Aug 6, 2026, 8:01 AM ETCommunication Services

Playtika Holding Corp. — Q2 2026 Earnings Summary

PLTKPLAYTIKA HOLDING CORP

Financial Performance

Total revenue was $731.1 million, a 1.8% decrease sequentially and a 5.0% increase year over year compared to $696.0 million.
Direct-to-Consumer (DTC) revenue was $286.9 million, a 1.7% decrease sequentially and a 63.1% increase year over year.
Net income was $48.0 million for the quarter, up from $33.2 million in Q2 2025; net loss was $(9.5) million for the six months ended June 30, 2026, compared to net income of $63.8 million in the prior year period.
Adjusted Net Income was $53.6 million for the quarter.
Adjusted EBITDA was $206.1 million, a 64.6% increase sequentially and a 23.4% increase year over year compared to $167.0 million.
Adjusted EBITDA margin was 28.2% for the quarter, up from 24.0% in Q2 2025.
Net income margin was 6.6% for the quarter, up from 4.8% in Q2 2025.
Cash, cash equivalents, and short-term investments totaled $438.5 million as of June 30, 2026, down from $684.2 million in cash and cash equivalents plus $136.0 million in short-term investments at December 31, 2025.
Total debt was $2,383.7 million ($11.0 million current maturities + $2,372.7 million long-term debt) as of June 30, 2026.
Free cash flow for the six months ended June 30, 2026, was $15.0 million, down from $119.6 million in the same period of 2025.
Operating cash flow for the six months ended June 30, 2026, was $51.5 million, down from $164.9 million in 2025.

Full-year 2026 revenue guidance remains $2.75 billion to $2.85 billion.
Full-year 2026 Adjusted EBITDA guidance remains $750 million to $790 million.
Management expects full-year results to finish toward the lower end of both guidance ranges due to a more cautious view of consumer spending and planned step-down in second-half marketing investment.

Disney Solitaire revenue was $142.4 million, a 15.5% increase sequentially and a 288.6% increase year over year.
Bingo Blitz revenue was $145.1 million, a 5.6% decrease sequentially and a 9.5% decrease year over year.
June's Journey revenue was $74.7 million, a 1.7% decrease sequentially and an 8.1% increase year over year.
SuperPlay became a positive Adjusted EBITDA contributor.
Average Daily Paying Users (DPUs) were 367,000, a 5.2% decrease sequentially and a 2.9% decrease year over year.
Average Payer Conversion was 4.6%, up from 4.5% in Q1 2026 and 4.3% in Q2 2025.
Average Daily Users (DAUs) were 8.0 million, down from 8.8 million in Q2 2025.
Average Monthly Users (MAUs) were 24.8 million, down from 30.0 million in Q2 2025.
Average Revenue Per Daily Active User (ARPDAU) was $1.01, up from $0.87 in Q2 2025.

The company operates in a highly competitive industry with low barriers to entry.
The business relies on a limited number of games to generate the majority of revenue.
The business relies on a small percentage of total users to generate the majority of revenue.
The company faces risks related to reliance on third-party platforms (iOS App Store, Google Play Store) for distribution and revenue collection.

Risks include reliance on a majority shareholder, potential adverse changes to third-party platform policies, and the free-to-play business model's dependence on pricing and monetization management.
The company has significant indebtedness, including a $550 million revolving credit facility expiring in March 2027, with risks regarding refinancing or obtaining additional financing.
Geopolitical events, specifically wars in Israel and Ukraine, and international operations in Israel and Ukraine pose risks.
The controlling stockholder is a Chinese-owned company, introducing specific international ownership risks.
Economic recession or inflation could reduce household spending on discretionary entertainment.
Risks include inability to identify or integrate acquisition targets, security breaches, and intellectual property protection issues.
The company is subject to restrictive covenants under debt instruments.

CEO Robert Antokol stated that results demonstrate the durability of the model and the discipline of execution, noting that Disney Solitaire grew even as marketing investment was reduced and margins expanded.
CFO Tae Lee noted that the quarter reflected the outlined investment cadence, with marketing stepping down materially, margins expanding, and SuperPlay becoming a positive Adjusted EBITDA contributor.
Management highlighted the strategy of building games that keep players engaged for years rather than quarters.

The company paid $37.7 million in dividends during the six months ended June 30, 2026.
The company paid $350.0 million in contingent consideration during the six months ended June 30, 2026.
No share buybacks were executed during the six months ended June 30, 2026.
The company incurred $15.3 million in severance costs in the first half of 2026.
The company hosts a conference call to discuss results, with a replay available at investors.playtika.com.