DoubleDown Interactive Reports Third Quarter 2026 Results
News related to:DoubleDown Interactive Co., Ltd · 3 min read
SEOUL, South Korea, Nov. 11, 2026 /CourierPR/ -- DoubleDown Interactive, a leading developer and publisher of digital games on mobile and web-based platforms, reported financial results for the third quarter ended September 30, 2026. The company's revenue decreased 1.6% to $94.3 million in the third quarter of 2026, compared to $95.8 million in the same period of 2025. The decrease was primarily due to a 3.5% drop in revenue from the company’s social casino/free-to-play games, which stood at $76.8 million in the third quarter of 2026.
Direct-to-Consumer (DTC) revenue, which represents purchases made through Company-owned channels, saw a significant increase to $44.6 million in the third quarter of 2026, up from $16.6 million in the same period of 2025. DTC revenue now accounts for 58.0% of total social casino revenue, up from 20.9% in the third quarter of 2025 and 52.4% in the second quarter of 2026.
SuprNation, the company’s iGaming subsidiary, reported a 7.4% year-over-year increase in revenue to $17.4 million, driven by the continued success of the company’s newest brand, Los Vegas.
Operating expenses decreased to $56.8 million in the third quarter of 2026, from $60.9 million in the same period of 2025, reflecting lower platform fees as a greater share of social casino revenue was generated through DTC channels. However, this was partially offset by higher gaming duties in the iGaming segment.
Profit for the interim period (excluding non-controlling interest) decreased 43.9% to $18.4 million, or earnings per fully diluted common share of $7.41 ($0.37 per American Depositary Share (ADS)), in the third quarter of 2026, compared to $32.7 million, or earnings per fully diluted common share of $13.21 ($0.66 per ADS), in the third quarter of 2025. The decline primarily reflects net foreign currency losses recognized in the third quarter of 2026, mainly unrealized and realized losses on U.S. dollar-denominated financial assets, as well as higher income tax expense. These factors were partially offset by higher operating profit, which increased to $37.5 million from $35.0 million, driven by lower cost of revenue attributable to a higher proportion of DTC revenue.
Adjusted EBITDA rose 7.2% to $40.2 million for the third quarter of 2026, compared to $37.5 million in the same period of 2025. The adjusted EBITDA margin increased to 42.7% in the third quarter of 2026, compared to 39.1% in the third quarter of 2025.
The company’s payer conversion ratio for the social casino/free-to-play games increased to 9.5% in the third quarter of 2026 from 7.8% in the third quarter of 2025, primarily as a result of the inclusion of WHOW Games, which has a higher payer conversion ratio. The average revenue per daily active user (ARPDAU) for the company’s social casino/free-to-play games increased to $1.44 in the third quarter of 2026 from $1.39 in the third quarter of 2025, also due to the inclusion of WHOW Games. The average monthly revenue per payer for the social casino/free-to-play games decreased to $216 in the third quarter of 2026 from $272 in the third quarter of 2025, again due to the inclusion of WHOW Games.
Net cash flows from operating activities decreased to $23.6 million in the third quarter of 2026 from $33.4 million in the same period of 2025. The decrease is primarily due to higher income taxes paid.
DoubleDown’s third quarter results reflect another period of solid performance, and exceeded consensus expectations for revenue and Adjusted EBITDA. The company’s operational excellence drove its operating profit to $37.5 million and a 7.2% year-over-year growth in adjusted EBITDA, expanding its third quarter adjusted EBITDA margin to 42.7%. Direct-to-Consumer expansion continues, with revenue of $44.6 million in the third quarter representing 58% of social casino revenue, up from 52% last quarter and 21% a year ago.
The company’s ability to consistently drive a high conversion of revenue to cash flow remains a top operating priority, and enabled DoubleDown to generate $23.6 million of net cash flow from operations in the third quarter and a total of $94.7 million in the first nine months of 2026.