DoubleDown Interactive (NASDAQ:DDI) Issues Quarterly Earnings Results, Beats Expectations By $0.13 EPS

DoubleDown Interactive (NASDAQ:DDI) released its quarterly earnings results on Tuesday. The company reported $0.71 earnings per share for the quarter, beating the consensus estimate of $0.58 by $0.13, Zacks reports. The business had revenue of $94.12 million for the quarter, compared to analysts’ expectations of $94.26 million. DoubleDown Interactive had a net margin of 30.77% and a return on equity of 12.35%.

Here are the key takeaways from DoubleDown Interactive’s conference call:

• DoubleDown reported a solid Q1 2026, with revenue up nearly 13% year over year to $94.1 million and adjusted EBITDA up 24% to $38.2 million. Operating cash flow was also strong at $46.4 million.
• The social casino segment remained the main profit engine, with revenue rising 9.5% to $76.9 million, helped by the WHOW Games acquisition. Management said the direct-to-consumer mix accelerated, with DTC making up 44% of social casino revenue versus 33% in Q4 2025.
• SuprNation continued to grow rapidly, with Q1 revenue up 30% year over year to $17.2 million and up 6% sequentially. The newly launched Las Vegas iGaming title contributed to the improvement.
• Management said it is taking steps to offset the higher U.K. gambling tax, including product adjustments such as reducing bonusing rates and using real-time data analytics to improve acquisition and retention. They called the early results positive, but stressed it is still too early to judge the full impact.
• DoubleDown ended the quarter with a net cash position of about $500 million and reiterated that M&A remains a strategic priority. The company said it is still evaluating opportunities, while a special committee reviews the separate WHOW proposal.

DoubleDown Interactive Stock Performance

Shares of DDI traded down $0.12 during trading hours on Thursday, hitting $11.69. The company had a trading volume of 24,050 shares, compared to its average volume of 101,107. The firm has a fifty day moving average price of $9.28 and a 200-day moving average price of $9.02. The stock has a market capitalization of $578.99 million, a price-to-earnings ratio of 5.08 and a beta of 1.01. DoubleDown Interactive has a 52-week low of $8.09 and a 52-week high of $11.90.

Analysts Set New Price Targets

A number of analysts have recently commented on DDI shares. Wedbush dropped their target price on shares of DoubleDown Interactive from $21.00 to $15.00 and set an “outperform” rating on the stock in a report on Wednesday. Weiss Ratings upgraded shares of DoubleDown Interactive from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, April 29th. Wall Street Zen cut shares of DoubleDown Interactive from a “buy” rating to a “hold” rating in a report on Saturday, May 2nd. Finally, Freedom Capital cut shares of DoubleDown Interactive from a “strong-buy” rating to a “hold” rating in a report on Tuesday, April 28th. Two equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, DoubleDown Interactive has an average rating of “Hold” and an average price target of $15.67.

Hedge Funds Weigh In On DoubleDown Interactive

Several large investors have recently modified their holdings of the stock. Osaic Holdings Inc. raised its position in DoubleDown Interactive by 338.6% in the 2nd quarter. Osaic Holdings Inc. now owns 3,105 shares of the company’s stock worth $30,000 after buying an additional 2,397 shares during the last quarter. Corient Private Wealth LLC purchased a new position in DoubleDown Interactive in the 4th quarter worth about $94,000. XTX Topco Ltd purchased a new position in DoubleDown Interactive in the 4th quarter worth about $118,000. Quadrature Capital Ltd purchased a new position in DoubleDown Interactive in the 4th quarter worth about $180,000. Finally, Goldman Sachs Group Inc. raised its position in DoubleDown Interactive by 127.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 28,790 shares of the company’s stock worth $285,000 after buying an additional 16,128 shares during the last quarter.

DoubleDown Interactive Company Profile

DoubleDown Interactive (NASDAQ: DDI) is a digital entertainment company that specializes in the development and publishing of social casino games. The company’s portfolio centers around free-to-play titles that emulate the experience of land-based casino games such as slots, video poker, bingo and table games. By blending high-quality graphics, engaging gameplay features and real-time social mechanics, DoubleDown Interactive aims to deliver a virtual casino environment accessible via web, mobile and social media platforms.

The company’s flagship offering, DoubleDown Casino, serves as a hub for multiple slot and table-style games, enabling millions of registered players to compete in tournaments, unlock new machines and purchase virtual coins through in-app transactions.