Playtika Holding Corp. Reports Q1 2026 Financial Results
Rhea-AI Summary
Playtika (NASDAQ: PLTK) reported Q1 2026 revenue of $744.7M, up 9.7% sequentially and 5.5% year‑over‑year, and record DTC platforms revenue $291.8M (up 16.7% QoQ, 62.8% YoY). Net loss was $(57.5)M; Adjusted EBITDA was $125.2M. Cash and equivalents totaled $779.2M. The company raised full‑year 2026 revenue guidance to $2.75–$2.85B and Adjusted EBITDA guidance to $750–$790M. Tae Lee appointed CFO effective May 5, 2026.
Positive
- Revenue $744.7M, up 5.5% YoY
- Record DTC platforms revenue $291.8M, +62.8% YoY
- Raised full‑year 2026 revenue guidance to $2.75–$2.85B
- Raised 2026 Adjusted EBITDA guidance to $750–$790M
- Cash and short‑term investments $779.2M
Negative
- Adjusted EBITDA $125.2M, down 25.2% YoY
- Net loss $(57.5)M in Q1 2026
- Total costs and expenses $794.3M exceeded revenue
- Average DAUs declined to 8.6M from 9.0M
Key Figures
Market Reality Check
Peers on Argus
PLTK was down 1.92% while momentum-screened gaming peers like GDC (+12.93%) and GAME (+3.60%) moved higher, suggesting stock-specific rather than sector-wide pressures.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 26 | Q4 2025 earnings | Positive | +7.9% | Q4 and FY2025 revenue growth, strong free cash flow, and 2026 guidance. |
| Nov 06 | Q3 2025 earnings | Positive | +11.5% | Record DTC revenue, higher Adjusted EBITDA, and dividend declaration with reaffirmed guidance. |
| Aug 07 | Q2 2025 earnings | Negative | -9.2% | Mixed results with lower GAAP income and Adjusted EBITDA plus revised 2025 revenue guidance. |
| May 08 | Q1 2025 earnings | Negative | -7.5% | Revenue growth but declining GAAP net income and Adjusted EBITDA versus prior year. |
| Feb 27 | Q4 2024 earnings | Negative | -16.8% | Revenue growth alongside a quarterly net loss and focus on margin pressures and guidance. |
Earnings headlines have produced an average move of -2.83%, with reactions consistently aligning to the tone of results and outlook.
Over the last five earnings cycles, Playtika has steadily grown revenue and Direct-to-Consumer contributions while profitability metrics fluctuated. Prior reports highlighted rising DTC revenue, mixed GAAP income, and guidance adjustments, alongside dividend suspension to prioritize flexibility. Price reactions ranged from double-digit gains to notable selloffs, but generally moved in the same direction as the perceived quality of results and updated guidance.
Historical Comparison
In the last five earnings releases, PLTK’s average move was -2.83%, with reactions closely tracking whether results and guidance were perceived as stronger or weaker.
Earnings history shows growing revenue and expanding Direct-to-Consumer contributions, offset by periods of GAAP net losses and margin pressure. Guidance has hovered around $2.70–$2.85B revenue with mid- to high-$700M Adjusted EBITDA targets, while capital returns shifted as dividends were suspended in favor of flexibility.
Market Pulse Summary
This announcement combines record Q1 revenue of $744.7M and strong DTC growth with a GAAP net loss driven by non-cash contingent consideration. Management raised 2026 revenue guidance to $2.75–$2.85B and boosted the Adjusted EBITDA range to $750–$790M. Investors may watch how SuperPlay investments normalize, whether DTC expansion supports margins, and how future quarters track against the updated outlook and prior earnings reactions.
Key Terms
direct-to-consumer financial
adjusted net income financial
adjusted ebitda financial
contingent consideration financial
earnout payment financial
net income margin financial
arpdau financial
AI-generated analysis. Not financial advice.
Revenue of
Revenue Increased
DTC Platforms Revenue Increased
HERZLIYA, Israel, May 07, 2026 (GLOBE NEWSWIRE) -- Playtika Holding Corp. (NASDAQ: PLTK) today released financial results for its first quarter for the period ending March 31, 2026.
Financial Highlights
- Revenue of
$744.7 million increased9.7% sequentially and5.5% year over year. - Record DTC platforms revenue of
$291.8 million increased16.7% sequentially and62.8% year over year. - Net Loss of
$(57.5) million and Adjusted Net Income of$13.6 million . - Net Loss reflects a non-cash impact from contingent consideration remeasurement related to the earnout payment tied to the SuperPlay acquisition.
- Adjusted EBITDA of
$125.2 million decreased (37.8)% sequentially and (25.2)% year over year. - Cash, cash equivalents, and short-term investments totaled
$779.2 million as of March 31, 2026.
“We delivered a strong start to 2026, led by continued momentum in Disney Solitaire and another quarter of record breaking performance in Direct-to-Consumer,” said Robert Antokol, Chief Executive Officer. “Just as importantly, we are seeing signs of improved stability across our organic portfolio quarter over quarter. We remain focused on disciplined execution, investing behind the opportunities we believe can drive sustained engagement and long-term value creation.”
“Q1 performance is ahead of our prior expectations, with SuperPlay tracking ahead of plan and the core portfolio showing strength,” said Tae Lee, Chief Financial Officer. “Our Adjusted EBITDA for the quarter reflects a planned, front-loaded investment cadence as SuperPlay scales, which we expect to normalize over the year.”
Board Appoints Tae Lee as Chief Financial Officer
The Board of Directors has appointed Tae Lee as Chief Financial Officer, effective May 5th, following his service as Acting Chief Financial Officer since April 2026.
Selected Operational Metrics and Business Highlights
- Average Daily Paying Users of 387K increased
8.4% sequentially and decreased (0.8)% year over year. - Average Payer Conversion of
4.5% , consistent with Q4 2025 conversion and up from4.3% in Q1 2025. - Bingo Blitz revenue of
$153.7 million decreased (3.0)% sequentially and (5.4)% year over year. - Disney Solitaire revenue of
$123.3 million increased72.1% sequentially. - June’s Journey revenue of
$76.0 million increased8.7% sequentially and10.4% year over year. - All-time high in revenue and DTC platforms revenue.
Financial Outlook
We are raising our full-year 2026 guidance to
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 March 31, | |||||||
| (in millions, except percentages, Average DPUs, and ARPDAU) | 2026 | 2025 | |||||
| Revenues | $ | 744.7 | $ | 706.0 | |||
| Total costs and expenses | $ | 794.3 | $ | 638.2 | |||
| Operating income (loss) | $ | (49.6 | ) | $ | 67.8 | ||
| Net income (loss) | $ | (57.5 | ) | $ | 30.6 | ||
| Adjusted EBITDA | $ | 125.2 | $ | 167.3 | |||
| Net income margin | (7.7)% | 4.3 | % | ||||
| Adjusted EBITDA margin | 16.8 | % | 23.7 | % | |||
| Non-financial performance metrics | |||||||
| Average DAUs | 8.6 | 9.0 | |||||
| Average DPUs (in thousands) | 387 | 390 | |||||
| Average Daily Payer Conversion | 4.5 | % | 4.3 | % | |||
| ARPDAU | $ | 0.94 | $ | 0.87 | |||
| Average MAUs | 30.1 | 31.8 | |||||
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) | |||||||
| March 31, | December 31, | ||||||
| 2026 | 2025 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 779.2 | $ | 684.2 | |||
| Short-term investments | — | 136.0 | |||||
| Restricted cash | 1.5 | 1.5 | |||||
| Accounts receivable | 180.0 | 161.8 | |||||
| Prepaid expenses and other current assets | 108.2 | 80.4 | |||||
| Total current assets | 1,068.9 | 1,063.9 | |||||
| Property and equipment, net | 96.4 | 102.9 | |||||
| Operating lease right-of-use assets | 118.6 | 124.2 | |||||
| Intangible assets other than goodwill, net | 401.0 | 425.7 | |||||
| Goodwill | 1,695.7 | 1,695.7 | |||||
| Deferred tax assets, net | 173.7 | 173.2 | |||||
| Investments in unconsolidated entities | 17.3 | 17.5 | |||||
| Other non-current assets | 115.3 | 115.8 | |||||
| Total assets | $ | 3,686.9 | $ | 3,718.9 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |||||||
| Current liabilities | |||||||
| Current maturities of long-term debt | $ | 11.1 | $ | 11.1 | |||
| Accounts payable | 87.3 | 80.3 | |||||
| Contingent consideration | 459.0 | 454.0 | |||||
| Operating lease liabilities | 25.4 | 27.5 | |||||
| Accrued expenses and other current liabilities | 321.3 | 395.0 | |||||
| Total current liabilities | 904.1 | 967.9 | |||||
| Long-term debt | 2,375.4 | 2,378.0 | |||||
| Contingent consideration | 370.0 | 280.0 | |||||
| Operating lease liabilities | 108.3 | 115.4 | |||||
| Deferred tax liabilities | 5.1 | 8.2 | |||||
| Other long-term liabilities | 387.1 | 380.8 | |||||
| Total liabilities | 4,150.0 | 4,130.3 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity (deficit) | |||||||
| Common stock of | 4.3 | 4.3 | |||||
| Treasury stock at cost, 51.8 shares | (603.5 | ) | (603.5 | ) | |||
| Additional paid-in capital | 1,436.2 | 1,423.1 | |||||
| Accumulated other comprehensive income | 8.6 | 15.9 | |||||
| Accumulated deficit | (1,308.7 | ) | (1,251.2 | ) | |||
| Total stockholders' deficit | (463.1 | ) | (411.4 | ) | |||
| Total liabilities and stockholders’ deficit | $ | 3,686.9 | $ | 3,718.9 | |||
| PLAYTIKA HOLDING CORP. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions, except for per share data) (Unaudited) | |||||||
| Three months ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Revenues | $ | 744.7 | $ | 706.0 | |||
| Costs and expenses | |||||||
| Cost of revenue | 192.2 | 197.4 | |||||
| Research and development | 98.0 | 103.8 | |||||
| Sales and marketing | 360.6 | 271.8 | |||||
| General and administrative | 143.5 | 65.2 | |||||
| Total costs and expenses | 794.3 | 638.2 | |||||
| Income (loss) from operations | (49.6 | ) | 67.8 | ||||
| Interest and other, net | 24.2 | 26.7 | |||||
| Income (loss) before income taxes | (73.8 | ) | 41.1 | ||||
| Provision for income taxes | (16.3 | ) | 10.5 | ||||
| Net income (loss) | (57.5 | ) | 30.6 | ||||
| Other comprehensive income (loss) | |||||||
| Foreign currency translation | — | 7.2 | |||||
| Change in fair value of derivatives | (7.3 | ) | (6.7 | ) | |||
| Total other comprehensive income (loss) | (7.3 | ) | 0.5 | ||||
| Comprehensive income (loss) | $ | (64.8 | ) | $ | 31.1 | ||
| Net income (loss) per share attributable to common stockholders, basic | $ | (0.15 | ) | $ | 0.08 | ||
| Net income (loss) per share attributable to common stockholders, diluted | $ | (0.15 | ) | $ | 0.08 | ||
| Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic | 378.3 | 375.4 | |||||
| Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted | 378.3 | 376.0 | |||||
| PLAYTIKA HOLDING CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) | |||||||
| Three months ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Cash flows from operating activities | $ | 22.8 | $ | 18.8 | |||
| Cash flows from investing activities | |||||||
| Purchase of property and equipment | (5.7 | ) | (10.4 | ) | |||
| Capitalization of internal use software costs | (8.9 | ) | (8.3 | ) | |||
| Purchase of software for internal use | (5.6 | ) | (6.6 | ) | |||
| Proceeds from short-term investments | 135.6 | — | |||||
| Purchase of short-term investments | — | (79.5 | ) | ||||
| Other investing activities | 0.1 | (0.3 | ) | ||||
| Net cash provided by (used in) investing activities | 115.5 | (105.1 | ) | ||||
| Cash flows from financing activities | |||||||
| Dividend paid | (37.7 | ) | (37.3 | ) | |||
| Repayments on bank borrowings | (4.8 | ) | (4.8 | ) | |||
| Payment of tax withholdings on stock-based payments | (1.1 | ) | (0.5 | ) | |||
| Payment for share buyback | — | (4.8 | ) | ||||
| Net cash used in financing activities | (43.6 | ) | (47.4 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | 0.3 | 2.3 | |||||
| Net change in cash, cash equivalents and restricted cash | 95.0 | (131.4 | ) | ||||
| 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 | $ | 780.7 | $ | 436.3 | |||
| CALCULATION OF FREE CASH FLOW (In millions) | |||||||
| Three months ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Cash flows from operating activities | $ | 22.8 | $ | 18.8 | |||
| Purchase of property and equipment | (5.7 | ) | (10.4 | ) | |||
| Capitalization of internal use software costs | (8.9 | ) | (8.3 | ) | |||
| Purchase of software for internal use | (5.6 | ) | (6.6 | ) | |||
| Free Cash Flow | $ | 2.6 | $ | (6.5 | ) | ||
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 March 31, | |||||||
| 2026 | 2025 | ||||||
| Net income (loss) | $ | (57.5 | ) | $ | 30.6 | ||
| Provision for income taxes | (16.3 | ) | 10.5 | ||||
| Interest expense and other, net | 24.2 | 26.7 | |||||
| Depreciation and amortization | 44.9 | 59.2 | |||||
| EBITDA | (4.7 | ) | 127.0 | ||||
| Stock-based compensation(1) | 14.1 | 25.5 | |||||
| Changes in estimated value of contingent consideration | 95.0 | 6.9 | |||||
| Acquisition and related expenses(2) | 7.2 | 6.5 | |||||
| Other items(3) | 13.6 | 1.4 | |||||
| Adjusted EBITDA | $ | 125.2 | $ | 167.3 | |||
| Net income margin | (7.7)% | 4.3 | % | ||||
| Adjusted EBITDA margin | 16.8 | % | 23.7 | % | |||
| _________ | |
| (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 months ended March 31, 2026 consists entirely of severance, and the amount for the three months ended March 31, 2025 consists primarily of |
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 March 31, | |||||||
| 2026 | 2025 | ||||||
| Net income (loss) | $ | (57.5 | ) | $ | 30.6 | ||
| Changes in estimated value of contingent consideration | 95.0 | 6.9 | |||||
| Income tax impact of adjustments | (23.9 | ) | (1.3 | ) | |||
| Adjusted Net Income | $ | 13.6 | $ | 36.2 | |||
Contacts
| Investor Relations | ||
| IR@playtika.com |
Source: Playtika Holding Corp.
