Doubledown Interactive Co (DDI) AI Stock Analysis

• Market Cap: $429.13M
• Dividend Yield: N/A
• Average Volume (3M): 65.67K
• Price to Earnings (P/E): 4.2
• Beta (1Y): 0.56
• Revenue Growth: 1.21%
• EPS Growth: 0.72%
• Country: US
• Employees: 190
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.49
• Shares Outstanding: 49,553,440
• 10 Day Avg. Volume: 79,049
• 30 Day Avg. Volume: 65,665
• PEG Ratio: -0.24
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 3.13
• Enterprise Value/Market Cap: 0.19
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 0.32
• Enterprise Value/Ebitda: 0.55
• 1Y Price Target: $19.67
• Price Target Upside: 127.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.32
• Revenue Forecast (FY): $379.50M

• Rating: 77 Outperform
• Price Target: $10.00 ▲(15.47% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by strong financial quality (high margins, low leverage, solid free cash flow) and an attractive valuation (very low P/E). These positives are tempered by weak technical momentum (below key moving averages with negative MACD) and earnings-call risks around monetization pressure (lower ARPP) and higher costs despite otherwise solid operating performance.

Positive Factors

Conservative balance sheet / net cash

A large cash balance (~$490M) and net cash position (~$455M) provide a durable capital cushion. That liquidity supports disciplined marketing, M&A optionality, product investment or capital returns without relying on external financing, helping the company weather cyclical swings.

Strong cash generation and margins

High operating cash flow and free cash flow that closely match reported earnings indicate quality earnings and self-funded operations. Combined with strong gross (~72%) and net (~28%) margins, this underpins sustainable investment in live‑ops, product development, and shareholder optionality over the medium term.

Revenue diversification: DTC and iGaming ramp

Direct‑to‑consumer adoption (>30% of social revenue) and rapid iGaming growth (SuperNation) materially diversify revenue mix. A higher DTC share can raise margins and reduce platform dependence, while iGaming adds a growing adjacent channel to scale monetization and expand geographic exposure.

Negative Factors

Declining ARPP / per‑payer monetization

A near‑30% drop in ARPP is structurally important: lower spend per payer reduces lifetime value and increases the break‑even CAC horizon. Even with better conversion, sustainably lower ARPP can compress margins and force higher acquisition or retention spending to maintain growth.

Profitability volatility / prior sharp loss

Historic swings — including a severe 2022 loss — highlight operational and revenue sensitivity to one‑offs and cost timing. This volatility undermines predictability for reinvestment, M&A execution and capital returns, requiring higher reserves or conservative planning despite recent profits.

Elevated operating and marketing costs; mature market headwinds

Rising S&M and operating spend, combined with management comments about market maturity and regulatory/promotional pressures, suggest customer acquisition costs may remain elevated. That structural cost pressure can limit scalable growth and compress margin expansion absent efficiency gains.

Doubledown Interactive Co Business Overview & Revenue Model

Company Description

DoubleDown Interactive Co., Ltd. engages in the development and publishing of digital games on mobile and web-based platforms for casual players in South Korea. The company offers DoubleDown Casino, DoubleDown Classic, DoubleDown Fort Knox, and Undead World: Hero Survival games. Its games are primarily distributed, marketed, and promoted through third party platform providers. The company was formerly known as The8Games Co., Ltd. and changed its name to DoubleDown Interactive Co., Ltd. in December 2019. The company was incorporated in 2008 and is headquartered in Seoul, South Korea. DoubleDown Interactive Co., Ltd. operates as a subsidiary of DoubleU Games Co., Ltd.

How the Company Makes Money

Doubledown Interactive Co generates revenue primarily through in-app purchases and virtual currency sales within its games. Players can buy chips and bonuses to enhance their gaming experience, which constitutes a significant portion of the company's earnings. Additionally, DDI monetizes its user base through advertising, partnering with various advertisers to display ads within its games and leveraging user engagement metrics to drive ad revenue. The company also benefits from strategic partnerships with social media platforms, enhancing its visibility and user acquisition efforts, which in turn contributes to its overall revenue growth.

Doubledown Interactive Co Financial Statement Overview

Summary

Strong underlying quality supported by high margins, very low leverage, and solid free cash flow that broadly matches earnings (2025 FCF to net income ~1.0). The main drawback is volatility/consistency risk, with a sharp loss in 2022 and uneven cash flow timing, plus softer 2025 profitability versus 2024.

Income Statement

Profitability is strong in 2025 (annual): gross margin ~72% and net margin ~28%, with revenue up ~4% year over year. However, earnings power has been volatile: net margin fell from ~36% (2024) to ~28% (2025), and 2022 showed a sharp loss (net margin ~-73%) despite a still-healthy gross margin, indicating significant operating expense swings or one-time impacts. Overall, the business is profitable again with solid margins, but the track record shows meaningful cyclicality/volatility.

Balance Sheet

The balance sheet looks conservative, with very low leverage across years (debt-to-equity ~4–8% and ~4.5% in 2025). Equity has grown materially over time (about $700M in 2020 to about $950M in 2025), providing a strong capital cushion. Return on equity is positive in most years (about 10.8% in 2025), but it dipped sharply negative in 2022, reinforcing that profitability can swing even with low debt.

Cash Flow

Cash generation is generally healthy: 2025 operating cash flow (~$137M) and free cash flow (~$137M) closely match net income (free cash flow to net income ~1.0), suggesting good earnings quality. Cash flow has been uneven—operating cash flow was very weak in 2023 relative to profits, and free cash flow growth turned slightly negative in 2025—yet the company continues to produce substantial free cash flow in recent years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	360.13M	341.33M	308.86M	321.03M	363.20M
Gross Profit	258.51M	237.79M	209.69M	211.72M	236.59M
EBITDA	142.37M	170.01M	136.85M	-299.54M	120.54M
Net Income	102.55M	124.02M	101.04M	-233.98M	78.11M
Balance Sheet
Total Assets	1.04B	906.16M	803.34M	792.05M	969.92M
Cash, Cash Equivalents and Short-Term Investments	489.91M	414.85M	274.99M	285.24M	242.06M
Total Debt	42.90M	38.69M	46.35M	44.13M	49.94M
Total Liabilities	90.13M	64.13M	75.45M	165.83M	105.93M
Stockholders Equity	949.95M	841.91M	727.73M	626.23M	863.99M
Cash Flow
Free Cash Flow	136.65M	147.56M	23.89M	50.52M	95.84M
Operating Cash Flow	136.84M	148.45M	24.09M	50.79M	96.11M
Investing Cash Flow	-81.75M	-15.61M	-30.27M	-67.83M	-1.81M
Financing Cash Flow	-1.35M	-2.01M	-3.25M	0.00	86.04M

Doubledown Interactive Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DDI, the sentiment is Negative. The current price of 8.66 is below the 20-day moving average (MA) of 8.69, below the 50-day MA of 8.74, and below the 200-day MA of 9.28, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 47.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DDI.

Doubledown Interactive Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DDI	77 Outperform	$429.13M	4.20	11.19%	―	1.21%	0.72%
GRVY	73 Outperform	$439.45M	7.92	13.07%	―	6.55%	-10.75%
PLTK	66 Neutral	$1.15B	13.56	―	9.98%	7.49%	-60.32%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GDEV	59 Neutral	$270.50M	6.96	―	18.48%	―	―
GMGI	57 Neutral	$72.33M	-12.70	-4.94%	―	53.06%	-196.63%
MYPS	46 Neutral	$59.17M	-1.57	-14.82%	―	-17.17%	-51.88%

Doubledown Interactive Co Corporate Events

DoubleDown Interactive Posts Record Q4 and 2025 Revenue as DTC and iGaming Fuel Growth

On February 11, 2026, DoubleDown Interactive reported record unaudited results for the fourth quarter and full year ended December 31, 2025, driven by higher revenue across its portfolio and growing contributions from acquisitions. Fourth-quarter revenue rose to $95.8 million from $82.0 million a year earlier, with social casino sales up 9.3% and SuprNation iGaming revenue jumping 78.2%, while direct-to-consumer channels expanded to 33% of social casino revenue.

Full-year revenue increased to $359.9 million from $341.3 million in 2024, although profit fell to $102.5 million from $124.1 million due mainly to a non-cash goodwill impairment at SuprNation and added costs from WHOW Games. Despite lower profit margins and slightly reduced operating cash flow, DoubleDown maintained Adjusted EBITDA essentially flat at $142.3 million, ended 2025 with about $455 million in net cash, and highlighted stronger payer conversion metrics that support its strategy of diversifying revenue sources and scaling both DTC and iGaming operations.

The most recent analyst rating on (DDI) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Doubledown Interactive Co stock, see the DDI Stock Forecast page.

DoubleDown Interactive Sets February 11 Release for Q4 2025 Results and Investor Call

On January 28, 2026, DoubleDown Interactive announced that it will report its unaudited financial results for the fourth quarter ended December 31, 2025, after the market closes on Wednesday, February 11, 2026. The company will host a conference call and simultaneous webcast at 5:00 p.m. Eastern Time that day, during which management will review the quarterly performance, provide a broader business update, and take questions from participants. The call and webcast, which will also be accessible via DoubleDown’s investor relations website with a replay available afterward, underscore the company’s efforts to maintain transparency and engagement with investors and other stakeholders as it continues to build out its social casino and iGaming footprint.

The most recent analyst rating on (DDI) stock is a Buy with a $10.50 price target. To see the full list of analyst forecasts on Doubledown Interactive Co stock, see the DDI Stock Forecast page.

DoubleDown Interactive Announces Secondary Offering Pricing

On December 17, 2025, DoubleDown Interactive Co., Ltd. announced the pricing for a secondary offering of 2,330,468 American Depositary Shares (ADSs) by selling shareholder STIC Special Situation Diamond Limited at $8.00 per ADS. The offering, expected to close on December 18, 2025, will not affect DoubleDown’s outstanding shares or result in proceeds for the company, with Roth Capital Partners leading the underwriting. This move reflects potential shareholder strategies and highlights the company’s strong market positioning in providing interactive gaming experiences.

The most recent analyst rating on (DDI) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Doubledown Interactive Co stock, see the DDI Stock Forecast page.

DoubleDown Interactive Donates $10,000 to Meals on Wheels America

On November 17, 2025, DoubleDown Interactive Co., Ltd. announced a $10,000 donation to Meals on Wheels America to support its efforts in combating senior hunger and isolation across the United States. This charitable initiative is part of DoubleDown’s commitment to community support, and it includes a play-to-enter giveaway event called Reels & Wheels on November 20, 2025, encouraging player engagement and raising awareness for the cause.

The most recent analyst rating on (DDI) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Doubledown Interactive Co stock, see the DDI Stock Forecast page.