Operator: Good afternoon, and welcome to DoubleDown Interactive’s Earnings Conference Call for the First Quarter Ended March 31, 26. My name is Latif, and I will be your operator this afternoon. Prior to this call, Double Down issued its financial results for the 2026 and 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 at to the investor relations section at the top of the home page. Joining us on today’s call are Double Down 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 N. Jaffoni, the company’s Investor Relations Advisor will make a brief introductory statement. Mr. Jaffoni?

Joseph N. 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 1.93 thousand as amended and section 21 e of the Securities Exchange Act of 1.933, as amended, and we hereby claim the protection of the safe harbor provision of the private Securities Litigation Reform Act of 2 thousand. 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. 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 Double Down’s annual report on form 20 f filed with the SEC on 03/31/2026 and other SEC filings for a more detailed discussion of the risk that could impact future operating results and financial condition. These forward looking statements are made only as of the date of this call.

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. These measures should not be considered superior to in isolation, or as a substitute for IFRS 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 by the link in the Investor Relations section on Double Down’s website.

Thank you for your patience with that, and it is now my pleasure to turn the call over to Double Down’s CEO In Keuk Kim. In Keuk Kim, please go ahead.

In Keuk Kim: Thank you, Joe. Good afternoon, everyone. We are delighted to be with you today to discuss DoubleDown Interactive. First quarter 2026 results. Key highlights include overall financial results reflecting a solid start to 2026, the high quarterly revenue for 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 result. 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. 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 fourth gaming brand, Las Vegas, which has met with a strong player response. Our social casino segment remains the primary engine of Double Down’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 WHOW Games which was acquired in the third quarter of last year. 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, WHOW Games already benefits from a relatively large DTC component due to its strong web based history. And over the last few quarters, we have made significant progress in ramping up DTC purchases made in our flagship social casino, Double Down Casino. In the 2026, this direct to consumer transition accelerated as the DTC components of double down 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 25. We plan to remain focused on optimizing the contribution of DTC revenue as a percentage of our overall social casino revenue throughout 2026.

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 player 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 first quarter. Going forward, we look to leverage this early positive result as we continue to acquire new players through marketing and advertising investments.

At SuprNation, we are also focused on continuing to find offsets to the recently introduced higher UK gambling tax rate through products adjustments, such as reducing, bonusing, rates. I am pleased to report the early result of this action to be positive. Our first quarter 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 double down business. M&A remain a strategic priority as we evaluate opportunities in online gaming and mobile entertainment to drive long term shareholder value.

Joseph A. Sigrist: Now I will turn the call over to our CFO, Joseph A. Sigrist, to walk us through the financials before providing my closing remarks. Joe, Thank you, In Keuk Kim, 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 will recall, the WHOW Games acquisition closed in July. IGaming revenues grew by $4 million or 30% year over year to $17.2 million was up over $1 million from Q4 2025. Regarding our overall social casino KPIs, we mentioned last quarter that the metrics from Wow games are somewhat different from those from Double Down Casino.

Specifically, the Wow 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 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. 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. In the 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 Wow games.

In addition, and as IK mentioned earlier, in Q1, we invested to acquire new players through SuprNation’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 Double Down Casino, based on recent positive ROI trends. Profit excluding noncontrolling interest for Q1 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 2026. Compared to profit for the interim period of $23.8 million or earnings per fully diluted share of $9.62 or $0.48 per ADS in Q1 2025. The increase primarily reflects higher revenue and higher unrealized gain on foreign currency, partially offset by higher overall operating expenses, which was due to the inclusion of WHOW Games.

And increased costs associated with the revenue growth from SuprNation. 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. In Q1 2026, with meaningful cash generation we had $533 million in cash. Cash equivalents, and short term investments, with a net cash position on 03/31/2026 of approximately $500 million or approximately $10.10 per ADS. Now I will turn the call back to IK for closing remarks.

In Keuk Kim: Thank you, Joe. DoubleDown Interactive. Powered by our core social casino and iGaming segment 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 revenue 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.

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Operator: Thank you. *1 on your telephone. To remove yourself from the queue, you may press #11 again. Our first question comes from the line of David Bain of Texas Capital Bank. Your line is open, David.

Analyst: Great. Thank you. And I did read the press release where you are sort of not going to be answering too much around the w expression of interest. With that being stated, though, rather than asking about, voter 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 the structure, the related structure with it? From here. Just any detail around that would be helpful. Maybe, 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.

Joseph A. Sigrist: Yes, Dave. It is really not possible to say anything more than what is already been publicly disclosed. 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. Other than that, there is not anything else the company can comment on. Okay. I understand. And then, I guess, let me just add 2 fundamental ones then because that 1, I did not get much. Yeah. The incremental, or the increased visibility into, SuprNation EBITDA contribution, this time around relative to last time?

Are we seeing the endpoint on that inflection broadly You know, this year, you know, we sort of still breakeven. With that business line? Yeah. Yeah. Great question. So as we have been looking to get beyond breakeven even with SuprNation since we purchased them. And by the way, SuprNation had a very strong quarter. 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 breakeven and even turn a bit of a profit. The tailwind, of the growth of the business the fourth brand that was recently launched, were all very positive. Of course, the headwind now, if you will, starting April 1 is the increased UK tax amount. But as IK mentioned, of the actions that we are 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 And so it is a little too early to tell just based on the fact that we are only a little over a month into the new tax regimen, but we are still very, very focused on getting that business to be profitable and to grow the profit over time.

Okay. Awesome. And then if I could just have 1 more follow-up. And you did mention, Joe, the KPI nuances between Wow and DDI, DoubleDown Interactive. But you know, if you could bifurcate perhaps D2C growth or the mix with the 2. I mean, we are getting here at, like, you know, 44% We were kind of 20-plus percent, I would think, by now, with DDI. Can we get– can you help us, like, can we get to 50%+? I am trying to understand where we are. Inning wise with D2C as a full company. Well, I think, as I believe IK mentioned, DDI traditional, if I can use that word, let’s call it double down casino. By itself was over 40%. In Q1. So the growth essentially sequential from 33% DTC total in social casino last Q4. To 44 in 44% in Q1. In 1 quarter, going from 33% to 44% was you know, primarily based on the growth of DTC and Double Down Casino.

it is a great question. How far can it go for how far further can it go, both with traditional DDI as well as wow. it is hard to predict. I mean, we have made incredible progress, over the last 2 years. And it is hard to handicap it, but we are really pleased with the results so far.

Analyst: Okay. Great. Thanks, guys.

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

Analyst (Eric Handler): Thank you very much. I am 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, or are you still actively looking for potential deals?

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

Analyst (Eric Handler): Okay. And then, as a follow-up, so you did give a little bit of comment on 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? Or and what is happening to user acquisition costs with this in the last, I guess, 40 days?

Joseph A. Sigrist: Yeah. So, I cannot if you would like, I will talk a little bit about CPI, user acquisition costs. If you want to talk a little bit about what we are doing to counteract the headwind of the tax increase. Feel free. I mean, as it relates to CPIs, there has been I think, moderation in the expense. I do not know if it is 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 will say. I mentioned that we leaned in a bit more even on the social casino side with Double Down Casino in the in the last quarter. You know, we are seeing some opportunities for us to, you know, to spend more. And so that is, that is been positive. Relative to the situation in I with iGaming in The UK, it is still very early days.

We are we are very keen to continue to observe what our much larger competitors are doing in that space. But 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 on the iGaming business. In Keuk Kim, do you want to talk a little bit about some of the things we are doing on, on Super Nation?

In Keuk Kim: Yeah. On the marketing operational side, we actually we would be leveraged real time data analytics to optimize user acquisition cost and enhance retention. And while we are mindful of the evolving regulatory and tax landscape in The UK. Side. We are seeing the decreasing CPI cost, but it will depend on what budget side. So our strategy is just to mitigate these headwinds through portfolio expansion. And I think we are testing the ramping up right now. So it is only to say, but yep. It will go better. Yep.

Joseph A. Sigrist: Thanks, Eric.

Operator: Thank you. Next question. Comes from the line of Aaron Lee of Macquarie. Your question, please, Aaron.

Analyst (Aaron Lee): Hey, good afternoon. Thanks for taking my question. Maybe to start just building off the earlier question on M and A. Can you just update us on what the M and A environment looks like today Are you still seeing deals across your desk? And what is been the gating factor so far? Know, are these deals just too small to move the needle, or are seller expectations misaligned? Any color on the M&A picture would be helpful. Thank you.

Joseph A. Sigrist: Yeah, sure, Aaron. Thanks a lot. Yeah. I mean, there are still deals out there. I mean, it is clear that valuation expectations as we have discussed in the past or the more recent past, 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 have been looking to continue to ratchet up. I mean, our first deal with SuprNation, spent $30 million to $40 million. Our next deal was WHOW. Spent you know, $65 million. And added, something on the on the order of $40 million to $50 million in annual revenue, so the next deal is also looking to be a step up. We would expect. But it is hard to predict when that will be. There are deals out there. And, you know, we are continuing to use our disciplined approach to analyzing them and, yeah, you know, we are we are we are on the look.

Analyst (Aaron Lee): 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 Double Down Casino Is there any more detail you can provide on what you saw in the market as you move through the quarter? And do you have visibility into whether those trends are sustainable in the coming quarters? Thank you.

Joseph A. Sigrist: Yeah, no, good question. We were pleased to see that In Keuk Kim, I think, also mentioned the CPIs had looked a little better for us, a little lower in Q1. Now Q4 is always a pretty tough environment, so there is always Q4 to Q1 improvement. But that coupled with our I mean, it is the ROI that is the most important. Right? Can you monetize quickly in the new player acquisition? And we were able to see that. Not only was there good news on the CPI side, but we were also able to translate that into, you know, payer engagement. And so that is why we spent not a ton more, but a bit more. And, certainly, we are always glad to do that. As far as whether it is sustainable or not, it is very difficult to tell. But again, as we have talked in the past, we analyze the cohorts that we acquired, new player cohorts that we acquire on a daily, weekly basis. And so we are always looking to lean in to acquiring new players if we can.

Analyst (Aaron Lee): Awesome. Thanks, Joe. Thanks, Aaron.

Operator: Thank you. Once again, to ask a question, please press *11 on your telephone. Again, that is *11 on your telephone to ask a question. Our next question? Comes from the line of Josh Nichols of B. Riley. Your line is open, Josh.

Josh Nichols: Yeah. Thanks for taking my question. Just to touch on the social casino business. We have seen some improvement there. What was the organic growth rate ex-WHOW? I am just curious how we should be thinking about that trajectory as we lap the WHOW acquisition in July and move into the second half.

Joseph A. Sigrist: Yeah. I mean, certainly, the as mentioned earlier, you know, social casino is a very mature category, and it is estimated to be in secular decline. So there is no question that there is a, you know, a headwind when it comes to trying to grow the existing the existing business, whether it would be Double Down Casino or WHOW. But, you know, if you look at our results, compared to what Eilers, for instance, estimates. You know, we think we did more than hold our own in the first quarter. But there is no question given the maturity of this category, it is still incredibly cash generative and incredibly profitable. But given the maturity of the category, that is why our strategy is also focused on well, optimizing profitability as we have talked about through DTC and leaning into opportunities to grow as we can relative to acquiring new players, when the ROI makes sense.

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

Josh Nichols: Thanks. And last question for me. I mean, there is been a couple questions on it, obviously. Would not expect you to comment on a 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?

Joseph A. Sigrist: Well, the special committee has been formed. We sent out a press release a couple weeks ago on that. And so, they have been enabled to do their job, and as far as the process or the timeline, it is not something that we have exposure to at the company. Got it. Thank you. Thanks. Thanks, Josh.

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.

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Q1 2026

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