Doubledown Interactive Co (DDI) AI Stock Analysis

• Market Cap: $456.88M
• Dividend Yield: N/A
• Average Volume (3M): 46.79K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.42
• 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: 50,741
• 30 Day Avg. Volume: 46,790
• 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: 0.14
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 0.26
• Enterprise Value/Ebitda: 0.40
• 1Y Price Target: $19.67
• Price Target Upside: 113.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.14
• Revenue Forecast (FY): $362.75M

• Rating: 80 Outperform
• Price Target: $10.00 ▲(8.46% Upside)

Doubledown Interactive Co's overall stock score is driven by strong financial performance and attractive valuation. The company's robust profitability and cash flow management are significant strengths. Despite technical indicators suggesting a bearish trend, the low P/E ratio indicates potential undervaluation. The earnings call provided positive insights into revenue growth, though rising expenses and a decreased EBITDA margin are concerns.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and successful product offerings, supporting long-term business expansion.

Cash Flow Management

Strong cash flow management enhances financial flexibility, enabling strategic investments and resilience against market fluctuations.

iGaming Expansion

Significant growth in iGaming reflects successful strategic expansion, positioning the company well in a rapidly growing market segment.

Negative Factors

Increased Operating Expenses

Rising operating expenses can pressure margins, potentially impacting profitability if revenue growth does not outpace cost increases.

Decreased EBITDA Margin

A declining EBITDA margin suggests reduced efficiency in converting revenue into profit, which could hinder future profitability.

Asset Decrease

A decrease in total assets may indicate challenges in asset management or investment, potentially affecting long-term growth capacity.

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

Doubledown Interactive Co demonstrates strong financial performance with robust profitability, low leverage, and impressive cash flow management. The company has a high gross profit margin and a significant increase in free cash flow. However, past revenue fluctuations and a decrease in total assets present potential risks.

Income Statement

Doubledown Interactive Co shows strong profitability with a consistent increase in net income and EBIT margins over recent years. The 2024 figures highlight a gross profit margin of 69.7% and a net profit margin of 36.3%, both indicating robust profitability. The revenue growth rate from 2023 to 2024 was 10.5%, showcasing a healthy upward trend. However, past fluctuations in revenue and profit margins indicate some degree of volatility.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.05 in 2024, reflecting conservative leverage. The equity ratio stands strong at 92.9%, indicating a high level of financial stability. However, the company has shown a decrease in total assets over time, which could signal potential risks if this trend continues.

Cash Flow

The cash flow statement reveals impressive improvements, with a remarkable free cash flow growth rate of 416.9% from 2023 to 2024. The operating cash flow to net income ratio of 1.20 suggests efficient cash generation from operations. Free cash flow consistently exceeds net income, highlighting strong cash flow management. These factors contribute to a robust cash position, enhancing financial flexibility.

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: 9.22
• 50DMA: Positive
• 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 9.22 is above the 20-day moving average (MA) of 9.08, above the 50-day MA of 9.05, and below the 200-day MA of 9.56, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 61.30 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	80 Outperform	$456.88M	4.00	12.55%	―	1.21%	0.72%
GRVY	73 Outperform	$399.08M	7.19	13.06%	―	6.55%	-10.75%
PLTK	64 Neutral	$1.56B	17.99	―	9.57%	7.49%	-60.32%
GDEV	63 Neutral	$404.48M	10.40	―	13.40%	―	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GMGI	56 Neutral	$116.34M	―	-4.94%	―	53.06%	-196.63%
MYPS	44 Neutral	$80.34M	―	-14.82%	―	-17.17%	-51.88%

Doubledown Interactive Co Corporate Events

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.

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.

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.