DoubleDown Interactive Reports Record Fourth Quarter and Full Year 2025 Financial Results

Core Insights - DoubleDown Interactive Co., Ltd. reported strong financial results for Q4 and full year 2025, highlighting growth in social casino revenue and direct-to-consumer (DTC) channels [3][4][9] Q4 2025 vs. Q4 2024 Summary - Revenue for Q4 2025 was $95.8 million, up from $82.0 million in Q4 2024, marking a year-over-year increase of approximately 17.1% [4][9] - Social casino revenue reached $79.7 million in Q4 2025, a 9.3% increase from Q4 2024, driven by the acquisition of WHOW Games [4][9] - DTC revenue grew to $26.0 million, representing 33% of total social casino revenue, compared to 13% in Q4 2024 [4][9] - SuprNation, the iGaming subsidiary, saw a 78.2% increase in revenue to $16.1 million year-over-year [4][9] - Operating expenses rose to $65.9 million in Q4 2025 from $47.8 million in Q4 2024, primarily due to goodwill impairment and WHOW Games expenses [4][9] - Profit for Q4 2025 was $24.1 million, down from $35.7 million in Q4 2024, largely due to a non-cash impairment loss [4][9] - Adjusted EBITDA for Q4 2025 was $40.6 million, with a margin of 42.4% compared to 42.9% in Q4 2024 [4][9] Full Year 2025 vs. Full Year 2024 Summary - Total revenue for 2025 was $359.9 million, an increase from $341.3 million in 2024 [9] - Revenue from social casino/free-to-play games decreased by 3.0% to $299.0 million in 2025 [9] - DTC revenue for the full year rose to $62.1 million, representing 21% of total social casino revenue, up from 10% in 2024 [9] - Revenue from SuprNation increased by 84.5% to $61.0 million for the year [9] - Operating expenses for 2025 were $233.0 million, compared to $204.3 million in 2024 [9] - Profit for the year was $102.5 million, down from $124.1 million in 2024, reflecting the impact of goodwill impairment [9] - Adjusted EBITDA for 2025 was $142.3 million, slightly up from $141.9 million in 2024 [9] Key Performance Indicators (KPIs) - Payer Conversion for social casino/free-to-play games increased to 8.2% in 2025 from 6.7% in 2024 [9] - Average Revenue Per Daily Active User (ARPDAU) rose to $1.34 in 2025 from $1.30 in 2024 [9] - Average monthly revenue per payer decreased to $236 in 2025 from $283 in 2024 [9] - Net cash flows from operating activities were $136.8 million in 2025, down from $148.4 million in 2024 [9]