DoubleDown Interactive reported fourth quarter 2025 revenue of $95.8m, reflecting a 16.8% year-on-year increase. Profit dropped by 35.5% to $24.1m, attributed mainly to a non-cash impairment loss of SuprNation goodwill.
Operator’s adjusted EBITDA improved from previous year to Q4 2025, rising 15.7% to $40.6m. User engagement metrics showed moderate growth, with monthly active users increasing by 9.3% to 1,389, while daily active users rose 2.9% to 637.
Rising expenses weigh on operating performance
Operating costs climbed sharply during the quarter, increasing 37.7% to nearly $65.9m. The rise in expenses pushed operating profit down 12.4% to just over $29.9m. Cost of revenue reached $25.9m. This reflects ongoing investment in product support and platform operations.
Furthermore, sales and marketing expenses totalled $16.5m, while research and development spending came in at $2.1m. The combination of higher operating costs and the impairment charge explains the gap between revenue growth and declining net income.
Full year results show steady revenue growth with softer user trends
Across the full 2025 financial year, total revenue rose 5.4% to $359.9m while net income declined by 17.4% to $102.7m. Adjusted EBITDA increased by 0.3% to $142.3m, suggesting stable cash generation despite profit compression. Operating expenses for the year increased 14% to nearly $233m, which reduced operating income by 7.3% to $127m.
Sales and marketing spending climbed 28.6% to $59.4m, while general and administrative expenses grew 27.1%. Cost of revenue accounted for $101.6m, and research and development investment approached $12m during the year. Unlike the quarterly period, average monthly active users fell 4.9% to 1,296, while daily active users declined 5.7% to 616, pointing to evolving player engagement patterns entering 2026.
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