DTC Mix Drives Q1 Beat; PT Adjusted for Take-Private Overhang

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DTC Mix Drives Q1 Beat; PT Adjusted for Take-Private Overhang

Company Report

May 13, 2026 DoubleDown Interactive Co., Ltd. (DDI)

Rating: DTC Mix Drives Q1 Beat; PT Adjusted for Take-PrivateOUTPERFORM OverhangPrice:

$11.55

12-Month Price Target: The Wedbush View

$15.00 (from $21.00)

DoubleDown's business model continues to benefit from acquisitions against a

Analysts maturing user base and considerable competition in the social casino space,

Alicia Reese with management indicating future deals would step up in size from the $65

212-938-9927 million WHOW transaction and may extend beyond social casino and iGaming.Alicia.Reese@wedbush.com The company's ability to monetize its base, converting nearly 10% of active usersKade Barr

(310) 876-9861 into payers, remains impressive and tracks well ahead of industry averages. The

kade.barr@wedbush.com primary contributor to the Q1 EBITDA beat was the favorable mix-shift toward

Matthew McCartney DTC, which crossed 44% of social casino revenue (up from 33% in Q4:25), with

(212) 738-7402 management indicating no near-term ceiling on further penetration. SuprNation

matthew.mccartney@wedbush.com continues to scale, though we expect the UK Remote Gaming Duty increase (21% to

40%, effective April 1) to constrain near-term profitability as management targets

segment breakeven post-mitigation. With approximately $500 million of net cashCompany Information

Market Cap (M) $572 available for further M&A, we maintain our OUTPERFORM rating but lower our

Enterprise Value (M) $117 price target to $15 from $21 to reflect the probability-weighted outcome between

our standalone valuation and the pending take-private proposal. Our standalone REV (M) in $