Executive Summary

Q1 2025 delivered record revenue of $706.0M (+8.6% q/q, +8.4% y/y), while GAAP diluted EPS was $0.08 and Adjusted EBITDA fell to $167.3M on heavier performance marketing and SuperPlay integration costs .
Versus consensus, PLTK posted an EPS beat ($0.161 vs $0.113*), a modest revenue beat ($706.0M vs $699.7M*), and a material EBITDA miss versus S&P Global’s EBITDA consensus ($167.3M company Adjusted EBITDA vs $172.6M EBITDA consensus*)—reflecting definitional differences and near‑term margin pressure from investment in growth titles; management reaffirmed FY25 revenue ($2.80–$2.85B) and Adjusted EBITDA ($715–$740M) guidance .
DTC revenue reached a record $179.2M (+2.6% q/q, +4.5% y/y), led by Bingo Blitz; Slotomania declined (5.5% q/q, 17.4% y/y) with stabilization efforts and new IGT content (Regal Riches, Cleopatra II) underway; Dice Dreams ramped to $78.6M with full-quarter contribution from SuperPlay .
Capital and shareholder returns: quarterly dividend of $0.10 per share payable July 7, 2025; revolver maturity extended to Sep 2027 and reduced to $550M, enhancing liquidity and flexibility .
Key catalysts: continued DTC mix shift, Disney Solitaire launch momentum, new slots app planned for 2H 2025, and tangible Slotomania content/action plan; risks include slot portfolio declines and near-term margin compression from performance marketing .

What Went Well and What Went Wrong

What Went Well

Record quarterly revenue ($706.0M), highest in company history, driven by core portfolio and SuperPlay acquisition; Bingo Blitz posted all-time high revenue as largest title .
DTC platforms revenue hit a record $179.2M (+2.6% q/q, +4.5% y/y) with strength in Bingo Blitz, June’s Journey, and Solitaire Grand Harvest .
Management reaffirmed FY25 guidance ($2.80–$2.85B revenue; $715–$740M Adjusted EBITDA), underscoring confidence in portfolio transition and DTC growth .
- Quote: “We are proud to report a record breaking first quarter, with revenue surpassing $700 million… driven by our industry‑leading portfolio and acquisition of SuperPlay.” — Robert Antokol, CEO .
- Quote: “Expanding our DTC business remains a key priority to balance our margins as we continue to invest in our growth titles.” — Craig Abrahams, President & CFO .

What Went Wrong

Adjusted EBITDA fell to $167.3M (‑9.0% q/q, ‑9.9% y/y) amid higher performance marketing and losses from SuperPlay integration; GAAP net income margin compressed to 4.3% from 8.1% y/y .
Slotomania revenue declined 5.5% q/q and 17.4% y/y; game economy issues re‑emerged late March and are expected to persist into coming quarter before improvements .
Free cash flow was negative ($‑6.5M) in Q1 on heavier investment and short-term securities purchases; cash from operations declined to $18.8M (vs $29.6M y/y) .

Financial Results

Consolidated P&L and Margins (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$620.8	$650.3	$706.0
Diluted EPS ($)	$0.11	$(0.04)	$0.08
GAAP Net Income Margin (%)	6.3%	(2.6)%	4.3%
Adjusted EBITDA ($USD Millions)	$197.2	$183.9	$167.3
Adjusted EBITDA Margin (%)	31.8%	28.3%	23.7%
DTC Revenue ($USD Millions)	$174.4	$174.6	$179.2

Title-Level Revenue Snapshot (oldest → newest)

Title Revenue ($USD Millions)	Q3 2024	Q4 2024	Q1 2025
Bingo Blitz	$159.9	$159.1	$162.4
Slotomania	$128.7	$118.4	$111.8
Solitaire Grand Harvest	$79.0	$72.5	—
Dice Dreams	—	—	$78.6

KPIs (oldest → newest)

KPI	Q3 2024	Q4 2024	Q1 2025
Average DAUs (Millions)	7.6	8.0	9.0
Average DPUs (Thousands)	301	339	390
Avg Daily Payer Conversion (%)	4.0%	4.2%	4.3%
ARPDAU ($)	$0.89	$0.89	$0.87
Average MAUs (Millions)	26.4	29.1	31.8

Cash Flow and Balance Sheet Highlights (Q1 2025)

Cash, cash equivalents, and short‑term investments: $514.3M (cash $434.8M; ST investments $79.5M) .
Cash from operations: $18.8M; Free Cash Flow: $‑6.5M; net cash change: $‑131.4M (reflects investments and dividend) .
Total Debt: $2,397.1M (LT $2,385.7M; current $11.4M) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	$2.80–$2.85B (Feb 27)	$2.80–$2.85B (May 8)	Maintained
Adjusted EBITDA	FY 2025	$715–$740M (Feb 27)	$715–$740M (May 8)	Maintained
Capital Expenditures	FY 2025	$95M (Feb 27)	—	Not updated
Effective Tax Rate	FY 2025	35% (Feb 27)	—	Not updated
Dividend	Q2 2025	$0.10 per share payable Apr 4, 2025	$0.10 per share payable Jul 7, 2025	Maintained cadence; new pay date
Revolving Credit Facility	Corporate	Matures Mar 2026; $600M (pre‑extension)	Extended to Sep 2027; reduced to $550M	Improved maturity; reduced facility size

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
DTC strategy & mix	Steady execution; record DTC; target ~30% long‑term	+8% y/y DTC; continued mix progress	Record $179.2M; prioritize DTC expansion across titles	Improving
Slot portfolio & stabilization	Slotomania underperformed; roadmap with IGT content; new slots app discussed	Economy fixes and content (Cleopatra II); stabilization expected in 2025	Declines continue near‑term; new slots game planned 2H25; Regal Riches launched	Deteriorating near‑term; medium‑term improving
New game pipeline (Disney Solitaire; Claire’s Chronicles)	SuperPlay pipeline highlighted	Disney Solitaire in testing; 2025 immaterial revenue baked-in	Disney Solitaire global launch Apr 17; strong launch KPIs	Improving
Performance marketing spend	Q1 typically highest; selective spend later	H1 offline mix adjusted; shift to performance; Google Ads policy tailwind	Elevated spend impacted EBITDA; expected to decline sequentially	Stabilizing
M&A integration (SuperPlay)	Agreement announced; balanced earnout	Partial Q4 contribution; losses early stage; positive EBITDA expected 2026	Full-quarter ramp in Dice Dreams; losses weigh on EBITDA	Transition year
Monetization/Ads stance	In‑app purchases focus; limited ads	Ads not a driver; focus on purchases	No change in strategy	Stable
KPI concentration	DAU declines in smaller titles; DPU strength	DAU/DPUs increased; ARPDAU strong	DAUs/DPUs rose; ARPDAU +7.4% y/y	Improving mix

Management Commentary

Strategic emphasis on portfolio leadership and DTC expansion: “Expanding our DTC business remains a key priority to balance our margins as we continue to invest in our growth titles.” — Craig Abrahams .
New franchise momentum: “Disney Solitaire had its global launch on April 17… some of the best launch KPIs I have seen in years.” — Robert Antokol .
Slotomania recovery plan: “We changed the management of the studio… top priority to stabilize and to grow the game… launching a new fresh app in this market.” — Robert Antokol .
Marketing normalization: “First quarter tends to be the largest… we expect marketing expenses to decline sequentially in the coming quarters.” — Craig Abrahams .
Liquidity and capital structure: Available liquidity ~$1.06B; revolver maturity extended to Sep 2027; net LTM leverage ~2.6x (per earnings deck) .

Q&A Highlights

Disney Solitaire spend vs. cost phasing: Management will allocate capital to best-ROI titles; despite strong KPIs, total marketing is expected to step down sequentially through 2025 .
Slotomania path forward: Stabilization plan includes studio leadership changes, economy fixes, and new IGT content; new slots application targeted for 2H 2025 to regain category share .
DTC adoption: Company “all in” on DTC; views it as a major margin lever and competitive advantage with continued expansion across titles .
Cost dynamics: EBITDA pressure driven by SuperPlay losses and elevated performance marketing; sequential easing expected as the year progresses .
Guidance clarity: New game contribution is largely immaterial to FY25 top line, with costs embedded; reaffirmed revenue/EBITDA guidance .

Estimates Context

Metric	Consensus (Q1 2025)	Actual (Q1 2025)	Surprise
Primary EPS Consensus Mean	$0.113*	$0.1612*	Beat
Revenue Consensus Mean ($USD)	$699.7M*	$706.0M	Beat
EBITDA Consensus Mean ($USD)	$172.6M*	Company Adj. EBITDA: $167.3M ; Company EBITDA: $127.0M	Miss vs EBITDA consensus; definitional differences

Values retrieved from S&P Global.*

Interpretation: EPS and revenue were above consensus; EBITDA (consensus) exceeded company‑reported Adjusted EBITDA, reflecting definition differences and Q1 margin pressure from performance marketing and SuperPlay integration .

Key Takeaways for Investors

Revenue momentum is strong with record Q1 topline; sustained DTC growth should partially offset margin headwinds from investments in acquired growth titles .
Slotomania is the principal drag; stabilization plus new IGT content and a fresh slots app in 2H 2025 are key execution milestones to monitor .
Reaffirmed FY25 guidance signals confidence; near-term marketing normalization and operational efficiencies are expected to aid margins sequentially .
Title concentration remains high: Bingo Blitz continues to set records; watch Disney Solitaire trajectory and Dice/Domino Dreams scaling within SuperPlay .
Liquidity and capital allocation remain supportive: dividend continuity, extended revolver maturity, and robust available liquidity provide flexibility through the transition year .
Trading implications: Expect near-term volatility around slot category trends and EBITDA trajectory; incremental updates on Disney Solitaire KPIs, DTC mix expansion, and Slotomania stabilization could drive sentiment and estimate revisions .
Medium-term thesis: Portfolio revitalization and DTC mix shift position PLTK for improved EBITDA conversion post‑2025 as growth titles mature and slot portfolio stabilizes .

Additional Relevant Press Releases (Q1 2025)

Slotomania launched IGT’s Regal Riches (Mar 28, 2025), following Cleopatra II in Jan 2025—part of content strategy to reengage slots users .
House of Fun “Chef Academy” charity activation with Meals on Wheels (Mar 19, 2025), reinforcing brand engagement .
Bingo Blitz x American Idol featuring Lionel Richie (Mar 6, 2025), supporting Q1 engagement drivers in Bingo Blitz .
CFO investor conference participation (Mar 3 & Mar 17, 2025) .

Non-GAAP Notes and Reconciliations

Adjusted EBITDA reconciliation: Q1 2025 EBITDA $127.0M plus stock‑based comp $25.5M, contingent consideration $6.9M, acquisition costs $6.5M, other $1.4M → Adjusted EBITDA $167.3M; Adjusted EBITDA margin 23.7% .
Adjusted Net Income: GAAP net income $30.6M, plus contingent consideration $6.9M, minus tax impact $1.3M → Adjusted Net Income $36.2M .

Note: Where consensus values are shown, they are sourced from S&P Global.*

Playtika Holding Corp. (PLTK)·Q1 2025 Earnings Summary