DoubleDown Interactive Co., Ltd. Q4 FY2025 earnings call

• Continued year-over-year growth of SuperNation.
• First full quarter contribution from Wow Games.
• Significant growth in direct-to-consumer revenue stream, with DTC revenue exceeding 30% of total social external revenue in Q1.
• Strong profitability with adjusted EBITDA growth and positive cash flow.
• Worked on operational and product synergies between Wow Games and traditional DoubleDown social casino.
• Optimized social casino business for DTC transition and aims to increase DTC revenue as a percentage of social casino revenue in 2026.
• Fully launched first iGaming casino title Lost Sagas in the UK market.
• Utilized AI in content production (accelerating asset creation, etc.), live operations (personalizing player experience), and marketing optimization (enhancing audience targeting, etc.).

In 2025, the company's total consolidated revenue was $95,800,000. The social casino business contributed $79,700,000, which is 83.2% of the total revenue. It grew 9% year over year in Q1 2025, driven by the first full quarter contribution from Wow Games. Wow Games had a payer conversion rate of 9.6% in Q4 2025 (up from 6.9% in Q4 2024) but had a lower average monthly revenue per payer of $198 compared to $282 in Q4 2024. The iGaming business (SuperNation) contributed $16,100,000, which is 16.8% of the total revenue. SuperNation's Q4 2025 revenue was $16,100,000, up 78% year over year.

• Continue to innovate and enhance businesses through product, live operations, and marketing improvements in 2026.
• Ramp DTC revenue as a percentage of social casino revenue.
• Moderate customer acquisition spend in SuperNation while remaining mindful of ROI thresholds.
• Continue to invest in growth initiatives and evaluate potential acquisitions.

• Forward-looking statements subject to numerous risks and uncertainties, including those in the annual report on Form 20-F and other SEC filings.
• Risks related to social casino market growth challenges.
• Uncertainties in iGaming marketing spend ROI.
• Legislative changes affecting social casino marketing costs.

Q: Bifurcate DoubleDown Casino and Wow revenue contribution and growth, and DTC gains and mix for both Wow and DoubleDown.

A: They formally report social casino KPIs and revenue but both businesses held their own during the quarter. Wow Games has a high DTC mix as many players play through the website, and there was a significant increase in DTC on the traditional DoubleDown Casino side, with the traditional side being the largest contributor to overall revenue and DTC results.

Q: Update on AI and automation in DoubleDown and Wow, and view on broader promotional landscape.

A: AI is used in content production (accelerating asset creation, etc.), live operations (personalizing player experience), and marketing optimization (enhancing audience targeting, etc.). The social casino business is focused on efficiency, innovation, and being disciplined in player acquisition spend, with the promotional landscape being about maintaining efficiency while acquiring new players.

Q: Moderation of customer acquisition spend in SuperNation and long-term margin structure.

A: Moderated spend due to reaching ROI thresholds, and will continue to be mindful of ROI when spending on acquiring new players in SuperNation, with plans to evaluate spend levels in 2026 considering factors like gaming tax changes in the UK.

Q: DTC growth on traditional DoubleDown Casino and future thoughts.

A: Will continue to ramp DTC revenue as a percentage of social casino revenue through product and messaging improvements, and have already launched new features to take advantage of this.

Q: Acquisitions, capital allocation, and iGaming dynamics.

A: Long-term shareholder value is a priority, with focus on M&A strategy. iGaming spend is moderated based on real-time marketing cost and ROI analysis, with focus on balancing growth and profitability. Legislative changes in social casino affect marketing costs but pressure has lessened somewhat.

Q: Impairment charge on SuperNation goodwill and capital allocation.

A: Impairment charge was based on third-party valuation experts' conclusions, considering comparables, weighted average cost of capital, and peers in public and private markets. On capital allocation, sale of shares expanded public float, and focus is on long-term shareholder value through growth and M&A.