Doubledown Interactive Co (DDI) AI Stock Analysis

• Market Cap: $419.22M
• Dividend Yield: N/A
• Average Volume (3M): 61.69K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.50
• Revenue Growth: 1.21%
• EPS Growth: 0.72%
• Country: US
• Employees: 190
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.66
• Shares Outstanding: 49,553,440
• 10 Day Avg. Volume: 47,256
• 30 Day Avg. Volume: 61,694
• PEG Ratio: 0.18
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 1.52
• P/FCF Ratio: 3.51
• Enterprise Value/Market Cap: 0.27
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 0.45
• Enterprise Value/Ebitda: 0.69
• 1Y Price Target: $19.67
• Price Target Upside: 132.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $10.50 ▲(24.11% Upside)

DDI scores well on financial performance (high margins, low leverage, strong cash conversion) and looks very inexpensive on P/E, which are the biggest positives. The earnings call supports continued growth (especially iGaming) but rising expenses and margin pressure are key risks. Technicals are mixed, with neutral momentum and a weaker long-term trend versus the 200-day average.

Positive Factors

High profitability margins

Sustained high gross and net margins reflect durable monetization power in social casino games and efficient cost structure. High margins provide room to fund marketing, product development, and M&A while absorbing cyclical revenue dips without immediate solvency stress.

Strong cash generation and conversion

Very high earnings-to-cash conversion indicates quality, repeatable cash generation from core operations. This underpins strategic optionality—funding product launches, player acquisition, or bolt-on deals—while reducing reliance on external financing across business cycles.

Large cash position providing liquidity

A substantial cash reserve offers near-term flexibility to invest in iGaming growth, weather marketing intensity, and pursue acquisitions without materially increasing leverage, supporting long-term strategic initiatives and risk mitigation in a competitive mobile gaming market.

Negative Factors

Rising operating expenses and margin pressure

Material expense increases—driven by acquisitions and iGaming investment—compress adjusted EBITDA margins. If elevated marketing, integration, or content costs persist, sustained margin erosion could reduce free cash flow and limit reinvestment or M&A capacity over the medium term.

Historical earnings and cash-flow volatility

A history of sharp swings undermines predictability of profits and cash generation, complicating budgeting and capital allocation. Reliance on hit-driven engagement means outcomes can vary materially, raising forecasting risk for investors and management over multi-quarter horizons.

Revenue concentration on in-app purchases and ads

Heavy dependence on discretionary in-app spend and ad demand makes revenue sensitive to player engagement, platform policy shifts, and macro consumer trends. This concentration elevates structural risk compared with more diversified digital entertainment business models.

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 fundamentals supported by high profitability (TTM gross margin ~71%, net margin ~32%), very conservative leverage (TTM debt-to-equity ~0.05), and strong cash conversion (FCF ~97% of net income). Offsetting factors are historical volatility (notably 2022 loss and weaker 2023 operating cash flow) and some margin softening versus 2024.

Income Statement

Profitability is a key strength: TTM (Trailing-Twelve-Months) gross margin is ~71% and net margin is ~32%, supported by strong operating profitability. Revenue is stable with modest growth (TTM ~3.9% vs. 2024 ~0.1%), and results recovered meaningfully from the large loss in 2022 (net margin ~-73%). Main watch-outs are the prior earnings volatility (2022) and some margin compression versus 2024 (net margin ~36% in 2024 down to ~32% TTM).

Balance Sheet

The balance sheet is very conservative: debt is low relative to equity (TTM debt-to-equity ~0.05), and equity has grown versus prior years, providing a solid capital base. Returns on equity are healthy (TTM ~12%), though below 2024 (~15%) and the business has shown that profitability can swing sharply in down periods (negative return on equity in 2022). Overall leverage risk appears limited.

Cash Flow

Cash generation is strong and high quality: TTM operating cash flow (~$141M) and free cash flow (~$141M) closely track net income (free cash flow is ~97% of net income), indicating good earnings conversion. Free cash flow growth is positive in TTM (~1.1%) and was strong in 2024, but the company has shown past volatility (notably weak operating cash flow in 2023 versus later years). Coverage of operating cash flow relative to operating profit remains solid in TTM (~2.1x), though lower than 2024.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	346.12M	341.33M	308.86M	321.03M	363.20M	358.34M
Gross Profit	245.83M	237.79M	209.69M	211.72M	236.59M	232.09M
EBITDA	161.61M	170.01M	136.85M	-299.54M	120.54M	117.58M
Net Income	114.05M	124.02M	101.04M	-233.98M	78.11M	53.62M
Balance Sheet
Total Assets	1.02B	906.16M	803.34M	792.05M	969.92M	806.83M
Cash, Cash Equivalents and Short-Term Investments	439.19M	414.85M	274.99M	285.24M	242.06M	63.19M
Total Debt	40.88M	38.69M	46.35M	44.13M	49.94M	56.82M
Total Liabilities	91.16M	64.13M	75.45M	165.83M	105.93M	107.32M
Stockholders Equity	925.67M	841.91M	727.73M	626.23M	863.99M	699.51M
Cash Flow
Free Cash Flow	140.69M	147.56M	23.89M	50.52M	95.84M	99.63M
Operating Cash Flow	141.46M	148.45M	24.09M	50.79M	96.11M	99.85M
Investing Cash Flow	-80.15M	-15.61M	-30.27M	-67.83M	-1.81M	-2.17M
Financing Cash Flow	-2.54M	-2.01M	-3.25M	0.00	86.04M	-76.27M

Doubledown Interactive Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 8.46 is below the 20-day moving average (MA) of 8.87, below the 50-day MA of 8.91, and below the 200-day MA of 9.37, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 38.75 is Neutral, neither overbought nor oversold. The STOCH value of 32.16 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	79 Outperform	$419.22M	3.67	12.55%	―	1.21%	0.72%
GRVY	73 Outperform	$483.23M	8.70	13.07%	―	6.55%	-10.75%
GDEV	69 Neutral	$305.04M	7.85	―	18.48%	―	―
PLTK	66 Neutral	$1.36B	15.66	―	9.98%	7.49%	-60.32%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GMGI	57 Neutral	$102.92M	-18.06	-4.94%	―	53.06%	-196.63%
MYPS	46 Neutral	$80.01M	-2.12	-14.82%	―	-17.17%	-51.88%

Doubledown Interactive Co Corporate Events

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.

DoubleDown Interactive Reports Strong Q3 2025 Financial Results

On November 10, 2025, DoubleDown Interactive Co., Ltd. announced its unaudited financial results for the third quarter ending September 30, 2025. The company reported a 15.5% increase in revenue to $95.8 million compared to the same period in 2024, driven by growth in its social casino/free-to-play games and a significant revenue rise from its iGaming subsidiary, SuprNation. Profit for the period rose by 30.8% to $32.7 million, attributed to higher revenue and lower unrealized foreign currency losses, despite increased operating expenses. The acquisition of WHOW Games contributed to the revenue growth, and the company ended the quarter with a strong cash position of approximately $404 million, providing flexibility for future growth initiatives.

The most recent analyst rating on (DDI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Doubledown Interactive Co stock, see the DDI Stock Forecast page.

DoubleDown Interactive to Announce Q3 2025 Financial Results on November 10

On October 27, 2025, DoubleDown Interactive announced it will release its unaudited financial results for the third quarter of 2025 on November 10, 2025. The company will also hold a conference call and webcast to discuss these results and provide a business update. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (DDI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Doubledown Interactive Co stock, see the DDI Stock Forecast page.