Revenue of $731.1 million and Direct-to-Consumer ("DTC") Revenue of $286.9 million
Revenue Decreased (1.8)% Sequentially and Increased 5.0% Year Over Year
DTC Platforms Revenue Decreased (1.7)% Sequentially and Increased 63.1% Year Over Year
HERZLIYA, Israel, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Playtika Holding Corp. (NASDAQ: PLTK) today released financial results for its second quarter for the period ending June 30, 2026.
Financial Highlights
-- Revenue of $731.1 million decreased (1.8)% sequentially and increased
5.0% year over year.
-- DTC platforms revenue of $286.9 million decreased (1.7)% sequentially and
increased 63.1% year over year.
-- Net Income of $48.0 million and Adjusted Net Income of $53.6 million.
-- Adjusted EBITDA of $206.1 million increased 64.6% sequentially and 23.4%
year over year.
-- Cash, cash equivalents, and short-term investments totaled $438.5 million
as of June 30, 2026.
"Our second quarter results demonstrate what has always been at the heart of Playtika, we build games that keep players engaged for years, not quarters," said Robert Antokol, Chief Executive Officer. "Disney Solitaire grew again this quarter even as we reduced our marketing investment and our margins expanded meaningfully. These results reflect the durability of our model and the discipline of our execution."
"Our second quarter reflected the investment cadence we outlined last quarter, marketing stepped down materially, margins expanded, and SuperPlay became a positive Adjusted EBITDA contributor," said Tae Lee, Chief Financial Officer.
Selected Operational Metrics and Business Highlights
-- Average Daily Paying Users of 367K decreased (5.2)% sequentially and
(2.9)% year over year.
-- Average Payer Conversion of 4.6%, up from 4.5% in Q1 2026 and 4.3% in Q2
2025.
-- Bingo Blitz revenue of $145.1 million decreased (5.6)% sequentially and
(9.5)% year over year.
-- Disney Solitaire revenue of $142.4 million increased 15.5% sequentially
and 288.6% year over year.
-- June's Journey revenue of $74.7 million decreased (1.7)% sequentially and
increased 8.1% year over year.
Financial Outlook
We are reaffirming our full-year 2026 guidance ranges of $2.75 - $2.85 billion in revenue and $750 - $790 million in Adjusted EBITDA. Based on current trends, including a more cautious view of consumer spending and the planned step-down in second-half marketing investment, we currently expect full-year results to finish toward the lower end of both ranges.
Conference Call
Playtika management will host a conference call at 5:30 a.m. Pacific Time (8:30 a.m. Eastern Time) today to discuss the company's results. The conference call can be accessed via a webcast accessible at investors.playtika.com. A replay of the call will be available through the website one hour following the call and will be archived for one year.
Summary Operating Results of Playtika Holding Corp.
Three months ended June
30, Six months ended June 30,
------------------------- ---------------------------
(in millions,
except percentages,
Average DPUs, and
ARPDAU) 2026 2025 2026 2025
------------ ----------- ------------- ------------
Revenues $731.1 $696.0 $1,475.8 $1,402.0
Total costs and
expenses $596.5 $586.3 $1,390.8 $1,224.5
Operating income
(loss) $134.6 $109.7 $ 85.0 $ 177.5
Net income (loss) $ 48.0 $ 33.2 $ (9.5) $ 63.8
Adjusted EBITDA $206.1 $167.0 $ 331.3 $ 334.3
Net income margin 6.6% 4.8% (0.6)% 4.6%
Adjusted EBITDA
margin 28.2% 24.0% 22.4% 23.8%
Non-financial
performance
metrics
Average DAUs 8.0 8.8 8.3 8.9
Average DPUs
(in
thousands) 367 378 377 384
Average Daily
Payer
Conversion 4.6% 4.3% 4.6% 4.3%
ARPDAU $ 1.01 $ 0.87 $ 0.99 $ 0.87
Average MAUs 24.8 30.0 27.5 30.9
About Playtika Holding Corp.
Playtika (NASDAQ: PLTK) is a mobile gaming entertainment and technology market leader with a portfolio of multiple game titles. Founded in 2010, Playtika was among the first to offer free-to-play social games on social networks and, shortly after, on mobile platforms. Headquartered in Herzliya, Israel, and guided by a mission to entertain the world through infinite ways to play, Playtika has employees across offices worldwide.
Forward Looking Information
This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Exchange Act. All statements other than statements of historical facts contained in this press release, including statements regarding our business strategy, plans and our objectives for future operations, are forward-looking statements. Further, statements that include words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "future," "intend," "intent," "may," "might," "potential," "present," "preserve," "project," "pursue," "should," "will, " or "would," or the negative of these words or other words or expressions of similar meaning may identify forward-looking statements.
We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The achievement or success of the matters covered by such forward-looking statements involves significant risks, uncertainties and assumptions, including, but not limited to, the risks and uncertainties discussed in our filings with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment and industry. As a result, it is not possible for our management to assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated, predicted or implied in the forward-looking statements.
Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include without limitation:
-- actions of our majority shareholder or other third parties that influence
us;
-- our reliance on third-party platforms, such as the iOS App Store and
Google Play Store, to distribute our games and collect revenues, and the
risk that such platforms may adversely change their policies;
-- our reliance on a limited number of games to generate the majority of our
revenue;
-- our reliance on a small percentage of total users to generate a majority
of our revenue;
-- our free-to-play business model, and the value of virtual items sold in
our games, is highly dependent on how we manage the game revenues and
pricing models;
-- our inability to refinance our indebtedness, including, without
limitation, our $550 million revolving credit facility which is set to
expire in March 2027, or to obtain additional financing on favorable
terms or at all;
-- our inability to identify acquisition targets that fit our strategy or
complete acquisitions and integrate any acquired businesses successfully
or realize the anticipated benefits of such acquisitions could limit our
growth, disrupt our plans and operations or impact the amount of capital
allocated to mergers and acquisitions;
-- our ability to compete in a highly competitive industry with low barriers
to entry;
-- our ability to retain existing players, attract new players and increase
the monetization of our player base;
-- our ability to develop and/or launch new products and content or
otherwise execute against our product roadmap strategy;
-- we have significant indebtedness and are subject to the obligations and
restrictive covenants under our debt instruments;
-- the impact of an economic recession or periods of increased inflation,
and any reductions to household spending on the types of discretionary
entertainment we offer;
-- our controlled company status;
-- legal or regulatory restrictions or proceedings could adversely impact
our business and limit the growth of our operations;
-- risks related to our international operations and ownership, including
our significant operations in Israel and Ukraine and the fact that our
controlling stockholder is a Chinese-owned company;
-- geopolitical events such as the Wars in Israel and Ukraine;
-- our reliance on key personnel;
-- market conditions or other factors affecting the payment of dividends,
including the decision whether or not to pay a dividend;
-- uncertainties regarding the amount and timing of repurchases under our
stock repurchase program;
-- security breaches or other disruptions could compromise our information
or our players' information and expose us to liability; and
-- our inability to protect our intellectual property and proprietary
information could adversely impact our business.
PLAYTIKA HOLDING CORP.
CONSOLIDATED BALANCE SHEETS
(In millions, except par value)
June 30, December 31,
2026 2025
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 438.5 $ 684.2
Short-term investments -- 136.0
Restricted cash 0.2 1.5
Accounts receivable 163.2 161.8
Prepaid expenses and other current
assets 108.9 80.4
-------- ---------
Total current assets 710.8 1,063.9
Property and equipment, net 94.9 102.9
Operating lease right-of-use assets 109.2 124.2
Intangible assets other than goodwill,
net 375.1 425.7
Goodwill 1,695.7 1,695.7
Deferred tax assets, net 173.6 173.2
Investments in unconsolidated entities 17.1 17.5
Other non-current assets 116.3 115.8
-------- ---------
Total assets $ 3,292.7 $ 3,718.9
======== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)
Current liabilities
Current maturities of long-term debt $ 11.0 $ 11.1
Accounts payable 87.7 80.3
Contingent consideration 200.0 454.0
Operating lease liabilities 25.1 27.5
Accrued expenses and other current
liabilities 301.2 395.0
-------- ---------
Total current liabilities 625.0 967.9
Long-term debt 2,372.7 2,378.0
Contingent consideration 170.0 280.0
Operating lease liabilities 101.3 115.4
Deferred tax liabilities 4.3 8.2
Other long-term liabilities 419.3 380.8
-------- ---------
Total liabilities 3,692.6 4,130.3
-------- ---------
Commitments and contingencies
Stockholders' equity (deficit)
Common stock of $0.01 par value;
1,600.0 shares authorized; 433.2 and
428.8 shares issued, respectively,
and 381.4 and 377.0 shares
outstanding, respectively 4.3 4.3
Treasury stock at cost, 51.8 shares (603.5) (603.5)
Additional paid-in capital 1,448.8 1,423.1
Accumulated other comprehensive
income 11.2 15.9
Accumulated deficit (1,260.7) (1,251.2)
-------- ---------
Total stockholders' deficit (399.9) (411.4)
-------- ---------
Total liabilities and stockholders'
deficit $ 3,292.7 $ 3,718.9
======== =========
PLAYTIKA HOLDING CORP.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions, except for per share data)
(Unaudited)
Three months Six months ended
ended June 30, June 30,
--------------- --------------------
2026 2025 2026 2025
------- ---------
Revenues $731.1 $ 696.0 $1,475.8 $ 1,402.0
Costs and expenses
Cost of revenue 192.9 195.8 385.1 393.2
Research and
development 96.4 114.5 194.4 218.3
Sales and
marketing 252.6 257.7 613.2 529.5
General and
administrative 54.1 17.9 197.6 83.1
Impairment
charges 0.5 0.4 0.5 0.4
----- ------ ------- --------
Total costs
and expenses 596.5 586.3 1,390.8 1,224.5
----- ------ ------- --------
Income from
operations 134.6 109.7 85.0 177.5
Interest and
other, net 66.1 64.6 90.3 91.3
----- ------ ------- --------
Income (loss) before
income taxes 68.5 45.1 (5.3) 86.2
Provision for
income taxes 20.5 11.9 4.2 22.4
----- ------ ------- --------
Net income (loss) 48.0 33.2 (9.5) 63.8
----- ------ ------- --------
Other comprehensive
income (loss)
Foreign currency
translation -- 15.5 -- 22.7
Change in fair
value of
derivatives 2.6 7.8 (4.7) 1.1
----- ------ ------- --------
Total other
comprehensive
income
(loss) 2.6 23.3 (4.7) 23.8
----- ------ ------- --------
Comprehensive income
(loss) $ 50.6 $ 56.5 $ (14.2) $ 87.6
===== ====== ======= ========
Net income (loss)
per share
attributable to
common
stockholders,
basic $ 0.13 $ 0.09 $ (0.03) $ 0.17
===== ====== ======= ========
Net income (loss)
per share
attributable to
common
stockholders,
diluted $ 0.13 $ 0.09 $ (0.03) $ 0.17
===== ====== ======= ========
Weighted-average
shares used in
computing net
income (loss) per
share attributable
to common
stockholders,
basic 380.6 375.5 379.5 375.4
===== ====== ======= ========
Weighted-average
shares used in
computing net
income (loss) per
share attributable
to common
stockholders,
diluted 382.2 375.6 379.5 375.8
===== ====== ======= ========
PLAYTIKA HOLDING CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Six months ended June 30,
2026 2025
------------------ -------------
Cash flows from operating activities $ 51.5 $ 164.9
---------- ---------
Cash flows from investing activities
Purchase of property and equipment (14.1) (15.2)
Capitalization of internal use
software costs (12.9) (15.9)
Purchase of software for internal
use (9.5) (14.2)
Proceeds from maturities of
marketable securities 135.6 --
Proceeds from short-term investments -- 69.1
Purchase of short-term investments -- (159.8)
Other investing activities (0.1) 0.8
Net cash provided by (used in)
investing activities 99.0 (135.2)
---------- ---------
Cash flows from financing activities
Dividend paid (37.7) (74.9)
Repayments on bank borrowings (9.5) (9.5)
Payment of tax withholdings on
stock-based payments (1.2) (1.7)
Payment for share buyback -- (10.9)
Payment of contingent consideration (350.0) --
Net cash used in financing
activities (398.4) (97.0)
---------- ---------
Effect of exchange rate changes on cash
and cash equivalents and restricted
cash 0.9 2.0
---------- ---------
Net change in cash, cash equivalents
and restricted cash (247.0) (65.3)
Cash, cash equivalents and restricted
cash at the beginning of the period 685.7 567.7
Cash, cash equivalents and restricted
cash at the end of the period $ 438.7 $ 502.4
========== =========
CALCULATION OF FREE CASH FLOW
(In millions)
Six months ended June 30,
-----------------------------------
2026 2025
----------------- ----------------
Cash flows from operating activities $ 51.5 $ 164.9
Purchase of property and equipment (14.1) (15.2)
Capitalization of internal use
software costs (12.9) (15.9)
Purchase of software for internal
use (9.5) (14.2)
--------- ---------
Free Cash Flow $ 15.0 $ 119.6
========= =========
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted Net Income are non-GAAP financial measures and should not be construed as an alternative to net income as an indicator of operating performance, nor as an alternative to cash flow provided by operating activities as a measure of liquidity, or any other performance measure in each case as determined in accordance with GAAP.
Our Credit Agreement defines Adjusted EBITDA as net income before (i) interest expense, (ii) interest income, (iii) provision for income taxes, (iv) depreciation and amortization expense, (v) impairment charges, (vi) stock-based compensation, (vii) contingent consideration, (viii) acquisition and related expenses, and (ix) certain other items. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by revenues.
We define Adjusted Net Income as net income before (i) impairment charges, and (ii) contingent consideration.
Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Net Income as calculated herein may not be comparable to similarly titled measures reported by other companies within the industry and are not determined in accordance with GAAP. Our presentation of Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Net Income should not be construed as an inference that our future results will be unaffected by unusual or unexpected items.
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(In millions)
The following table sets forth a reconciliation of Adjusted EBITDA to net income, the closest GAAP financial measure:
Three months ended June
30, Six months ended June 30,
------------------------- -------------------------
2026 2025 2026 2025
------------ ----------- ------------ -----------
Net income (loss) $ 48.0 $ 33.2 $ (9.5) $ 63.8
Provision for
income taxes 20.5 11.9 4.2 22.4
Interest expense
and other, net 66.1 64.6 90.3 91.3
Depreciation and
amortization 45.2 61.0 90.1 120.2
----- ---- ----- --- ----- ---- ----- ---
EBITDA 179.8 170.7 175.1 297.7
Stock-based
compensation(1) 12.6 17.5 26.7 43.0
Impairment
charge 0.5 0.4 0.5 0.4
Changes in
estimated value
of contingent
consideration 2.0 (33.0) 97.0 (26.1)
Acquisition and
related
expenses(2) 9.2 3.6 16.4 10.1
Other items(3) 2.0 7.8 15.6 9.2
----- ---- ----- --- ----- ---- ----- ---
Adjusted EBITDA $206.1 $167.0 $331.3 $334.3
===== ==== ===== === ===== ==== ===== ===
Net income margin 6.6% 4.8% (0.6)% 4.6%
===== === ===== ====== === =====
Adjusted EBITDA
margin 28.2% 24.0% 22.4% 23.8%
===== === ===== ===== === =====
_________
(1) Reflects stock-based compensation expense related
to the issuance of equity awards to our employees
and Directors.
(2) Includes costs incurred to evaluate and pursue acquisition
activities as well as costs incurred by the Company
in connection with the evaluation of strategic alternatives.
(3) Amounts for the three and six months ended June 30,
2026 consists primarily of $1.6 million and $15.3
million, respectively, incurred by the Company for
severance.
Amounts for the three and six months ended June 30,
2025 consists of $7.8 million and $8.5 million, respectively,
incurred by the Company related to restructuring activities.
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME
(In millions)
The following table sets forth a reconciliation of Adjusted Net Income to net income (loss), the closest GAAP financial measure:
Three months
ended June 30, Six months ended June 30,
----------------- ---------------------------
2026 2025 2026 2025
----- ---------- ------------- ------------
Net income (loss) $48.0 $ 33.2 $ (9.5) $ 63.8
Impairment
charge 0.5 0.4 0.5 0.4
Changes in
estimated
value of
contingent
consideration 2.0 (33.0) 97.0 (26.1)
Income tax
impact of
adjustments 3.1 5.9 (20.8) 4.6
---- ----- ----- -----
Adjusted Net
Income $53.6 $ 6.5 $ 67.2 $ 42.7
==== ===== ===== =====
Contacts
Investor Relations
IR@playtika.com
Source: Playtika Holding Corp.
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