Record free cash flow as Playtika (NASDAQ: PLTK) reports 2025 net loss
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Playtika Holding Corp. reported mixed 2025 results, combining strong cash generation with a swing to loss under GAAP. Full-year revenue rose to $2,755.4 million from $2,549.3 million, an 8.1% increase, helped by growth in its casual portfolio and Direct-to-Consumer platforms.
The company posted a 2025 net loss of $(206.4) million versus net income of $162.2 million in 2024, largely reflecting non-cash contingent consideration remeasurement tied to the SuperPlay acquisition. Adjusted Net Income was $197.5 million and Adjusted EBITDA was $753.2 million, slightly below the prior year.
Free Cash Flow reached a record $481.6 million, up from $396.8 million. Direct-to-Consumer revenue grew to $814.5 million, up 17.3% year-over-year. Management updated its capital allocation framework by suspending the quarterly dividend while keeping share repurchases available. For 2026, Playtika guides revenue of $2.70–$2.80 billion and Adjusted EBITDA of $730–$770 million, with expected capital expenditures of $80 million and a 30% effective tax rate.
Positive
- Record Free Cash Flow and solid revenue growth: 2025 Free Cash Flow rose to $481.6 million from $396.8 million, a 21.4% increase, while revenue grew 8.1% year-over-year to $2,755.4 million, showing strong cash generation and top-line expansion.
- Rapid Direct-to-Consumer and casual mix shift: Direct-to-Consumer platforms generated $814.5 million of 2025 revenue, up 17.3% year-over-year, and casual-themed games expanded to 70.8% of total revenue, indicating a more diversified, higher-contribution portfolio.
- Resilient underlying profitability and KPIs: Adjusted EBITDA remained high at $753.2 million (27.3% margin), while Average Daily Paying Users increased 18.6% year-over-year to 370 thousand and Average Payer Conversion improved to 4.4% for 2025.
Negative
- GAAP profitability deterioration: Net income fell from $162.2 million in 2024 to a net loss of $(206.4) million in 2025, a 227.3% decline, driven largely by contingent consideration remeasurement, which may weigh on how investors view earnings quality.
- Dividend suspension and leverage overhang: The company is suspending its quarterly dividend to preserve flexibility around the performance-based SuperPlay earn-out and capital allocation, while carrying $2,389.1 million of total debt and total stockholders’ deficit of $(411.4) million as of December 31, 2025.
Insights
Strong cash and DTC growth are offset by a GAAP loss and dividend suspension.
Playtika grew 2025 revenue 8.1% to
Despite this, GAAP net income swung to a
The updated capital allocation framework is important: the company is suspending its quarterly dividend while maintaining buybacks and emphasizing flexibility around the performance-based SuperPlay obligations. FY2026 guidance for revenue of
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 26, 2026
Commission File Number: 001-39896
(Exact Name of Registrant as Specified in its Charter)
| (State of other jurisdiction | (I.R.S. Employer | |||||||
| of incorporation or organization) | Identification No.) | |||||||
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b 2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On February 26, 2026, Playtika Holding Corp. (the “Company”) issued a press release announcing its financial results for the quarter and fiscal year ended December 31, 2025. A copy of the press release is furnished herewith as Exhibit 99.1.
In accordance with General Instruction B.2. of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| 99.1 | Press Release dated February 26, 2026 | |||||||
| 99.2 | Fourth Quarter and Full Year 2025 Earnings Presentation | |||||||
| 104 | Cover page interactive data file (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| PLAYTIKA HOLDING CORP. | |||||
| Registrant | |||||
| By: | /s/ Craig Abrahams | ||||
| Craig Abrahams | |||||
| President and Chief Financial Officer | |||||
Dated as of | |||||
Exhibit 99.1
Playtika Holding Corp. Reports Q4 and 2025 Financial Results
Revenue of $678.8 million and Direct-to-Consumer (“DTC”) Revenue of $250.1 million
DTC Revenue Increased 19.5% Sequentially and 43.2% Year-Over-Year
Net Loss of $(309.3) million, Adjusted Net Income of $89.0 million, and Adjusted EBITDA of $201.4 million
Herzliya, Israel – February 26, 2026 - Playtika Holding Corp. (NASDAQ: PLTK) today released financial results for its fourth quarter and fiscal year ended December 31, 2025.
Fourth Quarter 2025 Financial Highlights:
•Revenue of $678.8 million increased 0.6% sequentially and 4.4% year-over-year.
•DTC platforms revenue of $250.1 million increased 19.5% sequentially and 43.2% year-over-year.
•Net loss of $(309.3) million and Adjusted net income of $89.0 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 $201.4 million decreased (7.4)% sequentially and increased 9.5% year-over-year.
•Cash and cash equivalents and short-term investments totaled $820.2 million as of December 31, 2025.
FY2025 Financial Highlights:
•FY2025 revenue of $2,755.4 million compared to $2,549.3 million in the prior year.
•DTC platforms revenue of $814.5 million compared to $694.2 million in the prior year.
•Net loss of $(206.4) million compared to net income of $162.2 million in the prior year.
•Adjusted net income of $197.5 million compared to $219.5 million in the prior year.
•Adjusted EBITDA of $753.2 million compared to $757.7 million in the prior year.
•Record high Free Cash Flow of $481.6 million compared to $396.8 million in the prior year1.
“We delivered a strong finish to 2025, driven by continued momentum in our casual portfolio, record DTC contribution, and another outstanding quarter from SuperPlay,” said Robert Antokol, Chief Executive Officer. “As we enter 2026, our focus remains on disciplined execution and building a more resilient, diversified business positioned for long-term value creation.”
“Our results underscore the strength of our portfolio strategy, highlighted by performance ahead of guidance and record free cash flow for the year,” said Craig Abrahams, President and Chief Financial Officer. “The business today reflects a healthier and more balanced mix, one that we believe supports stronger and more sustainable value creation over time.”
Selected Q4 Operational Metrics and Business Highlights
•Average Daily Paying Users of 357 thousand increased 0.8% sequentially and 5.3% year-over-year.
•Average Payer Conversion of 4.5%, up from 4.3% in Q3 2025 and 4.2% in Q4 2024.
•Bingo Blitz revenue of $158.5 million decreased (2.5)% sequentially and flat year-over-year.
•Disney Solitaire revenue of $71.6 million increased 21.4% sequentially.
•June’s Journey revenue of $70.0 million increased 2.5% sequentially and down (2.0)% year-over-year.
1 We define Free Cash Flow as net cash provided by operating activities minus capital expenditures.
Updated Capital Allocation Framework
We updated our capital allocation framework to reflect the opportunities ahead and the performance-based nature of the SuperPlay earn-out. To preserve flexibility and prioritize the highest-return uses of capital, we are suspending our quarterly dividend, while keeping buybacks available and continuing to evaluate our capital structure over time.
Financial Outlook
For FY2026, revenue expected to be between $2.70 - $2.80 billion and Adjusted EBITDA between $730 - $770 million. Capital expenditures are expected to be $80 million. We expect our effective tax rate to be 30%.
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 December 31, | Year ended December 31, | ||||||||||||||||||||||
| (in millions of dollars, except percentages, Average DPUs, and ARPDAU) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Revenues | $ | 678.8 | $ | 650.3 | $ | 2,755.4 | $ | 2,549.3 | |||||||||||||||
| Total cost and expenses | $ | 959.8 | $ | 595.0 | $ | 2,760.5 | $ | 2,157.7 | |||||||||||||||
| Operating income (loss) | $ | (281.0) | $ | 55.3 | $ | (5.1) | $ | 391.6 | |||||||||||||||
| Net income (loss) | $ | (309.3) | $ | (16.7) | $ | (206.4) | $ | 162.2 | |||||||||||||||
| Adjusted EBITDA | $ | 201.4 | $ | 183.9 | $ | 753.2 | $ | 757.7 | |||||||||||||||
| Net income margin | (45.6) | % | (2.6) | % | (7.5) | % | 6.4 | % | |||||||||||||||
| Adjusted EBITDA margin | 29.7 | % | 28.3 | % | 27.3 | % | 29.7 | % | |||||||||||||||
| Non-financial performance metrics | |||||||||||||||||||||||
| Average DAUs | 7.9 | 8.0 | 8.5 | 8.1 | |||||||||||||||||||
| Average DPUs (in thousands) | 357 | 339 | 370 | 312 | |||||||||||||||||||
| Average Daily Payer Conversion | 4.5 | % | 4.2 | % | 4.4 | % | 3.8 | % | |||||||||||||||
| ARPDAU | $ | 0.93 | $ | 0.89 | $ | 0.89 | $ | 0.86 | |||||||||||||||
| Average MAUs | 25.1 | 29.1 | 28.3 | 29.0 | |||||||||||||||||||
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 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 for per share data)
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 684.2 | $ | 565.8 | |||||||
| Short-term investments | 136.0 | — | |||||||||
| Restricted cash | 1.5 | 1.9 | |||||||||
| Accounts receivable | 161.8 | 187.6 | |||||||||
| Prepaid expenses and other current assets | 80.4 | 117.5 | |||||||||
| Total current assets | 1,063.9 | 872.8 | |||||||||
| Property and equipment, net | 102.9 | 115.4 | |||||||||
| Operating lease right-of-use assets | 124.2 | 89.9 | |||||||||
| Intangible assets other than goodwill, net | 425.7 | 562.2 | |||||||||
| Goodwill | 1,695.7 | 1,692.3 | |||||||||
| Deferred tax assets, net | 173.2 | 119.0 | |||||||||
| Investment in unconsolidated entities | 17.5 | 20.6 | |||||||||
| Other non-current assets | 115.8 | 167.0 | |||||||||
| Total assets | $ | 3,718.9 | $ | 3,639.2 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |||||||||||
| Current liabilities | |||||||||||
| Current maturities of long-term debt | $ | 11.1 | $ | 11.6 | |||||||
| Accounts payable | 80.3 | 58.6 | |||||||||
| Contingent consideration | 454.0 | 25.0 | |||||||||
| Operating lease liabilities | 27.5 | 25.7 | |||||||||
| Accrued expenses and other current liabilities | 395.0 | 438.0 | |||||||||
| Total current liabilities | 967.9 | 558.9 | |||||||||
| Long-term debt | 2,378.0 | 2,388.5 | |||||||||
| Contingent consideration | 280.0 | 354.6 | |||||||||
| Operating lease liabilities | 115.4 | 71.4 | |||||||||
| Deferred tax liabilities | 8.2 | 24.7 | |||||||||
| Other long-term liabilities | 380.8 | 372.2 | |||||||||
| Total liabilities | 4,130.3 | 3,770.3 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders' equity (deficit) | |||||||||||
| Common stock of US $0.01 par value: 1,600.0 shares authorized; 428.8 and 427.1 shares issued, respectively, and 377.0 and 375.3 shares outstanding, respectively | 4.3 | 4.1 | |||||||||
| Treasury stock at cost, 51.8 shares | (603.5) | (603.5) | |||||||||
| Additional paid-in capital | 1,423.1 | 1,362.7 | |||||||||
| Accumulated other comprehensive income (loss) | 15.9 | (0.2) | |||||||||
| Accumulated deficit | (1,251.2) | (894.2) | |||||||||
| Total stockholders' deficit | (411.4) | (131.1) | |||||||||
| Total liabilities and stockholders’ deficit | $ | 3,718.9 | $ | 3,639.2 | |||||||
PLAYTIKA HOLDING CORP.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions, except for per share data)
| Three months ended December 31, | Year ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | $ | 678.8 | $ | 650.3 | $ | 2,755.4 | $ | 2,549.3 | |||||||||||||||
| Costs and expenses | |||||||||||||||||||||||
| Cost of revenue | 186.9 | 178.8 | 758.5 | 692.1 | |||||||||||||||||||
| Research and development | 109.6 | 96.3 | 426.7 | 403.0 | |||||||||||||||||||
| Sales and marketing | 214.0 | 195.3 | 949.8 | 705.0 | |||||||||||||||||||
| General and administrative | 444.8 | 92.0 | 619.1 | 288.7 | |||||||||||||||||||
| Impairment charges | 4.5 | 32.6 | 6.4 | 68.9 | |||||||||||||||||||
| Total costs and expenses | 959.8 | 595.0 | 2,760.5 | 2,157.7 | |||||||||||||||||||
| Income (loss) from operations | (281.0) | 55.3 | (5.1) | 391.6 | |||||||||||||||||||
| Interest and other, net | 36.2 | 33.7 | 167.8 | 111.1 | |||||||||||||||||||
| Income (loss) before income taxes | (317.2) | 21.6 | (172.9) | 280.5 | |||||||||||||||||||
| Provision (benefit) for income taxes | (7.9) | 38.3 | 33.5 | 118.3 | |||||||||||||||||||
| Net income (loss) | (309.3) | (16.7) | (206.4) | 162.2 | |||||||||||||||||||
| Other comprehensive income (loss) | |||||||||||||||||||||||
| Foreign currency translation | 0.7 | (12.8) | 23.8 | (10.9) | |||||||||||||||||||
| Change in fair value of derivatives | (3.6) | 5.6 | (7.7) | (9.9) | |||||||||||||||||||
| Total other comprehensive income (loss) | (2.9) | (7.2) | 16.1 | (20.8) | |||||||||||||||||||
| Comprehensive income (loss) | $ | (312.2) | $ | (23.9) | $ | (190.3) | $ | 141.4 | |||||||||||||||
| Net income (loss) per share attributable to common stockholders, basic | $ | (0.82) | $ | (0.04) | $ | (0.55) | $ | 0.44 | |||||||||||||||
| Net income (loss) per share attributable to common stockholders, diluted | $ | (0.82) | $ | (0.04) | $ | (0.55) | $ | 0.44 | |||||||||||||||
| Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic | 376.4 | 373.0 | 375.8 | 371.8 | |||||||||||||||||||
| Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted | 376.4 | 374.8 | 375.8 | 372.1 | |||||||||||||||||||
PLAYTIKA HOLDING CORP.
CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
| Year ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash flows from operating activities | $ | 567.7 | $ | 490.1 | |||||||
| Cash flows from investing activities | |||||||||||
| Purchase of property and equipment | (36.3) | (40.9) | |||||||||
| Capitalization of internal use software costs | (28.6) | (31.6) | |||||||||
| Purchase of software for internal use | (21.2) | (20.8) | |||||||||
| Payments for business combination, net of cash acquired | — | (686.9) | |||||||||
| Proceeds from short-term investments | 200.6 | 256.5 | |||||||||
| Purchase of short-term investments | (336.1) | (256.5) | |||||||||
| Investments in unconsolidated entities | (1.4) | (2.6) | |||||||||
| Other investing activities | 1.3 | 0.7 | |||||||||
| Net cash used in investing activities | (221.7) | (782.1) | |||||||||
| Cash flows from financing activities | |||||||||||
| Dividends paid | (150.2) | (111.5) | |||||||||
| Repayments on bank borrowings | (19.0) | (23.8) | |||||||||
| Payment of tax withholdings on stock-based payments | (2.9) | (2.6) | |||||||||
| Payment for share buyback | (20.3) | (0.8) | |||||||||
| Payment of contingent consideration | (37.6) | (28.4) | |||||||||
| Net cash used in financing activities | (230.0) | (167.1) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 2.0 | (4.9) | |||||||||
| Net change in cash, cash equivalents and restricted cash | 118.0 | (464.0) | |||||||||
| Cash, cash equivalents and restricted cash at the beginning of the period | 567.7 | 1,031.7 | |||||||||
| Cash, cash equivalents and restricted cash at the end of the period | $ | 685.7 | $ | 567.7 | |||||||
CALCULATION OF FREE CASH FLOW
(In millions)
| Year ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash flows from operating activities | $ | 567.7 | $ | 490.1 | |||||||
| Purchase of property and equipment | (36.3) | (40.9) | |||||||||
| Capitalization of internal use software costs | (28.6) | (31.6) | |||||||||
| Purchase of software for internal use | (21.2) | (20.8) | |||||||||
| Free Cash Flow | $ | 481.6 | $ | 396.8 | |||||||
Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP financial measure 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.
Below is a reconciliation of Adjusted EBITDA to net income (loss), the closest GAAP financial measure. Our Credit Agreement defines Adjusted EBITDA as net income (loss) 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.
Adjusted EBITDA and Adjusted EBITDA Margin 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 and Adjusted EBITDA Margin should not be construed as an inference that our future results will be unaffected by unusual or unexpected items.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(In millions)
| Three months ended December 31, | Year ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income (loss) | $ | (309.3) | $ | (16.7) | $ | (206.4) | $ | 162.2 | |||||||||||||||
| Provision for income taxes | (7.9) | 38.3 | 33.5 | 118.3 | |||||||||||||||||||
| Interest and other, net | 36.2 | 33.7 | 167.8 | 111.1 | |||||||||||||||||||
| Depreciation and amortization | 55.3 | 48.6 | 234.8 | 165.7 | |||||||||||||||||||
| EBITDA | (225.7) | 103.9 | 229.7 | 557.3 | |||||||||||||||||||
Stock-based compensation(1) | 17.7 | 29.0 | 82.5 | 99.2 | |||||||||||||||||||
| Impairment charges | 4.5 | 32.6 | 6.4 | 68.9 | |||||||||||||||||||
| Changes in estimated value of contingent consideration | 394.1 | 6.0 | 398.8 | (9.8) | |||||||||||||||||||
Acquisition and related expenses(2) | 9.6 | 10.0 | 25.0 | 19.7 | |||||||||||||||||||
Other items(3) | 1.2 | 2.4 | 10.8 | 22.4 | |||||||||||||||||||
| Adjusted EBITDA | $ | 201.4 | $ | 183.9 | $ | 753.2 | $ | 757.7 | |||||||||||||||
| Net income margin | (45.6) | % | (2.6) | % | (7.5) | % | 6.4 | % | |||||||||||||||
| Adjusted EBITDA margin | 29.7 | % | 28.3 | % | 27.3 | % | 29.7 | % | |||||||||||||||
_________
(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) The amount for the three months ended December 31, 2025 consists of costs incurred by the Company for severance. The amount for the three months ended December 31, 2024 consists primarily of $1.3 million and $0.7 million incurred by the Company related to severance and restructuring activities, respectively.
The amount for the year ended December 31, 2025 consists primarily of $9.8 million and $2.0 million incurred by the Company related to restructuring activities and severance, respectively, and $1.1 million of reimbursement of a tax assessment paid under protest in 2023. The amount for the year ended December 31, 2024 consists primarily of $14.5 million and $6.9 million incurred by the Company related to severance and restructuring activities, respectively.
RECONCILIATION OF NET INCOME (LOSS) 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 December 31, | Year ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income (loss) | $ | (309.3) | $ | (16.7) | $ | (206.4) | $ | 162.2 | |||||||||||||||
| Impairment charge | 4.5 | 32.6 | 6.4 | 68.9 | |||||||||||||||||||
| Changes in estimated value of contingent consideration | 394.1 | 6.0 | 398.8 | (9.8) | |||||||||||||||||||
| Income tax impact of adjustments | (0.3) | 5.1 | (1.3) | (1.8) | |||||||||||||||||||
| Adjusted Net Income | $ | 89.0 | $ | 27.0 | $ | 197.5 | $ | 219.5 | |||||||||||||||
Contacts
| Investor Relations | ||||||||
| Tae Lee | ||||||||
| Tael@playtika.com | ||||||||
PLAYTIKA HOLDING CORP. Fourth Quarter 2025 and Full Year 2025 Results February 26, 2026
LEGAL DISCLAIMER 2 Forward-Looking Statements This presentation 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 prese ntation, 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 negat ive 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 forwar d-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 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 busin esses 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. Additional factors that may cause future events and actual results, financial or otherwise, to differ, potentially materially , from those discussed in or implied by the forward-looking statements include the risks and uncertainties discussed in our filings with the Securities and Exchange Commission. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur, and reported results should not be considered as an indication of future performance. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements speak only as of the date they are made. Except as required by law, we undertake no obligation to update any forward-looking statements for any reason to conform these statements to actual results or to changes in our expectations. Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures of us, including Adjusted Net Income and Adjusted EBITDA. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flow of the company. You should not consider these non-GAAP financial measures in isolation, or as a substitute for analysis of results as reported under GAAP. For information regarding the non-GAAP financial measures used by us, and for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, see the Appendix to this presentation. `
FY2025 FINANCIAL RESULTS SUMMARY 3 Initial Guidance Updated Guidance (1) Actual Revenue $2,800 million to $2,850 million $2,700 million - $2,750 million $2,755.4 million Net Income / (Loss) - - $(206.4) million Net Income / (Loss) Margin % - - (7.5)% Adjusted Net Income - - $197.5 million Adjusted Net Income % - - 7.2% Adjusted EBITDA $715 million to $740 million $715 million to $740 million 753.2 million Adjusted EBITDA Margin % 25.5% to 26.0% 26.5% to 26.9% 27.3% Capital Expenditures $95 million $95 million $86.1 million Free Cash Flow - - $481.6 million Note (1): Updated guidance as of the company’s Q2 earnings announcement on August 7 th , 2025. Note: USD in millions. See appendix for definitions of Adjusted EBITDA and Free Cash Flow. Adjusted EBITDA is a non - gaap measure, see reconciliation on slides 15 and 16.
FY2025 SELECTED HIGHLIGHTS FY25 Revenue of $2,755.4 million, Net Loss of $(206.4) million, Adjusted Net Income of $197.5 million, Adjusted EBITDA of $75 3.2 million, and Free Cash Flow of $481.6 million. Revenue increased by 8.1% Y/Y. Net Income decreased by (227.3)% Y/Y. Adjusted Net Income decreased by (10.0)% Y/Y. Adjusted EBITDA decreased by (0.6)% Y/Y. Free Cash Flow increased by 21.4% Y/Y. Direct - to - Consumer Platform revenue grew 17.3% Y/Y. Casual Themed Games Portfolio represents 70.8% of total revenue in FY25 vs. 58.9% in FY24. 370K Average Daily Paying Users, 18.6% increase Y/Y. SuperPlay is one of the fastest growing studios in the mobile gaming industry at their scale. 4 Note: USD in millions. See appendix for definitions of Adjusted EBITDA, Adjusted Net Income, Average Daily Paying Users, Average Daily Active Users, AR PDAU, and Free Cash Flow. Adjusted EBITDA and Adjusted Net Income are non - gaap measures, see reconciliation on slides 15, 16, and 17.
FY2025 FINANCIAL HIGHLIGHTS 5 Revenue Free Cash Flow +8.1% +21.4% Note: USD in millions. See appendix for definitions of Adjusted EBITDA and Free Cash Flow. Adjusted EBITDA is a non - gaap measures, see reconciliation on slides 15 and 16. Net Income (227.3)% Adjusted EBITDA (0.6)%
Q4 FINANCIAL HIGHLIGHTS Revenue of $678.8 million, Net Income of $(309.3) million, Adjusted Net Income of $89.0 million, and Adjusted EBITDA of $201. 4 million. Revenue increased by 0.6% sequentially and 4.4% year over year. Adjusted Net Income increased by 35.3% sequentially and 229.6% year over year. Adjusted EBITDA decreased (7.4)% sequentially and increased 9.5 % year over year. Record breaking Direct - to - Consumer revenue grew 19.5% sequentially and 43.2% year over year. Adjusted Net Income margin of 13.1%, compared to 9.8% in Q3 2025 and 4.2% in Q4 2024. Adjusted EBITDA margin of 29.7%, compared to 32.2% in Q3 2025 and 28.3% in Q4 2024. Cash, cash equivalents, and short - term investments totaled $820.2 million as of December 31, 2025. 6 Note: USD in millions. See appendix for definitions of Adjusted EBITDA and Adjusted Net Income. Adjusted EBITDA and Adjusted Net Income are non - gaap measures, see reconciliation on slides 15, 16, and 17.
Q4 BUSINESS HIGHLIGHTS Average Daily Paying Users of 357K increased 0.8% sequentially and 5.3% year over year. Average Payer Conversion of 4.5%, up from 4.3% in Q3 2025 and 4.2% in Q4 2024. Bingo Blitz revenue of $158.5 million decreased (2.5)% sequentially and flat year over year. Disney Solitaire revenue of $71.6 million increased 21.4% sequentially. June’s Journey revenue of $70.0 million increased 2.5% sequentially and down (2.0)% year over year. 7Note: See appendix for definitions of Average Daily Paying Users and Average Payer Conversion.
QUARTERLY REVENUE BY PLATFORM 8 Direct - to - Consumer Platforms Revenue Third - Party Platforms RevenueTotal Revenue +4.4% +43.2% (9.9)% Note: USD in millions. See appendix for definitions of Direct - to - Consumer Platforms.
SELECTED QUARTERLY FINANCIALS 9 Note: USD in millions. See appendix for definitions of Adjusted EBITDA. Adjusted EBITDA is a non - gaap measure, see reconciliation on slides 15 and 16. Net Income N/A Adjusted EBITDA and Margin +9.5%
QUARTERLY KPI TRENDS 10 Average Daily Paying Users (in millions) Average Daily Active Users (in millions) Average Revenue per Daily Active User Average Payer Conversion +5.3% (1.3)% +30bps Note: See appendix for definitions of Average Daily Paying Users, Average Daily Active Users, Average Revenue per Daily Acti ve User, and Average Payer Conversion. +4.5%
REVENUE CONTRIBUTION 11Note: See appendix for definitions of Casual Themed Games, Social Casino Themed Games, and Direct - to - Consumer Platforms. Revenue Mix (Casual and Social Casino) Revenue Mix (DTC and 3 rd Party Platforms)
CAPITAL STRUCTURE OVERVIEW 12 Available Liquidity (as of 12/31/25) Debt Maturity Profile (as of 12/31/25) Approximately $1.37 billion in available liquidity (1) Liquidity is expected to continue to improve with Free Cash Flow generation Extended maturity of revolving credit facility to March of 2027. Net LTM leverage of approximately 2.1x. Capital Structure and Capital Allocation Note: USD in millions. Note (1): Liquidity as of 12/31/25.
FISCAL YEAR 2026 GUIDANCE 13 FY25 Actual FY26 Guidance Revenue $2,755.4 million $2,700 million to $2,800 million Adjusted EBITDA $753.2 million $730 million to $770 million Adjusted EBITDA Margin 27.3% 27% to 27.5% Capital Expenditures $86.1 million $80 million Note: USD in millions. See appendix for definition of Adjusted EBITDA. Adjusted EBITDA is a non - gaap measure, see reconciliation of historical figures on slides 15 and 16.
APPENDIX 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 measu re 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 title d 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 Adju sted Net Income should not be construed as an inference that our future results will be unaffected by unusual or unexpected items. Non-GAAP Financial Measure 14
APPENDIX Reconciliation of GAAP to Non-GAAP Measure 15Note: USD in millions. (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) The amount for the three months ended December 31, 2025 consists of costs incurred by the Company for severance. The amount f or the three months ended December 31, 2024 consists primarily of $1.3 million and $0.7 million incurred by the Company related to severance and restructuring activities, r espectively. Three Months Ended, December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 Adjusted EBITDA Reconciliation Net Income (Loss) (16.7)$ 30.6$ 33.2$ 39.1$ (309.3)$ Provision for income taxes 38.3 10.5 11.9 19.0 (7.9) Interest expense and other, net 33.7 26.7 64.6 40.3 36.2 Depreciation and Amortization 48.6 59.2 61.0 59.3 55.3 EBITDA 103.9$ 127.0$ 170.7$ 157.7$ (225.7)$ Impairment charges 32.6 - 0.4 1.5 4.5 Stock-based compensation (1) 29.0 25.5 17.5 21.8 17.7 Contingent consideration 6.0 6.9 (33.0) 30.8 394.1 Acquisition and related expenses (2) 10.0 6.5 3.6 5.3 9.6 Other items (3) 2.4 1.4 7.8 0.4 1.2 Adjusted EBITDA 183.9$ 167.3$ 167.0$ 217.5$ 201.4$
APPENDIX Reconciliation of GAAP to Non-GAAP Measure 16Note: USD in millions. (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) The amount for the year ended December 31, 2025 consists primarily of $9.8 million and $2.0 million incurred by the Company r ela ted to restructuring activities and severance, respectively, and $1.1 million of reimbursement of a tax assessment paid under protest in 2023. The amount for the year ended De cember 31, 2024 consists primarily of $14.5 million and $6.9 million incurred by the Company related to severance and restructuring activities, respectively. Twelve Months Ended, December 31, 2024 December 31, 2025 Adjusted EBITDA Reconciliation Net Income 162.2$ (206.4)$ Provision for income taxes 118.3 33.5 Interest expense and other, net 111.1 167.8 Depreciation and Amortization 165.7 234.8 EBITDA 557.3$ 229.7$ Impairment of intangible assets 68.9 6.4 Stock-based compensation (1) 99.2 82.5 Contingent consideration (9.8) 398.8 Acquisition and related expenses (2) 19.7 25.0 Other items (3) 22.4 10.8 Adjusted EBITDA 757.7$ 753.2$
APPENDIX Reconciliation of GAAP to Non-GAAP Measure 17Note: USD in millions. Three Months Ended, December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 Net Income Reconciliation Net Income (Loss) (16.7)$ 30.6$ 33.2$ 39.1$ (309.3)$ Impairment charges 32.6 - 0.4 1.5 4.5 Contingent consideration 6.0 6.9 (33.0) 30.8 394.1 Income tax impact of adjustments 5.1 (1.3) 5.9 (5.6) (0.3) Adjusted Net Income 27.0$ 36.2$ 6.5$ 65.8$ 89.0$
APPENDIX Calculation of Free Cash Flow 18Note: USD in millions. Twelve Months Ended, December 31, 2024 December 31, 2025 Free Cash Flow Reconciliation Cash Flow from Operating Activities 490.1$ 567.7$ Purchase of property and equipment (40.9) (36.3) Capitalization of internal use software costs (31.6) (28.6) Purchase of software for internal use (20.8) (21.2) Free Cash Flow 396.8$ 481.6$
APPENDIX Average Revenue per Daily Active User: or “ARPDAU” means ( i) the total revenue in a given period, (ii) divided by the number of days in that period, (iii) divided by the average Daily Active Users during that period. Daily Active Users: or “DAUs” means the number of individuals who played one of our games during a particular day on a partic ula r platform. Under this metric, an individual who plays two different games on the same day is counted as two DAUs. Similarly, an individual who plays the same game on two di fferent platforms (e.g., web and mobile) or on two different social networks on the same day would be counted as two Daily Active Users. Average Daily Active Users for a pa rticular period is the average of the DAUs for each day during that period. Daily Paying Users: or “DPUs” means the number of individuals who purchased, with real world currency, virtual currency or it ems in any of our games on a particular day. Under this metric, an individual who makes a purchase of virtual currency or items in two different games on the same day is counte d a s two DPUs. Similarly, an individual who makes a purchase of virtual currency or items in any of our games on two different platforms (e.g., web and mobile) or on two diffe ren t social networks on the same day could be counted as two Daily Paying Users. Average Daily Paying Users for a particular period is the average of the DPUs for each day du ring that period. Daily Payer Conversion: means ( i) the total number of Daily Paying Users, (ii) divided by the number of Daily Active Users on a particular day. Average Daily Pa yer Conversion for a particular period is the average of the Daily Payer Conversion rates for each day during that period. Casual Themed Games: portfolio of games that include - Bingo Blitz, Solitaire Grand Harvest, June’s Journey, Best Fiends, Board Kings, Pirate Kings, Pearl’s Peril, Best Fiends Stars, Redecor, Animals & Coins, Dice Dreams, Domino Dreams, Disney Solitaire, and Other. Social Casino Themed Games: portfolio of games that include - Slotomania, House of Fun, Caesars Slots, World Series of Poker, Go vernor of Poker 3, and Other. Direct - to - Consumer Platforms: Playtika’s own internal proprietary platforms where payment processing fees and other related expe nses for in - app purchases are typically 3 to 4%, compared to the 30% platform fee for third party platforms. Adjusted Net Income: We define Adjusted Net Income as net income before ( i) impairment charges, and (ii) contingent considerations. Adjusted EBITDA: 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) stock - based compensation, (vi) contingent consideration, (vii) acquisition and related expenses, a nd (viii) certain other items. Free Cash Flow: We defined Free Cash Flow as net cash provided by operating activities minus capital expenditures. Our capi tal expenditures include purchase of property and equipment, capitalization of internal use software costs, and purchase of software for internal use. Glossary of Key Terms 19
FAQ
How did Playtika (PLTK) perform financially in FY2025?
Playtika’s 2025 revenue rose to $2,755.4 million from $2,549.3 million, an 8.1% increase. However, net income flipped to a $(206.4) million loss versus $162.2 million profit in 2024, while Adjusted EBITDA was broadly stable at $753.2 million with a 27.3% margin.
What drove Playtika’s net loss in 2025 despite strong revenue?
The 2025 net loss of $(206.4) million mainly reflects non-cash contingent consideration remeasurement linked to the SuperPlay acquisition, totaling $398.8 million. Excluding this and other adjustments, Adjusted Net Income was $197.5 million, highlighting a gap between GAAP and adjusted profitability measures.
How strong was Playtika’s Free Cash Flow in 2025?
Playtika generated record Free Cash Flow of $481.6 million in 2025, up from $396.8 million in 2024. This came from $567.7 million of operating cash flow, offset by $86.1 million of capital expenditures, including property and equipment and internal-use software investments.
How fast is Playtika’s Direct-to-Consumer business growing?
Direct-to-Consumer platforms produced $814.5 million of revenue in 2025, up from $694.2 million, a 17.3% year-over-year increase. In Q4 2025 alone, DTC revenue was $250.1 million, up 19.5% sequentially and 43.2% year-over-year, underscoring rapid channel expansion.
What capital allocation changes did Playtika announce?
Playtika updated its capital allocation framework to prioritize flexibility around opportunities and the SuperPlay earn-out. It is suspending its quarterly dividend, while keeping share buybacks available and continuing to evaluate its capital structure over time, supported by strong Free Cash Flow generation.
What guidance did Playtika give for FY2026 revenue and EBITDA?
For 2026, Playtika expects revenue between $2.70 billion and $2.80 billion and Adjusted EBITDA between $730 million and $770 million. It also plans capital expenditures of $80 million and anticipates an effective tax rate of 30%, implying broadly stable margins versus 2025.
How are Playtika’s user metrics and game portfolio evolving?
Average Daily Paying Users reached 370 thousand in 2025, up 18.6% year-over-year, with Average Payer Conversion improving to 4.4%. Casual-themed games contributed 70.8% of revenue versus 58.9% in 2024, while titles like Bingo Blitz, Disney Solitaire and June’s Journey showed mixed quarterly trends.
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1.18B
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Electronic Gaming & Multimedia
Services-computer Processing & Data Preparation
Israel
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