1. DoubleDown Interactive Co., Ltd. (NASDAQ:DDI)
Stock Upside: 122.35%
Number of Hedge Fund Holders: 9
DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) is one of the best Korean stocks to buy. On February 11, DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) shared its earnings for the fourth quarter and full-year 2025.
On revenue, Q4 came in at $95.8 million, up 17% year over year, but missed the consensus estimate by $4 million. Management explained that the shortfall was due to intensified competition and slowing user growth in the core social casino segment. This happened even though newer revenue streams picked up the slack, said management. For the full year, revenue grew to a record $359.9 million from $341.3 million in FY2024. Nonetheless, the core social casino business actually declined 3% year over year, and management noted that the headline growth was largely carried by acquisitions.
The quarter’s EPS was $9.72, well ahead of the $0.61 Wall Street expected. However, profit for the quarter fell sharply to $24.1 million from $35.7 million in Q4 FY2024, mainly because of a goodwill impairment charge on SuprNation, the company’s iGaming subsidiary. In this light, the large EPS beat was more a function of how analysts had modelled the impairment than of genuine outperformance, noted management.
In Keuk Kim, company CEO, stated that the blowout earnings during the quarter were the culmination of “a solid year of executing on our strategic plan of expanding our revenue across products and geographies while growing the direct-to-consumer (DTC) revenue streams.” He added that the company’s operating focus allowed them to “drive a high conversion of revenue to cash flow” which resulted in $42.8 million worth of net cash flow from operations in the December-ending quarter.
DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) is a South Korean developer and publisher of digital games. Its portfolio includes casino-style games such as DoubleDown Casino, DoubleDown Fort Knox, and DoubleDown Classic, which are distributed through mobile platforms and social networks.
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