Q1 2026 DoubleDown Interactive Co Ltd Earnings Call

May 12, 2026

Operator 2: Good afternoon, welcome to DoubleDown Interactive's earnings conference call for Q1 ended 31 March 2026. My name is Latif, I will be your operator this afternoon. Prior to this call, DoubleDown issued its financial results for Q1 of 2026 in a press release, a copy of which is available in the investor relations section of the company's website at www.doubledowninteractive.com. You can find the link to the investor relations section at the top of the homepage. Joining us on today's call are DoubleDown CEO, Mr. In Keuk Kim, and its CFO, Mr. Joseph A. Sigrist. Following their remarks, we will open the call for questions. Before we begin, Joseph Jaffoni, the company's investor relations advisor, will make a brief introductory statement. Mr. Jaffoni.

Operator: Good afternoon, and welcome to DoubleDown Interactive's Earnings Conference Call for Q1 ended 31 March 2026. My name is Latif, I will be your operator this afternoon. Prior to this call, DoubleDown issued its financial results for Q1 of 2026 in a press release, a copy of which is available in the investor relations section of the company's website at www.doubledowninteractive.com. You can find the link to the investor relations section at the top of the homepage. Joining us on today's call are DoubleDown CEO, Mr. In Keuk Kim, and its CFO, Mr. Joe Sigrist. Following their remarks, we will open the call for questions. Before we begin, Joe Jaffoni, the company's investor relations advisor, will make a brief introductory statement. Mr. Jaffoni.

Speaker #1: Prior to this call, DoubleDown issued its financial results for the first quarter of 2026 and a press release a copy of which is available and the investor relations section of the company's website at www.doubledowninteractive.com.

Speaker #1: You can find the link to the Investor Relations section at the top of the homepage. Joining us on today's call are DoubleDown CEO, Mr. In Kim, and its CFO, Mr. Joe Sigrist.

Speaker #1: Following their remarks, we will open the call for questions. Before we begin, Joe, the company's investor relations advisor will make a brief introductory statement.

Speaker #1: Mr. Jaffoni, and thank you, Latif. And before management begins their formal remarks, we need to remind everyone that some of management's comments today will be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933.

Joseph Jaffoni: Thank you, Latif. Before management begins their formal remarks, we need to remind everyone that some of management's comments today will be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934 as amended, and we hereby claim the protection of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements about future events and include expectations and projections not present or historical facts and can be identified by use of the words such as may, might, will, expect, assume, believe, intend, estimate, continue, should, anticipate, or other similar terms. Forward-looking statements include, and are not limited to, those regarding the company's future plans, merger and acquisition strategy, strategic and financial objectives, expected performance, and financial outlook.

Joe Jaffoni: Thank you, Latif. Before management begins their formal remarks, we need to remind everyone that some of management's comments today will be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934 as amended, and we hereby claim the protection of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements about future events and include expectations and projections not present or historical facts and can be identified by use of the words such as may, might, will, expect, assume, believe, intend, estimate, continue, should, anticipate, or other similar terms. Forward-looking statements include, and are not limited to, those regarding the company's future plans, merger and acquisition strategy, strategic and financial objectives, expected performance, and financial outlook.

Speaker #1: As amended, Section 21E of the Securities Exchange Act of 1934, as amended, and we hereby claim the protection of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995.

Speaker #1: Forward-looking statements are statements about future events and include expectations and projections not present or historical facts and can be identified by use of the words such as may, might, will, expect, assume, believe, intend, estimate, continue, should, anticipate, or other similar terms.

Speaker #1: Forward-looking statements include, and are not limited to, those regarding the company's future plans, merger and acquisition strategy, strategic and financial objectives, expected performance, and financial outlook.

Speaker #1: Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially and adversely from what the company expects. Therefore, you should exercise caution in interpreting and relying on them.

Joseph Jaffoni: Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially and adversely from what the company expects. Therefore, you should exercise caution in interpreting and relying on them. We refer you to DoubleDown's annual report on Form 20-F filed with the SEC on 31 March 2026, and other SEC filings for a more detailed discussion of the risks that could impact future operating results and financial condition. These forward-looking statements are made only as of the date of this call. The company does not undertake and expressly disclaims any obligation to update or alter the forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. During today's call, management will discuss non-IFRS financial measures, which management believes to be useful in evaluating the company's operating performance.

Joe Jaffoni: Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially and adversely from what the company expects. Therefore, you should exercise caution in interpreting and relying on them. We refer you to DoubleDown's annual report on Form 20-F filed with the SEC on 31 March 2026, and other SEC filings for a more detailed discussion of the risks that could impact future operating results and financial condition. These forward-looking statements are made only as of the date of this call. The company does not undertake and expressly disclaims any obligation to update or alter the forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. During today's call, management will discuss non-IFRS financial measures, which management believes to be useful in evaluating the company's operating performance.

Speaker #1: We refer you to DoubleDown's annual report on Form 20F filed with the SEC on March 31st, 2026, and other SEC filings for a more detailed discussion of the risks that could impact future operating results and financial condition.

Speaker #1: These forward-looking statements are made only as of the date of this call. The Company does not undertake, and expressly disclaims, any obligation to update or alter the forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Speaker #1: During today's call, management will discuss non-IFRS financial measures which management believes to be useful in evaluating the company's operating performance. These measures should not be considered superior to, in isolation, or as a substitute for financial results prepared in accordance with IFRS.

Joseph Jaffoni: These measures should not be considered superior to, in isolation, or as a substitute for financial results prepared in accordance with IFRS. A full reconciliation of these measures to the most directly comparable IFRS measures is available in the earnings release issued this afternoon. I would like to remind everyone that this call is being recorded and will be made available for replay via the link in the investor relations section on DoubleDown's website. Thank you for your patience with that, and it's now my pleasure to turn the call over to DoubleDown CEO, IK Kim. IK, please go ahead.

Joe Jaffoni: These measures should not be considered superior to, in isolation, or as a substitute for financial results prepared in accordance with IFRS. A full reconciliation of these measures to the most directly comparable IFRS measures is available in the earnings release issued this afternoon. I would like to remind everyone that this call is being recorded and will be made available for replay via the link in the investor relations section on DoubleDown's website. Thank you for your patience with that, and it's now my pleasure to turn the call over to DoubleDown CEO, IK Kim. IK, please go ahead.

Speaker #1: A full reconciliation of these measures to the most directly comparable IFRS measures is available in the earnings release issued this afternoon. I would like to remind everyone that this call is being recorded and will be made available for replay by the link in the investor relations section on DoubleDown's website.

Speaker #1: Thank you for your patience with that, and it's now my pleasure to turn the call over to DoubleDown CEO, IK Kim. IK, please go ahead.

Speaker #2: Thank you, Joe. Good afternoon, everyone. We are delighted to be with you today to discuss DoubleDown Interactive's first quarter 2026 results. Key highlights include overall financial results reflecting a solid start to 2026, the highest quarterly revenue at super nation since our acquisition of the business back in 2023, significant continued growth of our direct-to-consumer social casino revenue and another quarter of delivering consistent profitability and significant free cash flow.

In Keuk Kim: Thank you, Joe. Good afternoon, everyone. We are delighted to be with you today to discuss DoubleDown Interactive's first quarter 2026 results. Key highlights include overall financial results reflecting a solid start to 2026, the highest quarterly revenue at SuprNation since our acquisition of the business back in 2023, significant continued growth of our direct-to-consumer social casino revenue, and another quarter of delivering consistent profitability and significant free cash flow. We believe these results validate our strategy and demonstrate our ability to drive operational excellence across our portfolio. Let's start with the financial results. This afternoon, we reported first quarter consolidated revenue of $94.1 million, up nearly 13% year-over-year, along with adjusted EBITDA of $38.2 million, up 24% year-over-year.

IK Kim: Thank you, Joe. Good afternoon, everyone. We are delighted to be with you today to discuss DoubleDown Interactive's Q1 2026 results. Key highlights include overall financial results reflecting a solid start to 2026, the highest quarterly revenue at SuprNation since our acquisition of the business back in 2023, significant continued growth of our direct-to-consumer social casino revenue, and another quarter of delivering consistent profitability and significant free cash flow. We believe these results validate our strategy and demonstrate our ability to drive operational excellence across our portfolio. Let's start with the financial results. This afternoon, we reported Q1 consolidated revenue of $94.1 million, up nearly 13% year-over-year, along with adjusted EBITDA of $38.2 million, up 24% year-over-year.

Speaker #2: We believe these results validate our strategy and demonstrate our ability to drive operational excellence across our portfolio. Let's start with the financial results. This afternoon, we reported first quarter consolidated revenue of $94.1 million up nearly 13% year over year along with adjusted EBITDA of $38.2 million up 24% year over year.

Speaker #2: In Q1, we again delivered on our priority to drive a high conversion of revenue to profit and cash flow. Net cash flow from operations was $46.4 million in the quarter.

In Keuk Kim: In Q1, we again delivered on our priority to drive a high conversion of revenue to profit and cash flow. Net cash flow from operations was $46.4 million in the quarter. We delivered this strong profit and cash flow results even as we invested in new player acquisition activities at SuprNation, specifically in support of its recently launched first iGaming brand, Las Vegas, which has met with a strong player response. Our social casino segment remains the primary engine of DoubleDown's profit and cash flow generation. In Q1, social casino revenue grew 9.5% year-over-year to $76.9 million, driven by the contribution from WHOW Games, which was acquired in Q3 of last year. The direct-to-consumer or DTC aspect of our social casino business remains a driving force behind our continued strong profitability.

IK Kim: In Q1, we again delivered on our priority to drive a high conversion of revenue to profit and cash flow. Net cash flow from operations was $46.4 million in the quarter. We delivered this strong profit and cash flow results even as we invested in new player acquisition activities at SuprNation, specifically in support of its recently launched first iGaming brand, Las Vegas, which has met with a strong player response. Our social casino segment remains the primary engine of DoubleDown's profit and cash flow generation. In Q1, social casino revenue grew 9.5% year-over-year to $76.9 million, driven by the contribution from WHOW Games, which was acquired in Q3 of last year. The direct-to-consumer or DTC aspect of our social casino business remains a driving force behind our continued strong profitability.

Speaker #2: We delivered this strong profit and cash flow results even as we invested in new player acquisition activities at super nation specifically in support of its recently launched first gaming brand Las Vegas, which has met with a strong player response.

Speaker #2: Our social casino segment remains the primary engine of DoubleDown's profit and cash flow generation. In the first quarter, social casino revenue grew $9.5% year over year to $76.9 million driven by the contribution from Wow Games which was acquired in the third quarter of last year.

Speaker #2: The direct-to-consumer, or DTC, aspect of our social casino business remains a driving force behind our continued strong profitability. As mentioned on our last conference call, Wow Games already benefits from a relatively large DTC component due to its strong web-based history.

In Keuk Kim: As mentioned on our last conference call, WHOW Games already benefits from a relatively large DTC component due to its strong web-based history. Over the last few quarters, we have made significant progress in ramping up DTC purchases made in our flagship social casino, DoubleDown Casino. In the first quarter of 2026, this direct-to-consumer transition accelerated as the DTC component of DoubleDown Casino revenue exceeded 40%. As a result, DTC revenue in the first quarter was 44% of total social casino revenue, up sequentially from 33% in Q4 2025. We plan to remain focused on optimizing the contribution of DTC revenue as a percentage of our overall social casino revenue throughout 2026.

IK Kim: As mentioned on our last conference call, WHOW Games already benefits from a relatively large DTC component due to its strong web-based history. Over the last few quarters, we have made significant progress in ramping up DTC purchases made in our flagship social casino, DoubleDown Casino. In the first quarter of 2026, this direct-to-consumer transition accelerated as the DTC component of DoubleDown Casino revenue exceeded 40%. As a result, DTC revenue in the first quarter was 44% of total social casino revenue, up sequentially from 33% in Q4 2025. We plan to remain focused on optimizing the contribution of DTC revenue as a percentage of our overall social casino revenue throughout 2026.

Speaker #2: And over the last few quarters, we have made significant progress in ramping up DTC purchases made in our flagship social casino, DoubleDown Casino. In the first quarter of 2026, this direct-to-consumer transition accelerated, as the DTC component of DoubleDown Casino revenue exceeded 40%.

Speaker #2: As a result, DTC revenue in the first quarter was $44% of total social casino revenue up sequentially from $33% in Q4 2025. We plan to remain focused on optimizing the contribution of DTC revenue as a percentage of our overall social casino revenue throughout 2026.

Speaker #2: Recognizing that the global social casino market is estimated to be in circular decline our priorities in this business segment remain precise execution of our product development initiatives around player and player retention.

In Keuk Kim: Recognizing that the global social casino market is estimated to be in secular decline, our priorities in this business segment remain precise execution of our product development initiatives around player and payer retention, focus on marketing and live ops activities to maximize payer conversion and purchasing activity, and continued focus on the direct consumer transition. Turning to our iGaming business, SuprNation's Q1 2026 revenue was $17.2 million, an increase of 30% year-over-year, and up 6% from Q4 2025. The recent introduction of our first iGaming casino title, Las Vegas, contributed to the strong SuprNation results in the Q1. Going forward, we look to leverage this early positive results as we continue to acquire new players through marketing and advertising investments.

IK Kim: Recognizing that the global social casino market is estimated to be in secular decline, our priorities in this business segment remain precise execution of our product development initiatives around player and payer retention, focus on marketing and live ops activities to maximize payer conversion and purchasing activity, and continued focus on the direct consumer transition. Turning to our iGaming business, SuprNation's Q1 2026 revenue was $17.2 million, an increase of 30% year-over-year, and up 6% from Q4 2025. The recent introduction of our first iGaming casino title, Las Vegas, contributed to the strong SuprNation results in the Q1. Going forward, we look to leverage this early positive results as we continue to acquire new players through marketing and advertising investments.

Speaker #2: Focus on marketing and live activities to maximize payer conversion and purchasing activity and continued focus on the direct-to-consumer transition. Turning to our iGaming business, super nation's Q1 2026 revenue was $17.2 million an increase of 30% year over year and up 6% from Q4 2025.

Speaker #2: The recent introduction of our first iGaming casino title, Las Vegas contributed to the strong super nation results in the first quarter. Going forward, we look to leverage this early positive result as we continue to acquire new players through marketing and advertising investments.

In Keuk Kim: At SuprNation, we are also focused on continuing to find offsets to the recently introduced higher UK gambling tax rate through product adjustments, such as reducing bonusing rates. I'm pleased to report the early results of this action to be positive. Our Q1 results highlight how prudent targeted investments are uncovering growth opportunities while sustaining our track record of strong profitability and cash flow generation. We are successfully integrating acquisitions and optimizing our core DoubleDown business. M&A remain a strategic priority as we evaluate opportunities in online gaming and mobile entertainment to drive long-term shareholder value. Now, I will turn the call over to our CFO, Joe Sigrist, to walk us through the financials before providing my closing remarks. Joe?

IK Kim: At SuprNation, we are also focused on continuing to find offsets to the recently introduced higher UK gambling tax rate through product adjustments, such as reducing bonusing rates. I'm pleased to report the early results of this action to be positive. Our Q1 results highlight how prudent targeted investments are uncovering growth opportunities while sustaining our track record of strong profitability and cash flow generation. We are successfully integrating acquisitions and optimizing our core DoubleDown business. M&A remain a strategic priority as we evaluate opportunities in online gaming and mobile entertainment to drive long-term shareholder value. Now, I will turn the call over to our CFO, Joe Sigrist, to walk us through the financials before providing my closing remarks. Joe?

Speaker #2: At Super Nation, we are also focused on continuing to find offsets to the recently introduced higher UK gambling tax rate through product adjustments, such as reducing bonusing rates.

Speaker #2: I'm pleased to report the early result of these actions to be positive. Our first quarter results highlight how prudent targeted investments are uncovering gross opportunities while sustaining our track records of strong profitability and cash flow generation.

Speaker #2: We are successfully integrating acquisitions and optimizing our core DoubleDown business. M&A remain a strategic priority as we evaluate opportunities in online gaming and mobile entertainment to drive long-term shareholder value.

Speaker #2: Now I will turn the call over to our CFO, Joe Sigrist, to walk us through the financials before providing my closing remarks. Joe, thank you, IK, and good afternoon, everyone.

Joseph A. Sigrist: Thank you, IK, and good afternoon, everyone. To review, revenues for Q1 2026 were $94.1 million. This compares to total company revenues of $83.5 million in Q1 2025. Our social casino segment grew approximately 9% from Q1 2025 to $76.9 million, boosted by the inclusion of revenue from WHOW Games. As you'll recall, the WHOW Games acquisition closed in July of last year. iGaming revenues grew by $4 million or 30% year-over-year to $17.2 million, and was up over $1 million from Q4 2025. Regarding our overall social casino KPIs, we mentioned last quarter that the metrics from WHOW Games are somewhat different from those from DoubleDown Casino.

Joe Sigrist: Thank you, IK, and good afternoon, everyone. To review, revenues for Q1 2026 were $94.1 million. This compares to total company revenues of $83.5 million in Q1 2025. Our social casino segment grew approximately 9% from Q1 2025 to $76.9 million, boosted by the inclusion of revenue from WHOW Games. As you'll recall, the WHOW Games acquisition closed in July of last year. iGaming revenues grew by $4 million or 30% year-over-year to $17.2 million, and was up over $1 million from Q4 2025. Regarding our overall social casino KPIs, we mentioned last quarter that the metrics from WHOW Games are somewhat different from those from DoubleDown Casino.

Speaker #2: To review revenues for the first quarter of 2026 were $94.1 million, this compares to total company revenues of $83.5 million in the first quarter of 2025.

Speaker #2: Our social casino segment grew approximately 9% from the first quarter of 2025 to $76.9 million, boosted by the inclusion of revenue from Wow Games.

Speaker #2: As you'll recall, the Wow Games acquisition closed in July of last year. iGaming revenues grew by $4 million or 30% year over year to $17.2 million and was up over $1 million from Q4 2025.

Speaker #2: Regarding our overall social casino KPIs, we mentioned last quarter that the metrics from Wow Games are somewhat different from those from DoubleDown Casino. Specifically, the Wow Games business experience is a higher payer conversion rate and lower average monthly revenue per payer.

Joseph A. Sigrist: Specifically, the WHOW Games business experiences a higher payer conversion rate and lower average monthly revenue per payer. With this in mind, overall social casino KPI highlights for Q1 include the payer conversion rate, which is the percentage of players who pay within the social casino apps, increased to 9.7% in Q1 2026 compared to 6.9% in Q1 2025. The average revenue per daily active user or ARPDAU of $1.34, up from $1.29 in Q1 2025. An average monthly revenue per payer at $207 in Q1 2026, down from $276 in the prior year period.

Joe Sigrist: Specifically, the WHOW Games business experiences a higher payer conversion rate and lower average monthly revenue per payer. With this in mind, overall social casino KPI highlights for Q1 include the payer conversion rate, which is the percentage of players who pay within the social casino apps, increased to 9.7% in Q1 2026 compared to 6.9% in Q1 2025. The average revenue per daily active user or ARPDAU of $1.34, up from $1.29 in Q1 2025. An average monthly revenue per payer at $207 in Q1 2026, down from $276 in the prior year period.

Speaker #2: With this in mind, overall social casino KPI highlights for the first quarter include the payer conversion rate, which is the percentage of players who pay within the social casino apps, increased to 9.7% in Q1 2026 compared to 6.9% in Q1 2025.

Speaker #2: The average revenue per daily active user or ARPDAU of $1.34 up from $1.29 in Q1 2025. And an average monthly revenue per payer at $207 in Q1 2026 down from $276 in the prior year period.

Speaker #2: In the first quarter of 2026, operating expenses were $58.7 million compared to $53.9 million in the first quarter of 2025. The increase is primarily due to the addition of Wow Games expenses.

Joseph A. Sigrist: In Q1 2026, operating expenses were $58.7 million compared to $53.9 million in Q1 2025. The increase is primarily due to the addition of WHOW Games expenses. Sales and marketing expenses for Q1 2026 were $17.4 million compared to $14.1 million in Q1 2025, which again, did not include WHOW Games. As IK mentioned earlier, in Q1 we invested to acquire new players through SuprNation's recently announced fourth brand. Excuse me, in Q1, we also saw an opportunity to increase advertising investment in DoubleDown Casino based on recent positive ROI trends.

Joe Sigrist: In Q1 2026, operating expenses were $58.7 million compared to $53.9 million in Q1 2025. The increase is primarily due to the addition of WHOW Games expenses. Sales and marketing expenses for Q1 2026 were $17.4 million compared to $14.1 million in Q1 2025, which again, did not include WHOW Games. As IK mentioned earlier, in Q1 we invested to acquire new players through SuprNation's recently announced fourth brand. Excuse me, in Q1, we also saw an opportunity to increase advertising investment in DoubleDown Casino based on recent positive ROI trends.

Speaker #2: Sales and marketing expenses for the first quarter of 2026 were $17.4 million compared to $14.1 million in the first quarter of 2025, which again did not include Wow Games.

Speaker #2: In addition, and as IK mentioned earlier, in Q1 we invested to acquire new players for super nation's recently announced fourth brand. And in the fourth quarter, excuse me, and in the first quarter, we also saw an opportunity to increase advertising investment in DoubleDown Casino based on recent positive ROI trends.

Speaker #2: Profit excluding non-controlling interests for the first quarter of 2026 increased 48% to $35.4 million or earnings per fully diluted common share of $14.28 or 71 cents per American depositary share in the first quarter of 2026 compared to profit for the interim period of 23.8 million or earnings per fully diluted share of $9.62, 48 cents per ADS in Q1 of 2025.

Joseph A. Sigrist: Profit excluding non-controlling interest for Q1 of 2026 increased 48% to $35.4 million, or earnings per fully diluted common share of $14.28, or $0.71 per American depositary share in Q1 of 2026, compared to profit for the interim period of $23.8 million, or earnings per fully diluted share of $9.62, $0.48 per ADS in Q1 of 2025. The increase primarily reflects higher revenue and higher unrealized gain on foreign currency, partially offset by higher overall operating expenses, which was primarily due to the inclusion of WHOW Games and increased costs associated with the revenue growth from SuprNation.

Joe Sigrist: Profit excluding non-controlling interest for Q1 of 2026 increased 48% to $35.4 million, or earnings per fully diluted common share of $14.28, or $0.71 per American depositary share in Q1 of 2026, compared to profit for the interim period of $23.8 million, or earnings per fully diluted share of $9.62, $0.48 per ADS in Q1 of 2025. The increase primarily reflects higher revenue and higher unrealized gain on foreign currency, partially offset by higher overall operating expenses, which was primarily due to the inclusion of WHOW Games and increased costs associated with the revenue growth from SuprNation.

Speaker #2: The increase primarily reflects higher revenue and higher unrealized gain on foreign currency partially offset by higher overall operating expenses, which was primarily due to the inclusion of Wow Games and increased costs associated with the revenue growth from super nation.

Speaker #2: Adjusted EBITDA for the first quarter of 2026 rose to $38.2 million compared to $30.8 million for the first quarter of 2025 and $40.6 million for Q4 2025.

Joseph A. Sigrist: Adjusted EBITDA for Q1 2026 rose to $38.2 million compared to $30.8 million for Q1 2025, and $40.6 million for Q4 2025. Adjusted EBITDA margin was 40.6% for Q1 2026 as compared to 36.9% in Q1 2025 and 42.4% in Q4 2025. Net cash flows provided by operating activities in Q1 2026 were $46.4 million compared to $41.1 million in Q1 2025 due to higher profit and lower income tax paid.

Joe Sigrist: Adjusted EBITDA for Q1 2026 rose to $38.2 million compared to $30.8 million for Q1 2025, and $40.6 million for Q4 2025. Adjusted EBITDA margin was 40.6% for Q1 2026 as compared to 36.9% in Q1 2025 and 42.4% in Q4 2025. Net cash flows provided by operating activities in Q1 2026 were $46.4 million compared to $41.1 million in Q1 2025 due to higher profit and lower income tax paid.

Speaker #2: Adjusted EBITDA margin was 40.6% for Q1 2026 as compared to 36.9% in Q1 2025 and 42.4% in Q4 2025. Net cash flows provided by operating activities in Q1 2026 were $46.4 million compared to $41.1 million in Q1 2025 due to higher profit and lower income tax paid.

Speaker #2: Including Q1 2026 meaningful cash generation, we had $533.4 million in cash, cash equivalents, and short-term investments, with a net cash position on March 31, 2026, of approximately $500 million, or approximately $10.10 per ADS.

Joseph A. Sigrist: Inclusion of Q1 2026 meaningful cash generation, we had $533.4 million in cash equivalents, and short-term investments with a net cash position on 31 March 2026 of approximately $500 million or approximately $10.10 per ADS. I'll turn the call back to IK for closing remarks.

Joe Sigrist: Inclusion of Q1 2026 meaningful cash generation, we had $533.4 million in cash equivalents, and short-term investments with a net cash position on 31 March 2026 of approximately $500 million or approximately $10.10 per ADS. I'll turn the call back to IK for closing remarks.

Speaker #2: Now I'll turn the call back to IK for closing remarks.

Speaker #1: Thank you, Joe. DoubleDown Interactive, powered by our core social casino and iGaming segments, delivered another quarter of strong profitability and cash flow. Building on this solid start to 2026, we remain committed to innovation and disciplined, high ROI investment to drive DTC revenues and optimize social casino margins.

In Keuk Kim: Thank you, Joseph. DoubleDown Interactive, powered by our core social casino and iGaming segments, delivered another quarter of strong profitability and cash flow. Building on this solid start to 2026, we remain committed to the innovation and disciplined high ROI investments, and to drive DTC revenues to optimize social casino margins. Finally, our strong balance sheet and cash position provide the flexibility to pursue strategic M&A, a core pillar of our strategy to enhance long-term shareholder value. We are now happy to take your questions. Joseph.

IK Kim: Thank you, Joseph. DoubleDown Interactive, powered by our core social casino and iGaming segments, delivered another quarter of strong profitability and cash flow. Building on this solid start to 2026, we remain committed to the innovation and disciplined high ROI investments, and to drive DTC revenues to optimize social casino margins. Finally, our strong balance sheet and cash position provide the flexibility to pursue strategic M&A, a core pillar of our strategy to enhance long-term shareholder value. We are now happy to take your questions. Joseph.

Speaker #1: Finally, our strong balance sheet and cash position provide the flexibility to pursue strategic M&A a core pillar of our strategy to enhance long-term shareholder value.

Speaker #1: We are now happy to take your questions.

Speaker #2: Thank you. As a reminder, to ask a question, you will need to press *11 on your telephone. To remove yourself from the queue, you may press *11 again.

Operator 2: Thank you. As a reminder, to ask a question, you will need to press star one one on your telephone. To remove yourself from the queue, you may press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of David Bank of Texas Capital Bank. Your line is open, David.

Operator: Thank you. As a reminder, to ask a question, you will need to press star one one on your telephone. To remove yourself from the queue, you may press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of David Bank of Texas Capital Bank. Your line is open, David.

Speaker #2: Please stand by while we compile the Q&A roster. Our first question. It comes from the line of David Bank. Of Texas Capital Bank. Your line is open, David.

Speaker #3: Great. Thank you. And I did read the press release where you're sort of not going to be answering too much around it. The W expression of interest with that being stated, though, rather than asking about vote outcome potential or some of the nuances with that offer, is there any way you could help shareholders or potential ones or us just to review the process and kind of the structure, the related structure with it from here?

David Bank: Great. Thank you. I did read the press release where you're sort of, not gonna be answering too much around the WHOW expression of interest. With that being stated though, rather than asking about, you know, vote outcome potential or some of the nuances with that offer, is there any way you could help shareholders or potential ones or us just to review the process, and kind of the structure, the related structure with it from here? Just any detail around that would be helpful. You know, this independent committee, who may be on it, you know, the timing of some of the voting logistics. Anything that you think you could share would be helpful.

David Bain: Great. Thank you. I did read the press release where you're sort of, not gonna be answering too much around the WHOW expression of interest. With that being stated though, rather than asking about, you know, vote outcome potential or some of the nuances with that offer, is there any way you could help shareholders or potential ones or us just to review the process, and kind of the structure, the related structure with it from here? Just any detail around that would be helpful. You know, this independent committee, who may be on it, you know, the timing of some of the voting logistics. Anything that you think you could share would be helpful.

Speaker #3: Just any detail around that would be helpful. This independent committee, who may be on it, the timing of some of the voting logistics, anything that you think you could share would be helpful.

Speaker #2: Yeah, Dave. I mean, it is really not possible to say anything more than what's already been publicly disclosed. This as you know, we formed a special committee, the board voted to form a special committee of independent disinterested directors just after receiving the proposal and their objective is to review, evaluate, and determine the next steps that would be in the interests of the company and its unaffiliated shareholders.

Joseph A. Sigrist: Yeah, Dave, I mean, it is really not possible to say anything more than what's already been publicly disclosed. As you know, we formed a special committee. The board voted to form a special committee of independent, disinterested directors just after receiving the proposal. You know, their objective is to review, evaluate, and determine the next steps that would be in the interests of the company and its unaffiliated shareholders. Other than that, you know, there's not anything else the company can comment on.

Joe Sigrist: Yeah, Dave, I mean, it is really not possible to say anything more than what's already been publicly disclosed. As you know, we formed a special committee. The board voted to form a special committee of independent, disinterested directors just after receiving the proposal. You know, their objective is to review, evaluate, and determine the next steps that would be in the interests of the company and its unaffiliated shareholders. Other than that, you know, there's not anything else the company can comment on.

Speaker #2: Other than that, there's not anything else the company can comment on.

Speaker #3: Okay. I understand. And then I guess let me just ask two fundamental ones then because that one I didn't get much the incremental or the increased visibility into super nation EBITDA contribution this time around relative to last time.

David Bank: Okay. I understand. I guess let me just ask two fundamental ones then because that one I didn't get much. The increased visibility into SuprNation EBITDA contribution, you know, this time around relative to last time. Are we seeing, you know, the endpoint on that inflection, broadly, you know, this year? You know, are we sort of still breakeven with that business line?

David Bain: Okay. I understand. I guess let me just ask two fundamental ones then because that one I didn't get much. The increased visibility into SuprNation EBITDA contribution, you know, this time around relative to last time. Are we seeing, you know, the endpoint on that inflection, broadly, you know, this year? You know, are we sort of still breakeven with that business line?

Speaker #3: Are we seeing the endpoint on that inflection broadly? This year and are we sort of still break even with that business line?

Speaker #2: Yeah, yeah, great question. So, as you know, we've been looking to get beyond break-even even with Supernation since we purchased them. And, by the way, Supernation had a very strong quarter.

Joseph A. Sigrist: Yeah, great question. As, you know, we've been looking to get, you know, beyond breakeven even with SuprNation since we purchased them. By the way, SuprNation had a very strong quarter. With Q1, not yet including the increased tax burden from, you know, the increase in the UK.

Joe Sigrist: Yeah, great question. As, you know, we've been looking to get, you know, beyond breakeven even with SuprNation since we purchased them. By the way, SuprNation had a very strong quarter. With Q1, not yet including the increased tax burden from, you know, the increase in the UK.

Speaker #2: And so with Q1, not yet including the increased tax burden from the increase in the UK, we saw that they actually were able to reach break-even and even turn a bit of a profit.

David Bank: Right

David Bain: Right

Joseph A. Sigrist: we saw that they actually were able to, you know, reach breakeven and even turn a bit of a profit. The tailwind of the growth of the business, the fourth brand that was recently launched, you know, all were very positive. Of course, the headwind now, if you will, starting April 1, is the increased UK tax amount. As IK mentioned, you know, some of the actions that we're taking have been, at least so far, early days, looking good as it relates to trying to kinda mitigate some of the expenses on the business.

Joe Sigrist: we saw that they actually were able to, you know, reach breakeven and even turn a bit of a profit. The tailwind of the growth of the business, the fourth brand that was recently launched, you know, all were very positive. Of course, the headwind now, if you will, starting April 1, is the increased UK tax amount. As IK mentioned, you know, some of the actions that we're taking have been, at least so far, early days, looking good as it relates to trying to kinda mitigate some of the expenses on the business.

Speaker #2: The tailwind of the growth of the business, the fourth brand, that was recently launched all were very positive. Of course, the headwind now, if you will, starting April 1, is the increased UK tax amount.

Speaker #2: But as IK mentioned, some of the actions that we're taking have been at least so far early days looking good as it relates to trying to kind of mitigate some of the expenses on the business.

Speaker #2: And so it's a little too early to tell just based on the fact that we're only a little over a month into the new tax regimen.

Joseph A. Sigrist: It's a little too early to tell just based on the fact that we're only a little over a month into the new tax regimen. You know, we're still very, very focused on getting that business to be profitable and to grow the profit over time.

Joe Sigrist: It's a little too early to tell just based on the fact that we're only a little over a month into the new tax regimen. You know, we're still very, very focused on getting that business to be profitable and to grow the profit over time.

Speaker #2: But we're still very focused on getting that business to be profitable and to grow the profit over time.

Speaker #3: Okay, awesome. And then, if I could just have one more follow-up—just, and you did mention, Joe, the KPI nuances between WOW and DDI.

David Bank: Okay, awesome. Then if I could just have one more follow-up. You did mention, Joe, the KPI nuances between WHOW and DDI, DoubleDown Interactive. If you could bifurcate perhaps D2C growth or the mix with the two. We're getting here, it's 44%, we were kind of 20% plus I would think by now with DDI. Can you help us, can we get to 50% plus? I'm trying to understand where we are.

David Bain: Okay, awesome. Then if I could just have one more follow-up. You did mention, Joe, the KPI nuances between WHOW and DDI, DoubleDown Interactive. If you could bifurcate perhaps D2C growth or the mix with the two. We're getting here, it's 44%, we were kind of 20% plus I would think by now with DDI. Can you help us, can we get to 50% plus? I'm trying to understand where we are.

Speaker #3: DoubleDown Interactive. But if you could bifurcate perhaps DTC growth or the mix with the two. I mean, we're getting here it's like 44%. We were kind of 20-plus percent, I would think, by now.

Speaker #3: With DDI, can we get can you help us can we get to 50% plus? I'm trying to understand where we are. Meaning-wise with DTC as a full company.

Joseph A. Sigrist: Sure

Joe Sigrist: Sure

David Bank: earning-wise with D2C.

David Bain: earning-wise with D2C.

Joseph A. Sigrist: Sure

Joe Sigrist: Sure

David Bank: as a full company.

David Bain: as a full company.

Joseph A. Sigrist: Well, I think, as I believe I.K. mentioned, DDI, traditional, if I can use that word, let's call it DoubleDown Casino-

Speaker #2: Well, I think as I believe IK mentioned, DDI traditional, if I can use that word, let's call it DoubleDown Casino. By itself was over 40% in Q1.

Joe Sigrist: Well, I think, as I believe I.K. mentioned, DDI, traditional, if I can use that word, let's call it DoubleDown Casino by itself was over 40% in Q1. The growth essentially sequential from 33% DTC total in social casino last in Q4 to 44% in Q1. In 1 quarter, going from 33% to 44% was, you know, primarily based on the growth of DTC and DoubleDown Casino. It, you know, it's a great question. You know, how far further can it go, both with traditional DDI as well as WHOW? It's hard to predict. I mean, we've made incredible progress over the last, you know, 2 years and it's hard to handicap it, but, you know, we're really pleased with the results so far.

Joseph A. Sigrist: by itself was over 40% in Q1. The growth essentially sequential from 33% DTC total in social casino last in Q4 to 44% in Q1. In 1 quarter, going from 33% to 44% was, you know, primarily based on the growth of DTC and DoubleDown Casino. It, you know, it's a great question. You know, how far further can it go, both with traditional DDI as well as WHOW? It's hard to predict. I mean, we've made incredible progress over the last, you know, 2 years and it's hard to handicap it, but, you know, we're really pleased with the results so far.

Speaker #2: So the growth essentially sequential from 33% DTC total in social casino last in Q4 to 44 in 44% in Q1. In one quarter, going from 33 to 44% was primarily based on the growth of DTC and DoubleDown Casino.

Speaker #2: It's a great question. How far can it go? How much further can it go? Both with traditional DDI as well as WOW. It's hard to predict.

Speaker #2: I mean, we've made incredible progress over the last two years. And it's hard to handicap it, but we're really pleased with the results so far.

Speaker #3: Okay. Great. Thanks, guys.

David Bank: Okay, great. Thanks, guys.

David Bain: Okay, great. Thanks, guys.

Speaker #2: Thank you. Our next question. Comes from the line of Eric Handler of Roth Capital. Your line is open, Eric.

Operator 2: Thank you. Our next question comes from the line of Eric Handler of ROTH Capital. Your line is open, Eric.

Operator: Thank you. Our next question comes from the line of Eric Handler of ROTH Capital. Your line is open, Eric.

Speaker #4: Thank you very much. Here, I'm going to beat the horse to death here with the question on the W offer. But when you look at potential acquisitions, is that on hold for the moment until the offer has been evaluated?

Eric Handler: Thank you very much. Here, I'm gonna beat the horse to death here with the question on the W offer. When you look at potential acquisitions, is that on hold for the moment until the offer's been evaluated, or are you still actively looking for potential deals?

Speaker #4: Are you still actively looking for potential deals?

Speaker #2: Yeah. Thanks, Eric. Well, I mean, from an operating the company perspective, the management team here at DoubleDown continues to operate business as usual. And so we are continuing not only to run the current businesses we have, but to evaluate and analyze M&A opportunities because that's certainly been a big part on.

Joseph A. Sigrist: Yeah. Thanks. Thanks, Eric. Well, I mean, from a operating the company perspective, the management team here at DoubleDown, you know, continues to operate, you know, business as usual. We are continuing not only to run the current businesses we have, but to evaluate and analyze M&A opportunities, because that's certainly been a big part of what we've been focused on. You know, it's a big part of our growth strategy, we're continuing to, you know, to look at opportunities.

Joe Sigrist: Yeah. Thanks. Thanks, Eric. Well, I mean, from a operating the company perspective, the management team here at DoubleDown, you know, continues to operate, you know, business as usual. We are continuing not only to run the current businesses we have, but to evaluate and analyze M&A opportunities, because that's certainly been a big part of what we've been focused on. You know, it's a big part of our growth strategy, we're continuing to, you know, to look at opportunities.

Speaker #2: And so it's a big part of our growth strategy. And so we're continuing to look at opportunities.

Speaker #4: Okay. And then as a follow-up. So you did give a little bit of comment on the higher UK. Casino tax, or high gaming tax.

Eric Handler: Okay. As a follow-up, you did give a little bit of comment on, you know, the higher UK casino tax or iGaming tax. What are you doing to sort of mitigate the impact? Are you passing some of that along to the consumer? And what's happening to user acquisition costs with this in the last, I guess, 40 days?

Speaker #4: What are you doing to sort of mitigate the impact? Are you passing some of that along to the consumer? And what's happening to user acquisition costs with this in the last, I guess, 40 days?

Speaker #2: Yeah. So IK, if you'd like, I'll talk a little bit about CPI, user acquisition costs, if you want to talk a little bit about what we're doing to counteract the headwind of the tax increase.

Joseph A. Sigrist: Yeah. I.K., if you'd like, I'll talk a little bit about CPI user acquisition costs, if you wanna talk a little bit about what we're doing to counteract the headwind of the tax increase, feel free. As it relates to CPIs, there has been, I think, moderation in the expense. I don't know if it's been reduced significantly, but certainly some of the increases that we saw in not only in the iGaming space but also in gaming as a whole, I'll say. I mentioned that we leaned in a bit more even on the social casino side with DoubleDown Casino in the last quarter.

Joe Sigrist: Yeah. I.K., if you'd like, I'll talk a little bit about CPI user acquisition costs, if you wanna talk a little bit about what we're doing to counteract the headwind of the tax increase, feel free. As it relates to CPIs, there has been, I think, moderation in the expense. I don't know if it's been reduced significantly, but certainly some of the increases that we saw in not only in the iGaming space but also in gaming as a whole, I'll say. I mentioned that we leaned in a bit more even on the social casino side with DoubleDown Casino in the last quarter.

Speaker #2: Feel free. I mean, as it relates to CPIs, there has been I think moderation in the expense. I don't know if it's been reduced significantly.

Speaker #2: But certainly, some of the increases that we saw in the not only in the iGaming space, but also in gaming as a whole, I'll say.

Speaker #2: I mentioned that we leaned in a bit more, even on the social casino side, with DoubleDown Casino in the last quarter. We're seeing some opportunities for us to spend more.

Joseph A. Sigrist: You know, we're seeing some opportunities for us to, you know, to spend more. That's, you know, that's been positive. Relative to the situation with iGaming in the UK, it's still very early days. We're very keen to continue to observe what our much larger competitors are doing in that space. We, you know, we certainly are, you know, being, trying to be as flexible as we can because we are still, as I mentioned earlier, very focused on getting the profitability up on the iGaming business. IK, do you want to talk a little bit about some of the things we're doing on SuprNation?

Joe Sigrist: You know, we're seeing some opportunities for us to, you know, to spend more. That's, you know, that's been positive. Relative to the situation with iGaming in the UK, it's still very early days. We're very keen to continue to observe what our much larger competitors are doing in that space. We, you know, we certainly are, you know, being, trying to be as flexible as we can because we are still, as I mentioned earlier, very focused on getting the profitability up on the iGaming business. IK, do you want to talk a little bit about some of the things we're doing on SuprNation?

Speaker #2: And so that's been positive. Relative to the situation with iGaming in the UK, it's still very early days. We're very keen to continue to observe what our much larger competitors are doing in that space.

Speaker #2: But we certainly are being trying to be as flexible as we can because we are still, as I mentioned earlier, very focused on getting the profitability up on the iGaming business.

Speaker #2: IK, do you want to talk a little bit about some of the things we're doing on Supernation?

Speaker #4: Yeah. On the marketing operational side, we actually leveraged real-time data analytics to optimize user acquisition costs and enhance retention. And while we are mindful of the evolving regulatory and tax landscape on the UK side, we are seeing decreasing CPI costs.

In Keuk Kim: Yeah. On the marketing operational side, we actually leveraged real-time data analytics to optimize user acquisition costs and enhance retention. While we are mindful of the evolving regulatory and tax landscape in the UK side, we are seeing the decreasing CPI costs, but it really depends on what the budget side. Our strategy is just to mitigate these headwinds through a portfolio expansion. I think we are testing the ramping up right now. It's early to say, but yeah. It will go better.

IK Kim: Yeah. On the marketing operational side, we actually leveraged real-time data analytics to optimize user acquisition costs and enhance retention. While we are mindful of the evolving regulatory and tax landscape in the UK side, we are seeing the decreasing CPI costs, but it really depends on what the budget side. Our strategy is just to mitigate these headwinds through a portfolio expansion. I think we are testing the ramping up right now. It's early to say, but yeah. It will go better.

Speaker #4: But it really depends on the budget side. So our strategy is just to mitigate this headwind through a portfolio expansion, and I think we are testing the ramping up right now.

Speaker #4: So it's only to say, but yeah. It'll go better. Yep.

Joseph A. Sigrist: Thank you.

In Keuk Kim: Yeah.

Speaker #2: Thanks, Eric.

Joseph A. Sigrist: Thanks, Eric.

Joe Sigrist: Thanks, Eric.

Speaker #3: Thank you. Our next question. Comes from the line of Aaron Lee of Macquarie. Your question, please, Aaron.

Operator 2: Thank you. Our next question comes from the line of Aaron Lee of Macquarie. Your question, please, Aaron.

Operator: Thank you. Our next question comes from the line of Aaron Lee of Macquarie. Your question, please, Aaron.

Aaron Lee: Hey, good afternoon. Thanks for taking my question. Maybe to start just building off the earlier question on M&A, can you just update us on what the M&A environment looks like today? Are you still seeing deals cross your desk? What's been the gating factor so far? You know, are these deals just too small to move the needle, or are seller expectations, you know, misaligned? Any color on the M&A picture would be helpful. Thank you.

Speaker #5: Hey, good afternoon. Thanks for taking my question. Maybe to start just building off the earlier question on M&A. Can you just update us on what the M&A environment looks like today?

Speaker #5: Are you still seeing deals cross your desk? And what's been the gating factor so far? Are these deals just too small to move the needle, or are seller expectations misaligned?

Speaker #5: Any color on the M&A picture would be helpful. Thank you.

Speaker #2: Yeah, sure, Aaron. Thanks a lot. Yeah, I mean, there are still deals out there. I mean, it's clear that valuation expectations, as we've discussed in the more recent past, are—

Joseph A. Sigrist: Yeah, sure, Aaron. Thanks. Thanks a lot. Yeah, I mean, there are still deals out there. I mean, it's clear that valuation expectations, as we've discussed in the past or the more recent past, are down, you know, which as a buyer is good. You know, there are a number of deals that are also smaller, Aaron, to your point, which, you know, for us, you know, we've been looking to continue to ratchet up. I mean, our first deal with SuprNation spent $30, $40 million. Our next deal was WHOW, spent, you know, $65 million, and added, you know, something on the order of $40 to 50 million in annual revenue.

Joe Sigrist: Yeah, sure, Aaron. Thanks. Thanks a lot. Yeah, I mean, there are still deals out there. I mean, it's clear that valuation expectations, as we've discussed in the past or the more recent past, are down, you know, which as a buyer is good. You know, there are a number of deals that are also smaller, Aaron, to your point, which, you know, for us, you know, we've been looking to continue to ratchet up. I mean, our first deal with SuprNation spent $30, $40 million. Our next deal was WHOW, spent, you know, $65 million, and added, you know, something on the order of $40 to 50 million in annual revenue.

Speaker #2: Are down, which as a buyer is good. And there are a number of deals that are also smaller, Aaron, to your point, which for us, we've been looking to continue to ratchet up.

Speaker #2: I mean, our first deal with Supernation spent 30, 40 million dollars. Our next deal was Wow, spent 65 million. And added something on the order of 40 to 50 million in annual revenue.

Speaker #2: And so the next deal is also looking to be a step up. We would expect that, but it's hard to predict when that'll happen. There are deals out there.

Joseph A. Sigrist: The next deal is also looking to be a step up, we would expect. You know, it's hard to predict when that'll happen. There are deals out there, and, you know, we're continuing to use our disciplined approach to analyzing them, and, you know, we're on the look.

Joe Sigrist: The next deal is also looking to be a step up, we would expect. You know, it's hard to predict when that'll happen. There are deals out there, and, you know, we're continuing to use our disciplined approach to analyzing them, and, you know, we're on the look.

Speaker #2: And we're continuing to use our discipline approach to analyzing them. And yeah, we're on the look.

Speaker #3: Okay. Thanks for that. And I also wanted to ask about your comment about the opportunity you saw during the quarter to increase the advertising investment in DoubleDown Casino.

Aaron Lee: Okay. Thanks for that. I also wanted to ask about your comment about the opportunity you saw during the quarter to increase the advertising investment in DoubleDown Casino. Is there any more detail you can provide on what you saw in the market as you moved through the quarter? Do you have visibility into whether those trends are sustainable in the coming quarters? Thank you.

Speaker #3: Is there any more detail you can provide on what you saw in the market as you moved through the quarter? And do you have visibility into whether those trends are sustainable in the coming quarters?

Speaker #3: Thank you.

Speaker #2: Yeah. No. Good question. We were pleased to see that, as In Kim I think also mentioned, the CPIs had looked a little better for us, a little lower in Q1.

Joseph A. Sigrist: You know, good question. We were pleased to see that, as IK, I think, also mentioned, the CPIs had, you know, looked a little better for us, a little lower in Q1. Now Q4 is always a pretty tough environment, so there's always a Q4 to Q1 improvement. That coupled with our, I mean, it's the ROI that's the most important, right? Can you monetize quickly in the new player acquisition? We were able to see that. Not only was there, you know, good news on the CPI side, but we were also able to, you know, translate that into, you know, payer engagement. That's why we spent not, you know, not a ton more, but a bit more.

Joe Sigrist: You know, good question. We were pleased to see that, as IK, I think, also mentioned, the CPIs had, you know, looked a little better for us, a little lower in Q1. Now Q4 is always a pretty tough environment, so there's always a Q4 to Q1 improvement. That coupled with our, I mean, it's the ROI that's the most important, right? Can you monetize quickly in the new player acquisition? We were able to see that. Not only was there, you know, good news on the CPI side, but we were also able to, you know, translate that into, you know, payer engagement. That's why we spent not, you know, not a ton more, but a bit more.

Speaker #2: Now, Q4 is always a pretty tough environment. So there's always a Q4 to Q1 improvement. But that, coupled with our I mean, it's the ROI that's the most important, right?

Speaker #2: Can you monetize quickly in the new player acquisition? And we were able to see that. So not only was there good news on the CPI side, but we were also able to translate that into payer engagement.

Speaker #2: And so that's why we spent not a ton more, but a bit more. And certainly, we're always glad to do that. As far as whether it's sustainable or not, it's very difficult to tell.

Joseph A. Sigrist: Certainly we're always glad to do that. As far as whether it's sustainable or not, it's very difficult to tell. Again, you know, as we've talked in the past, we analyze the cohorts that we acquire, new player cohorts that we acquire on a daily, weekly basis. So we're always looking to lean in to acquiring new players if we can.

Joe Sigrist: Certainly we're always glad to do that. As far as whether it's sustainable or not, it's very difficult to tell. Again, you know, as we've talked in the past, we analyze the cohorts that we acquire, new player cohorts that we acquire on a daily, weekly basis. So we're always looking to lean in to acquiring new players if we can.

Speaker #2: But again, as we've talked in the past, we analyze the cohorts that we acquired—new player cohorts that we acquire—on a daily, weekly basis.

Speaker #2: And so we're always looking to lean into acquiring new players if we can.

Speaker #3: Awesome. Thanks, Joe.

Aaron Lee: Awesome. Thanks, Joe.

Speaker #2: Yep. Thanks, Aaron.

Joseph A. Sigrist: Yep. Thanks, Aaron.

Joe Sigrist: Yep. Thanks, Aaron.

Speaker #3: Thank you once again to ask a question. Please press star 11 on your telephone. Again, that's star 11 on your telephone to ask a question.

Operator 2: Thank you. Once again, to ask a question, please press star 11 on your telephone. Again, that's star 11 on your telephone to ask a question. Our next question comes from the line of Josh Nicholas of B. Riley. Your line is open, Josh.

Operator: Thank you. Once again, to ask a question, please press star 11 on your telephone. Again, that's star 11 on your telephone to ask a question. Our next question comes from the line of Josh Nicholas of B. Riley. Your line is open, Josh.

Speaker #3: Our next question. Comes from the line of Josh Nicholas of B Reilly. Your line is open, Josh.

Speaker #5: Yeah. Thanks for taking my question. Just to touch on the social casino business, we've seen some improvement there. What was the organic growth rate ex-Wow?

Josh Nicholas: Yeah, thanks for taking my question. Just to touch on the social casino business, we've seen some improvement there. What was the organic growth rate, ex WHOW? I'm just curious how we should be thinking about that trajectory as we lap the WHOW acquisition in July and move into the H2.

Josh Nichols: Yeah, thanks for taking my question. Just to touch on the social casino business, we've seen some improvement there. What was the organic growth rate, ex WHOW? I'm just curious how we should be thinking about that trajectory as we lap the WHOW acquisition in July and move into the H2.

Speaker #5: I'm just curious how we should be thinking about that trajectory as we lap the Wow acquisition in July and move into the second half.

Speaker #2: Yeah. I mean, certainly, the as mentioned earlier, social casino is a very mature category. And it's estimated to be in secular decline. So there's no question that there's a headwind when it comes to trying to grow existing the existing business, whether it be DoubleDown Casino or Wow.

Joseph A. Sigrist: Yeah, I mean, certainly the, as mentioned earlier, you know, social casino is a very mature category, and it's estimated to be in secular decline. There's no question that there's a, you know, a headwind, when it comes to trying to grow, you know, existing, the existing business, whether, you know, it be DoubleDown Casino or WHOW. You know, if you look at our results, compared to what, Eilers, for instance, estimates, you know, we, you know, we think we did more than hold our own in Q1. You know, there's no question given the maturity of this category. It's still incredibly cash generative and incredibly profitable.

Joe Sigrist: Yeah, I mean, certainly the, as mentioned earlier, you know, social casino is a very mature category, and it's estimated to be in secular decline. There's no question that there's a, you know, a headwind, when it comes to trying to grow, you know, existing, the existing business, whether, you know, it be DoubleDown Casino or WHOW. You know, if you look at our results, compared to what, Eilers, for instance, estimates, you know, we, you know, we think we did more than hold our own in Q1. You know, there's no question given the maturity of this category. It's still incredibly cash generative and incredibly profitable.

Speaker #2: But if you look at our results compared to what Eilers, for instance, estimates we think we did more than hold our own in the first quarter.

Speaker #2: But there's no question, given the maturity of this category, it's still incredibly cash-generative and incredibly profitable. But given the maturity of the category, that's why our strategy is also focused on well, optimizing profitability as we've talked about through DTC and leaning into opportunities to grow as we can relative to acquiring new players when the ROI makes sense.

Joseph A. Sigrist: You know, given the maturity of the category, you know, that's why our strategy is also focused on, well, optimizing profitability as we've talked about through DTC and leaning into opportunities to grow as we can relative to acquiring new players when the ROI makes sense. Then obviously, as a company looking for, you know, M&A opportunities to continue to expand the top line.

Joe Sigrist: You know, given the maturity of the category, you know, that's why our strategy is also focused on, well, optimizing profitability as we've talked about through DTC and leaning into opportunities to grow as we can relative to acquiring new players when the ROI makes sense. Then obviously, as a company looking for, you know, M&A opportunities to continue to expand the top line.

Speaker #2: And then obviously, as a company looking for M&A opportunities to continue to expand the top line.

Speaker #5: Thanks. And last question for me. I mean, there's been a couple of questions on, obviously, wouldn't expect you to comment on a proposal itself.

Josh Nicholas: Thanks. Last question from me. I mean, there's been a couple questions on it, obviously. Wouldn't expect you to comment on the proposal itself, but anything you could say about the timing around forming a special committee or how long until the process could reach a decision?

Josh Nichols: Thanks. Last question from me. I mean, there's been a couple questions on it, obviously. Wouldn't expect you to comment on the proposal itself, but anything you could say about the timing around forming a special committee or how long until the process could reach a decision?

Speaker #5: But anything you could say about the timing around forming a special committee or how long until the process could reach a decision?

Speaker #2: Well, the special committee has been formed. I mean, we sent out a press release a couple of weeks ago on that. And so they've been able to do their job.

Joseph A. Sigrist: Well, the special committee has been formed. I mean, we sent out a press release a couple weeks ago on that. You know, they've been enabled to do their job. As far as the process or the timeline, it's not something that we have exposure to at the company.

Joe Sigrist: Well, the special committee has been formed. I mean, we sent out a press release a couple weeks ago on that. You know, they've been enabled to do their job. As far as the process or the timeline, it's not something that we have exposure to at the company.

Speaker #2: And as far as the process or the timeline, it's not something that we have exposure to at the company.

Speaker #5: Got it. Thank you.

Josh Nicholas: Got it. Thank you.

Josh Nichols: Got it. Thank you.

Speaker #2: Thanks. Thanks, Josh.

Joseph A. Sigrist: Thanks. Thanks, Josh.

Joe Sigrist: Thanks. Thanks, Josh.

Operator 2: Thank you. That does conclude the Q&A portion of our call and our conference for today. Thank you for participating. You may now disconnect.

Operator: Thank you. That does conclude the Q&A portion of our call and our conference for today. Thank you for participating. You may now disconnect.