DoubleDown Interactive Q3 adjusted EBITDA rises 7.2% to $40.2m

DoubleDown Interactive reported third-quarter revenue of $94.3m, down 1.6% year-over-year, as growth at its SuprNation iGaming subsidiary was outweighed by lower social casino sales. 

Adjusted EBITDA rose 7.2% to $40.2m and the adjusted EBITDA margin widened to 42.7% from 39.1% a year earlier.

SuprNation generated $17.4m in revenue, a 7.4% annual increase. DoubleDown Interactive attributed the growth primarily to its Los Vegas brand. Its social casino and free-to-play games generated $76.8m, down 3.5%, with lower sales from DoubleDown titles excluding WHOW Games driving the decline.

Within social casino, direct-to-consumer revenue reached $44.6m, up from $16.6m in the third quarter of 2025. Purchases through company-owned channels accounted for 58.0% of social casino revenue, compared with 20.9% a year earlier and 52.4% in the preceding quarter. The shift reduced DoubleDown Interactive's reliance on third-party platform fees.

Operating expenses fell to $56.8m from $60.9m. The company attributed the reduction chiefly to lower platform fees as more social casino spending moved to its own channels, partly offset by higher gaming duties in iGaming. Operating profit increased to $37.5m from $35.0m.

Profit for the interim period excluding non-controlling interest nevertheless fell 43.9% to $18.4m from $32.7m. DoubleDown Interactive cited foreign currency losses on US dollar-denominated financial assets and higher income tax expense, with the increase in operating profit offsetting part of those effects. Earnings per American Depositary Share were $0.37, compared with $0.66 a year earlier. 

Across the first nine months of 2026, revenue reached $282.7m, compared with $264.2m a year earlier. Adjusted EBITDA was $117.7m, up from $101.8m, while profit excluding non-controlling interest rose to $86.6m from $78.4m. These year-to-date gains contrast with the latest quarter's lower reported profit.

Third-quarter operating cash flow declined to $23.6m from $33.4m, which the company attributed mainly to higher income taxes paid. Average daily active users of its social casino games rose to 575,000 from 555,000, while average monthly revenue per payer fell to $216 from $272.

In the second-quarter results, DoubleDown Interactive reported $94.3m in revenue, $39.3m in adjusted EBITDA and $17.0m in SuprNation revenue. The latest quarter held total revenue at the same rounded figure, while adjusted EBITDA and iGaming revenue increased.