Revenue growth has reaccelerated to 11.2% YoY in 2026Q2, while gross margins have expanded structurally to 75.5%, though operating leverage is deteriorating as SG&A growth of 20.8% YoY outpaces revenue.
DoubleDown Interactive Co., Ltd. (DDI) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 380.04M | 360.13M | 341.33M | 308.86M | 321.03M | 363.2M | 358.34M | 273.61M | 266.88M |
| Revenue Growth % | 14.04% | 5.51% | 10.51% | -3.79% | -11.61% | 1.36% | 30.97% | 2.52% | - |
| Cost of Goods Sold | 101.23M | 101.62M | 103.54M | 99.17M | 109.31M | 126.61M | 126.25M | 99.62M | 104.05M |
| COGS % of Revenue | - | 28.22% | 30.33% | 32.11% | 34.05% | 34.86% | 35.23% | 36.41% | 38.99% |
| Gross Profit | 278.81M | 258.51M | 237.79M | 209.69M | 211.72M | 236.59M | 232.09M | 173.99M | 162.83M |
| Gross Margin % | 73.36% | 71.78% | 69.67% | 67.89% | 65.95% | 65.14% | 64.77% | 63.59% | 61.01% |
| Gross Profit Growth % | - | 8.72% | 13.4% | -0.96% | -10.51% | 1.94% | 33.39% | 6.85% | - |
| Operating Expenses | 133.87M | 123.55M | 100.77M | 91.09M | 525.6M | 137.86M | 143.3M | 105.69M | 107.89M |
| OpEx % of Revenue | - | 34.31% | 29.52% | 29.49% | 163.72% | 37.96% | 39.99% | 38.63% | 40.43% |
| Selling, General & Admin | 120.05M | 111.59M | 87.21M | 69.89M | 91.97M | 97.95M | 92.95M | 53.02M | 57.73M |
| SG&A % of Revenue | - | 30.98% | 25.55% | 22.63% | 28.65% | 26.97% | 25.94% | 19.38% | 21.63% |
| Research & Development | 13.8M | 11.96M | 13.89M | 21.17M | 18.18M | 18.49M | 18.78M | 19.25M | 20.06M |
| R&D % of Revenue | - | 3.32% | 4.07% | 6.85% | 5.66% | 5.09% | 5.24% | 7.03% | 7.52% |
| Other Operating Expenses | 18K | 0 | -327K | 34K | 415.44M | 21.42M | 31.57M | 33.42M | -183K |
| Operating Income | 144.94M | 134.97M | 137.01M | 118.6M | -313.87M | 98.73M | 88.78M | 68.3M | 54.94M |
| Operating Margin % | 38.14% | 37.48% | 40.14% | 38.4% | -97.77% | 27.18% | 24.78% | 24.96% | 20.59% |
| Operating Income Growth % | - | -1.5% | 15.53% | 137.79% | -417.9% | 11.21% | 29.99% | 24.3% | - |
| EBITDA | 151.78M | 142.37M | 142.2M | 122.07M | -310.07M | 116.65M | 120.36M | 101.72M | 85.04M |
| EBITDA Margin % | 39.94% | 39.53% | 41.66% | 39.52% | -96.59% | 32.12% | 33.59% | 37.18% | 31.87% |
| EBITDA Growth % | 9.9% | 0.12% | 16.5% | 139.37% | -365.81% | -3.08% | 18.32% | 19.61% | - |
| D&A (Non-Cash Add-back) | 6.84M | 7.4M | 5.19M | 3.47M | 3.8M | 17.92M | 31.57M | 33.42M | 30.1M |
| EBIT | 153.35M | 146.77M | 164.93M | 133.38M | -303.34M | 102.63M | 86M | 68.3M | 64.65M |
| Net Interest Income | 23.96M | 12.87M | 13.61M | 11.88M | 3.16M | -1.8M | -10.59M | -26.04M | -30.12M |
| Interest Income | 27.31M | 19.74M | 15.66M | 13.66M | 4.99M | 208K | 197K | 524K | 272K |
| Interest Expense | 3.34M | 6.87M | 2.05M | 1.8M | 1.83M | 2.01M | 10.79M | 26.57M | 30.39M |
| Other Income/Expense | 18.27M | 4.93M | 25.86M | 12.75M | 8.71M | 1.88M | -13.57M | -18.43M | -20.69M |
| Pretax Income | 163.21M | 139.9M | 162.88M | 131.35M | -305.17M | 100.61M | 75.22M | 49.87M | 34.26M |
| Pretax Margin % | 42.95% | 38.85% | 47.72% | 42.53% | -95.06% | 27.7% | 20.99% | 18.23% | 12.84% |
| Income Tax | 38.1M | 37.19M | 38.53M | 30.27M | -71.19M | 22.51M | 21.59M | 13.54M | 9.21M |
| Effective Tax Rate % | 23.34% | 26.58% | 23.65% | 23.04% | 23.33% | 22.37% | 28.71% | 27.16% | 26.87% |
| Net Income | 125.04M | 102.55M | 124.02M | 101.04M | -233.98M | 78.11M | 53.62M | 36.33M | 25.05M |
| Net Margin % | 32.9% | 28.48% | 36.33% | 32.71% | -72.88% | 21.51% | 14.96% | 13.28% | 9.39% |
| Net Income Growth % | 17.58% | -17.31% | 22.74% | 143.18% | -399.56% | 45.66% | 47.62% | 45% | - |
| Net Income (Continuing) | 125.11M | 102.71M | 124.35M | 101.08M | -233.98M | 78.11M | 53.62M | 36.33M | 25.05M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 207K | 187.95K | 118K | 157K | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.52 | 2.07 | 2.50 | 2.03 | -4.72 | 1.70 | 1.21 | 0.73 | 0.51 |
| EPS Growth % | 16.67% | -17.2% | 23.15% | 143.01% | -377.65% | 40.5% | 65.75% | 43.14% | - |
| EPS (Basic) | - | 2.07 | 2.50 | 2.03 | -4.72 | 1.70 | 1.21 | 0.73 | 0.51 |
| Diluted Shares Outstanding | 49.55M | 49.55M | 49.56M | 49.56M | 49.56M | 46.06M | 44.3M | 49.56M | 49.56M |
| Basic Shares Outstanding | 49.55M | 49.55M | 49.56M | 49.56M | 49.56M | 46.06M | 44.3M | 49.56M | 49.56M |
| Dividend Payout Ratio | - | 0.08% | 0.25% | - | - | - | - | - | - |
Quick answers to the most common questions about buying DDI stock.
For fiscal year 2025, DoubleDown Interactive Co., Ltd. (DDI) reported total revenue of $360.1M. This represents a 34.9% increase compared to $266.9M in 2018.
DoubleDown Interactive Co., Ltd. (DDI) is profitable, generating $102.6M in net income for the fiscal year ending 2025 with a net profit margin of 28.5%.
DoubleDown Interactive Co., Ltd. (DDI) reported an operating income of $135.0M, resulting in an operating profit margin of 37.5%. This margin reflects the operational efficiency of the business before interest and taxes.
DoubleDown Interactive Co., Ltd. (DDI) generated $258.5M in gross profit for the year, representing a gross profit margin of 71.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression from rising SG&A
Revenue Growth Reaccelerates
DoubleDown's revenue growth has reaccelerated, with the most recent quarter showing an 11.2% year-over-year increase, a significant improvement from the negative growth seen in early 2025. This suggests a successful stabilization of the core business after a period of contraction.
The company's revenue trajectory shows a clear inflection from contraction in Q1 and Q2 of 2025 to consistent double-digit growth in the subsequent quarters. This reacceleration appears to be driven by a recovery in player engagement or monetization, as the growth is occurring alongside improving gross margins. The durability of this trend will be key, as the company is now growing off a higher base compared to the prior year's trough.
Structural Gross Margin Expansion
Gross margins have expanded significantly, reaching 75.5% in the latest quarter, up from a low of 68.9% in 2024Q1. This consistent improvement suggests enhanced pricing power or a more favorable product mix, positioning the company well above peers like PLAYSTUDIOS.
The gross margin expansion is a standout feature of the income statement, indicating a structural shift in the business's profitability profile. This trend implies that DoubleDown has successfully optimized its cost of revenue or shifted towards higher-margin offerings. The margin level is now substantially higher than the peer average, which may indicate a competitive advantage in monetization efficiency within the social casino segment.
SG&A Growth Outpaces Revenue
Operating leverage has deteriorated recently, as SG&A expenses grew 20.8% year-over-year in 2026Q2, significantly outpacing the 11.2% revenue growth. This suggests that the company's operational efficiency is declining, potentially due to increased marketing or administrative investments.
While gross profit is scaling with revenue, the operating margin has compressed from 42.1% in 2024Q4 to 38.7% in the latest quarter. This indicates that overhead costs, particularly SG&A, are growing faster than the top line. Investors should monitor whether this is a temporary investment to drive growth or a sign of diminishing returns on sales and marketing spend, as it directly impacts the conversion of revenue to operating income.
Net Income Volatility from Non-Operating Items
Reported net income exhibits significant volatility, with EPS swinging from $0.73 in 2024Q4 to $0.49 in 2025Q4 despite stable operating performance. This suggests that non-operating items, likely related to taxes or foreign exchange, are materially impacting the quality of reported earnings.
The disconnect between relatively stable operating income and volatile net income points to the influence of non-core factors. For instance, the sharp EPS decline in 2025Q4 occurred even as operating income grew, implying a significant non-operating charge or tax event. This volatility makes it challenging to assess underlying business performance based solely on the bottom line and warrants a closer look at the company's tax strategy and balance sheet for potential off-balance-sheet exposures.
Sustainability of Growth and Margin
The strongest challenge to the narrative is whether the recent revenue reacceleration and gross margin expansion are sustainable, given the concurrent rise in SG&A and the company's history of volatile earnings. The growth may be fueled by unsustainable promotional spending.
A critical view would focus on the rising SG&A as a potential red flag, questioning if the top-line growth is being bought through increased player acquisition costs that will eventually erode margins. Furthermore, the company's net income volatility, despite strong operational metrics, suggests underlying complexities in its financial structure that could mask risks. The peer context, showing competitors with negative margins, highlights DDI's strength but also raises the question of whether its current profitability levels are an anomaly in a challenging industry.