Playtika Holding Corp. — Q3 2026 Earnings Summary

Financial Performance:

• Revenue was $673.8 million, a decrease of 7.8% sequentially and 0.1% year over year.
• Direct-to-Consumer (DTC) revenue was $275.1 million, a decrease of 4.1% sequentially and an increase of 31.4% year over year.
• Net income was $40.4 million for the quarter, compared to $39.1 million in Q3 2025.
• Adjusted Net Income was $120.7 million for the quarter.
• Adjusted EBITDA was $252.1 million, an increase of 22.3% sequentially and 15.9% year over year.
• Adjusted EBITDA margin expanded to 37.4% in Q3 2026, up from 32.2% in Q3 2025.
• Cash, cash equivalents, and short-term investments totaled $594.6 million as of September 30, 2026.
• Total costs and expenses were $557.6 million for the quarter, down from $576.2 million in Q3 2025.
• Operating income was $116.2 million for the quarter, up from $98.4 million in Q3 2025.
• Net income margin was 6.0% for the quarter, compared to 5.8% in Q3 2025.

Guidance and Future Outlook:

• The company reaffirmed its full-year revenue range of $2.75 billion to $2.85 billion.
• The company reaffirmed its full-year Adjusted EBITDA range of $750 million to $790 million.
• Management expects to land around the midpoint of both the revenue and Adjusted EBITDA ranges for the full year 2026.
• Management intends to strengthen the balance sheet by building on the discipline demonstrated in the third quarter.

Business Segments and Product Lines:

• Bingo Blitz revenue was $133.0 million, a decrease of 8.3% sequentially and 18.2% year over year.
• Disney Solitaire revenue was $111.2 million, a decrease of 21.9% sequentially but an increase of 88.4% year over year.
• June's Journey revenue was $76.6 million, an increase of 2.4% sequentially and 12.1% year over year.
• SuperPlay continued to deliver strong year-over-year growth.
• June's Journey grew double digits in its ninth year.

Market and Competitive Landscape:

• Average Daily Paying Users (DPUs) were 333,000, a decrease of 9.3% sequentially and 5.9% year over year.
• Average Payer Conversion was 4.7%, up from 4.6% in Q2 2026 and 4.3% in Q3 2025.
• Average Daily Users (DAUs) were 7.1 million for the quarter, down from 8.2 million in Q3 2025.
• Average Monthly Users (MAUs) were 21.5 million for the quarter, down from 26.4 million in Q3 2025.
• Average Revenue Per Daily Active User (ARPDAU) was $1.03 for the quarter, up from $0.89 in Q3 2025.

Risks and Challenges:

• The company relies on a limited number of games to generate the majority of its revenue.
• The company relies on a small percentage of total users to generate a majority of its revenue.
• The company faces risks related to its free-to-play business model and the management of game revenues and pricing models.
• The company has significant indebtedness, including a $550 million revolving credit facility set to expire in March 2027.
• The company operates in a highly competitive industry with low barriers to entry.
• The company is subject to risks related to its controlled company status and a controlling stockholder that is a Chinese-owned company.
• Geopolitical events, including the wars in Israel and Ukraine, pose risks to international operations.
• The company relies on third-party platforms (iOS App Store and Google Play Store) for distribution and revenue collection.

Management Commentary and Tone:

• Robert Antokol, CEO, stated that the strategic review is complete and the company will continue as an independent, publicly traded company to create long-term value.
• Antokol highlighted the durability of the business, citing loyal players and games built to last.
• Tae Lee, CFO, noted that marketing spend stepped down as planned and that the company delivered record quarterly Adjusted EBITDA.
• Management expressed confidence in delivering on the 2026 plan and strengthening the balance sheet.

Other Key Points:

• The Board of Directors concluded its review of strategic alternatives and determined Playtika will operate as an independent company.
• The company paid $37.7 million in dividends during the nine months ended September 30, 2026.
• The company paid $350.0 million in contingent consideration during the nine months ended September 30, 2026.
• There were no share buybacks in the nine months ended September 30, 2026, compared to $16.1 million in the same period in 2025.
• Free Cash Flow for the nine months ended September 30, 2026, was $177.5 million, down from $217.9 million in the same period in 2025.
• Total liabilities were $3,709.2 million as of September 30, 2026, compared to $4,130.3 million as of December 31, 2025.
• Stockholders' deficit was $(358.3) million as of September 30, 2026, compared to $(411.4) million as of December 31, 2025.
• The company hosted a conference call on November 5, 2026, to discuss results.