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Doubledown Interactive Co
(NASDAQ:DDI)
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Rating:85Outperform
Price Target:
$14.00
▲(22.59% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by strong financial performance (high margins, strong cash generation, very low leverage) and a highly attractive valuation (very low P/E). Offsetting factors include overbought technical readings (RSI/Stoch) and earnings-call risks around monetization per payer, rising spend, and UK tax-driven margin headwinds.
Positive Factors
High margins & cash conversion
Sustained high gross and operating margins combined with strong operating cash flow conversion provide durable internal funding for product development, live ops and selective M&A. Reliable cash generation supports reinvestment and cushions volatility, improving long-term operational resilience.
Negative Factors
Secular social casino decline
A structurally shrinking core market limits organic top-line runway and forces reliance on acquisitions, diversification or higher marketing spend to sustain growth. Over time this raises execution and integration demands and compresses the set of durable growth options.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & cash conversion
Sustained high gross and operating margins combined with strong operating cash flow conversion provide durable internal funding for product development, live ops and selective M&A. Reliable cash generation supports reinvestment and cushions volatility, improving long-term operational resilience.
Read all positive factors
Doubledown Interactive Co Key Performance Indicators (KPIs)
Doubledown Interactive Co (DDI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$573.83M
Dividend YieldN/A
Average Volume (3M)84.92K
Price to Earnings (P/E)5.0
Beta (1Y)0.53
Revenue Growth9.99%
EPS Growth-2.49%
CountryUS
Employees260
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)2.30
Shares Outstanding49,553,440
10 Day Avg. Volume69,637
30 Day Avg. Volume84,921
Financial Highlights & Ratios
PEG Ratio-0.24
Price to Book (P/B)0.45
Price to Sales (P/S)1.19
P/FCF Ratio3.13
Enterprise Value/Market Cap>-0.01
Enterprise Value/Revenue>-0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$15.50Price Target Upside35.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.49
Revenue Forecast (FY)$375.32M
Doubledown Interactive Co Business Overview & Revenue Model
Company Description
DoubleDown Interactive Co., Ltd. develops and publishes casual games and mobile applications in South Korea, the United States, the United Kingdom, Germany, and internationally. The company operates through Social Casino Games and iGaming segments...
How the Company Makes Money
DDI primarily makes money through in-game monetization in its free-to-play social casino games. Players can download and play for free using virtual chips/credits, and the company generates revenue when users purchase additional virtual currency, ...
Doubledown Interactive Co Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial start to 2026: double‑digit consolidated revenue growth (~13% YoY), strong adjusted EBITDA growth (+24% YoY), healthy cash generation ($46.4M operating cash flow) and a robust cash balance (~$500M net). Key strategic progress included a meaningful shift toward direct‑to‑consumer revenue (DTC = 44% of social casino) and strong iGaming momentum at SuprNation. Counterweights include a significant drop in average monthly revenue per payer (~25% YoY), rising operating and marketing spend from acquisitions and growth initiatives, an adverse UK gambling tax change creating near‑term margin pressure at SuprNation, and a mature/declining social casino market that limits structural top‑line growth. Management is taking mitigating actions (product adjustments, portfolio expansion, disciplined M&A) and reported early positive signs, but some risks (tax impact, sustainability of UA trends, KPI heterogeneity from acquisitions) remain unresolved.Positive Updates
Consolidated Revenue Growth
Total Q1 2026 consolidated revenue of $94.1M, up nearly 13% year‑over‑year from $83.5M in Q1 2025.
Negative Updates
Drop in Average Monthly Revenue per Payer
Average monthly revenue per payer declined to $207 in Q1 2026 from $276 in Q1 2025, a decrease of about $69 (~25% decline), highlighting monetization pressure per paying user.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Total Q1 2026 consolidated revenue of $94.1M, up nearly 13% year‑over‑year from $83.5M in Q1 2025.
Read all positive updates
Company Guidance
Management's guidance focused on continuing to grow and optimize DTC revenue and social‑casino margins while investing selectively in product development, marketing/live ops and opportunistic M&A, and mitigating headwinds (e.g., higher UK iGaming tax) through product adjustments (reduced bonusing) and portfolio expansion; they pointed to Q1 validation with consolidated revenue $94.1M (+~13% YoY), adjusted EBITDA $38.2M (+24% YoY) and a 40.6% adjusted EBITDA margin (vs 36.9% Q1'25; 42.4% Q4'25), net cash from operations $46.4M (vs $41.1M), cash + short‑term investments $533M and net cash ≈$500M (≈$10.10/ADS); segment metrics: social casino revenue $76.9M (+9.5% YoY) with DTC = 44% of social casino revenue (up from 33% in Q4'25; DoubleDown Casino DTC >40%), SuprNation revenue $17.2M (+30% YoY; +6% vs Q4'25) with early positive results from a new Las Vegas title, and KPIs showing payer conversion 9.7% (vs 6.9% Q1'25), ARPDAU $1.34 (vs $1.29), average monthly revenue per payer $207 (vs $276); operating expenses $58.7M (vs $53.9M), sales & marketing $17.4M (vs $14.1M), profit excl. NCI $35.4M (+48%) and fully diluted EPS $14.28 ($0.71/ADS) vs $9.62 ($0.48/ADS) — with the plan to continue optimizing DTC mix, lean into UA when ROI is attractive (noting moderating CPIs), and use the strong balance sheet to pursue strategic M&A.Doubledown Interactive Co Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 370.56M | 360.13M | 341.33M | 308.86M | 321.03M | 363.20M |
| Gross Profit | 268.71M | 258.51M | 237.79M | 209.69M | 211.72M | 236.59M |
| EBITDA | 161.02M | 154.17M | 170.01M | 136.85M | -299.54M | 120.54M |
| Net Income | 114.01M | 102.55M | 124.02M | 101.04M | -233.98M | 78.11M |
Balance Sheet | ||||||
| Total Assets | 1.07B | 1.04B | 906.16M | 803.34M | 792.05M | 969.92M |
| Cash, Cash Equivalents and Short-Term Investments | 533.50M | 489.91M | 414.85M | 274.99M | 285.24M | 242.06M |
| Total Debt | 38.66M | 42.90M | 38.69M | 46.35M | 44.13M | 49.94M |
| Total Liabilities | 93.91M | 90.13M | 64.13M | 75.45M | 165.83M | 105.93M |
| Stockholders Equity | 980.34M | 949.95M | 841.91M | 727.73M | 626.23M | 863.99M |
Cash Flow | ||||||
| Free Cash Flow | 141.44M | 136.65M | 147.56M | 23.89M | 50.52M | 95.84M |
| Operating Cash Flow | 141.55M | 136.84M | 148.45M | 24.09M | 50.79M | 96.11M |
| Investing Cash Flow | -72.37M | -81.75M | -15.61M | -30.27M | -67.83M | -1.81M |
| Financing Cash Flow | -1.57M | -1.35M | -2.01M | -3.25M | 0.00 | 86.04M |
Doubledown Interactive Co Technical Analysis
Positive
11.42
Price Trends
11.53
Positive
10.59
Positive
9.74
Positive
Market Momentum
0.05
Negative
62.72
Neutral
67.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DDI, the sentiment is Positive. The current price of 11.42 is below the 20-day moving average (MA) of 11.44, below the 50-day MA of 11.53, and above the 200-day MA of 9.74, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 62.72 is Neutral, neither overbought nor oversold. The STOCH value of 67.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DDI.
Doubledown Interactive Co Risk Analysis
Doubledown Interactive Co disclosed 54 risk factors in its most recent earnings report. Doubledown Interactive Co reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
There can be no assurance that the adoption of the International Financial Reporting Standards, or IFRS, will not adversely affect our reported results of operations or financial condition. Q4, 2023
2.
Failure to comply with regulatory requirements in a particular jurisdiction, or the failure to successfully obtain a license or permit applied for in a particular jurisdiction, could impact SuprNation's ability to comply with licensing and regulatory requirements in other jurisdictions, or could cause the rejection of license applications or cancellation of existing licenses in other jurisdictions, or could cause financial institutions, online and mobile platforms, advertisers and distributors to stop providing services to Supernation which it relies upon to receive payments from, or distribute amounts to, its users, or otherwise to deliver and promote our product offerings and services. Q4, 2023
Doubledown Interactive Co Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $573.83M | 5.03 | 12.16% | ― | 9.99% | -2.49% | |
76 Outperform | $430.48M | 10.03 | 9.81% | ― | 10.48% | -8.78% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $77.71M | -2.14 | -15.65% | ― | -15.86% | -16.59% | |
58 Neutral | $221.62M | 3.08 | -60.77% | ― | ― | ― | |
55 Neutral | $1.52B | -5.17 | 113.59% | 10.87% | 7.30% | -307.46% | |
54 Neutral | $41.92M | -1.54 | 171.06% | ― | -2.27% | -1455.86% |
* Communication Services Sector Average
DDI
Doubledown Interactive Co
11.67
2.31
24.68%
GRVY
Gravity Co
61.78
-2.16
-3.37%
GDEV
Nexters
12.50
-1.55
-11.03%
MYPS
PLAYSTUDIOS
0.65
-0.43
-39.81%
PLTK
Playtika Holding
4.06
-0.13
-3.03%
SNAL
Snail, Inc. Class A
4.15
-0.82
-16.57%
Doubledown Interactive Co Corporate Events
DoubleDown Interactive Sets August 11 Release for Q2 2026 Results and Investor Call
Jul 28, 2026
On July 28, 2026, DoubleDown Interactive announced plans to release its unaudited financial results for the second quarter ended June 30, 2026, after U.S. market close on August 11, 2026. The company will host a public conference call and simultan...
DoubleDown Interactive Pledges $10,000 to American Cancer Society, Plans In-Game Awareness Event
Jun 1, 2026
DoubleDown Interactive, a Nasdaq-listed digital games and social casino developer, announced on June 1, 2026 that it is donating $10,000 to the American Cancer Society to support health screenings and healthy lifestyle awareness during National Ca...
DoubleDown Interactive Posts Strong Q1 2026 Results as Special Committee Weighs Takeover Proposal
May 12, 2026
DoubleDown Interactive reported unaudited first-quarter 2026 results on May 12, 2026, posting revenue of $94.1 million, up 12.7% year on year, and profit attributable to shareholders of $35.4 million, a 48.4% increase. Growth was driven by higher ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.