DoubleDown Interactive Co Ltd (DDI) AI Stock Analysis
DDI AI stock analysis summary
AI ResearchDoubleDown Interactive Co Ltd (NASDAQ: DDI) is a digital game developer and publisher best known for casual casino-themed and mobile titles. Over the trailing twelve months, the company generated $380.0M in revenue with a strong profit margin of 32.9%. It also carries substantial liquidity, ending June 30, 2026, with $516.3M in net cash.
- Market cap
- $683.8M
- Revenue (TTM)
- $380.0M
- P/E
- 5.5x fwd 5.0x
- 1Y return
- 56.6% S&P 500 16.8%
- Avg. target
- $18.05 30.8% vs last close
Bull case
- The balance sheet is heavily capitalized with $516.3M in net cash and a low debt-to-equity ratio of 0.04 as of June 30, 2026.
- Trailing twelve months profitability is strong, featuring an operating margin of 38.7% and a profit margin of 32.9%.
- Latest quarterly results showed accelerating momentum, with quarterly earnings growth surging 50.5% year-over-year.
Bear case
- Revenue growth has been subdued over the long term, registering a 5-year CAGR of only 0.1% from FY2020 to FY2025.
- Consensus estimates for the next fiscal year forecast revenue falling 0.6% to $371.9M and EPS declining 5.8% to $2.44.
- Past financial performance has shown volatility, including an operating margin of -97.8% and a net loss of $234.0M in FY2022.
What DoubleDown Interactive does
DoubleDown Interactive Co., Ltd. specializes in developing and publishing digital games tailored for casual players across mobile and web-based platforms in South Korea. The company's portfolio includes popular titles such as DoubleDown Casino, DoubleDown Classic, DoubleDown Fort Knox, and Undead World: Hero Survival. These games are predominantly distributed, marketed, and promoted through third-party platform providers. Headquartered in Seoul, South Korea, the company was founded in 2008 and initially operated under the name The8Games Co., Ltd. before rebranding in December 2019. It operates as a subsidiary of DoubleU Games Co., Ltd.
Growth and profitability
DoubleDown Interactive generated $360.1M in revenue in FY2025, reflecting a 5.5% increase from $341.3M in FY2024. Gross margin expanded to 71.8% in FY2025, up from 69.7% in FY2024 and 65.1% in FY2021. Net income reached $102.6M in FY2025 with a net margin of 28.5%, following $124.0M in FY2024. Over a 5-year span from FY2020 to FY2025, revenue grew at a CAGR of 0.1%. Performance accelerated in the latest quarter ending June 30, 2026, where quarterly revenue growth rose 11.2% year-over-year and quarterly earnings growth increased 50.5% year-over-year. TTM EPS was $2.52.
Balance sheet and cash flow
As of June 30, 2026, DoubleDown Interactive held $553.8M in cash and short-term investments against $37.4M in total debt, resulting in a net cash position of $516.3M. The company maintains a current ratio of 18.67 and a debt-to-equity ratio of 0.04 alongside $1.01B in shareholders' equity. In FY2025, free cash flow was $136.7M, generated from $136.8M in operating cash flow. The company used minimal capital in FY2025, spending $190,098 on capital expenditures and $85,045 on dividends paid, while the 5-year share count change was 0.0%.
Valuation and performance
DoubleDown Interactive trades at a trailing P/E of 5.5x and a forward P/E of 5.0x, both below the US-listed Communication Services peer group medians of 16.2x and 14.1x. Its EV/EBITDA of 0.8x is also beneath the peer group median of 10.0x, though its price-to-sales of 1.8x sits above the peer median of 0.8x. Enterprise value stands at $129.9M against a market cap of $683.8M. Over the past year, the stock gained 56.6%, outperforming the S&P 500's return of 16.8%, but over a 5-year period it dropped 21.3% while the index gained 83.0%.
What analysts expect
Wall Street coverage consists of 4 Strong Buy ratings and 1 Hold rating, with no Buy, Sell, or Strong Sell recommendations. The mean price target is $18.05, representing an upside of 30.8% from the last close of $13.80. For the fiscal year ending December 31, 2026, analysts estimate EPS of $2.59 and revenue of $374.1M. DoubleDown Interactive has beaten EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 9, 2026.
Key risks and what to watch
- Long-term stock performance has lagged the broader market, returning -21.3% over 5 years compared to an 83.0% gain for the S&P 500.
- R&D spending declined steadily from $21.2M in FY2023 to $12.0M in FY2025, which may impact new game development.
- Institutional ownership is relatively low at 22.6%, and short percent of float stands at 0.1%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this DDI AI stock analysis
This page is an AI-written research summary of DoubleDown Interactive Co Ltd (DDI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: DDI income statement, DDI analyst forecast, DDI chart. See the DDI stock overview for the latest quote and news.
DDI AI stock analysis FAQ
What games does DoubleDown Interactive produce?
DoubleDown Interactive develops and publishes digital casual games across mobile and web platforms. Its portfolio includes titles such as DoubleDown Casino, DoubleDown Classic, DoubleDown Fort Knox, and Undead World: Hero Survival.
How much cash does DoubleDown Interactive have?
As of June 30, 2026, the company held $553.8M in cash and short-term investments. With total debt of $37.4M, its net cash position stood at $516.3M.
What is DoubleDown Interactive's valuation relative to peers?
DoubleDown Interactive trades at a trailing P/E of 5.5x and an EV/EBITDA of 0.8x. Both multiples are lower than the US-listed Communication Services peer medians of 16.2x and 10.0x.
What are analysts forecasting for DoubleDown Interactive?
Analysts have a mean price target of $18.05, which is 30.8% above its last close of $13.80. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $374.1M and EPS of $2.59.