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DoubleDown Interactive Co.

DDI
77
Electronic Gaming & Multimedia · Technology
Price
$12.89
+0.13 (+1.02%)
Market Cap
$638.7M
Exchange
NASDAQ
Winston Score
77
Winston is happy
A high-quality business with solid fundamentals.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Strong
Growth
Good
Cash Flow
Exceptional
Stability
Exceptional
Valuation
Strong

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)

Winston Score History

The full picture

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.

Growth Profile

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

Revenue Growth

+11.2% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+50.0% 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

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$554M 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 11%. 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

Profit per sale
Gross Margin
75.5%
Premium pricing power — 75.5% gross margin
Profit after running costs
Operating Margin
38.7%
Excellent — 38.7% operating margin
Return on the money invested
ROCE
13.9%
Good — 13.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+14.0%
Fast-growing sales (+14.0% YoY)
Profit growth
EPS YoY
+16.7%
Earnings growing fast (+16.7% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
117%
Turns 117% of profit into real cash
Spare cash per sale
FCF Margin
38.5%
Converts sales into free cash efficiently (38.5%)

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

What it owes vs what it owns
Debt / Equity
0.03
Conservative — low debt load (0.03)
Covers its interest
Interest Cover
43.37x
Comfortably covers interest (43.4x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
5.1x
Attractive valuation — P/E 5.1

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

Cheaper or dearer next year
P/E vs Forward
+0.5
GROWING
Earnings roughly flat

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Dividends

Not applicable for this business.
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