DoubleDown Interactive Co. (DDI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue increased 12.7% year-over-year to $94.1 million, driven by growth in social casino and iGaming segments, with record results at SuprNation since its 2023 acquisition.

• Profit excluding non-controlling interest rose 48.4% to $35.4 million, with diluted EPS of $14.28 per share ($0.71 per ADS).

• Adjusted EBITDA grew 24% to $38.2 million, with margin improving to 40.6%.

• Net cash flow from operations was $46.4 million, reflecting higher operating profit and lower income taxes paid.

• Integration of acquisitions and focus on operational excellence continue to drive performance.

Financial highlights

• Social casino revenue grew 9.5% year-over-year to $76.9 million, driven by WHOW Games acquisition.

• Direct-to-Consumer revenue surged to $34.0 million, now 44.2% of total social casino revenue.

• SuprNation iGaming revenue increased 30% year-over-year to $17.2 million, aided by the Los Vegas brand launch.

• Adjusted EBITDA margin rose to 40.6% from 36.9% in Q1 2025.

• Operating expenses increased to $58.7 million, mainly due to WHOW Games integration.

Outlook and guidance

• Focus remains on optimizing DTC revenue as a percentage of social casino revenue throughout 2026.

• Continued investment in player acquisition and product development to offset secular decline in the social casino market.

• Ongoing efforts to mitigate higher U.K. gambling tax through product adjustments and reduced bonusing rates.

• Management emphasized ongoing strategic initiatives to expand and diversify across products and geographies.

• Focus on driving high conversion of revenue to cash flow and maintaining financial flexibility for future transactions.