Good afternoon and welcome to Double Down Interactive's earnings conference call for the third quarter ended September 30th, 2026. My name is Victor and I'll be your operator this afternoon. Prior to this call, Double Down issued its financial results for the third quarter of 2026 in 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 to the investor relations section at the top of the home page. Joining us on today's call are WDM CEO, Mr. In Keuk Kim, and its CFO, Mr. Joe Sigrist. Following the remarks, we will open up the call for questions. Before we begin, Joe Jaffoni, the company's investor relations advisor, will make a brief introductory statement. Mr. Jaffoni.

Thank you, Victor, and good afternoon, everyone. Before management begins their formal remarks, we need to remind everyone that some of management's comments today will be forward-look statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and we hereby claim the protection of the safe harbor provision of the Private Securities Allegation Reform Act of 1995. Forward-looking statements are statements about future events and include expectations and projections not present or historical facts and can be identified by the 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, including risks related to the non-binding proposal from our controlling shareholder described below. Therefore, you should exercise caution in interpreting and relying upon them. We refer you to Double Down's annual report on Form 20-F filed with the SEC on March 31, 2026, and other SEC filings for a more detailed discussion of the risks that could impact future operating results and financial condition. These forward-looking statements are made only as of the date of today's call. The 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 the financial results prepared in accordance with IFRS. A full reconciliation of these measures to the most directly comparable IFRS measure is available in the earnings release issued this afternoon. In addition, as previously announced on November 9th, 2026, the company entered into a tender offer and post-offer cooperation agreement with WU Games Co., Ltd., the company's controlling shareholder. Pursuant to the agreement, WU Games Co., Ltd. has commenced a tender offer to acquire all the outstanding ADSs of the company not owned by WU Games Co., Ltd. and its affiliate at a price of $16.25 per U.S. $16.25 per ADS in cash without interest unless any applicable withholding taxes. The company's board of directors, following the recommendation of a special committee of independent and disinterested directors, has unanimously approved the agreement and the transactions contemplated thereby and determined to recommend that shareholders of the ADSs accept the offer and tender their ADSs. The offer is subject to various conditions, including a minimum tender condition and a majority of minority condition as described in the offer documents. There can be no assurance that the offer or the transactions contemplated by the agreement will be completed. For further information, please refer to the company's report on Form 6-K and solicitation and recommendation statement on Schedule 14-D-9 filed with the SEC on November 10, 2026. Meanwhile, the company continues to conduct its business and operations in the ordinary course. Given this development, management will not be taking questions this afternoon regarding W's Thank you, Joe. Good afternoon, everyone. We are delighted to be with you today to discuss Double Down Interactive.

The third quarter of 2026 results. Key highlights include solid contributions across our social casino and iGaming segments as we continue delivering revenue consistency and resiliency by executing on our growth and geographical diversification strategies. Delivering a record contribution of 58% of our total social casino revenue from direct-to-consumer payer activity and delivering another quarter of strong operating profit and significant free cash flow generation. These results again reinforce our confidence in our business model as we continue to benefit from operational excellence across our portfolio. Let's start with the financial results. This afternoon, we reported Third quarter consolidated revenue of $94.3 million, down approximately 1.6% year-over-year. Despite this modest top-line decline, we delivered third quarter adjusted EBITDA of $40.2 million, marking 7.2% year-over-year growth. In Q3, Net cash flow from operations was $23.6 million and in the first 9 months of 2026, we generated $94.7 million in net cash flow from operations. In the third quarter, social casino revenue declined 3.5% year-over-year to $76.8 million. reflecting the continued decline in the overall social casino market. Our social casino segment remains the primary engine of Double Down's profit and cash flow generation, and the third quarter marked the anniversary of our acquisition of WoW Games, which closed on July 14, 2025. A key highlight of Double Down's third quarter was the continued growth of our direct consumer or DTC Channel, a major contributor to the increase in adjusted EBITDA. In the third quarter, DTC accounted for 58% of total social casino revenue compared to approximately 21% in the third quarter of 2025 and approximately 52% in the second quarter of 2026. Our product enhancement initiative focused on messaging and promotion on DTC, especially in our flagship Double Down Casino app, continue to support our successful DTC transition. Given the ongoing maturation of the social casino gaming segment, industry analysts at Isla and Crazy recently forecast that the global social casino market will decline almost 7% in 2026. That said, our focus continues to be on outperforming the overall market through execution of our product development initiatives around player and payer retention, optimization of our marketing and live operation activities to maximize payer conversion and purchasing activity, and continued maximization of the direct consumer opportunity. Turning to our iGaming business, SuperNation's Q3 2026 revenue was $17.4 million, an increase of 7.4% year-over-year, primarily as a result of the continued success of our newest brand, ROSVEGAS. During the third quarter, the SuperNation team again did an excellent job managing around the higher UK gambling tax rate through a combination of product changes, marketing adjustment, and expense control. This allowed our iGaming business to effectively mitigate much of the impact of the tax increase in the third quarter. Our third quarter results highlight how present targeted investments combined with precise operating execution are enabling Double Down to extend our long-term record of strong operating profit and cash flow generation. We are successfully integrating previous acquisitions while optimizing our core Double Down business through consistent DTC conversions. M&A remains a strategic priority as we continue to evaluate opportunities in online gaming and mobile entertainment that meet our criteria to enhance Long-Term Shareholder Value. Now I turn the call over to our CFO, Joseph Sigrist, to walk us through the financials before providing my closing remarks. Joe?

Thank you, I.K., and good afternoon, everyone. To review, revenues for the third quarter of 2026 were $94.3 million. This compares the total company revenues of $95.8 million in the third quarter of 2025 and $94.3 million in Q2 of 2026. You'll recall that the revenue of WOW Games, which was acquired on July 14th, 2025, was included in Q3 2025 for all but two weeks of the year-ago period. Our social casino segment declined 3.5% from the third quarter of 2025 to $76.8 million. while iGaming revenues grew by $1.2 million or 7.4% year-over-year to $17.4 million. Regarding our overall social casino KPIs, we previously highlighted that the metrics from WOW Games are somewhat different than those from Double Down Casino. Specifically, the WOW Games business experiences a higher payer conversion rate and lower average monthly revenue per payer. and as a reminder and for comparison purposes, WOW Games metrics were included in overall social casino metrics starting in Q4 of 2025, not in Q3 2025. With all this in mind, overall social casino KPI highlights for the third quarter include the payer conversion rate, which is the percentage of players who pay within the social casino apps, increased to 9.5% in Q3 2026, compared to 7.8% in Q3 2025. The average revenue per daily active user or ARPDAU of $1.44 up from $1.39 in Q3 of 2025. And an average monthly revenue per payer at $216 in Q3 2026 down from $272 in the prior year period. In the third quarter of 2026, Operating expenses were $56.8 million compared to $60.9 million in the third quarter of 2025. Sales and marketing expenses for the third quarter of 2026 were $15.1 million compared to $15.7 million in the third quarter of 2025. Sales and marketing expenses in the third quarter were up approximately $1.2 million from $13.9 million in Q2 of 2026. Profit excluding non-controlling interest for the third quarter of 2026 decreased 43.9% to $18.4 million, or earnings per fully diluted common share of $7.41, 37 cents per ADS in the third quarter of 2026, compared to profit excluding non-controlling interest of $32.7 million, or earnings per fully diluted common share of $13.21, or 66 cents per ADS in Q3 of 2025. The decrease primarily reflects net foreign currency losses recognized in the third quarter of 2026, mainly unrealized and realized losses on the U.S. dollar-denominated financial assets, partially offset by higher operating profit, which increased to $37.5 million from $35.0 million, driven by lower cost of revenue attributed to the higher proportion of DTC revenue. Adjusted EBITDA for the third quarter of 2026 rose 7.2% to $40.2 million compared to $37.5 million for the third quarter of 2025 and $39.3 million for Q2 2026. Adjusted EBITDA margin was 42.7% for Q3 2026 as compared to 39.1% in Q3 2025, and 41.6% in Q2 of 2026. Net cash flows provided by operating activities in Q3 2026 were $23.6 million compared to $33.4 million in Q3 2025, with a decrease primarily due to higher income taxes paid in the quarter. And as Ike mentioned, net cash flows provided by operations were $94.7 million for the first nine months of 2026, slightly higher than the $94.1 million for the first nine months of 2025. And at quarter's end, we had $582.1 million in cash, cash equivalents, and short-term investments with a net cash position of approximately $545.3 million representing cash, cash equivalents, and short-term investments less borrowings from our controlling shareholder of $36.8 million. I will now turn the call back to IK for closing remarks.

Thank you, Joe. Double Down Interactive, powered by our core social casino and iGaming businesses, delivered another quarter of strong adjusted EBITDA and cash flow. Building on solid results delivered in the first nine months of 2026, we remain committed to innovation and discipline high ROI investments and to driving DTC revenues, which collectively optimize social casino margins. Finally, our strong balances and cash position provides us the financial flexibility to pursue strategic growth opportunities, as well as additional value building initiatives and transactions for our shareholders. We are now happy to take your questions. Victor?

Thank you. As a reminder, to ask a question, you will need to press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. Please stand by while we compile the Q&A roster.

One moment for our first question.

Our first question will come from the line of David Bain from Texas Capital Bank. Your line is open.

Awesome. Thank you, IK and Joe. Nice execution once again. I guess the question, the first one I had was, this is now the peer leader and D2C mix. What do you think the practical sustainable Directed Consumer Run Rate Ceiling is and how much incremental margin flow through can we think about as you kind of increase it from here?

Yeah, thanks Dave and thanks for joining. You know, good question. I mean, it's a question that we've been considering and I think you and others have been asking over this journey that we've been on for two plus years. As you'll recall, I think it was at the beginning of 2024, we were at less than 5% of social casino revenues, DTC, and now we're nearing 60%. The limit will occur at some point. I think we're really executing well. I don't know of anyone else in the industry who's approaching what we've done here more recently. I can't give you a number, but I can tell you that it's an important part. It has been over the last two plus years, an important part of our strategy. It's really helped relative to EBITDA dollars and EBITDA margins. We continue to optimize the incentives, whether it be product-based incentives, communication and messaging incentives. Just in the last quarter, what we gained from 52% in Q2 to 58% in Q3, and I don't think we're finished, but obviously it's going to be harder to make gains as we get higher and higher.

Great. Okay, and then I guess the second one would be, you know, if you could maybe, maybe IK for you on this one, if you could review the IA, I'm sorry, the AI, gosh, across live ops. whether it's dynamic pricing or personalizing gaming economies, whatever, the coin package pricing. If there's been a measurable lift that you've seen in ARPDAL from AI initiatives to date and what we can think about as we look into 27 from AI.

Yeah, good question, Dave. At DDI, our AI strategy centers on driving measurable capital and operating Efficiencies across three core pillars. The first one is content velocity. Accelerating 2D and 3D asset pipelines, localization, and prototyping to bring meta features to market faster. And the second one is your relative question. Actually, player monetization. Utilizing behavioral predictive models to dynamically turn in game economies, personalized offers, and retention mechanics. So yeah, it is easier for us to maximize those leverage using AI tools, our internal server side. And number three is actually targeting precision. automating at creative iteration and stand allocation to safeguard our UA margins and improve ROAS. So overall, AI is already embedded into our day-to-day workflows. So in 2027, we will leverage our AI skills more. So hope this helps.

Definitely. Okay, thanks, guys. Thank you.

Thanks, Dave.

Thank you.

And our next question will come from the line of Aaron Lee from McCurry. Your line is open.

Hey, guys. Thanks for taking my question. So as you noted in the prepared remarks, Eilers is pointing to a deceleration in the social casino market, but you guys seem to have done better than that. Was that because you were able to deploy more marketing spend in the quarter, or was that more related to the product roadmap? and more broadly, can you just share any thoughts on how you view the environment for social casino currently and whether there's been any notable changes in trends there? Thank you.

Yeah, thanks. We're very proud of what we've done over the last few quarters. You know, there's obviously a lot of headwinds associated with social casino given the maturity aspect of the industry. and you know we we have benefited and you know we don't take this for granted and we also lean into the advantage we think we have for having really passionate committed loyal players and you know there's others out there that have that but but I would say that you know double down casino with a mix of its content, our history of how we treat players with great meta features that have been added over the years, has a stickiness that I would put up against anyone else's app in social casino. Now, that being said, it's definitely true that we have fewer players today than we've had in the past. And so we're continuing to try to optimize You know, the monetization of those players and, you know, continue to give them great experiences, recognizing that we, you know, are, you know, going to have to hold on to them, you know, as long as we can.

Yeah, and let me add a bit. DTC actually continues to deliver new features, not only in meta content, but also slot content every week. to enhance player satisfaction. For example, the new slot launches every week and the new linked jackpot system are designed to amplify the fun of slot gameplay that our users have enjoyed for a long time. Over time, as you mentioned, as we introduced multiple layers of meta content, the UX UI experience has become somewhat complex. Nowadays, we have newer mobile lobby is being developed to provide more seamless and simplified player journey. So that allow flat contents and meta content to reinforce each other more effectively and ultimately drive stronger engagement. So hope this helps.

Yeah, got it. Thank you. That's very helpful. And then with regard to SuperNation and the Las Vegas brand, Can you just talk about what's driving the success there? Is it acting as an effective funnel for an incremental player base? Is it attracting higher spending players? Any color there would be helpful.

Thanks. Let me take the question first. And Las Vegas differentiated itself by blending traditional casino nostalgia with a modern user experience. While our previous brands, three brands, focused on niche themes, Las Vegas was designed for broader appeal, which has been the key driver behind its rapid early success. On the operational side, we have leveraged real-time data analytics to optimize user acquisition costs and enhance retention. While we are mindful of the evolving regulatory and tax landscape in the UK, Our strategy is to mitigate these headwinds through portfolio expansion. So by launching our fifth and sixth brands, we will further diversify our revenue streams.

Thank you. Appreciate the call there.

Thanks, Aaron. Appreciate it.

Thank you. And this concludes the question and answer session. Thank you for your participation in today's conference. This does include the program. You may now disconnect. Everyone have a great day.