Playtika Holding Corp. (PLTK)·Q3 2025 Earnings Summary

Executive Summary

• Q3 delivered revenue of $674.6M (-3.1% q/q, +8.7% y/y) and Adjusted EBITDA of $217.5M (+30.2% q/q, +10.3% y/y), driven by a record $209.3M in DTC revenue (+19% q/q, +20% y/y) and planned marketing step-down; GAAP net income was $39.1M (+17.8% q/q, -0.5% y/y) .
• Results beat S&P Global consensus on revenue ($674.6M vs $667.5M) and “Primary EPS” ($0.216 vs $0.146), and modestly beat EBITDA consensus (SPGI EBITDA $190M actual vs $188M est.); note company-reported Adjusted EBITDA was higher at $217.5M (non‑GAAP) .
• Management reaffirmed FY25 guidance (revenue $2.70–$2.75B; Adjusted EBITDA $715–$740M) and declared a $0.10 dividend payable Jan 9, 2026, supporting capital-return discipline .
• Stock reaction catalysts: accelerating DTC mix (31% of revenue; target 40% in ~2 years), reaffirmed outlook, and SuperPlay momentum (Disney Solitaire ARR >$200M) vs. persistent Slotomania headwinds and step-up in GAAP G&A from contingent consideration .

What Went Well and What Went Wrong

• What Went Well
  • Record DTC revenue ($209.3M; 31% of total) with broad-based title contribution; U.S. iOS channel was the “major catalyst” in Q3 .
  • Adjusted EBITDA inflected strongly to $217.5M (+30% q/q) as performance marketing stepped down as planned and DTC mix expanded margins .
  • SuperPlay momentum: Disney Solitaire tracked >$200M ARR, scaling faster than any Playtika title in 15 years; a new Disney/Pixar title is in development (SuperPlay is “three for three” on scaled launches) .
• What Went Wrong
  • Slotomania revenue fell to $68.5M (-20.8% q/q, -46.7% y/y) amid deliberate economy rebalancing and reduced performance marketing; management does not assume a near-term recovery .
  • Average DPUs -6.3% q/q (to 354K), DAUs -6.8% q/q (to 8.2M), reflecting pullbacks in underperforming slots; ARPDAU only +2.3% q/q .
  • GAAP G&A increased y/y due to $30.8M contingent consideration remeasurement relating to SuperPlay, creating a GAP between GAAP profitability and non‑GAAP metrics .

Financial Results

Table 1. Income statement summary and margins (Oldest → Newest)

Table 2. Actuals vs S&P Global consensus (Quarterly)

Values retrieved from S&P Global.
Note: Company-reported Adjusted EBITDA differs from S&P’s standard EBITDA; Playtika’s Adjusted EBITDA was $167.3M (Q1), $167.0M (Q2), $217.5M (Q3) .

Table 3. Direct-to-Consumer (DTC) revenue

Table 4. Title highlights (Q2 → Q3)

Table 5. KPIs

Guidance Changes

Management reiterated CapEx finishing below full-year plan and a seasonal marketing pattern (H1 heavy, H2 step-down) continuing in 2026 .

Earnings Call Themes & Trends

Management Commentary

• “Disney Solitaire… has scaled faster than any title in our 15-year history… tracking an annualized run rate above $200 million.” — Robert Antokol, CEO .
• “DTC represented 31% of total revenue this quarter, and we are working to achieve 40% on a run-rate basis in the next two years.” — Craig Abrahams, CFO .
• “We executed the planned step-down in second-half marketing… contributing to the improvement in adjusted EBITDA.” — Craig Abrahams, CFO .
• “We are not assuming a near-term [Slotomania] revenue recovery… focus remains on improving game experience, payer retention, and ROI discipline.” — Craig Abrahams, CFO .
• “U.S. iOS was the major catalyst driving [DTC] growth.” — Craig Abrahams, CFO .

Q&A Highlights

• AI/productivity: Focus on personalization in live ops and player support; AI in House of Fun improving efficiency and speed-to-feature .
• Marketing cadence: H2 step-down executed; expect re-acceleration in early 2026 where ROI warrants; discipline between UA vs. retargeting by title .
• SuperPlay earn-out: Tracking toward 60% growth threshold vs $342M baseline; potential G&A volatility from fair value remeasurement (excluded from Adj EBITDA) .
• Jackpot Tour (slots): On track for Q4 launch; designed to reach a different audience; no expected cannibalization of existing slot portfolio near term .
• DTC drivers: Strong Q3 U.S. iOS momentum; continued rollout across titles; international growth (e.g., Japan) evident via SuperPlay .

Estimates Context

• Q3 beats vs S&P consensus: Revenue $674.6M vs $667.5M; “Primary EPS” $0.216 vs $0.146; EBITDA $190.0M vs $188.4M (SPGI standard). Company Adjusted EBITDA of $217.5M (non‑GAAP) was higher due to add-backs (contingent consideration, D&A, etc.) .
• Prior quarters: Q1 beat on revenue/EPS; Q2 missed revenue and EPS amid ramped SuperPlay marketing and Slotomania decline; Q3 rebound in profitability on DTC and marketing step-down .
• Implications: Street likely to raise DTC penetration and margin assumptions, remain cautious on Slotomania trajectory and factor G&A volatility from contingent consideration remeasurements .
  Values retrieved from S&P Global.

Key Takeaways for Investors

• DTC flywheel is working: record $209M DTC, 31% mix, path to 40% in ~2 years, aided by U.S. iOS policy tailwinds — a structural margin lever .
• SuperPlay is a differentiated growth engine (Disney Solitaire >$200M ARR, 4th Disney title coming), offsetting legacy slot pressure over time .
• Near-term slot headwinds persist (Slotomania -47% y/y); stabilization before re-accelerating UA remains the base case; do not model a rapid rebound .
• Marketing seasonality and capital returns intact: H2 spend step-down boosted EBITDA; $0.10 dividend declared for Jan 2026; FY25 guide reaffirmed .
• Non-GAAP vs GAAP: Watch G&A swings from contingent consideration; Adjusted EBITDA better reflects core operations but differs from SPGI EBITDA .
• Cash and liquidity remain solid ($640.8M cash/ST investments; net LTM leverage ~2.4x), providing flexibility for pipeline and returns .
• Setup: Balance DTC/margin momentum and SuperPlay pipeline against slot normalization risk; narrative skewing constructive into 2026 if DTC continues to scale and new titles ramp .

Appendix: Other Relevant Press Releases (Q3 2025)

• Bingo Blitz x Garfield limited-time collaboration (social features, brand engagement) .