DarkIris: Why This Mobile Gaming Play Is Too Expensive At IPO

Jun. 22, 2025 5:26 AM ETDarkiris Inc. (DKI) StockDKI
Pedro Goulart
581 Followers
(17min)

Summary

  • DarkIris operates in the fast-growing mobile gaming sector, but relies heavily on microtransactions and third-party titles for revenue.
  • Revenue growth is strong, but margins are shrinking, and cash flow remains unstable due to high platform fees and receivables.
  • The IPO values DarkIris at high sales multiples, making it look expensive compared to established gaming companies with stronger brands.
  • Given the stretched valuation and lack of proprietary assets, I recommend passing on this IPO and waiting for a more attractive entry point.

Uma criança está segurando um smartphone

andreygonchar/iStock via Getty Images

Looking at the companies that are going public around the corner, DarkIris (DKI) caught my eye.

This Hong Kong-based company develops, operates, and publishes mobile games—one of the fastest-growing corners of the gaming industry right now.

This article was written by

581 Followers
Stock analyst, writer (praxeology & Mengerian Theory), accountant, and founder of Goulart Restaurant Stocks—serving up fresh, flavorful investment insights. I also cover casinos and gaming, food companies, consumer discretionary stocks, and IPOs, with a keen eye for hidden gems in micro and small caps.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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