Doubledown Interactive Co (DDI)
NASDAQ:DDI
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Doubledown Interactive Co
(NASDAQ:DDI)
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Rating:77Outperform
Price Target:
$10.00
▲(16.14% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Doubledown Interactive Co (DDI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$426.66M
Dividend YieldN/A
Average Volume (3M)46.41K
Price to Earnings (P/E)4.2
Beta (1Y)0.60
Revenue Growth1.21%
EPS Growth0.72%
CountryUS
Employees190
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.49
Shares Outstanding49,553,440
10 Day Avg. Volume38,846
30 Day Avg. Volume46,412
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 Cap0.19
Enterprise Value/Revenue0.22
Enterprise Value/Gross Profit0.31
Enterprise Value/Ebitda0.54
Forecast
1Y Price Target
$19.67Price Target Upside128.46% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)2.32
Revenue Forecast (FY)$379.50M
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 Un...
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 compan...
Doubledown Interactive Co Key Performance Indicators (KPIs)
Doubledown Interactive Co Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call presented a largely positive financial and operational picture driven by healthy revenue growth (+17% consolidated), strong adjusted EBITDA (+16%) and significant cash generation ($136.8M FY operating cash flow) alongside successful integration of Wow Games and rapid iGaming expansion (+78% SuperNation). Offsetting items included a non-cash goodwill impairment (SuperNation), a meaningful drop in average revenue per payer (~29.8%), higher operating and marketing costs, and market maturity/legislative pressures that keep customer acquisition costs elevated. Management emphasized disciplined marketing, DTC momentum (DTC >30% of social revenue), and AI-enabled efficiencies while retaining a strong balance sheet and a focus on M&A and shareholder value decisions.Positive Updates
Overall Revenue and EBITDA Growth
Consolidated revenue of $95.8M, up 17% year-over-year; adjusted EBITDA of ~$40.6M, up ~16% year-over-year, with an adjusted EBITDA margin of 42.3% (vs. 42.8% prior-year quarter).
Negative Updates
Goodwill Impairment on SuperNation Reduces Reported Profit
The company recognized a goodwill impairment related to SuperNation (approx. $8.0M disclosed by management during Q&A), which is non-cash but contributed to profit excluding noncontrolling falling 31% to $24.7M and materially reduced reported EPS versus the prior year.
Read all updates
Q4-2025 Updates
Positive
Negative
Overall Revenue and EBITDA Growth
Consolidated revenue of $95.8M, up 17% year-over-year; adjusted EBITDA of ~$40.6M, up ~16% year-over-year, with an adjusted EBITDA margin of 42.3% (vs. 42.8% prior-year quarter).
Read all positive updates
Company Guidance
Management's guidance for 2026 emphasized continuing to ramp direct‑to‑consumer (DTC) revenue as a share of social casino sales (DTC already exceeded 30% of social external revenue in Q4) while maintaining disciplined, ROI‑driven marketing for SuperNation and making targeted product, live‑ops and marketing investments (e.g., new meta features such as The Supreme Show) to expand margins and sustain cash generation; this comes off a Q4/ FY2025 baseline of consolidated revenue $95.8M (+17% YoY), adjusted EBITDA ~$40.6M (+16% YoY; adjusted EBITDA for 2025 ~$40.5M vs $35.3M in 2024) and adjusted EBITDA margin 42.3% (vs 42.8% a year ago), Q4 social casino revenue $79.7M (+9% YoY) and SuperNation Q4 revenue $16.1M (+78% YoY), Q4 payer conversion 9.6% (up from 6.9%), ARPDAU $1.35 (vs $1.30), monthly revenue per payer $198 (vs $282 prior year), Q4 net cash from operations $42.6M and FY operating cash flow $136.8M, and a cash/short‑term investments balance of $490M (net cash ~$455M, ≈$9.19 per ADS); management also reiterated M&A optionality and continued evaluation of capital‑return alternatives but gave no specific buyback/dividend targets.Doubledown Interactive Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
81
Very Positive
| 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
Negative
8.61
Price Trends
8.75
Negative
8.84
Negative
9.10
Negative
Market Momentum
<0.01
Negative
46.29
Neutral
59.64
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 8.61 is below the 20-day moving average (MA) of 8.65, below the 50-day MA of 8.75, and below the 200-day MA of 9.10, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 46.29 is Neutral, neither overbought nor oversold. The STOCH value of 59.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $426.66M | 4.17 | 11.28% | ― | 1.21% | 0.72% | |
76 Outperform | $421.03M | 8.47 | 11.19% | ― | 6.55% | -10.75% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | $249.02M | 3.94 | -62.85% | 18.48% | ― | ― | |
50 Neutral | $1.19B | -7.20 | 119.44% | 9.98% | 7.49% | -60.32% | |
49 Neutral | $56.46M | -2.86 | -15.36% | ― | -17.17% | -51.88% |
* Communication Services Sector Average
DDI
Doubledown Interactive Co
8.61
-1.19
-12.14%
GRVY
Gravity Co
60.59
-0.18
-0.30%
GDEV
Nexters
13.72
3.27
31.28%
MYPS
PLAYSTUDIOS
0.44
-0.90
-67.16%
PLTK
Playtika Holding
3.13
-1.47
-32.02%
Doubledown Interactive Co Corporate Events
DoubleDown Interactive Posts Record Q4 and 2025 Revenue as DTC and iGaming Fuel Growth
Feb 11, 2026
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 ...
DoubleDown Interactive Sets February 11 Release for Q4 2025 Results and Investor Call
Jan 28, 2026
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 c...
DoubleDown Interactive Announces Secondary Offering Pricing
Dec 17, 2025
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, expe...
DoubleDown Interactive Donates $10,000 to Meals on Wheels America
Nov 17, 2025
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 DoubleDo...
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.