Q2 2026 DoubleDown Interactive Co Ltd Earnings Call Transcript
Key Points
- DoubleDown Interactive Co Ltd (DDI) delivered strong Q2 2026 results with consolidated revenue of $94.3 million, up 11% year-over-year, and adjusted EBITDA of $39.3 million, up 17% year-over-year.
- The company achieved a record milestone with direct-to-consumer (DTC) revenue accounting for 52% of total Social Casino revenue, up from just over 15% in Q2 2025, driving higher margins and profitability.
- Social Casino revenue grew 11.5% year-over-year to $77.3 million, outperforming the broader market, which is expected to decline over 5% in 2026, thanks to strong performance from WHOW Games and the core DoubleDown business.
- The iGaming segment (SuprNation) grew revenue by 10% year-over-year to $17 million, successfully mitigating the impact of the higher UK gambling tax through product changes, marketing adjustments, and expense controls.
- The company generated significant free cash flow, with net cash flow from operations of $24.6 million in Q2 2026 (up 25% year-over-year) and $71 million for the first half of 2026, ending the quarter with a strong net cash position of $521.3 million.
- The payer conversion rate in Social Casino increased to 9.4% in Q2 2026 from 7.0% in Q2 2025, indicating improved monetization and player engagement.
- The global social casino market is projected to decline over 5% in 2026, creating a challenging environment for growth and requiring constant outperformance to maintain revenue levels.
- The iGaming business faced a significant headwind from the newly introduced higher UK gambling tax rate, which forced the company to reduce player acquisition spending and moderate sequential revenue growth in Q2 2026.
- Average monthly revenue per payer in Social Casino declined to $218 in Q2 2026 from $286 in Q2 2025, reflecting a shift in revenue mix due to WHOW Games and DTC, which may indicate lower spending per user.
- Operating expenses increased to $57.8 million in Q2 2026 from $52.4 million in Q2 2025, primarily due to the inclusion of WHOW Games expenses and higher costs associated with SuprNation's revenue growth.
- The company is in the midst of an ongoing evaluation of a nonbinding expression of interest from its controlling shareholder, DoubleU Games, to acquire all outstanding shares at $11.25 per ADS, creating uncertainty for unaffiliated shareholders.
- Sales and marketing expenses were reduced at SuprNation in response to the UK tax increase, which could limit future player acquisition and growth potential in the iGaming segment.
Good afternoon, and welcome to DoubleDown Interactive's earnings conference call for the second quarter ended June 30, 2026. My name is Liz, and I will be your operator this afternoon. Prior to this call, DoubleDown issued its financial results for the second quarter of 2026 in a press release, a copy of which is available in the Investor Relations section of the company's website at www.doubledowninteractive.com.
You can find the link to the Investor Relations section at the top of the homepage. Joining us on today's call are DoubleDown's CEO, Mr. In Keuk Kim; and its CFO, Mr. Joe Sigrist. Following their remarks, we will open the call for questions. Before we begin, Joe Jaffoni, the company's Investor Relations adviser, will make a brief introductory statement. Mr. Jaffoni?
Thank you, Liz. Before management begins their formal remarks, we need to remind everyone that some of management's comments today will
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
