DoubleDown Interactive Co.

DDI

Electronic Gaming & Multimedia · Technology

Price

$11.33

+0.03 (+0.27%)

Market Cap

$561.4M

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count rising — dilution

+7.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 46.1M (2021) → 49.6M (2025)

DoubleDown Interactive makes mobile and online casino-style games. These are games like virtual slot machines and poker that people play on their phones or computers for fun — no real money is won or lost. The company is headquartered in Seoul, South Korea, and its most well-known product is DoubleDown Casino, a free-to-play social casino app with millions of users, mostly in the United States.

The company makes money by offering the games for free but selling virtual chips and coins that players use inside the game — this is called a "free-to-play" model. With a gross margin above 72% and an operating margin near 38%, the business keeps a large share of each dollar it earns. Its moat comes from an established player base and recognizable game titles, but the company faces real risk from slowing user growth and heavy competition from larger gaming companies with bigger marketing budgets.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+12.5% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+47.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$12M/ year

↓ Declining (-14% vs prior year)

3.3% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

98.8%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$433M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

DoubleDown Interactive Co. is a rare growth stock that's already generating positive cash flow while growing at 13%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

74.1%

Premium pricing power — 74.1% gross margin

Operating Margin

37.7%

Excellent — 37.7% operating margin

ROCE

3.5%

Weak — 3.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+10.1%

Steady sales growth (10.1% YoY)

EPS YoY

-3.8%

Earnings shrinking (-3.8% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

124%

Turns 124% of profit into real cash

FCF Margin

38.2%

Converts sales into free cash efficiently (38.2%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

0.04

Conservative — low debt load (0.04)

Interest Cover

17.33x

Comfortably covers interest (17.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

4.9x

Attractive valuation — P/E 4.9

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

+0.3

GROWING

Earnings roughly flat

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Dividends

Not applicable for this business.

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