Revenue growth remains volatile with a 12.5% increase in 2026Q1, while structural gross margins have consistently stayed above 68% despite platform fee pressures.
| Sales/Revenue | 370.56M | 360.13M | 341.33M | 308.86M | 321.03M | 363.2M | 358.34M | 273.61M | 266.88M |
| Revenue Growth % | 10.06% | 5.51% | 10.51% | -3.79% | -11.61% | 1.36% | 30.97% | 2.52% | - |
| Cost of Goods Sold | 101.85M | 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 | 268.71M | 258.51M | 237.79M | 209.69M | 211.72M | 236.59M | 232.09M | 173.99M | 162.83M |
| Gross Margin % | 72.51% | 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 | 127.86M | 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 | 114.77M | 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 | 13.18M | 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 | -81K | 0 | -327K | 34K | 415.44M | 21.42M | 31.57M | 33.42M | -183K |
| Operating Income | 140.85M | 134.97M | 137.01M | 118.6M | -313.87M | 98.73M | 88.78M | 68.3M | 54.94M |
| Operating Margin % | 38.01% | 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 | 148.87M | 142.37M | 142.2M | 122.07M | -310.07M | 116.65M | 120.36M | 101.72M | 85.04M |
| EBITDA Margin % | 40.17% | 39.53% | 41.66% | 39.52% | -96.59% | 32.12% | 33.59% | 37.18% | 31.87% |
| EBITDA Growth % | 4.68% | 0.12% | 16.5% | 139.37% | -365.81% | -3.08% | 18.32% | 19.61% | - |
| D&A (Non-Cash Add-back) | 8.02M | 7.4M | 5.19M | 3.47M | 3.8M | 17.92M | 31.57M | 33.42M | 30.1M |
| EBIT | 144.6M | 134.97M | 164.93M | 133.38M | -303.34M | 102.63M | 86M | 68.3M | 64.65M |
| Net Interest Income | 16.34M | 12.87M | 13.61M | 11.88M | 3.16M | -1.8M | -10.59M | -26.04M | -30.12M |
| Interest Income | 24.47M | 19.74M | 15.66M | 13.66M | 4.99M | 208K | 197K | 524K | 272K |
| Interest Expense | 8.13M | 6.87M | 2.05M | 1.8M | 1.83M | 2.01M | 10.79M | 26.57M | 30.39M |
| Other Income/Expense | 10.65M | 4.93M | 25.86M | 12.75M | 8.71M | 1.88M | -13.57M | -18.43M | -20.69M |
| Pretax Income | 151.5M | 139.9M | 162.88M | 131.35M | -305.17M | 100.61M | 75.22M | 49.87M | 34.26M |
| Pretax Margin % | 40.88% | 38.85% | 47.72% | 42.53% | -95.06% | 27.7% | 20.99% | 18.23% | 12.84% |
| Income Tax | 37.38M | 37.19M | 38.53M | 30.27M | -71.19M | 22.51M | 21.59M | 13.54M | 9.21M |
| Effective Tax Rate % | 24.67% | 26.58% | 23.65% | 23.04% | 23.33% | 22.37% | 28.71% | 27.16% | 26.87% |
| Net Income | 114.01M | 102.55M | 124.02M | 101.04M | -233.98M | 78.11M | 53.62M | 36.33M | 25.05M |
| Net Margin % | 30.77% | 28.48% | 36.33% | 32.71% | -72.88% | 21.51% | 14.96% | 13.28% | 9.39% |
| Net Income Growth % | -3.04% | -17.31% | 22.74% | 143.18% | -399.56% | 45.66% | 47.62% | 45% | - |
| Net Income (Continuing) | 114.12M | 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 | 204.03K | 187.95K | 118K | 157K | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.30 | 2.07 | 2.50 | 2.03 | -4.72 | 1.70 | 1.21 | 0.73 | 0.51 |
| EPS Growth % | -3.77% | -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% | - | - | - | - | - | - |
Single product concentration risk
According to the provided quarterly income statements, DDI's revenue growth has fluctuated significantly, ranging from a 5.3% contraction in 2025Q1 to a 17.1% expansion by 2025Q4, suggesting that the company's top-line performance remains highly sensitive to seasonal engagement patterns and the efficacy of its live-ops strategy.
The inconsistent growth trajectory indicates that DDI struggles to maintain a consistent upward momentum, likely due to its reliance on a single flagship title. Investors should monitor whether the recent 12.5% growth in 2026Q1 represents a sustainable recovery or merely a temporary rebound in player spending.
As reported in financial statements, DDI has maintained gross margins consistently above 68% over the last ten quarters, demonstrating that the company effectively manages its hosting and royalty obligations despite the persistent 30% platform fee haircut imposed by major mobile app store distributors like Apple and Google.
The stability of these margins suggests that DDI possesses sufficient pricing power within its niche social casino demographic to offset inflationary pressures. However, the lack of significant margin expansion implies that the company is currently unable to bypass these third-party platform fees, which remains a structural ceiling.
Based on DDI's reported figures, operating margins have compressed from a peak of 42.8% in 2023Q4 to 37.7% in 2026Q1, indicating that SG&A expenses are scaling at a rate that occasionally outpaces the growth in gross profit, thereby pressuring the company's overall operational efficiency and bottom-line conversion.
This trend suggests that the cost of acquiring and retaining high-value players is rising, potentially due to increased competition for ad inventory. If SG&A continues to climb relative to revenue, the company may struggle to maintain its current profitability profile without a corresponding increase in ARPDAU.
Analysis of the income statement reveals that DDI maintains high earnings quality, as evidenced by the complete absence of stock-based compensation expenses across all reported periods, which ensures that net income figures are not artificially inflated or diluted by non-cash equity grants to management or employees.
The lack of SBC is a positive indicator for shareholders, as it suggests that the reported EPS of 0.71 in 2026Q1 reflects actual cash-generative performance rather than accounting adjustments. This transparency allows for a clearer assessment of the company's true profitability relative to its peers.
While DDI's financials appear robust, the company's extreme reliance on a single aging flagship title, as highlighted in recent disclosures, creates a significant vulnerability where any technical failure or shift in player preference could lead to a rapid and potentially irreversible decline in total revenue.
Short-sellers would likely focus on the lack of product diversification, arguing that the current valuation fails to account for the 'key product risk' inherent in the social casino model. Investors should consider whether the company's massive cash pile is a strategic buffer or a sign of limited reinvestment opportunities.
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.