[Management View]
Playtika's management emphasized the exceptional growth driven by the Super Play portfolio, particularly Disney Solitaire, which has become the fastest-scaling title in the company's history. The company achieved record direct-to-consumer (D2C) revenue, supported by broader adoption across top titles and favorable policy changes in payment channels. Strategic priorities include continued D2C expansion, AI-driven efficiency improvements, and resource reallocation from lower-ROI titles to growth areas.

[Outlook]
Management provided guidance that they do not expect a near-term revenue recovery for Slotomania, focusing instead on stabilizing the franchise. Future plans include the launch of a new slot title, Jackpot Tour, targeting a distinct audience within the slot segment. The company aims to increase D2C revenue to 40% of total revenue on a run-rate basis within two years.

[Financial Performance]
Playtika reported $604.6 million in revenue for Q3 2025, down 3.1% sequentially but up 8.7% year-over-year. GAAP net income was $39.1 million, up 17.8% sequentially and down 0.5% year-over-year. Adjusted EBITDA was $217.5 million, up 30.2% sequentially and 10.3% year-over-year, driven by margin expansion from D2C revenue and reduced marketing spend for Super Play titles.

[Q&A Highlights]
Question 1: Could you expand on reallocating resources and AI initiatives at the studio level? Which games could be impacted?
Answer: We are investing in growth for acquired titles and our biggest franchises, with D2C expansion across all titles. AI is enhancing player experience and studio efficiency, particularly in personalizing products and live ops capabilities.

Question 2: On marketing, is the need to spend on paid acquisition more about supporting new games or other factors like D2C?
Answer: Marketing is key for growth where we have strong ROI. We apply ROI criteria to all investment opportunities, deploying capital where UA costs are justified.

Question 3: Thoughts on the dividend in 2026 and capital allocation?
Answer: We constantly evaluate our capital allocation framework. Super Play's performance is strong, tracking toward a 60% growth threshold, influencing our capital allocation decisions.

Question 4: Impact of Google's policy on sweepstakes advertising under social casino category?
Answer: We don't comment on speculation but will monitor the situation and deploy capital where opportunities arise.

Question 5: On Jackpot Tour, do you expect any cannibalization of your current slot portfolio?
Answer: Jackpot Tour targets a different audience, addressing segments not previously targeted, supporting growth without cannibalizing existing titles.

Question 6: Acceleration in DTC growth, was Super Play a contributor?
Answer: Our DTC platform is a major growth channel, with US iOS as a catalyst. Most games are on our DTC platform, driving EBITDA growth.

Question 7: Stabilizing Slotomania and marketing investments?
Answer: We are focused on improving Slotomania's game economy and experience. Marketing investments are based on game-specific KPIs, balancing user acquisition and retention.

Question 8: Success of Disney Solitaire influencing other internally produced games?
Answer: Success has led to a new Disney title from Super Play, reflecting confidence in launching successful games at scale.

Question 9: Competitive dynamics in the social casino category and international opportunities?
Answer: Competitive dynamics remain consistent. Strong D2C performance in US iOS, with international growth opportunities in markets like Japan.

[Sentiment Analysis]
Analysts showed interest in Playtika's strategic initiatives, particularly in AI and D2C growth. Management maintained a positive tone, emphasizing disciplined capital allocation and strategic rebalancing.

[Quarterly Comparison]
| Metric | Q3 2025 | Q2 2025 | YoY Change |
|-------------------------|---------------|---------------|--------------|
| Revenue | $604.6M | $624.0M | +8.7% |
| GAAP Net Income | $39.1M | $33.2M | -0.5% |
| Adjusted EBITDA | $217.5M | $167.0M | +10.3% |
| D2C Revenue | $209.3M | $176.0M | +20% |

[Risks and Concerns]
Slotomania's revenue decline poses a significant risk, with management not assuming a near-term recovery. Operating expenses increased due to higher marketing investments and Super Play acquisition-related costs. The contingent consideration for Super Play introduces expense variability.

[Final Takeaway]
Playtika's Q3 2025 performance highlights the strength of its D2C strategy and the rapid scaling of Disney Solitaire. While facing challenges in the slot portfolio, the company is focused on stabilizing Slotomania and reallocating resources to higher-return opportunities. Strategic investments in AI and D2C platforms are expected to drive future growth and efficiency. Management remains committed to disciplined capital allocation, balancing shareholder returns with growth investments.