Playtika Holding Corp. — Q3 2026 Earnings Summary

Financial Performance

• Total revenue was $673.8 million, a decrease of 7.8% sequentially and 0.1% year over year.
• Direct-to-Consumer (DTC) platforms 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.
• Operating income was $116.2 million for the quarter.
• 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.
• Long-term debt stood at $2,370.3 million as of September 30, 2026, compared to $2,378.0 million at December 31, 2025.
• Total liabilities were $3,709.2 million as of September 30, 2026.
• Stockholders' deficit was $(358.3) million as of September 30, 2026.

Guidance and Future Outlook

• The company reaffirmed its full-year 2026 revenue range of $2.75 billion to $2.85 billion.
• The company reaffirmed its full-year 2026 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.

Business Segments and Product Lines

• Bingo Blitz revenue was $133.0 million, decreasing 8.3% sequentially and 18.2% year over year.
• Disney Solitaire revenue was $111.2 million, decreasing 21.9% sequentially but increasing 88.4% year over year.
• June's Journey revenue was $76.6 million, increasing 2.4% sequentially and 12.1% year over year.
• Average Daily Payers (ADP) decreased 9.3% sequentially to 333,000 and 5.9% year over year.
• Average Payer Conversion rate was 4.7%, up from 4.6% in Q2 2026 and 4.3% in Q3 2025.
• Average Daily Active Users (DAUs) were 7.1 million, down from 8.2 million in Q3 2025.
• Average Monthly Active Users (MAUs) were 21.5 million, down from 26.4 million in Q3 2025.
• Average Revenue Per Daily Active User (ARPDAU) was $1.03, up from $0.89 in Q3 2025.

Market and Competitive Landscape

• The company operates in a highly competitive industry with low barriers to entry.
• The company relies on third-party platforms, specifically the iOS App Store and Google Play Store, for game distribution and revenue collection.
• 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 the majority of its revenue.

Risks and Challenges

• Risks include potential adverse changes to third-party platform policies.
• The company faces risks related to its significant indebtedness, including a $550 million revolving credit facility expiring in March 2027.
• Geopolitical events, specifically the wars in Israel and Ukraine, pose risks to international operations.
• The company is subject to restrictive covenants under its debt instruments.
• There is a risk regarding the company's controlled status and the influence of its majority shareholder, a Chinese-owned company.
• Risks include the inability to refinance indebtedness or obtain additional financing on favorable terms.
• The company faces risks related to security breaches and the protection of intellectual property.
• Economic recessions or inflation could reduce household spending on discretionary entertainment.

Management Commentary and Tone

• CEO Robert Antokol stated the strategic review is complete and the company will continue as an independent, publicly traded entity to create long-term shareholder value.
• Antokol highlighted the durability of the business, citing loyal players and long-lasting games.
• CFO Tae Lee noted that the company is delivering on its 2026 plan, with marketing spending reduced as planned and record quarterly Adjusted EBITDA.
• Management expressed intent to strengthen the balance sheet by building on current discipline.
• The tone regarding the strategic review was decisive, confirming the decision to remain independent.

Other Key Points

• The Board of Directors concluded a strategic review of alternatives and determined Playtika will operate as an independent, publicly traded company.
• The company paid $37.7 million in dividends during the nine months ended September 30, 2026.
• The company paid $350.0 million for contingent consideration during the nine months ended September 30, 2026.
• No share buybacks occurred during the nine months ended September 30, 2026, compared to $16.1 million in the same period in 2025.
• The company reported $10.1 million in tax credits related to acquisitions within the nine-month period.
• Severance costs totaled $16.5 million for the nine months ended September 30, 2026.
• Impairment charges were $4.1 million for the quarter and $4.6 million for the nine months ended September 30, 2026.
• Changes in the estimated value of contingent consideration were $80.0 million for the quarter and $177.0 million for the nine months ended September 30, 2026.