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Doubledown Interactive Co
(NASDAQ:DDI)
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Rating:85Outperform
Price Target:
$15.00
▲(31.35% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by strong financial performance (high margins, excellent free cash flow conversion, and very low leverage) and supportive valuation (low P/E). Technicals are positive with price above key moving averages, though momentum indicators suggest it’s nearing overbought. The earnings call was broadly positive on growth, margins, cash generation, and DTC expansion, tempered by weaker revenue-per-payer trends, acquisition-related cost pressure, market headwinds, and strategic uncertainty.
Positive Factors
Profitable Revenue Growth
Double-digit growth alongside expanding EBITDA margins shows effective operating leverage in the combined gaming portfolio. If sustained through integration and live-operations execution, this supports durable earnings growth rather than growth dependent only on higher spending.
Negative Factors
Lower Revenue per Payer
The sharp decline in payer spend indicates that higher conversion is not fully translating into stronger user value. If the acquired user mix continues to carry lower monetization, revenue growth may require more payers and greater marketing or retention investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitable Revenue Growth
Double-digit growth alongside expanding EBITDA margins shows effective operating leverage in the combined gaming portfolio. If sustained through integration and live-operations execution, this supports durable earnings growth rather than growth dependent only on higher spending.
Read all positive factors
Doubledown Interactive Co Key Performance Indicators (KPIs)
Any
Monthly Active Users
Counts the distinct users who interact with the product in a month, indicating the overall size and reach of the player base. MAU trends reveal whether Doubledown is growing its audience, maintaining long‑term interest, or losing relevance. Comparing MAU to DAU helps assess engagement depth and potential for recurring revenue.
Counts the distinct users who interact with the product in a month, indicating the overall size and reach of the player base. MAU trends reveal whether Doubledown is growing its audience, maintaining long‑term interest, or losing relevance. Comparing MAU to DAU helps assess engagement depth and potential for recurring revenue.
Data provided by:
The Fly
The FlyDoubledown Interactive Co (DDI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$633.79M
Dividend YieldN/A
Average Volume (3M)84.92K
Price to Earnings (P/E)5.1
Beta (1Y)0.46
Revenue Growth13.89%
EPS Growth18.17%
CountryUS
Employees260
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)2.52
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:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive performance: double‑digit revenue growth, margin expansion, strong cash generation, a dramatic shift to direct‑to‑consumer monetization (52% of social casino revenue), and successful mitigation of UK tax impacts in iGaming. Offsetting factors include a meaningful decline in average revenue per payer (driven in part by acquired WHOW Games), higher operating expenses from acquisitions, and an industry forecast of market contraction. Management emphasized disciplined marketing, continued integration of acquisitions, and financial flexibility to pursue M&A, leaving the overall tone constructive.Positive Updates
Revenue Growth and Stability
Consolidated revenue of $94.3M in Q2 2026, up ~11% year‑over‑year (from $84.8M in Q2 2025) and essentially flat sequentially versus Q1 2026 ($94.1M), signaling top‑line stability.
Negative Updates
Decline in Average Monthly Revenue per Payer
Average monthly revenue per payer declined to $218 in Q2 2026 from $286 in Q2 2025, a drop of ~23.8% YoY, reflecting differing KPI profiles from the acquired WHOW Games (higher conversion but lower revenue per payer).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Stability
Consolidated revenue of $94.3M in Q2 2026, up ~11% year‑over‑year (from $84.8M in Q2 2025) and essentially flat sequentially versus Q1 2026 ($94.1M), signaling top‑line stability.
Read all positive updates
Company Guidance
Management's guidance emphasized outperforming the market despite Eilers' forecast of a >5% decline in global social casino revenue in 2026, continued expansion of direct‑to‑consumer (DTC) revenue (DTC was 52% of social casino revenue in Q2 vs. 15% in Q2 2025 and 44% in Q1 2026) via owned channels, CRM and payment infrastructure, a disciplined, high‑ROI investment posture (including M&A as a priority), and maintaining the current marketing run‑rate for the rest of the year while balancing revenue and profit in iGaming after mitigating the UK tax increase; this guidance sits alongside Q2 results of $94.3M consolidated revenue (+~11% YoY), social casino $77.3M (+11.5%), iGaming $17M (+10%), adjusted EBITDA $39.3M (+17%) and a 41.6% margin, Q2 net cash from operations $24.6M (+25% YoY) and H1 net cash from operations $71M, cash & short‑term investments $554M (net cash ~$521M, ~$10.52/ADS), payer conversion 9.4% (vs. 7.0), ARPDAU $1.42, monthly revenue per payer $218 (vs. $286 prior year), operating expenses $57.8M, S&M $13.9M, and profit excluding noncontrolling interest $32.9M (+50%; EPS $13.27 / $0.66 per ADS).Doubledown Interactive Co Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 380.04M | 360.13M | 341.33M | 308.86M | 321.03M | 363.20M |
| Gross Profit | 278.81M | 258.51M | 237.79M | 209.69M | 211.72M | 236.59M |
| EBITDA | 160.19M | 154.17M | 170.01M | 136.85M | -299.54M | 120.54M |
| Net Income | 125.04M | 102.55M | 124.02M | 101.04M | -233.98M | 78.11M |
Balance Sheet | ||||||
| Total Assets | 1.10B | 1.04B | 906.16M | 803.34M | 792.05M | 969.92M |
| Cash, Cash Equivalents and Short-Term Investments | 553.76M | 489.91M | 414.85M | 274.99M | 285.24M | 242.06M |
| Total Debt | 37.45M | 42.90M | 38.69M | 46.35M | 44.13M | 49.94M |
| Total Liabilities | 91.13M | 90.13M | 64.13M | 75.45M | 165.83M | 105.93M |
| Stockholders Equity | 1.01B | 949.95M | 841.91M | 727.73M | 626.23M | 863.99M |
Cash Flow | ||||||
| Free Cash Flow | 146.33M | 136.65M | 147.56M | 23.89M | 50.52M | 95.84M |
| Operating Cash Flow | 146.51M | 136.84M | 148.45M | 24.09M | 50.79M | 96.11M |
| Investing Cash Flow | -62.62M | -81.75M | -15.61M | -30.27M | -67.83M | -1.81M |
| Financing Cash Flow | -1.79M | -1.35M | -2.01M | -3.25M | 0.00 | 86.04M |
Doubledown Interactive Co Technical Analysis
Positive
11.42
Price Trends
11.76
Positive
11.20
Positive
10.02
Positive
Market Momentum
0.34
Negative
65.42
Neutral
61.19
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 12.26, below the 50-day MA of 11.76, and above the 200-day MA of 10.02, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 65.42 is Neutral, neither overbought nor oversold. The STOCH value of 61.19 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 | $633.79M | 5.07 | 12.93% | ― | 13.89% | 18.17% | |
77 Outperform | $502.34M | 11.66 | 9.31% | ― | -1.77% | 2.50% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $196.03M | 2.56 | -60.77% | ― | ― | ― | |
49 Neutral | $60.30M | -1.38 | -20.93% | ― | -13.26% | -46.97% | |
49 Neutral | $923.03M | -3.32 | 82.92% | 10.87% | 5.84% | -421.33% | |
44 Neutral | $26.42M | -2.37 | <0.01% | ― | -5.65% | 46.36% |
* Communication Services Sector Average
DDI
Doubledown Interactive Co
12.80
3.32
35.02%
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13.48%
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2.45
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2.99
-1.56
-34.34%
Doubledown Interactive Co Corporate Events
DoubleDown Interactive Delivers Strong Q2 2026 Results as DTC Surges and Buyout Review Continues
Aug 11, 2026
On August 11, 2026, DoubleDown reported unaudited results for the quarter ended June 30, 2026, with revenue up 11.2% year over year to $94.3 million and profit rising 50.5% to $32.9 million. Growth was driven by social casino and free‑toR...
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...
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.