DoubleDown Interactive Reports Mixed Q4 & FY25 Results; Goodwill Impairment Impacts Profit

summarizeSummary

DoubleDown Interactive reported increased Q4 and full-year 2025 revenue and Adjusted EBITDA, but net profit declined significantly due to a non-cash goodwill impairment related to its SuprNation subsidiary.

check_boxKey Events · Earnings and Guidance · DDI

• Q4 and Full Year Revenue Growth

  Fourth quarter 2025 revenue increased to $95.8 million (up 16.8% YoY), and full year 2025 revenue rose to $359.9 million (up 5.4% YoY), partly driven by the WHOW Games acquisition.

• Significant Net Profit Decline

  Q4 2025 net profit decreased by 32.5% YoY to $24.1 million ($0.49 per ADS), and full year net profit fell by 17.5% YoY to $102.5 million ($2.07 per ADS).

• Goodwill Impairment Loss

  The decline in net profit was primarily attributed to an $8.0 million non-cash impairment loss recognized for the goodwill of its SuprNation iGaming subsidiary.

• Strong Adjusted EBITDA and Cash Position

  Adjusted EBITDA increased in Q4 to $40.6 million (up 15.7% YoY) and remained stable for the full year at $142.3 million. The company ended Q4 with approximately $455 million in net cash.

auto_awesomeAnalysis · DDI · Technology

DoubleDown Interactive reported a mixed financial performance for the fourth quarter and full year 2025. While the company achieved revenue growth, particularly in its Direct-to-Consumer (DTC) channels and iGaming subsidiary SuprNation, and maintained strong Adjusted EBITDA, net profit significantly declined due to a non-cash goodwill impairment loss related to SuprNation. This impairment indicates a re-evaluation of the acquired asset's value, which is a notable negative signal, especially as the company's stock is currently trading near its 52-week low. Despite the profit decline, the company ended the year with a robust net cash position, providing financial flexibility for future growth initiatives.