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Playtika Holding Corp. (PLTK)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 revenue of $696.0M missed S&P Global consensus $705.4M* and GAAP diluted EPS of $0.09 was below the $0.127* consensus; management cut FY25 revenue guidance to $2.70–$2.75B (from $2.80–$2.85B) but maintained Adjusted EBITDA at $715–$740M, citing DTC mix shift and operating efficiencies . Consensus values from S&P Global.*
  • Mix and franchise dynamics: Bingo Blitz remained resilient ($160.2M, -1.3% q/q, +2.9% y/y), while Slotomania deteriorated materially ($86.5M, -22.7% q/q, -35.4% y/y) due to game economy changes; June’s Journey was stable ($69.1M, +0.3% q/q, -7.4% y/y) .
  • Strategic highlights: Disney Solitaire reached a ~$100M ARR run-rate post-launch; management raised long-term DTC penetration target to 40% (from 30%) to support margins as portfolio transitions .
  • Capital allocation and liquidity: $0.10 dividend declared (payable Oct 10, 2025), cash and short-term investments of $592.1M, and pro forma liquidity of ~$1.14B; revolving credit facility extension to Sept 2027 is pending regulatory approval in China .
  • Near-term stock catalysts: revenue guidance cut vs. maintained EBITDA, accelerating DTC, Disney Solitaire traction, and Q4 global launch of new slots title “Jackpot Tour” .

What Went Well and What Went Wrong

What Went Well

  • DTC momentum and target lift: DTC revenue was $175.9M (-1.8% q/q, +1.3% y/y), and management raised its long-term DTC target to 40% to help “balance our margins as we manage changes within our portfolio” .
  • Flagship/title execution: “Bingo Blitz continues to experience strong engagement and significant growth in DTC revenue,” supporting portfolio balance; Q2 Bingo Blitz revenue was $160.2M (-1.3% q/q, +2.9% y/y) .
  • New game success: Disney Solitaire “has already hit the $100 million annual run-rate revenue threshold,” with CEO praising the collaboration and execution; management also highlighted a potential advertising revenue opportunity (double-digit sequential growth) in the portfolio .

What Went Wrong

  • Social slots headwinds: Slotomania revenue fell sharply to $86.5M (-22.7% q/q, -35.4% y/y) as game economy fixes pressured near-term monetization; management expects softness before improvement .
  • Profitability compression: Adjusted EBITDA declined to $167.0M (-0.2% q/q, -12.6% y/y) and adjusted net income dropped to $6.5M (down 82% q/q and 91.4% y/y), reflecting higher sales/marketing spend post-SuperPlay and contingent consideration revaluation dynamics .
  • Guidance cut: FY25 revenue was reduced to $2.70–$2.75B from $2.80–$2.85B due to portfolio transitions and weakness in mature titles; though EBITDA was maintained, the cut signals top-line pressure .

Financial Results

P&L and Margins vs Prior Periods

MetricQ2 2024Q1 2025Q2 2025
Revenue ($M)$627.0 $706.0 $696.0
GAAP Net Income ($M)$86.6 $30.6 $33.2
Diluted EPS ($)$0.23 $0.08 $0.09
Adjusted EBITDA ($M)$191.0 $167.3 $167.0
Net Income Margin (%)13.8% 4.3% 4.8%
Adjusted EBITDA Margin (%)30.5% 23.7% 24.0%

Actuals vs S&P Global Consensus (Q2 2025)

MetricActual (Company)Consensus (S&P Global)*Result
Revenue ($M)$696.0 $705.4*Miss
Primary EPS ($)$0.09 (GAAP diluted) $0.127*Miss
EBITDA ($M)$167.0 (Adj. EBITDA) $174.8*Miss

Notes: S&P Global “actual” EBITDA may reflect a different definition than company Adjusted EBITDA; company EBITDA per reconciliation was $170.7M . Consensus values retrieved from S&P Global.*

Title/Segment Highlights

TitleQ2 2025 Revenue ($M)Q/Q ChangeY/Y Change
Bingo Blitz$160.2 -1.3% +2.9%
Slotomania$86.5 -22.7% -35.4%
June’s Journey$69.1 +0.3% -7.4%
DTC Revenue$175.9 -1.8% +1.3%

KPIs

KPIQ2 2024Q1 2025Q2 2025
Average DAUs (M)8.1 9.0 8.8
Average DPUs (K)298 390 378
Payer Conversion (%)3.7% 4.3% 4.3%
ARPDAU ($)0.85 0.87 0.87

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$2.80–$2.85B $2.70–$2.75B Lowered
Adjusted EBITDAFY 2025$715–$740M $715–$740M Maintained
DividendQ3 2025 payout$0.10/share payable Jul 7, 2025 $0.10/share payable Oct 10, 2025 Maintained cadence
RCF MaturityN/AIntent to extend to Sept 2027 (from Mar 2026) Extension agreement to Sept 2027 subject to regulatory approval in China Pending approval

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
DTC penetrationEmphasized as EBITDA growth engine; up 0.1% q/q to $174.6M Record DTC $179.2M; ongoing expansion DTC $175.9M; LT target raised to 40% Positive structural mix shift
New games pipelineDisney Solitaire, Claire’s Chronicles, new slots title outlined Record Q1; Disney Solitaire launched Q2 Disney Solitaire ~$100M ARR run-rate; Jackpot Tour global launch Q4 2025 Execution progressing; next catalyst Q4
Social slots (Slotomania)Economy issues; re-engagement via Cleopatra II; new slots app in dev Stabilization work ongoing -22.7% q/q; monetization pressure during economy fixes Near-term negative; working toward stabilization
Sales & marketingHigher YoY due to SuperPlay; reinvestment in growth Elevated with SuperPlay Margin dilution from SuperPlay S&M; sequential step-down expected H2 Easing in H2
App store/payment landscape——Changes seen as tailwind; accelerating DTC, especially iOS in US Positive
M&A / SuperPlay integrationLargest acquisition; negative EBITDA initially; positive by 2026 SuperPlay contributing; Disney Solitaire launch SuperPlay portfolio driving YoY growth; ongoing integration On plan
Advertising—Historically focused on IAP over ads Double-digit sequential growth in advertising noted Emerging lever

Management Commentary

  • “We are pleased to report a resilient second quarter, with revenue reaching $696 million… The success of our latest launch, Disney Solitaire, which has already hit the $100 million annual run-rate revenue threshold…” — Robert Antokol, CEO .
  • “We are increasing our long-term target for DTC to 40%, up from 30%… intended to balance our margins as we manage changes within our portfolio.” — Craig Abrahams, President & CFO .
  • “Adjusted EBITDA… decline… primarily driven by increased sales and marketing expenses associated with our SuperPlay games… margin dilution following the SuperPlay acquisition.” — CFO .
  • “Slotomania faced an acceleration in its declining trend during Q2 as we began implementing changes to address the game economy… contributing to near term pressure on revenue performance.” — CFO .
  • “The changes in the payment landscape and in the app stores, has been a positive tailwind for us… we updated our long term target [DTC]… from 30% to 40%.” — CFO .

Q&A Highlights

  • Slotomania turnaround mechanics: Monetization issues (more than engagement) in a 10+ year-old title; gradual benefits expected as economy changes take effect .
  • Disney Solitaire economics: Licensing terms undisclosed; cited as among the most successful 2025 launches; scales faster than prior SuperPlay titles .
  • DTC trajectory and app store changes: App store/payment changes are a tailwind, especially on iOS in the US; long-term DTC target lifted to 40% .
  • Sweepstakes category: Management does not plan to enter; uncertain impact on social casino but acknowledged category pressure .
  • New slots title “Jackpot Tour”: Positioned to regain market share; global launch targeted for Q4 2025; not expected to materially impact 2025 results but important for long-term growth .

Estimates Context

  • Q2 results vs S&P Global consensus: revenue $696.0M vs $705.4M* (miss), Primary EPS $0.09 vs $0.127* (miss), EBITDA miss vs $174.8M* consensus (company Adjusted EBITDA $167.0M; SPGI “actual” EBITDA shown as $138.1M* indicating definitional differences) . Consensus values retrieved from S&P Global.*
  • Implications for models: Lowered FY25 revenue guidance implies top-line estimates should move down; maintained EBITDA range suggests margin/EBITDA estimates can be stable near prior levels, aided by DTC mix and H2 S&M step-down .

Key Takeaways for Investors

  • Mix resilience with DTC: Raised long-term DTC target to 40% supports EBITDA durability amidst legacy title pressure; expect H2 S&M easing to help margins .
  • Title bifurcation: Bingo Blitz stable with record DTC; Slotomania remains a headwind as economy changes weigh on monetization near term .
  • New content pipeline credible: Disney Solitaire already at ~$100M ARR run-rate; Q4 launch of “Jackpot Tour” is a meaningful 2026+ lever rather than a 2025 earnings driver .
  • Guidance reset: FY25 revenue cut to $2.70–$2.75B with EBITDA held at $715–$740M anchors the investment case on margin resilience rather than immediate growth .
  • Liquidity and capital returns: $592.1M in cash/ST investments, quarterly dividend intact; revolver extension pending regulatory approval helps de-risk maturities .
  • Watch list: H2 trajectory for Slotomania monetization, DTC penetration gains (especially iOS), and early KPIs for Jackpot Tour post-launch .

Footnote: Asterisked values are consensus and/or actuals retrieved from S&P Global and may reflect differing metric definitions versus company-reported non-GAAP figures. Values retrieved from S&P Global.* [GetEstimates]