DoubleDown Interactive Co., Ltd. — Interim / Quarterly Report 2025

May 13, 2025

Exhibit 99.2

DoubleDown Interactive Co., Ltd.

Condensed Consolidated Interim Financial Statements (Unaudited)

As of and for the three months ended March 31, 2025 and 2024

Contents

Consolidated Interim Statement of Financial Position	F- 2
Consolidated Interim Statement of Comprehensive Income	F- 3
Consolidated Interim Statement of Changes in Equity	F- 4
Consolidated Interim Statement of Cash Flows	F- 5
Notes to the Condensed Consolidated Interim Financial Statements	F- 6

DoubleDown Interactive Co., Ltd.

Consolidated Interim Statement of Financial Position

(in thousands of U.S. dollars)

	Notes	March 31, — 2025	December 31, — 2024
		(unaudited)
Assets
Cash and cash equivalents	3	$ 365,664	$ 334,850
Short-term investments	3	90,072	80,000
Accounts receivable, net	3	29,529	30,778
Prepaid expenses and other assets		4,305	7,614
Total current assets		$ 489,570	$ 453,242
Property and equipment, net		981	1,025
Right-of-use assets, net	5,14	4,046	4,308
Intangible assets, net	4	47,390	47,666
Goodwill	4	396,400	395,804
Deferred tax asset		2,817	3,373
Other non-current assets	3	739	746
Total non-current assets		$ 452,373	$ 452,922
Total assets		$ 941,943	$ 906,164
Liabilities and equity
Accounts payable and accrued expenses	3,14	$ 17,129	$ 14,990
Current lease liabilities	3,5,14	1,112	1,162
Income taxes payable		6,015	1,512
Contract liabilities		1,413	1,754
Other current liabilities		4,857	3,966
Total current liabilities		$ 30,526	$ 23,384
Long-term borrowings with related party	3,6	34,095	34,014
Non-current lease liabilities	3,5	3,374	3,510
Deferred tax liabilities		2,458	-
Other non-current liabilities		4,010	3,223
Total non-current liabilities		$ 43,937	$ 40,747
Total liabilities		$ 74,463	$ 64,131
Equity
Share capital	9	21,198	21,198
Share premium	9	359,280	359,280
Accumulated comprehensive loss		( 9,153 )	( 10,688 )
Retained earnings		495,971	472,125
Equity attributable to DoubleDown Interactive Co., Ltd.		$ 867,296	$ 841,915
Equity attributable to non-controlling interests		184	118
Total equity		$ 867,480	$ 842,033
Total liabilities and equity		$ 941,943	$ 906,164

See accompanying notes to the condensed consolidated interim financial statements.

DoubleDown Interactive Co., Ltd.

Consolidated Interim Statement of Comprehensive Income

(Unaudited, in thousands of U.S. dollars, except per share amounts)

	Notes	Three months ended March 31, — 2025	2024
Revenue	10,15	$ 83,492	$ 88,143
Operating expenses:
Cost of revenue	11,14	( 24,125 )	( 27,419 )
Sales and marketing	11	( 14,138 )	( 15,060 )
Research and development	11	( 2,492 )	( 4,172 )
General and administrative	11	( 13,097 )	( 10,312 )
Other income		40	26
Other expense		( 49 )	( 50 )
Total operating expenses		( 53,861 )	( 56,987 )
Operating profit		$ 29,631	$ 31,156
Finance income		4,612	7,964
Finance cost		( 1,465 )	( 747 )
Profit before income tax		$ 32,778	$ 38,373
Income tax expense		( 8,866 )	( 7,997 )
Profit for the interim period		$ 23,912	$ 30,376
Other comprehensive income (loss):
Pension adjustments, net of tax		65	136
Gain (loss) on foreign currency translation		1,470	( 3,078 )
Total comprehensive income for the interim period		$ 25,447	$ 27,434
Profit attributable to:
DoubleDown Interactive Co., Ltd.		23,846	30,324
Non-controlling interests		66	52
Total comprehensive income attributable to:
DoubleDown Interactive Co., Ltd.		25,381	27,444
Non-controlling interests		66	( 10 )
Earnings per share:	12
Basic		$ 9.62	$ 12.24
Diluted		$ 9.62	$ 12.24

See accompanying notes to the condensed consolidated interim financial statements.

DoubleDown Interactive Co., Ltd.

Consolidated Interim Statement of Changes in Equity

(in thousands of U.S. dollars)

	Notes	Attributable to DoubleDown Interactive Co., Ltd — Share capital	Share premium	Accumulated other comprehensive income (loss)	Retained earnings	Sub-total	Non - controlling interests	Total equity
As of January 1, 2024	9	$ 21,198	$ 359,280	$ ( 810 )	$ 348,020	$ 727,688	$ 157	$ 727,845
Comprehensive income (loss) for the interim period
Profit for the interim period		—	—	—	30,324	30,324	52	30,376
Other comprehensive income (loss)		—	—	( 2,880 )	—	( 2,880 )	( 62 )	( 2,942 )
Sub-total of comprehensive income (loss) for the interim period		$ —	$ —	$ ( 2,880 )	$ 30,324	$ 27,444	$ ( 10 )	$ 27,434
As of March 31, 2024 (unaudited)	9	$ 21,198	$ 359,280	$ ( 3,690 )	$ 378,344	$ 755,132	$ 147	$ 755,279
As of January 1, 2025	9	$ 21,198	$ 359,280	$ ( 10,688 )	$ 472,125	$ 841,915	$ 118	$ 842,033
Comprehensive income (loss) for the interim period
Profit for the interim period		—	—	—	23,846	23,846	66	23,912
Other comprehensive income (loss)		—	—	1,535	—	1,535	-	1,535
Sub-total of comprehensive income (loss) for the interim period		$ —	$ —	$ 1,535	$ 23,846	$ 25,381	$ 66	$ 25,447
As of March 31, 2025 (unaudited)	9	$ 21,198	$ 359,280	$ ( 9,153 )	$ 495,971	$ 867,296	$ 184	$ 867,480

See accompanying notes to the condensed consolidated interim financial statements.

DoubleDown Interactive Co., Ltd.

Consolidated Interim Statement of Cash Flows

(Unaudited, in thousands of U.S. dollars)

	Notes	Three months ended March 31, — 2025	2024
Cash flows from (used in) operating activities
Profit for the interim period		$ 23,912	$ 30,376
Adjustments to reconcile profit to net cash from operating activities:
Depreciation and amortization	4,5,11,15	1,112	1,560
Unrealized gain on foreign currency	3	( 207 )	( 3,778 )
Unrealized loss on foreign currency	3	336	189
Gain on valuation of financial assets	3	( 290 )	-
Loss on valuation of financial assets	3	11	7
Interest income	3	( 3,806 )	( 3,431 )
Interest expense	3	449	589
Provision for severance benefits	7	108	( 299 )
Other long-term employee benefits		289	668
Income tax expense		8,866	7,997
Working capital adjustments:
Accounts receivable, net		1,383	( 1,808 )
Prepaid expenses, and other assets		518	578
Other non-current assets		53	236
Accounts payable and accrued expenses		3,369	1,291
Contract liabilities		( 341 )	( 112 )
Other current and non-current liabilities		( 19 )	( 644 )
Cash generated from operations		$ 35,743	$ 33,419
Interest received		6,180	2,486
Interest paid		( 61 )	( 104 )
Income taxes paid		( 742 )	( 93 )
Net cash inflow from operating activities		$ 41,120	$ 35,708
Cash flows from investing activities
Purchase of property and equipment		( 120 )	( 14 )
Purchase of short-term investments		( 141,081 )	( 31,934 )
Sales of short-term investment		131,221	-
Net cash (outflow) from investing activities		$ ( 9,980 )	$ ( 31,948 )
Cash flows from financing activities
Repayment of lease liabilities		( 207 )	( 793 )
Net cash (outflow) from financing activities		$ ( 207 )	$ ( 793 )
Net increase in cash and cash equivalents		$ 30,933	$ 2,967
Effect of exchange rate changes on cash and cash equivalents		$ ( 119 )	$ ( 15 )
Cash and cash equivalents at beginning of the interim period		$ 334,850	$ 206,911
Cash and cash equivalents at end of the interim period		$ 365,664	$ 209,863

See accompanying notes to the condensed consolidated interim financial statements.

DoubleDown Interactive Co., Ltd.

Notes to the Condensed Consolidated Interim Financial Statements (unaudited)

1. General information

Background and nature of operations

DoubleDown Interactive Co., Ltd. (“DDI,” “we,” “us,” “Parent Company,” “our” or “the Company,” formerly known as The8Games Co., Ltd.) was incorporated in 2008 in Seoul, Korea as an interactive entertainment studio, focused on the development and publishing of casual games and mobile applications. DDI is a subsidiary of DoubleU Games Co., Ltd. (“DUG” or “DoubleU Games”), a Korean company and our controlling shareholder holding 67.1 % of our outstanding shares. In 2017, DDI acquired DoubleDown Interactive, LLC (“DDI-US”) from International Gaming Technologies (“IGT”) for approximately $ 825 million. DDI-US, with its principal place of business located in Seattle, Washington, is our primary revenue-generating company. On October 31, 2023, the Company closed its previously announced acquisition of iGaming operator, SuprNation AB (together with its subsidiaries, “SuprNation”). The acquisition diversifies the digital games categories that the Company addresses with the addition of three real-money iGaming sites in Europe. Following the closing, SuprNation AB is a direct, wholly-owned subsidiary of DDI-US.

We develop and publish digital gaming contents on various mobile and web platforms through our multi-format interactive all-in-one game experience concept. We host DoubleDown Casino, DoubleDown Classic, and DoubleDown Fort Knox within various formats, as well as SuprNation’s three brands, Duelz, VoodooDreams, NYSpins, on web platforms.

On September 2, 2021, we completed our initial public offering (“IPO”) of American Depositary Shares (“ADSs”), each representing 0.05 share of a common share, with par value of ₩ 10,000 per share, of the Company. Our ADSs trade on the NASDAQ Stock Market (“NASDAQ”) under the symbol “DDI.”

2. Basis of preparation and material accounting policies

Basis of preparation

The accompanying condensed consolidated interim financial statements are presented in conformity with International Financial Reporting Standards (“IFRS Accounting Standards”) as issued by International Accounting Standard Board (“IASB”), and include the accounts of DDI and its controlled subsidiaries. All intercompany transactions, balances, and unrealized gains or losses have been eliminated. Our unaudited condensed consolidated interim financial statements include all adjustments of a normal, recurring nature necessary for the fair statement of the results for the interim periods presented. The results for the interim period presented are not necessarily indicative of those for the full year. The condensed consolidated interim financial statements should be read in conjunction with our consolidated financial statements for the year ended December 31, 2024.

Use of estimates

The preparation of financial statements in conformity with IFRS requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures. We base our estimates and assumptions on current facts, historical experience, and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and the actual results, future operating results may be affected.

The significant accounting estimates and assumptions used in the preparation of these condensed consolidated interim financial statements are consistent with those applied in the preparation of the annual consolidated financial statements for the year ended December 31, 2024, except for the estimation method used in determining income tax expense.

The income tax expense for the interim period is calculated by applying the estimated average annual effective tax rate to the profit before tax for the period.

Accounting policies

The accounting policies applied in the preparation of these condensed consolidated interim financial statements are consistent with those applied in the preparation of the consolidated financial statements as of and for the year ended December 31, 2024, except for the adoption of new standards or interpretations effective from January 1, 2025

New standards and interpretations adopted during the interim period

Amendments to IAS 21 - Lack of Exchangeability

The amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates will require the application of a consistent approach when assessing whether a currency can be exchanged for another currency and, when it cannot, determining the exchange rate to be used, and the related disclosures. The amendments are effective for annual reporting periods beginning on or after January 1, 2025, with earlier adoption permitted. The Company does not expect the adoption of these amendments to have a material impact on the Company’s condensed consolidated interim financial statements .

3. Financial instruments

3.1. Financial assets

Financial assets by category as of March 31, 2025, and December 31, 2024, are as follows (in thousands):

	March 31, 2025 — Financial assets at fair value through profit or loss	Financial assets measured at amortized cost
Current assets
Cash and cash equivalents	$ —	$ 365,664
Short-term investments	—	90,072
Accounts receivable, net	—	29,529
Accrued income	—	651
Financial assets at fair value through profit or loss	266	—
Total	$ 266	$ 485,916
Non-current assets
Financial assets at fair value through profit or loss	439	—
Total	$ 439	$ —

	December 31, 2024 — Financial assets at fair value through profit or loss	Financial assets measured at amortized cost
Current assets
Cash and cash equivalents	$ —	$ 334,850
Short-term investments	—	80,000
Accounts receivable, net	—	30,778
Accrued income	—	2,996
Total	$ —	$ 448,624
Non-current assets
Financial assets at fair value through profit or loss	417	—
Total	$ 417	$ —

3 .2. Financial liabilities

Financial liabilities by category as of March 31, 2025, and December 31, 2024, are as follows (in thousands):

	March 31, 2025 — Financial liabilities at fair value through profit or loss	Financial liabilities measured at amortized cost
Current liabilities
Accounts payable	$ —	$ 198
Accrued expenses (1)	—	16,931
Current lease liabilities	—	1,112
Financial liabilities at fair value through profit or loss	11	—
Total	$ 11	$ 18,241
Non-current liabilities
Non-current lease liabilities	—	3,374
Long-term borrowings with related party	—	34,095
Other non-current liabilities	—	1,325
Total	$ —	$ 38,794

(1) Annual leave allowance that should be paid to employees is excluded .

	December 31, 2024 — Financial liabilities at fair value through profit or loss	Financial liabilities measured at amortized cost
Current liabilities
Accounts payable	$ —	$ 2,889
Accrued expenses (1)	—	12,101
Current lease liabilities	—	1,162
Total	$ —	$ 16,152
Non-current liabilities
Non-current lease liabilities	—	3,510
Long-term borrowings with related party	—	34,014
Other non-current liabilities	—	936
Total	$ —	$ 38,460

(1) Annual leave allowance that should be paid to employees is excluded .

3.3. Fair value hierarchy

Fair value hierarchy classifications of the financial assets and liabilities that are measured at fair value disclosed in fair value as of March 31, 2025, and December 31, 2024, are as follows (in thousands):

	March 31, 2025 — Level 1	Level 2	Level 3	Total
Financial assets and liabilities at fair value through profit or loss
Financial assets	$ —	$ 266	$ 439	$ 705
Financial liabilities	—	11	—	11

	December 31, 2024 — Level 1	Level 2	Level 3	Total
Financial assets and liabilities at fair value through profit or loss
Financial assets	$ —	$ —	$ 417	$ 417
Financial liabilities	—	—	—	—

3.4. Valuation techniques and the inputs

The valuation techniques and inputs used for fair value measurements and disclosed fair values categorized within Level 2 and Level 3 of the fair value hierarchy as of March 31, 2025, and December 31, 2024, are as follows (in thousands):

	March 31, 2025	December 31, 2024	Level	Valuation techniques
Financial assets at fair value through profit or loss	$ 439	$ 417	3	Market-based fair value approach
Financial assets at fair value through profit or loss	$ 266	$ —	2	Discounted cash flow method
Financial liabilities at fair value through profit or loss	$ 11	$ —	2	Discounted cash flow method

3.5. Net gains or losses by category of financial instruments

(in thousands)	Three months ended March 31, — 2025	2024
Financial assets at fair value through profit or loss
Gain on valuation of financial assets	$ 290	$ ( 7 )
Sub-total	$ 290	$ ( 7 )
Financial assets at amortized cost
Interest income	3,806	3,431
Gain on foreign currency transactions	309	753
Unrealized gain on foreign currency	207	3,365
Loss on foreign currency transactions	( 31 )	( 22 )
Unrealized loss on foreign currency	( 336 )	( 189 )
Sub-total	$ 3,955	$ 7,338
Total	$ 4,245	$ 7,331
Financial liabilities at fair value through profit or loss
Loss on valuation of financial liabilities	$ ( 11 )	$ —
Sub-total	$ ( 11 )	$ —
Financial liabilities at amortized cost
Interest expense	( 449 )	( 512 )
Gain on foreign currency transactions	—	2
Unrealized gain on foreign currency	—	413
Loss on foreign currency transactions	( 638 )	( 17 )
Sub-total	( 1,087 )	( 114 )
Total	$ ( 1,098 )	$ ( 114 )

4. Intangible assets and goodwill

Changes in the net book value of intangible assets as of March 31, 2025, and March 31, 2024, are as follows (in thousands):

	March 31, 2025 — Goodwill	Trademarks	Customer relationships	Purchased technology	Development costs	Software	Total
Beginning balance	$ 395,804	$ 35,009	$ 6,197	$ 6,072	$ —	$ 388	$ 443,470
Acquisition	—	—	—	—	—	—	—
Amortization	—	( 1 )	( 553 )	( 174 )	—	( 26 )	( 754 )
Translation differences	596	—	230	235	—	13	1,074
Ending balance	$ 396,400	$ 35,008	$ 5,874	$ 6,133	$ —	$ 375	$ 443,790

	March 31, 2024 — Goodwill	Trademarks	Customer relationships	Purchased technology	Development costs	Software	Total
Beginning balance	$ 396,704	$ 35,000	$ 8,885	$ 7,162	$ —	$ 524	$ 448,275
Acquisition	—	—	—	—	—	—	—
Amortization	—	—	( 570 )	( 179 )	—	( 29 )	( 778 )
Translation differences	( 353 )	—	( 194 )	( 157 )	—	( 457 )	( 1,161 )
Ending balance	$ 396,351	$ 35,000	$ 8,121	$ 6,826	$ —	$ 38	$ 446,336

5. Lease

5.1. Our leases primarily consist of real estate leases for office space and do not have any non-lease components. The leases typically run for a period of 2 ~ 10 years, with an option to renew or terminate the lease after that date. No restrictions or covenants are imposed on leases, but the lease assets shall not be provided as collateral for borrowings.

5.2. Changes in right-of-use assets and lease liabilities:

Changes in right-of-use assets and lease liabilities as of March 31, 2025, and March 31, 2024 are as follows (in thousands):

	Right-of-use assets	Lease liabilities
	Office
Balance at January 1, 2025	$ 4,308	$ 4,673
Depreciation	( 283 )	—
Interest expense relating to lease liabilities	—	61
Payments of lease liabilities	—	( 269 )
Translation differences	21	21
Balance at March 31, 2025	$ 4,046	$ 4,486

	Right-of-use assets	Lease liabilities
	Office
Balance at January 1, 2024	$ 7,071	$ 7,577
Depreciation	( 733 )	—
Interest expense relating to lease liabilities	—	104
Payments of lease liabilities	—	( 896 )
Translation differences	( 191 )	( 247 )
Balance at March 31, 2024	$ 6,147	$ 6,538

6. Long-term borrowings

The following table represents borrowings from DoubleU Games as follows (in thousands):

	March 31, 2025	December 31, 2024
4.6 % Senior Notes due to related party due May 27, 2026 (1)	$ 34,095	$ 34,014

(1) They extended three loans to us on May 25, 2018, August 27, 2018, and November 26, 2018 (collectively, the “ 4.6 % Senior Notes”), and the aggregate outstanding principal amount as of March 31, 2025, was $ 34.1 million. In May 2024, a voluntary interest payment of $ 9.6 million was made, and the maturity of each note from a related party, originally due on May 27, 2024, was extended by two years to May 27, 2026, including the remaining outstanding principal amount under the 4.60 % Senior Notes.

7. Retirement benefit plan

7.1 Defined benefit pension plan

We operate a defined benefit pension plan under employment regulations in Korea. The plan services the employees located in Seoul and is a final wage-based pension plan, which provides a specified amount of pension benefit based on length of service. The service cost components of the net periodic benefit costs are charged to current operations based on the employee’s functional area. The change in actuarial gains or losses, which is not significant, was included in other comprehensive income.

7.2 Details of defined benefit liabilities

The following table presents net defined benefit liabilities (defined benefit assets) as follows (in thousands):

	March 31, 2025	December 31, 2024
Present value of defined benefit obligations	$ 2,054	$ 1,977
Fair value of plan assets	( 1,944 )	( 2,008 )
Net defined benefit liabilities (assets)	$ 110	$ ( 31 )

8. Income taxes

The income tax expense for the interim period has been recognized based on management’s best estimate of the weighted average annual effective tax rate expected for the full fiscal year ending December 31, 2025. Separately, management estimates that the weighted average annual effective tax rate for the interim period ended March 31, 2025, will be 27.0 %, compared to 20.8 % for the interim period ended March 31, 2024.

9. Shareholders’ equity

We have 200,000,000 total authorized shares with 2,477,672 common shares issued and outstanding at March 31, 2025, and 2024, and a par value per share is KRW 10,000 .

9.1. Changes in share capital

The following table represents common share, share capital and premium as follows (in thousands, except shares):

	Common shares	Share capital	Share premium	Total
Balance at January 1, 2024	2,477,672	$ 21,198	$ 359,280	$ 380,478
Balance at March 31, 2024	2,477,672	$ 21,198	$ 359,280	$ 380,478
Balance at January 1, 2025	2,477,672	$ 21,198	$ 359,280	$ 380,478
Balance at March 31, 2025	2,477,672	$ 21,198	$ 359,280	$ 380,478

10. Revenue from contract with customers

10.1 Disaggregation of revenue

The Company distinguishes between revenue recognized over time and revenue recognized at a point in time.

The table below presents revenue by service contract type and the timing of performance obligation satisfaction (in thousands):

	Three months ended March 31, — 2025	2024
Type of service (1)
Social casino game	$ 70,281	$ 79,824
Geographical market (1)
U.S.	61,014	70,186
International	9,267	9,638
Total	$ 70,281	$ 79,824
Timing of revenue recognition (1)
Over the time	70,203	79,603
At a point in time	78	221
Total	$ 70,281	$ 79,824

(1) iGaming revenues are excluded, amounting to $ 13,211 thousand for the three months ended March 31, 2025 and $ 8,319 thousand in the three months ended March 31, 2024

The following table disaggregates revenue between mobile and web platforms (in thousands):

	Three months ended March 31, — 2025	2024
Mobile	$ 51,439	$ 60,436
Web	18,842	19,388
Total (1)	$ 70,281	$ 79,824

(1) iGaming revenues are excluded, amounting to $ 13,211 thousand for the three months ended March 31, 2025 and $ 8,319 thousand in the three months ended March 31, 2024.

10.2 Contract assets, contract liabilities with customers

The following table summarizes our opening and closing balances in contract assets and contract liabilities (in thousands):

	March 31, 2025	December 31, 2024
Contract assets (1)	$ 424	$ 526
Contract liabilities (2)	1,413	1,754

(1) Contract assets are included within prepaid expenses and other assets in our consolidated interim financial position.

(2) The revenue recognized during the current year from the contract liabilities balance at the beginning of the reporting period is $ 1,754 thousand for the three months ended March 31, 2025 and $ 2,520 thousand for the three months ended March 31, 2024.

11. Classification of operating expenses by nature

Details of classification of expenses by nature for the three months ended March 31, 2025, and 2024 are as follows (in thousands):

	Three months ended March 31, — 2025	2024
Personnel expenses	$ 7,928	$ 9,041
Depreciation and amortization	829	827
Depreciation of right-of-use assets	283	733
Taxes and dues	3,899	2,086
Fees and commissions	27,700	30,215
Advertising expenses	12,540	13,438
Other expenses	673	624
Total (1)	$ 53,852	$ 56,964

(1) Total cost of revenue, sales and marketing, research and development and general and administrative expenses per the consolidated interim statement of comprehensive income.

12. Earnings per share

12.1. Basic earnings per share is computed by dividing earning by the weighted-average number of common shares outstanding for the period, without consideration for potentially dilutive securities. The following table presents the calculation of basic earnings per share (in thousands, except share and per share amounts):

	Three months ended March 31, — 2025	2024
Numerator:
Profit applicable to DoubleDown Interactive Co., Ltd.	$ 23,846	$ 30,324
Weighted average shares outstanding - basic	2,477,672	2,477,672
Basic earnings per share	$ 9.62	$ 12.24

12.2. Diluted earnings per share is computed by dividing profit applicable to owners of the Company by the weighted-average number of common shares and dilutive common share equivalents outstanding for the period. The Company does not have dilutive potential ordinary shares outstanding. Accordingly, the diluted earnings per share for the three months ended March 31, 2025 and 2024 are the same as the basic earnings per share.

13. Commitments and contingencies

13.1. Publishing and license agreements

DoubleU Games

We entered into the DoubleU Games License Agreement on March 7, 2018, which was subsequently amended on July 1, 2019 and November 27, 2019. On October 1, 2023, DDI-US entered into the Game Development Services Agreement with DoubleU Games, which supersedes the DoubleU Games License Agreement. Pursuant to the Game Development Services Agreement, DoubleU Games grants us, through DDI-US, an exclusive license to develop and distribute certain DoubleU Games social casino game titles and sequels thereto in the social online game field of use. We are obligated to pay a royalty

license fee to DoubleU Games in connection with these rights, with certain customary terms and conditions. As of March 31, 2025, we licensed from DUG approximately 50 game titles under the terms of this agreement.

In October 2023, we, through DDI-US, entered into a Game Development Services Agreement with DoubleU Games pursuant to which DDI-US will pay service fees to DoubleU Games for certain game maintenance services and product planning and user analysis services provided by DoubleU Games.

We, through SuprPlay Limited, also entered into a new game license agreement with DoubleU Games with effect from August 20, 2024. We are obligated to pay a royalty license fee to DoubleU Games in connection with these rights, with certain customary terms and conditions.

International Gaming Technologies (“IGT”)

In 2017, we entered into a Game Development, Distribution, and Services Agreement with IGT. Under the terms of the agreement, IGT will deliver game assets so that we can port (a process of converting the assets into functioning slot games by platform) the technology for inclusion in our gaming apps. The agreement includes game assets that are used to create new games. Under the agreement, we paid IGT an initial royalty rate of 10 % of revenue for their proprietary assets and 15 % of revenue for third-party game asset types. Effective January 1, 2019, we amended the agreement to revise the royalty rate for proprietary game asset types to 7.5 % of revenue. The initial term of the agreement is ten ( 10 ) years with up to two additional five-year periods. Costs incurred in connection with this agreement for the three months ended March 31, 2025 and 2024 totaled $ 0.8 million and $ 1.8 million, respectively, and are recognized as a component of cost of revenue.

13.2. Legal contingencies

On April 12, 2018, a class-action lawsuit was filed against DDI-US demanding a return of unfair benefit under the pretext that the Company’s social casino games are not legal in the State of Washington, United States. On August 29, 2022, DDI-US entered into an agreement in principle to settle the aforementioned case and associated proceedings, pursuant to which, among other things, DDI-US would contribute $ 145.25 million to the settlement fund. This agreement in principle received final court approval with the final contribution to the settlement fund made in June 2023. The Company recorded an accrual of $ 95.25 million for the year ended January 1, 2023, less $ 50 million for payments made in the fourth quarter of 2023, which was subsequently settled via a $ 95.25 million cash payment in the second quarter of 2023.

As of the reporting date, the Company is a defendant in three lawsuits seeking damages, filed in the states of Alabama, Kentucky, and Tennessee. These lawsuits allege that the Company’s social casino-themed games constitute unlawful gambling under state laws. The Company denies the allegations, contends its games are not gambling under the applicable law, contends that the case suffers from various procedural defects. At this time, the Company is unable to reasonably predict the outcome of these legal proceedings and cannot estimate what impact, if any, the litigation may have on the Company’s condensed consolidated interim financial statements.

13.3. Director and Officers’ indemnification agreement

The Company’s maximum aggregate liability for all loss and expenses on account of any and all requests for indemnity under the Indemnification Agreement or any similar indemnity agreement with any other indemnitee will be $ 5,000,000 per every 12-month period.

13.4. Other matters

IGT Letter

In March 2025, DDI-US received a letter from IGT (“IGT Letter”) purporting to terminate the Company’s licenses to develop and distribute IGT social casino game titles throughout the United States. The IGT Letter cited the January 2025 public memo issued by the Washington State Gambling Commission (“WSGC”), where the WSGC encouraged companies

offering virtual casino-style games to Washington residents to review their games and ensure compliance with state gambling regulations. While the outcome of this matter is currently uncertain, the Company believes that IGT has no basis to terminate the licenses and that the Company’s distribution of the licensed games is not prohibited under Washington State law.

SuprNation Performance Based Compensation

Contemporaneously with entering into the definitive agreement, the Company also adopted an eighteen -month performance-based incentive plan for certain key employees of SuprNation, under which the key employees may earn up to a total of $ 6.5 million in addition to $ 5.5 million held in escrow, which vest over the eighteen -month period. The performance-based incentive plan is contingent upon the achievement of certain revenue and other performance targets by the acquired business and the continued employment of such key employees between 2023 and 2025. Such plan became effective at the closing of the transaction. In August 2024, $ 4.2 million of the incentive plan was modified to be contingent solely upon continued employment. During three months ended March 31, 2025 and 2024, the Company recognized total expenses of $ 1.6 million and $ 1.6 million, respectively, for the performance-based incentive plan.

14. Related party transactions

14.1. Related party

Our related party transactions comprise of expenses for use of intellectual property, borrowings, and sublease. We may also incur other expenses with related parties in the ordinary course of business, which are included in the condensed consolidated interim financial statements. The related party is as follows:

Relationship	Company name
Controlling shareholder	DoubleU Games Co., Ltd

14.2. Transactions with related party

The following is a summary of expenses charged by DoubleU Games (in thousands):

	Three months ended March 31, — 2025	2024
Royalty expense	$ 446	$ 619
Other expense	1,793	1,125

14.3 Account balances with related party

Amounts due to DoubleU Games are as follows (in thousands):

	March 31, 2025	December 31, 2024
Accounts payable and accrued expenses	$ 1,898	$ 1,958
Other receivables	3	3

14.4. Borrowing transaction with related party

Borrowing transaction details to DoubleU Games are as follows (in thousands):

	March 31, 2025	December 31, 2024
4.6 % Senior notes with related party	$ 34,095	$ 34,014
Accrued interest on 4.6 % Senior Notes with related party	1,325	936

	Three months ended March 31, — 2025	2024
Interest expense	$ 390	$ 432

14.5. Lease transactions with related party

Lease transaction details to DoubleU Games, are as follows (in thousands):

	March 31, 2025	December 31, 2024
Right-of-use assets	$ 2,094	$ 2,238
Lease liabilities	2,198	2,335

	Three months ended March 31, — 2025	2024
Payments	$ 169	$ 323
Interest expenses	25	81

15. Segment information

15.1. Segment reporting

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, our Chief Executive Officer, in making decisions regarding resource allocation and assessing performance. Total assets and liabilities for each segment are not reported to chief operating decision maker. We operate in the following business segments: social casino games and iGaming (in thousands):

	Three months ended March 31, — 2025	2024
Revenue:
Social casino games	$ 70,281	$ 79,824
iGaming	13,211	8,319
Total Revenue	$ 83,492	$ 88,143
Advertising expenses:
Social casino games	$ 7,474	$ 9,933
iGaming	5,066	3,505
Total advertising expenses	$ 12,540	$ 13,438
Depreciation and amortization (including right-of-use assets):
Social casino games	$ 303	$ 734
iGaming	809	826
Total depreciation and amortization (including right-of-use assets)	$ 1,112	$ 1,560
Interest income:
Social casino games	$ 3,806	$ 3,431
iGaming	—	—
Total interest income	$ 3,806	$ 3,431
Interest expense:
Social casino games	$ 447	$ 499
iGaming	2	13
Total interest expense	$ 449	$ 512
Profit before income tax:
Social casino games	$ 33,755	$ 40,105
iGaming	( 977 )	( 1,732 )
Total profit before income tax	$ 32,778	$ 38,373

15.2. Disaggregation of revenue and non-current assets

The Company’s business operations are located in domestic and international regions, including the United States. We believe disaggregation of our revenue based on platform and geographical location are appropriate categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

The following table presents our revenue disaggregated based on the geographical location of our players (in thousands):

	Three months ended March 31, — 2025	2024
U.S.	$ 61,014	$ 70,186
Canada	4,550	4,755
United Kingdom	12,213	6,781
Korea	—	—
International-other	5,715	6,421
Total	$ 83,492	$ 88,143

The following table presents non-current assets by geographical regions (in thousands):

	Three months ended March 31, — 2025	2024
Korea	$ 2,282	$ 2,479
U.S.	416,720	416,835
Europe	30,113	29,818
Total (1)	$ 449,115	$ 449,132

(1) The amounts related to financial assets at fair value through profit or loss and deferred tax assets are excluded.

15.3. Major external customers

No individual external customer accounted for more than 10% of consolidated revenue for each of the three months ended March 31, 2025 and 2024.