 33% in Q4 2025. iGaming Revenue: $17.2 million, a 30% increase year-over-year. Payer Conversion Rate: Increased to 9.7% in Q1 2026 from 6.9% in Q1 2025. Average Revenue Per Daily Active User (ARPDAU): $1.34, up from $1.29 in Q1 2025. Operating Expenses: $58.7 million, up from $53.9 million in Q1 2025. Sales and Marketing Expenses: $17.4 million, up from $14.1 million in Q1 2025. Profit: $35.4 million, a 48% increase year-over-year. Adjusted EBITDA Margin: 40.6% in Q1 2026, compared to 36.9% in Q1 2025. Cash, Cash Equivalents, and Short-term Investments: $533.4 million as of March 31, 2026. Warning! GuruFocus has detected 5 Warning Sign with DDI. Is DDI fairly valued? Test your thesis with our free DCF calculator. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. DoubleDown Interactive Co Ltd (NASDAQ:DDI) reported a 13% year-over-year increase in consolidated revenue for Q1 2026, reaching $94.1 million. The company's adjusted EBITDA rose by 24% year-over-year to $38.2 million, demonstrating strong profitability. Social casino revenue grew by 9.5% year-over-year to $76.9 million, driven by the acquisition of WHOW Games. The direct-to-consumer (DTC) component of DoubleDown Casino revenue exceeded 40%, contributing to 44% of total social casino revenue in Q1 2026. SuprNation's Q1 2026 revenue increased by 30% year-over-year to $17.2 million, supported by the successful launch of its first iGaming brand, Las Vegas. The global social casino market is estimated to be in secular decline, posing a challenge for sustained growth in this segment. Operating expenses increased to $58.7 million in Q1 2026 from $53.9 million in Q1 2025, primarily due to the inclusion of WHOW Games expenses. The average monthly revenue per payer decreased to $207 in Q1 2026 from $276 in the prior year period. The recently introduced higher UK gambling tax rate presents a headwind for SuprNation's profitability. Despite strong performance, the company faces challenges in maintaining growth momentum in a mature and competitive market. Q: Can you provide any details on the process and structure regarding the W expression of interest? A: Joseph Sigrist, CFO: We formed a special committee of independent directors to review and evaluate the proposal. Beyond that, we cannot comment further on the process or structure. Q: Are you seeing increased visibility into SuprNation's EBITDA contribution, and is it expected to break even this year? A: Joseph Sigrist, CFO: SuprNation had a strong quarter and reached breakeven, even turning a profit. However, the increased UK tax is a headwind. We are taking actions to mitigate expenses and remain focused on profitability. Q: Can you provide insights into the growth of direct-to-consumer (DTC) revenue for DoubleDown Casino and WHOW Games? A: Joseph Sigrist, CFO: DoubleDown Casino's DTC revenue exceeded 40% in Q1, contributing to a sequential increase from 33% to 44% in total social casino DTC revenue. It's hard to predict future growth, but progress has been significant. Q: Is the company still pursuing M&A opportunities despite the W offer? A: Joseph Sigrist, CFO: We continue to operate as usual, evaluating M&A opportunities as part of our growth strategy. The management team is actively looking for potential deals. Q: How is DoubleDown Interactive addressing the higher UK iGaming tax, and what impact has it had on user acquisition costs? A: Joseph Sigrist, CFO: We are leveraging real-time data analytics to optimize user acquisition costs and enhance retention. While CPIs have moderated, we are observing competitors and adjusting strategies to maintain profitability. Q: What is the current M&A environment like, and are there any challenges in finding suitable deals? A: Joseph Sigrist, CFO: Valuation expectations have decreased, which is favorable for buyers. We are looking for larger deals to continue our growth trajectory, but it's hard to predict when the right opportunity will arise. Q: What prompted the increased advertising investment in DoubleDown Casino, and are these trends sustainable? A: Joseph Sigrist, CFO: We saw lower CPIs and positive ROI trends, which encouraged us to increase advertising investment. While sustainability is uncertain, we continuously analyze new player cohorts to optimize spending. Q: How should we view the organic growth rate of the social casino business excluding WHOW Games? A: Joseph Sigrist, CFO: The social casino market is mature and in secular decline, but we believe we held our own in Q1. Our strategy focuses on optimizing profitability and exploring M&A opportunities for growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript.