Q2 2026 DoubleDown Interactive Co Ltd Earnings Call

August 11, 2026

Operator: Good afternoon, and welcome to DoubleDown Interactive's earnings conference call for the Q2 ended 30 June 2026. My name is Liz, and I will be your operator this afternoon. Prior to this call, DoubleDown issued its financial results for the Q2 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's CEO, Mr. In Keuk Kim, and its CFO, Mr. Joseph 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?

Speaker #1: Prior to this call, DoubleDown issued its financial results for the second quarter 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.

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's CEO, Mr. Incook Kim, and its CFO, Mr. Joe Sigrist.

Operator: You can find the link to the investor relations section at the top of the homepage. Joining us on today's call are DoubleDown's CEO, Mr. In Keuk Kim, and its CFO, Mr. Joseph 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?

Speaker #1: 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.

Speaker #1: Mr. Jaffoni?

Speaker #2: Thank you, Liz. 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.

Joseph Jaffoni: Thank you, Liz. 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 provisions 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 the use of words such as may, might, will, expect, assume, believe, intend, estimate, continue, should, anticipate, or other such similar terms. Forward-looking statements include, and are not limited to, those regarding the company's future plans, mergers and acquisition strategy, strategic and financial objectives, expected performance, and financial outlook.

Joe Jaffoni: Thank you, Liz. 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 provisions of the Private Securities Litigation Reform Act of 1995.

Speaker #2: And we hereby claim the protection of the safe harbor provisions 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 the use of words such as "may," "might," "will," "expect," "assume," "believe," "intend," "estimate," "continue," "should," "anticipate," or other such similar terms.

Joe Jaffoni: Forward-looking statements are statements about future events, and include expectations and projections, not present or historical facts, and can be identified by the use of words such as may, might, will, expect, assume, believe, intend, estimate, continue, should, anticipate, or other such similar terms. Forward-looking statements include, and are not limited to, those regarding the company's future plans, mergers and acquisition strategy, strategic and financial objectives, expected performance, and financial outlook.

Speaker #2: Forward-looking statements include and are not limited to those regarding the company's future plans, mergers and acquisition strategy, strategic and financial objectives, expected performance, and financial outlook.

Speaker #2: 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.

Speaker #2: We refer you to DoubleDown's annual report on Form 20-F filed with the SEC on March 31, 2026, and other SEC filings, for a more detailed discussion of the risks that could impact future operating results and financial condition.

Speaker #2: 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.

Joe Jaffoni: 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 #2: 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 the financial results prepared in accordance with IFRS.

Joseph Jaffoni: These measures should not be considered superior to, in isolation, or as a substitute for the financial results prepared in accordance with IFRS. A full reconciliation of these measures to the most directly comparable IFRS measure is available in the earnings release issued this afternoon. In addition, on 29 April 2026, DoubleDown issued a press release acknowledging the receipt of a non-binding expression of interest from DoubleU Games, its controlling shareholder, to acquire all the outstanding DoubleDown common shares, including ADRs not currently owned by them, at a price of $11.25 per ADS in cash. As noted in that press release, the company has formed a special committee to evaluate and negotiate with the controlling shareholder and determine the next steps that would be in the best interest of the company and its unaffiliated shareholders.

Joe Jaffoni: These measures should not be considered superior to, in isolation, or as a substitute for the financial results prepared in accordance with IFRS. A full reconciliation of these measures to the most directly comparable IFRS measure is available in the earnings release issued this afternoon.

Speaker #2: A full reconciliation of these measures to the most directly comparable IFRS measure is available in the earnings release issued this afternoon. In addition, on April 29th, 2026, DoubleDown issued a press release acknowledging the receipt of a non-binding expression of interest from W Games, its controlling shareholder, to acquire all of the outstanding DoubleDown common shares, including ADRs not currently owned by them, at a price of $11.25 per ADS in cash.

Joe Jaffoni: In addition, on 29 April 2026, DoubleDown issued a press release acknowledging the receipt of a non-binding expression of interest from DoubleU Games, its controlling shareholder, to acquire all the outstanding DoubleDown common shares, including ADRs not currently owned by them, at a price of $11.25 per ADS in cash.

Speaker #2: As noted in that press release, the company has formed a special committee to evaluate and negotiate with the controlling shareholder and determine the next steps that would be in the best interest of the company and its unaffiliated shareholders.

Joe Jaffoni: As noted in that press release, the company has formed a special committee to evaluate and negotiate with the controlling shareholder and determine the next steps that would be in the best interest of the company and its unaffiliated shareholders.

Speaker #2: As a result of this ongoing process, the company has no additional updates or further comments to discuss on today's call. I would like to remind everyone that today's call is being recorded and will be made available for replay via a link in the investor relations section of DoubleDown's website.

Joseph Jaffoni: As a result of this ongoing process, the company has no additional updates or further comments to discuss on today's call. I would like to remind everyone that today's call is being recorded and will be made available for replay via a link in the investor relations section of 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. Please go ahead.

Joe Jaffoni: As a result of this ongoing process, the company has no additional updates or further comments to discuss on today's call. I would like to remind everyone that today's call is being recorded and will be made available for replay via a link in the investor relations section of 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. Please go ahead.

Speaker #2: Thank you for your patience with that, and it's now my pleasure to turn the call over to DoubleDown CEO, In Kim. Please go ahead.

Speaker #3: Thank you, Joe. Good afternoon, everyone. We are delighted to be with you today. To discuss DoubleDown Interactive's second quarter 2026 results. Key highlights include: delivering revenue consistency and resiliency as we execute on our growth and geographical diversification strategies marked by solid contributions across both social casino and iGaming; delivering a record contribution of over 50% of our total social casino revenue from direct-to-consumer payer activity; and delivering another quarter of strong profitability and significant free cash flow generation.

In Keuk Kim: Thank you, Joe. Good afternoon, everyone. We are delighted to be with you today to discuss DoubleDown Interactive's Q2 2026 results. Key highlights include delivering revenue consistency and resiliency as we execute on our growth and geographical diversification strategies marked by solid contributions across both social casino and iGaming. Delivering a record contribution of over 50% of our total social casino revenue from direct-to-consumer payer activity, and delivering another quarter of strong profitability and significant free cash flow generation. These results further reinforce our confidence in our business model as we drive operational excellence across our portfolio. Let's start with the financial results. This afternoon, we reported Q2 consolidated revenue of $94.3 million, up approximately 11% year over year. This top-line growth helped drive Q2 adjusted EBITDA of $39.3 million, marking 17% year over year growth.

In Keuk Kim: Delivering a record contribution of over 50% of our total social casino revenue from direct-to-consumer payer activity, and delivering another quarter of strong profitability and significant free cash flow generation.

Speaker #3: These results further reinforce our confidence in our business model as we drive operational excellence across our portfolio. Let's start with the financial results. This afternoon, we reported second-quarter consolidated revenue of $94.3 million, up approximately 11% year over year.

In Keuk Kim: These results further reinforce our confidence in our business model as we drive operational excellence across our portfolio. Let's start with the financial results. This afternoon, we reported Q2 consolidated revenue of $94.3 million, up approximately 11% year over year. This top-line growth helped drive Q2 adjusted EBITDA of $39.3 million, marking 17% year over year growth.

Speaker #3: This top-line growth helped drive second quarter adjusted EBITDA of $39.3 million, marking 17% year-over-year growth. In Q2, we extended our track record of driving a high conversion of revenue to profit and cash flow.

In Keuk Kim: In Q2, we extended our track record of driving a high conversion of revenue to profit and cash flow. Net cash flow from operations was $24.6 million in the quarter, up 25% from the same period one year ago. As a result, we generated a total of $71 million in net cash flow from operations for the H1 of 2026. Our social casino segment remains the primary engine of DoubleDown's profit and cash flow generation. In Q2, social casino revenue grew 11.5% year over year to $77.3 million, driven by the contribution from WHOW Games, as well as the strong performance of DoubleDown's traditional social casino business. A key highlight this quarter is the continued growth of our direct-to-consumer, or DTC component, a major contributor to our strong growth in profitability.

Speaker #3: Net cash flow from operations was $24.6 million in the quarter, up 25% from the same period one year ago. As a result, we generated a total of $71 million in net cash flow from operations for the first half of 2026.

Speaker #3: Our social casino segment remains the primary engine of DoubleDown's profit and cash flow generation. In the second quarter, social casino revenue grew 11.5% year over year to $77.3 million driven by the contribution from WoW Games, as well as the strong performance of DoubleDown's traditional social casino business.

In Keuk Kim: In Q2, social casino revenue grew 11.5% year over year to $77.3 million, driven by the contribution from WHOW Games, as well as the strong performance of DoubleDown's traditional social casino business. A key highlight this quarter is the continued growth of our direct-to-consumer, or DTC component, a major contributor to our strong growth in profitability.

Speaker #3: A key highlight this quarter is the continued growth of our direct-to-consumer, or DTC, component—a major contributor to our strong growth in profitability in the second quarter.

In Keuk Kim: In Q2, DTC accounted for 52% of total social casino revenue, compared to just over 15% in Q2 of 2025, and 44% in the Q1 of 2026. At the same time, industry analysts at Eilers & Krejcik Gaming recently forecast that the global social casino market will decline over 5% in 2026. That said, our focus continues to be on outperforming the overall market through precise execution of our product development initiatives around player and payer retention, optimization of marketing and live ops activities to maximize payer conversion and purchasing activity, and continued maximization of the direct-to-consumer opportunity. Turning to our iGaming business, SuprNation's Q2 2026 revenue was $17 million, an increase of 10% year over year. Our newest iGaming casino title, Las Vegas, again contributed to the strong SuprNation result in the quarter.

Speaker #3: DTC accounted for 52% of total social casino revenue, compared to just over 15% in the second quarter of 2025 and 44% in the first quarter of 2026.

Speaker #3: At the same time, industry analysts at Eyler's and Crazy recently forecast that the global social casino market will decline by over 5% in 2026. That said, our focus continues to be on outperforming the overall market through precise execution of our product development initiatives around player and payer retention.

In Keuk Kim: That said, our focus continues to be on outperforming the overall market through precise execution of our product development initiatives around player and payer retention, optimization of marketing and live ops activities to maximize payer conversion and purchasing activity, and continued maximization of the direct-to-consumer opportunity.

Speaker #3: Optimization of marketing and live-ops activities to maximize payer conversion and purchasing activity, and continued maximization of the direct-to-consumer opportunity. Turning to our iGaming business, Super Nations' Q2 2026 revenue was $17 million, an increase of 10% year over year.

In Keuk Kim: Turning to our iGaming business, SuprNation's Q2 2026 revenue was $17 million, an increase of 10% year over year. Our newest iGaming casino title, Las Vegas, again contributed to the strong SuprNation result in the quarter.

Speaker #3: Our newest iGaming casino title, Las Vegas, again contributed to the strong Super Nations result in the quarter. During the second quarter, the Super Nations team did an excellent job in managing around the recently introduced higher UK gambling tax rate through a combination of product changes, marketing adjustments, and expense controls.

In Keuk Kim: During the second quarter, the SuprNation team did an excellent job in managing around the recently introduced higher UK gambling tax rate through a combination of product changes, marketing adjustments, and expense controls. This allowed our iGaming business to effectively mitigate much of the impact of tax increase. Our second quarter results highlight how prudent targeted investments are uncovering growth opportunities, which is enabling DoubleDown to extend our long-term record, our strong profitability, and cash flow generation. We are successfully integrating previous acquisitions while optimizing our core DoubleDown business. M&A remains a strategic priority as we continue to evaluate opportunities in online gaming and mobile entertainment that meet our criteria to enhance long-term shareholder value. Now, I return the call over to our CFO, Joe Sigrist, to walk us through the financials before providing my closing remarks. Joe?

Speaker #3: This allowed our iGaming business to effectively mitigate much of the impact of tax increase. Our second quarter results highlight how prudent targeted investments are on covering growth opportunities which is enabling DoubleDown to extend our long-term record over strong profitability and cash flow generation.

In Keuk Kim: Our second quarter results highlight how prudent targeted investments are uncovering growth opportunities, which is enabling DoubleDown to extend our long-term record, our strong profitability, and cash flow generation. We are successfully integrating previous acquisitions while optimizing our core DoubleDown business.

Speaker #3: We are successfully integrating previous acquisitions while optimizing our core DoubleDown business. M&A remains a strategic priority as we continue to evaluate opportunities in online gaming, and mobile entertainment that meet our criteria to enhance long-term shareholder value.

In Keuk Kim: M&A remains a strategic priority as we continue to evaluate opportunities in online gaming and mobile entertainment that meet our criteria to enhance long-term shareholder value. Now, I return the call over to our CFO, Joe Sigrist, to walk us through the financials before providing my closing remarks. Joe?

Speaker #3: Now I'll turn the call over to our CFO, Joe Sigrist, to walk us through the financials before I provide my closing remarks. Joe?

Speaker #4: Thank you, Ake, and good afternoon, everyone. To review revenues for the second quarter of 2026 were $94.3 million. This compares to total company revenues of $84.8 million in the second quarter of 2025 and $94.1 million in Q1 of 2026.

Joseph Sigrist: Thank you, IK, and good afternoon, everyone. To review, revenues for the second quarter of 2026 were $94.3 million.

Joe Sigrist: Thank you, IK, and good afternoon, everyone. To review, revenues for the second quarter of 2026 were $94.3 million.

Joseph Sigrist: This compares to total company revenues of $84.8 million in the second quarter of 2025 and $94.1 million in Q1 of 2026. Our social casino segment grew 11.5% from the second quarter of 2025 to $77.3 million, reflecting the inclusion of revenue from WHOW Games, which we acquired in July of last year. iGaming revenues grew by $1.5 million or 10% year over year to $17 million. Regarding our overall social casino KPIs, we previously mentioned that the metrics from WHOW Games are somewhat different from those of DoubleDown Casino. Specifically, WHOW Games experiences a higher payer conversion rate and lower average monthly revenue per payer. With this in mind, overall social casino KPI highlights for the second quarter include the payer conversion rate, which is the percentage of players who pay within the social casino apps, increased to 9.4% in Q2 2026, compared to 7.0% in Q2 2025.

Joe Sigrist: This compares to total company revenues of $84.8 million in the second quarter of 2025 and $94.1 million in Q1 of 2026. Our social casino segment grew 11.5% from the second quarter of 2025 to $77.3 million, reflecting the inclusion of revenue from WHOW Games, which we acquired in July of last year. iGaming revenues grew by $1.5 million or 10% year over year to $17 million. Regarding our overall social casino KPIs, we previously mentioned that the metrics from WHOW Games are somewhat different from those of DoubleDown Casino.

Speaker #4: Our social casino segment grew 11.5% from the second quarter of 2025 to $77.3 million, reflecting the inclusion of revenue from WoW Games, which we acquired in July of last year.

Speaker #4: iGaming revenues grew by 1.5 million or 10% year over year to $17 million. Regarding our overall social casino KPIs, we previously mentioned that the metrics from WoW Games are somewhat different from those of DoubleDown Casino.

Speaker #4: Specifically, WoW Games experiences a higher payer conversion rate and lower average monthly revenue per payer. With this in mind, overall social casino KPI highlights for the second quarter include the payer conversion rate—which is the percentage of players who pay within the social casino apps—increased to 9.4% in Q2 2026 compared to 7.0% in Q2 2025.

Joe Sigrist: Specifically, WHOW Games experiences a higher payer conversion rate and lower average monthly revenue per payer. With this in mind, overall social casino KPI highlights for the second quarter include the payer conversion rate, which is the percentage of players who pay within the social casino apps, increased to 9.4% in Q2 2026, compared to 7.0% in Q2 2025.

Speaker #4: The average revenue per daily active user or ARPDAO of $1.42 up from $1.33 in Q2 2025. And an average monthly revenue per payer at $218 in Q2 2026 down from $286 in the prior year period.

Joseph Sigrist: The average revenue per daily active user, or ARPDAU, of $1.42, up from $1.33 in Q2 2025, and an average monthly revenue per payer at $218 in Q2 2026, down from $286 in the prior year period. In the second quarter of 2026, operating expenses were $57.8 million, compared to $52.4 million in the second quarter of 2025. The increase primarily reflects the inclusion of WHOW Games expenses. Sales and marketing expenses for the second quarter of 2026 were $13.9 million, compared to $13.1 million in the second quarter of 2025, which again did not include WHOW Games. Conversely, sales and marketing expenses in the second quarter were down from Q1 2026, primarily due to a reduction in player acquisition spending at SuprNation in light of the revised iGaming tax rate in the UK.

Joe Sigrist: The average revenue per daily active user, or ARPDAU, of $1.42, up from $1.33 in Q2 2025, and an average monthly revenue per payer at $218 in Q2 2026, down from $286 in the prior year period. In the second quarter of 2026, operating expenses were $57.8 million, compared to $52.4 million in the second quarter of 2025. The increase primarily reflects the inclusion of WHOW Games expenses.

Speaker #4: In the second quarter of 2026, operating expenses were $57.8 million compared to $52.4 million in the second quarter of 2025. The increase primarily reflects the inclusion of WoW Games expenses.

Speaker #4: Sales and marketing expenses for the second quarter of 2026 were $13.9 million, compared to $13.1 million in the second quarter of 2025, which again did not include WoW Games.

Joe Sigrist: Sales and marketing expenses for the second quarter of 2026 were $13.9 million, compared to $13.1 million in the second quarter of 2025, which again did not include WHOW Games. Conversely, sales and marketing expenses in the second quarter were down from Q1 2026, primarily due to a reduction in player acquisition spending at SuprNation in light of the revised iGaming tax rate in the UK.

Speaker #4: Conversely, sales and marketing expenses in the second quarter were down from Q1 2026, primarily due to a reduction in player acquisition spending at Super Nation in light of the revised iGaming tax rate in the U.K.

Speaker #4: Profit excluding non-controlling interest for the second quarter of 2026 increased 50% to $32.9 million, or earnings per fully diluted common share of $13.27, or $66 per ADS in the second quarter of 2026, compared to profit for the interim period of $21.8 million, or earnings per fully diluted common share of $8.82, or $44 per ADS in Q2 2025.

Joseph Sigrist: Profit excluding non-controlling interest for the second quarter of 2026 increased 50% to $32.9 million, or earnings per fully diluted common share of $13.27 or $0.66 per ADS in the second quarter of 2026, compared to profit for the interim period of $21.8 million, or earnings per fully diluted common share of $8.82, or $0.44 per ADS in Q2 2025. The increase primarily reflects higher revenue, the lower cost of revenue attributable to a higher proportion of DTC revenue, and a higher unrealized gain on foreign currency, partially offset by higher overall operating expenses, primarily due to the inclusion of WHOW Games and increased costs associated with revenue growth from SuprNation. Adjusted EBITDA for the second quarter of 2026 rose to $39.3 million, compared to $33.5 million for the second quarter of 2025, and $38.2 million for Q1 2026.

Joe Sigrist: Profit excluding non-controlling interest for the second quarter of 2026 increased 50% to $32.9 million, or earnings per fully diluted common share of $13.27 or $0.66 per ADS in the second quarter of 2026, compared to profit for the interim period of $21.8 million, or earnings per fully diluted common share of $8.82, or $0.44 per ADS in Q2 2025.

Speaker #4: The increase primarily reflects higher revenue the lower cost of revenue attributable to a higher proportion of DTC revenue and a higher unrealized gain on foreign currency partially offset by higher overall operating expenses primarily due to the inclusion of WoW Games and increased costs associated with revenue growth from Super Nation.

Joe Sigrist: The increase primarily reflects higher revenue, the lower cost of revenue attributable to a higher proportion of DTC revenue, and a higher unrealized gain on foreign currency, partially offset by higher overall operating expenses, primarily due to the inclusion of WHOW Games and increased costs associated with revenue growth from SuprNation. Adjusted EBITDA for the second quarter of 2026 rose to $39.3 million, compared to $33.5 million for the second quarter of 2025, and $38.2 million for Q1 2026.

Speaker #4: Adjusted EBITDA for the second quarter of 2026 rose to $39.3 million, compared to $33.5 million for the second quarter of 2025 and $38.2 million for Q1 2026.

Speaker #4: Adjusted EBITDA margin was $41.6% for Q2 2026 as compared to $39.5% in Q2 2025 and $40.6% in Q1 2026. Net cash flows provided by operating activities in Q2 2026 were $24.6 million compared to $19.7 million in Q2 2025 due to higher profit and lower income tax paid.

Joseph Sigrist: Adjusted EBITDA margin was 41.6% for Q2 2026 as compared to 39.5% in Q2 2025 and 40.6% in Q1 2026. Net cash flows provided by operating activities in Q2 2026 were $24.6 million, compared to $19.7 million in Q2 2025 due to higher profit and lower income tax paid. As IK mentioned, net cash flows provided by operations were $71 million for the H1 of 2026. Inclusive of Q2 2026's meaningful cash generation, at quarter's end, we had $553.8 million in cash equivalents, and short-term investments with a net cash position of approximately $521.3 million or approximately $10.52 per ADS. Now I'll turn the call back to IK for closing remarks.

Joe Sigrist: Adjusted EBITDA margin was 41.6% for Q2 2026 as compared to 39.5% in Q2 2025 and 40.6% in Q1 2026. Net cash flows provided by operating activities in Q2 2026 were $24.6 million, compared to $19.7 million in Q2 2025 due to higher profit and lower income tax paid. As IK mentioned, net cash flows provided by operations were $71 million for the H1 of 2026.

Speaker #4: And as Ake mentioned, net cash flows provided by operations were $71 million for the first half of 2026. Inclusive of Q2 2026's meaningful cash generation, at quarter's end we had $553.8 million in cash, cash equivalents, and short-term investments, with a net cash position of approximately $521.3 million, or approximately $10.52 per ADS.

Joe Sigrist: Inclusive of Q2 2026's meaningful cash generation, at quarter's end, we had $553.8 million in cash equivalents, and short-term investments with a net cash position of approximately $521.3 million or approximately $10.52 per ADS. Now I'll turn the call back to IK for closing remarks.

Speaker #4: Now I'll turn the call back to Ake for closing remarks.

Speaker #3: Thank you, Joe. DoubleDown Interactive, powered by our core social casino and iGaming businesses, delivered another quarter of strong profitability and cash flow. Building on our solid first half of 2026, we remain committed to innovation and disciplined, high-ROI investments, and to driving DTC revenues, which collectively optimize social casino margins.

In Keuk Kim: Thank you, Joe. DoubleDown Interactive, powered by our core social casino and iGaming businesses, delivered another quarter of strong profitability and cash flow. Building on our solid H1 of 2026, we remain committed to innovation and disciplined high ROI investments and to drive DTC revenues, which collectively optimize social casino margin. Finally, our strong balance sheet and cash position provides us the financial flexibility to pursue strategic growth opportunities as well as additional value-building initiatives and transactions for our shareholders. We are now happy to take your questions. Liz?

Speaker #3: Finally, our strong balance sheet and cash position provides us the financial flexibility to pursue strategic growth opportunities as well as additional value building initiatives and transactions for our shareholders.

In Keuk Kim: Finally, our strong balance sheet and cash position provides us the financial flexibility to pursue strategic growth opportunities as well as additional value-building initiatives and transactions for our shareholders. We are now happy to take your questions. Liz?

Speaker #3: We are now happy to take your questions. Please.

Speaker #1: If you'd like to ask a question at this time, please press *11 on your telephone and wait for your name to be announced.

Operator: If you'd like to ask a question at this time, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. Our first question comes from Eric Handler with Roth Capital.

Speaker #1: To withdraw your question, please press star one one again. Our first question comes from Eric Handler with Roth Capital.

Speaker #5: Hey guys, this is Jack Weisberger on for Eric. Thanks for taking our questions. I want to focus on iGaming. Is there anything in particular that drove down the quarter-over-quarter decline?

Jack Weismeyer: Hey, guys. This is Jack Weismeyer on for Eric. Thanks for taking our question. I want to focus on iGaming. Is there anything in particular that drove down the quarter-over-quarter decline? Could have been related to user acquisition costs, maybe the UK tax changes? Anything on that would be helpful.

Jack Weisenberger: Hey, guys. This is Jack Weismeyer on for Eric. Thanks for taking our question. I want to focus on iGaming. Is there anything in particular that drove down the quarter-over-quarter decline? Could have been related to user acquisition costs, maybe the UK tax changes? Anything on that would be helpful.

Speaker #5: It could have been related to user acquisition costs, or maybe the UK tax changes. Anything you have on that would be helpful.

Speaker #4: Yeah, sure, Jack. That's fine. I mean, essentially, Q2 was down very slightly. It's essentially flat from Q1. And we certainly, in Q1, as Ake early expressed, had to—as we started Q2—deal with the significant increase in the tax rate starting on April 1.

Joseph Sigrist: Well, sure, Jack. That's fine. Essentially, Q2 was down very slightly. It's essentially flat from Q1. We certainly, in Q1, as IK earlier expressed, had to, as we started Q2, deal with the significant increase in the tax rate starting on 1 April in the UK. We made certain product adjustments and marketing adjustments. As I think I mentioned, we spent significantly less in player acquisition investment in Q2, as we wanted to see how the various larger competitors played out as they also dealt with the UK tax change. All that put together certainly moderated our sequential growth in revenue.

Joe Sigrist: Well, sure, Jack. That's fine. Essentially, Q2 was down very slightly. It's essentially flat from Q1. We certainly, in Q1, as IK earlier expressed, had to, as we started Q2, deal with the significant increase in the tax rate starting on 1 April in the UK. We made certain product adjustments and marketing adjustments.

Speaker #4: In the UK. And so we made certain product adjustments and marketing adjustments as I think I mentioned. We spent significantly less in player acquisition investment in Q2 as we wanted to see how the various competitive larger competitors played out as they also dealt with the UK.

Joe Sigrist: As I think I mentioned, we spent significantly less in player acquisition investment in Q2, as we wanted to see how the various larger competitors played out as they also dealt with the UK tax change. All that put together certainly moderated our sequential growth in revenue.

Speaker #4: Tax change and so all that put together kind of moderated our certainly moderated our sequential growth in revenue. But at the same time, we're quite pleased with the impact on player retention and how we remained I think very cost conscious during the quarter recognizing the increase in the tax rate.

Joseph Sigrist: But at the same time, we're quite pleased with the impact on player retention and how we remained, I think, very cost-conscious during the quarter, recognizing the increase in the tax rate so that, as I think was earlier mentioned, we were able to mitigate, at least on the expense side and certainly on the profit side, the impact of the tax increase.

Joe Sigrist: But at the same time, we're quite pleased with the impact on player retention and how we remained, I think, very cost-conscious during the quarter, recognizing the increase in the tax rate so that, as I think was earlier mentioned, we were able to mitigate, at least on the expense side and certainly on the profit side, the impact of the tax increase.

Speaker #4: So, as I think was earlier mentioned, we were able to mitigate, at least on the expense side and certainly on the profit side, the impact of the tax increase.

Speaker #5: That all makes sense. And then, also on free cash flow, you had nice year-over-year improvement in the first half. I know you mentioned some income tax timing.

Jack Weismeyer: That all makes sense. Also on free cash flow, you had nice year-over-year improvement in H1. I know you mentioned some income tax timing, or maybe there is some seasonality as well. Should we see more of a headwind due to that income tax timing year-over-year in H2? How should we think about free cash flow for the year?

Jack Weisenberger: That all makes sense. Also on free cash flow, you had nice year-over-year improvement in H1. I know you mentioned some income tax timing, or maybe there is some seasonality as well. Should we see more of a headwind due to that income tax timing year-over-year in H2? How should we think about free cash flow for the year?

Speaker #5: Or maybe there's some seasonality as well. Should we see more of a headwind due to that income tax timing year over year in 2H?

Speaker #5: How should we think about free cash flow for the year?

Speaker #4: Yeah, I mean, Q2 generally is when we have tax payments due. So it really is, I guess you could call it, seasonality. I mean, we've seen this over the last few years that, from a cash flow generation standpoint—because of tax payment timings—Q2 tends to be kind of a low watermark when it comes to quarterly cash flow.

Joseph Sigrist: Yeah, Q2 generally is when we have tax payments due. It really is, I guess you could call it seasonality. We have seen this over the last few years that from a cash flow generation standpoint, because of tax payment timings, Q2 tends to be kind of a low water mark when it comes to quarterly cash flow.

Joe Sigrist: Yeah, Q2 generally is when we have tax payments due. It really is, I guess you could call it seasonality. We have seen this over the last few years that from a cash flow generation standpoint, because of tax payment timings, Q2 tends to be kind of a low water mark when it comes to quarterly cash flow.

Speaker #5: Got it. Thank you very much, guys.

Jack Weismeyer: Got it. Thank you very much, guys.

Jack Weisenberger: Got it. Thank you very much, guys.

Speaker #4: Thanks, Jack.

Joseph Sigrist: Thanks, Jack.

Joe Sigrist: Thanks, Jack.

Speaker #1: Our next question comes from Aaron Lee with Macquarie.

Operator: Our next question comes from Aaron Lee with Macquarie.

Speaker #6: Hey guys, good afternoon. Thanks for taking the question. I'm curious to hear more about the UK tax increase. Can you just talk a bit about how trends were post the tax increase as you laid on your mitigation?

Aaron Lee: Hey, guys. Good afternoon. Thanks for taking the question. I am curious to hear more about the UK tax increase. Can you just talk a bit about how trends were post the tax increase as you layered on your mitigation? Has there been any change in how you are thinking about mitigation? Maybe to tie it all together, how should we be thinking about the trajectory of SuprNation going forward in terms of both revenues and profits? Thank you.

Speaker #6: Has there been any change in how you're thinking about mitigation and maybe to tie it all together? How should we be thinking about the trajectory of Super Nation going forward in terms of both revenues and profits?

Speaker #6: Thank you.

Speaker #4: Yeah, Aaron, no, it's really important to understand that we're trying to balance a significant change—essentially, an increase in the cost of doing business in the UK.

Joseph Sigrist: Yeah, Aaron, no, it is really important to understand that we are trying to balance with a significant change, essentially increase in the cost of doing business in the UK, trying to balance revenue growth with profit and with returns on the business that we purchased a few years ago. As we look over the last, well, now it has been, what, four and a half months since the tax increase occurred, and since we are able to observe what, again, some of our larger iGaming competitors are doing in the market, we feel like we have struck a good balance between revenue and profit.

Joe Sigrist: Yeah, Aaron, no, it is really important to understand that we are trying to balance with a significant change, essentially increase in the cost of doing business in the UK, trying to balance revenue growth with profit and with returns on the business that we purchased a few years ago.

Speaker #4: Trying to balance revenue growth with profit and with returns on the business that we purchased a few years ago. And so as we look over the last well, now it's been what, four and a half months since the tax increase.

Joe Sigrist: As we look over the last, well, now it has been, what, four and a half months since the tax increase occurred, and since we are able to observe what, again, some of our larger iGaming competitors are doing in the market, we feel like we have struck a good balance between revenue and profit.

Speaker #4: Occurred. And since we're able to observe what, again, some of our larger iGaming competitors are doing in the market, we feel like we've struck a good balance between revenue and profit.

Speaker #4: And we don't want to lose sight of the fact that we are still going to invest in acquiring players. But we're also going to make sure that we appropriately spend the money to get the returns that we need relative to that investment.

Joseph Sigrist: We do not want to lose sight of the fact that we are going to still invest in acquiring players, but we are also going to make sure that we appropriately spend the money to get the returns that we need relative to that investment and make the right product adjustments, whether it be RTP, bonus rates, those kinds of things, to also kind of balance the revenue and profit equation.

Joe Sigrist: We do not want to lose sight of the fact that we are going to still invest in acquiring players, but we are also going to make sure that we appropriately spend the money to get the returns that we need relative to that investment and make the right product adjustments, whether it be RTP, bonus rates, those kinds of things, to also kind of balance the revenue and profit equation.

Speaker #4: And make the right product adjustments, whether it be RTP, bonus rates, those kinds of things, to also kind of balance the revenue and profit equation.

Speaker #6: Okay, got it. That makes sense. And then with regard to marketing, especially with for Super Nation marketing, do you expect to stay at these reduced marketing levels or do you see opportunities to kind of increase that in the back half?

Aaron Lee: Okay, got it. That makes sense. With regard to marketing, especially for SuprNation marketing, do you expect to stay at these reduced marketing levels, or do you see opportunities to kind of increase that in the back half? Just any general thoughts on how you are thinking about marketing in the H2 of the year would be helpful.

Speaker #6: And just saying in general thoughts on how you're thinking about marketing in the second half of the year would be helpful.

Speaker #4: Yeah, I mean, if you look at our marketing spend over the last few quarters, it's really been fairly constant. And we're, as a company, and we see that being true for the rest of the year at least.

Joseph Sigrist: Yeah. If you look at our marketing spend over the last few quarters, it's really been fairly constant as a company. We see that being true for the rest of the year at least. We are looking, again, to kind of balance what we need to invest on our iGaming side versus on the social casino side, and recognizing that we have to invest to acquire new players in both businesses. A lot of what we, as I've mentioned in the past, what we do is make literally real-time adjustments based on the ROIs that we're seeing from various markets with various agencies, et cetera. But I do think that our more recent run rate is pretty much where we're going to be for the rest of the year.

Joe Sigrist: Yeah. If you look at our marketing spend over the last few quarters, it's really been fairly constant as a company. We see that being true for the rest of the year at least. We are looking, again, to kind of balance what we need to invest on our iGaming side versus on the social casino side, and recognizing that we have to invest to acquire new players in both businesses.

Speaker #4: And we are looking, again, to kind of balance what we need to invest on our iGaming side versus on the social casino side. And recognizing that we have to invest to acquire new players in both businesses.

Speaker #4: And a lot of what we, as I've mentioned in the past, what we do is make literally real-time adjustments based on the ROIs that we're seeing from various markets with various agencies.

Joe Sigrist: A lot of what we, as I've mentioned in the past, what we do is make literally real-time adjustments based on the ROIs that we're seeing from various markets with various agencies, et cetera. But I do think that our more recent run rate is pretty much where we're going to be for the rest of the year.

Speaker #4: But I do think that our more recent run rate is pretty much where we're going to be for the rest of the year.

Speaker #6: Perfect. Thank you very much.

Aaron Lee: Perfect. Thank you very much.

Speaker #1: Our next question comes from Josh Nichols with B. Reilly.

Operator: Our next question comes from Josh Nichols with B. Riley.

Speaker #5: Yeah, thanks for taking my question. The direct-to-consumer crossing the 50% threshold stood out. That's well in excess of where you thought you'd be.

Josh Nichols: Yeah. Thanks for taking my question. The direct-to-consumer crossing the 50% threshold stood out. That's well in excess of where you thought you'd be at this time of the year. Is there, I guess, a realistic ceiling in place or a point where you think some of those additional gains may stop dropping to the margin line? Or what's your expectation for where that could wind up by, say, year-end?

Speaker #5: At this time of the year, is there, I guess, a realistic ceiling in place or a point where you think some of those additional gains may stop dropping to the margin line?

Speaker #5: Or, what's your expectation for where that could wind up by, say, year-end?

Speaker #7: Hi, Josh. Let me take the question. Our 50% decision share is already on industry benchmark. But we see more room for further growth. Our consistent strategy is to mitigate migrate actually migrate valued users step by step to our own platform while maintaining a healthy balance across mobile app stores.

In Keuk Kim: Hi, Josh. Let me take the question. Our 50% DTC share is already an industry benchmark, but we see more room for further growth. Our consistent strategy is to migrate, actually, migrate valued users step by step to our own platform while maintaining a healthy balance across mobile app stores. By combining strong in-house DTC-related technology with real-time targeted features, we are not just reducing fees, but deepening users' trust. We have been proactively investing in our DTC capabilities, particularly in owned channel, direct CRM, and payment infrastructure, which allow us to communicate and transact with valued players more efficiently outside of traditional platform constraints. We are not just reducing fees, but deepening user trust. I expect this focus on DTC integration to drive steady incremental growth and sustain our leadership in the market. Hope this helped. Thanks.

Speaker #7: By combining strong in-house DTC-related technology with real-time targeted features, we are not just reducing fees but deepening user trust. So we've been proactively investing in our DTC capabilities, particularly in owned channel, direct CRM, and payment infrastructures, which allow us to communicate and transact with valued players more efficiently outside of traditional platform constraints.

In Keuk Kim: We have been proactively investing in our DTC capabilities, particularly in owned channel, direct CRM, and payment infrastructure, which allow us to communicate and transact with valued players more efficiently outside of traditional platform constraints. We are not just reducing fees, but deepening user trust. I expect this focus on DTC integration to drive steady incremental growth and sustain our leadership in the market. Hope this helped. Thanks.

Speaker #7: We are not just reducing fees, but deepening user trust. I expect this focus on DTC integration to drive steady, incremental growth and sustain our leadership in the market.

Speaker #7: Hope this helps. Thanks.

Speaker #5: No, thanks for the granularity there. Can you break out—you touched on it a little bit—but what's the organic social casino growth if we strip out WOW? I know you did mention E&K is projecting social casino revenue generally to be down 5% this year, but also that you noted you expect to outperform that.

Josh Nichols: No, thanks for the granularity there. Can you break out, you touched on it a little bit, but what's the organic social casino growth, if we strip out WHOW. I know you did mention Eilers & Krejcik Gaming is projecting social casino revenue generally to be down 5% this year, but also that you noted that you expect to outperform that. Are you currently trending in line with the industry expectations or a little bit better, or how should we think about that?

Speaker #5: Are you currently trending in line with the industry expectations or a little bit better or how should we think about that?

Josh Nichols: Are you currently trending in line with the industry expectations or a little bit better, or how should we think about that?

Speaker #4: Yeah, I mean, without quantifying it directly—I mean, listen—we’re really quite happy with the first half of the year on the social casino side.

Joseph Sigrist: Yeah, without quantifying it directly, listen, we're really quite happy with the H1 of the year on the social casino side. And where both on the traditional DoubleDown side as well as on the WHOW side, we've pretty much been able to more than hold our own relative to what is a declining market, I'll say. And so, yeah, I think, obviously the market is contracting based on both what Eilers & Krejcik Gaming say, but also what some of our competitors have already publicly reported. But we have been able to do incrementally better, at least so far in the H1 of the year.

Joe Sigrist: Yeah, without quantifying it directly, listen, we're really quite happy with the H1 of the year on the social casino side. And where both on the traditional DoubleDown side as well as on the WHOW side, we've pretty much been able to more than hold our own relative to what is a declining market, I'll say.

Speaker #4: And on both the traditional DoubleDown side as well as on the WoW side, we've pretty much been able to more than hold our own relative to what is a declining market, I'll say.

Speaker #4: And so, yeah, I think obviously the market is contracting based on both what ENK said, but also what some of our competitors have already publicly reported.

Joe Sigrist: And so, yeah, I think, obviously the market is contracting based on both what Eilers & Krejcik Gaming say, but also what some of our competitors have already publicly reported. But we have been able to do incrementally better, at least so far in the H1 of the year.

Speaker #4: But we have been able to do incrementally better, at least so far in the first half of the year.

Speaker #5: That's good to hear. And then, last question for me. I know you're not going to give any commentary on some of the reviews for the special committee, but is there anything you could say about the timeline? Is there a potential resolution expected before the next earnings report?

Josh Nichols: That's good to hear. And then last question from me. I know you're not going to give any commentary on some of the reviews for the special committee, but is there anything you could say about the timeline? Is there a potential resolution expected before the next earnings report?

Speaker #4: Yeah, as Joe mentioned report regarding the work of the special committee on the DUG proposal. The special committee is working diligently and we certainly look forward to hearing from them when progress has been made and there's certainly we're committed obviously with the special committee to communicate any and all progress when it's appropriate.

Joseph Sigrist: Yeah. As Joe mentioned upfront, we just have nothing to report regarding the work of the special committee on the DoubleU Games proposal. The special committee is working diligently, and we certainly look forward to hearing from them when progress has been made. And certainly, we are committed, obviously, with the special committee to communicate any and all progress when it is appropriate.

Joe Sigrist: Yeah. As Joe mentioned upfront, we just have nothing to report regarding the work of the special committee on the DoubleU Games proposal. The special committee is working diligently, and we certainly look forward to hearing from them when progress has been made. And certainly, we are committed, obviously, with the special committee to communicate any and all progress when it is appropriate.

Speaker #5: All right. Thanks for jumping back in the queue.

Josh Nichols: All right. Thanks. I will jump back in the queue.

Speaker #4: Yeah, thanks, Josh.

Joseph Sigrist: Yeah. Thanks, Josh.

Joe Sigrist: Yeah. Thanks, Josh.

Speaker #1: Our next question comes from David Bain with Texas Capital Bank.

Operator: Our next question comes from David Bain with Texas Capital Bank.

David Bain: Great. Thank you. First, Sai and Joe, great execution for the quarter. Maybe first to follow up on Aaron's question. As you saw in Q2, the industry leader planned to curtail some spend in the back half in terms of promotions. I am just wondering if that is a sign that the industry generally is becoming more rational, or is it reactive to some sort of new consumer indicator? I know, Joe, you mentioned the run rate for you guys will likely stay the same. Just given the environment, could that be beneficial? Can you lean into that potentially in the back half to acquire users?

Speaker #6: Great. Thank you. First, I can, Joe, great execution for the quarter. Maybe first to follow up on Aaron's question, as you saw in Q2, the industry leader planned to curtail some spend in the back half in terms of promotions.

Speaker #6: And I'm just wondering if that's a sign that the industry, generally, is becoming more rational, or if it is reactive to some sort of new consumer indicator?

Speaker #6: And I know Joe, you mentioned the run rate for you guys will likely stay the same, but just given the environment, could that be beneficial and can you lean into that potentially in the back half to acquire users?

David Bain: I know, Joe, you mentioned the run rate for you guys will likely stay the same. Just given the environment, could that be beneficial? Can you lean into that potentially in the back half to acquire users?

Speaker #4: I'm sorry, Dave. I gave me side or social casino?

Joseph Sigrist: I am sorry, Dave. You meant on the iGaming side or social casino?

Joe Sigrist: I am sorry, Dave. You meant on the iGaming side or social casino?

David Bain: I am sorry. No, on the social casino side.

Speaker #6: I'm sorry. No, on the social casino side—the social casino side.

Speaker #4: Yeah, I mean, we've been spending within a certain fairly narrow range on the social casino side for I think quite some time. I think I mentioned on the last call that towards the end of Q1, we started to see ROAS, our ROI on acquiring new players to be getting better.

Joseph Sigrist: Yeah. We have been spending within a certain fairly narrow range on the social casino side for, I think, quite some time. I think I mentioned on the last call that towards the end of Q1, we started to see ROAS, our ROI on acquiring new players, to be getting better, and so we leaned into it a bit. That mitigated a bit as we got into the rest Q2, and so we pulled back a bit. I do not think there is a huge variation from quarter to quarter in social casino, at least from our perspective, in how we view what we do in acquiring new players, because as I said, it is all based on near real-time calculation of returns, right? For 3, 7, 21-day returns on acquiring new players, and that informs our spending.

Joe Sigrist: Yeah. We have been spending within a certain fairly narrow range on the social casino side for, I think, quite some time. I think I mentioned on the last call that towards the end of Q1, we started to see ROAS, our ROI on acquiring new players, to be getting better, and so we leaned into it a bit. That mitigated a bit as we got into the rest Q2, and so we pulled back a bit.

Speaker #4: And so we leaned into it a bit. That mitigated a bit as we got into the rest of Q2. And so we pulled back a bit.

Speaker #4: I mean, I don't think there's a huge variation from quarter to quarter in social casino, at least from our perspective, in how we view what we do in acquiring new players. Because, as I said, it's all based on near real-time calculation of returns, right?

Joe Sigrist: I do not think there is a huge variation from quarter to quarter in social casino, at least from our perspective, in how we view what we do in acquiring new players, because as I said, it is all based on near real-time calculation of returns, right? For 3, 7, 21-day returns on acquiring new players, and that informs our spending.

Speaker #4: First, seven-, three-, seven-, and 21-day returns on acquiring new players, and that informs our spending. I would say that, in general, we've always prided ourselves on being quite disciplined in that.

Joseph Sigrist: I would say that I think, in general, we pride ourselves in being quite disciplined in that. I won't compare us to competitors, but I will say that we've always been, I think, very judicious as it relates to acquiring new players, and we'll continue to be that way.

Joe Sigrist: I would say that I think, in general, we pride ourselves in being quite disciplined in that. I won't compare us to competitors, but I will say that we've always been, I think, very judicious as it relates to acquiring new players, and we'll continue to be that way.

Speaker #4: I won't compare us to competitors, but I will say that we've always been, I think, very judicious as it relates to acquiring new players.

Speaker #4: And we'll continue to be that way.

Speaker #6: Okay, great. And then a follow-up on the D2C comments. Obviously, again, in social, you guys are higher than the high that has been reported in the past.

David Bain: Okay. Great. Then a follow-up on the D2C comments. Obviously, again, in social, obviously you guys are higher than the high that has been reported in the past. I'm just wondering if you could speak to any sort of balancing act with D2C and revenue growth. We've seen some checks citing smaller operators outperforming larger for the first time in a long time in social. I was wondering if maybe that was some of that leaning into D2C by the bigger players, or are you not seeing any sort of revenue balancing that needs to occur at this point?

Speaker #6: And I'm just wondering if you could speak to any sort of balancing act with D2C and revenue growth. I mean, we've seen some checks citing smaller operators outperforming larger ones for the first time in a long time.

David Bain: We've seen some checks citing smaller operators outperforming larger for the first time in a long time in social. I was wondering if maybe that was some of that leaning into D2C by the bigger players, or are you not seeing any sort of revenue balancing that needs to occur at this point?

Speaker #6: In social, and I was wondering if maybe that was some of that leaning into D2C by the bigger players, or is it not? Are you not seeing any sort of revenue balancing that needs to occur at this point?

Speaker #4: Yeah, I mean, to be honest, to be I mean, it's a good question, right? To be honest, we've and IK had mentioned this, right?

Joseph Sigrist: Yeah.

Joe Sigrist: Yeah.

David Bain: Revenue growth.

Joseph Sigrist: It's a good question, right? To be honest, IK had mentioned this, our growth in DTC, which has been quite dramatic, frankly, is not on the back of just giving more benefits. We have always been very sensitive to not wanting to overly inflate our economy or be too generous in an inappropriate way relative to the offers that we give, and that includes in the incentives that we give for direct-to-consumer. A lot of what we've done is, we think in order to get this kind of growth that we've seen, is to implement DTC really well and to reduce or even near eliminate the friction of the alternative payment path, if you will. Yes, there is some additional benefit to the payer, but it's nothing that we think has, to directly answer your question, really negatively impacted our revenue.

Joe Sigrist: It's a good question, right? To be honest, IK had mentioned this, our growth in DTC, which has been quite dramatic, frankly, is not on the back of just giving more benefits. We have always been very sensitive to not wanting to overly inflate our economy or be too generous in an inappropriate way relative to the offers that we give, and that includes in the incentives that we give for direct-to-consumer.

Speaker #4: Our growth in DTC, which has been quite dramatic, frankly, is not on the back of just giving more benefits. And we have always been very sensitive to not wanting to overly inflate our economy or be too generous in an inappropriate way relative to the offers that we give.

Speaker #4: And that includes in the incentives that we give for direct to consumer. A lot of what we've done is we think in order to get this kind of growth that we've seen is to implement DTC really well and to reduce or even near eliminate the friction of the alternative pay path, payment path, if you will, and yes, there is some additional benefit to the payer, but it's nothing that we think has directly answered your question really impact negatively impacted our revenue.

Joe Sigrist: A lot of what we've done is, we think in order to get this kind of growth that we've seen, is to implement DTC really well and to reduce or even near eliminate the friction of the alternative payment path, if you will. Yes, there is some additional benefit to the payer, but it's nothing that we think has, to directly answer your question, really negatively impacted our revenue.

Speaker #6: Okay. Awesome. Thank you.

David Bain: Okay. Awesome. Thank you.

Speaker #4: Thanks, Dave.

Joseph Sigrist: Thanks, Dave.

Joe Sigrist: Thanks, Dave.

Operator: Thank you. This concludes today's conference call. Thank you for joining us today. You may now disconnect.