DoubleDown Interactive Co., Ltd. (NASDAQ: DDI) reported first-quarter revenue of $94.1 million, a 12.7 percent increase year-over-year, as the mobile games developer saw growth in both its social casino and iGaming segments.
"Our first quarter results demonstrate a solid start to 2026 as we continue to execute on our strategic initiatives to expand and diversify the company across products and geographies," In Keuk Kim, Chief Executive Officer at DoubleDown, said in a statement.
The Seoul-based company posted a 48.4 percent rise in earnings per fully diluted common share to $14.28, up from $9.62 in the same period last year. Adjusted EBITDA for the quarter ended March 31 was $38.2 million, an increase from $30.8 million in the prior-year period, with the adjusted EBITDA margin expanding to 40.6 percent from 36.9 percent.
The results come as the company navigates an unsolicited acquisition offer from its controlling shareholder, DoubleU Games Co. Ltd. On April 29, DoubleU Games proposed to acquire all outstanding common shares it does not currently own for $11.25 per American Depositary Share in cash. DoubleDown has formed a special committee to evaluate the proposal.
Financial Performance
DoubleDown's revenue growth was supported by contributions from its WHOW Games acquisition and its iGaming subsidiary, SuprNation, which management said reached its highest quarterly revenue since being acquired in 2023. Direct-to-consumer revenue in the social casino segment now accounts for over 40 percent of the segment's total.
The company's key performance indicators for its social casino games showed a rise in player engagement. Average monthly active users (MAUs) increased to 1.37 million from 1.24 million a year ago, while payer conversion jumped to 9.7 percent from 6.9 percent. However, average monthly revenue per payer declined to $207 from $276.
The company generated $46.4 million in net cash flow from operating activities during the quarter, strengthening its balance sheet. Cash and cash equivalents stood at $432.8 million as of March 31.
The strong quarterly performance highlights the company's operational execution while its board considers the pending acquisition offer. Investors will be watching for the special committee's recommendation and any further developments regarding the proposal from DoubleU Games.
This article is for informational purposes only and does not constitute investment advice.
