DoubleDown Interactive Co. (DDI) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue was $83.5 million, with $70.3 million from social casino games and $13.2 million from iGaming (SuprNation), reflecting a 5% year-over-year decline in total revenue.

• Adjusted EBITDA reached $30.8 million (36.9% margin), down from $32.7 million (37.1% margin) in Q1 2024.

• Operating cash flow increased to $41.1 million, up over $5 million year-over-year.

• Social casino revenue declined 12% year-over-year, while iGaming revenue grew 59%, marking SuprNation's highest quarterly performance since acquisition.

• Profit for the interim period was $23.8 million, down from $30.3 million year-over-year, mainly due to lower revenue and higher G&A expenses.

Financial highlights

• Operating expenses decreased to $53.9 million from $57.0 million year-over-year, driven by lower cost of revenue and R&D, partially offset by higher G&A.

• Profit margin was 28.6% in Q1 2025, down from 34.5% in Q1 2024.

• Net cash position at quarter-end was $421 million, with $455.7 million in cash, cash equivalents, and short-term investments.

• Sales and marketing expenses were $14.3 million, down from $15.1 million in Q1 2024, with increased spend for SuprNation offset by optimization in social casino.

• Average Revenue Per Daily Active User (ARPDAU) for social casino games rose to $1.29 from $1.26 year-over-year.

Outlook and guidance

• Expectation to maintain strong cash flow conversion and capital efficiency throughout 2025.

• SuprNation is anticipated to continue scaling, with ongoing investment in player acquisition and potential for EBITDA profitability as revenue grows.

• Social casino faces tough comps in the first half of 2025, with easier comparisons in the second half, but year-over-year growth remains challenging.

• Continued focus on product improvements, live ops, and disciplined new game launches.

• The company highlights flexibility to pursue growth through in-house development and M&A, supported by a strong cash position.