DDI

• Overall Financial Performance

  • Delivered consolidated Q2 2026 revenue of $94.3 million, up 11% year-over-year, and adjusted EBITDA of $39.3 million, up 17% year-over-year
  • Achieved adjusted EBITDA margin of 41.6%, up from 39.5% in Q2 2025 and 40.6% in Q1 2026
  • Generated net cash flow from operations of $24.6 million in Q2 2026 (up 25% year-over-year), bringing total first half 2026 operating cash flow to $71 million
  • Ended the quarter with $553.8 million in cash, cash equivalents, and short-term investments, for a net cash position of $521.3 million ($10.52 per ADS)
  • Profit excluding non-controlling interest increased 50% year-over-year to $32.9 million, equal to $0.66 per ADS

• Operational Strategy Highlights

  • Grew DTC payer contribution in social casino to over 50% of segment revenue, a new record, reducing platform fee costs and improving margins
  • Successfully mitigated most of the impact of the UK's higher iGaming tax rate implemented in April 2026 through product adjustments, marketing shifts, and expense controls
  • Continued to outperform the projected 5% global social casino market decline in 2026 through targeted product development, payer retention optimization, and DTC expansion
  • Completed successful integration of the acquired WOW Games (also referenced as VOW), which contributed to segment revenue growth
  • Maintains M&A as a core strategic priority, evaluating opportunities in online gaming and mobile entertainment that deliver long-term shareholder value
  • Remains focused on driving operational excellence and high-ROI investments across the full business portfolio

Management did not issue explicit formal full-year quantitative guidance during the call. Key forward-looking qualitative guidance includes:

• Total company marketing spend is expected to remain at the current Q2 2026 run rate for the remainder of 2026, with balanced allocation of acquisition investment between the social casino and iGaming segments
• Management expects DTC revenue share in the social casino segment to continue growing incrementally through the end of 2026, with further upside beyond the current 52% threshold
• The company expects to continue outperforming the broader declining global social casino market in 2026, driven by its DTC strategy and operational execution
• Management noted that Q2 seasonally tends to be a low watermark for quarterly cash flow due to annual income tax payment timing, with higher cash flow expected in the second half of 2026 relative to Q2

1. Social Casino: Q2 2026 revenue reached $77.3 million, representing an 11.5% year-over-year increase. This segment contributed 82% of total consolidated revenue for the quarter. Direct-to-consumer (DTC) activity accounted for 52% of total social casino revenue in Q2 2026, up from 44% in Q1 2026 and just over 15% in Q2 2025. Key segment KPIs: payer conversion rate increased to 9.4% from 7.0% year-over-year, ARPDAU rose to $1.42 from $1.33 year-over-year, and average monthly revenue per payer decreased to $218 from $286 year-over-year. 2. iGaming (SuperNation): Q2 2026 revenue hit $17 million, a 10% year-over-year increase. This segment contributed 18% of total consolidated revenue for the quarter. The new iGaming title Las Vegas contributed to the segment's strong quarterly results.

• The global social casino market is projected to decline by more than 5% in 2026, creating broader industry headwinds
  • A non-binding takeover offer from controlling shareholder W Games is currently under review by a special committee, with no timeline for resolution disclosed, creating uncertainty for shareholders
  • The UK's higher iGaming tax rate increases the cost of operating in the UK market, requiring continued balancing of revenue growth and profitability for the iGaming segment
  • Dependence on third-party mobile app stores for a large share of social casino revenue creates fee costs that the company is mitigating via DTC expansion, but remaining platform exposure still represents a margin pressure risk
  • Forward-looking statements are inherently subject to risks and uncertainties that could cause actual future results to differ materially from current expectations, as detailed in the company's prior SEC filings

Q: What caused the sequential iGaming revenue decline from Q1, and what impact did the UK tax increase have? How should we expect 2026 full-year free cash flow to trend given the strong first half improvement, and will income tax timing create a second half headwind? / A: Q2 iGaming revenue was only slightly down sequentially, essentially flat quarter-over-quarter. The company cut player acquisition spending in Q2 to observe how larger competitors adjusted to the new UK tax rate, which moderated sequential growth. The firm successfully mitigated most of the tax increase's profit impact via cost-conscious operations and product adjustments. Income tax payments are typically due in Q2, creating seasonal cash flow weakness, so Q2 tends to be the annual low watermark for quarterly operating cash flow. No full-year headwind from timing is expected outside of this normal seasonal pattern.

Q: After hitting 52% DTC share of social casino revenue (ahead of prior expectations), what is the realistic ceiling for this share, and what growth do you expect by year end? / A: The 52% DTC share is already an industry benchmark, but management sees significant room for further growth. The company is gradually migrating high-value users to its direct platform while maintaining a healthy balance with traditional mobile app store channels. Proactive investments in in-house DTC technology, owned CRM channels, and payment infrastructure reduce friction for users and cut platform fees, while also deepening user trust. Management expects steady incremental DTC share growth that will sustain margin expansion and market leadership.

Q: How is the company balancing revenue growth and profit post-UK iGaming tax increase, and what is the expected trajectory for SuperNation revenue and profit? Will marketing spend remain at current reduced levels in the second half? / A: Management is balancing revenue growth and profitability after the UK tax cost increase, and after four months of observing competitor actions, the firm believes it has struck a good balance. The company will continue investing in player acquisition while ensuring investments meet required return targets, and has adjusted product levers (such as RTP and bonus rates) to offset higher tax costs. Overall company marketing spend will remain at the current Q2 run rate for the rest of 2026, with balanced allocation between iGaming and social casino, with real-time adjustments based on realized ROI.

Q: Organic social casino growth ex-WOW Games: how is the core business performing relative to the projected 5% industry decline in 2026? / A: Management stated the company has more than held its own in the first half of 2026 against the broader declining social casino market, with strong performance from both the core legacy Double Down business and the acquired WOW Games business. The company is outperforming industry contraction expectations so far in 2026.