Playtika Holding Corp.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 5 November 2026: press release. Guidance figures: 2 kept. The quarter’s numbers.

Key takeaways

Revenue down sequentially, flat yearly: Revenue was $673.8 million, down 7.8% from the second quarter and down 0.1% from a year earlier. Nine-month revenue was $2,149.6 million, up from $2,076.6 million. Source
Adjusted EBITDA rose to $252.1 million: Adjusted EBITDA margin was 37.4%, against 32.2% a year earlier. Management called it record quarterly Adjusted EBITDA. Source
DTC platforms revenue up yearly: DTC platforms revenue was $275.1 million, down 4.1% sequentially and up 31.4% year over year. Source
Disney Solitaire down sequentially, up yearly: Disney Solitaire revenue was $111.2 million, down 21.9% from $142.4 million in the second quarter and up 88.4% year over year. Source
Marketing spend stepped down in quarter: Sales and marketing expense was $167.8 million against $206.3 million a year earlier, and nine-month sales and marketing was $781.0 million against $735.8 million. General and administrative rose to $123.9 million from $91.2 million. Source
Nine-month free cash flow lower: Free cash flow was $177.5 million for nine months, against $217.9 million. Operating cash flow was $224.4 million, against $281.8 million. Source
Strategic review concluded, stays independent: The Board concluded its review of strategic alternatives and determined the company will continue as an independent, publicly traded company. Source
Full-year ranges kept, expected near midpoint: Full-year 2026 revenue of $2.75 to $2.85 billion and Adjusted EBITDA of $750 to $790 million were reaffirmed. Management now expects to land around the midpoint of both ranges, previously toward the lower end. Source

“With the strategic review complete, we are moving forward as an independent company. Our third quarter reflects what makes Playtika durable: loyal players and games built to last,”
Robert Antokol, Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Revenue Source	full year 2026	$2.75 to $2.85 billion	Kept
Adjusted EBITDA Source	full year 2026	$750 to $790 million	Kept

What changed from last quarter

Guidance raised: Expected landing point moved from the lower end to around the midpoint of both full-year ranges; the ranges themselves were reaffirmed. Source
Ended: The strategic review of alternatives concluded, and the company will continue as an independent, publicly traded company. Source

Results and growth drivers

Revenue down sequentially, flat yearly: Revenue was $673.8 million, down 7.8% from the second quarter and down 0.1% from a year earlier. Nine-month revenue was $2,149.6 million, up from $2,076.6 million. Source
Net and adjusted net income higher: Net income was $40.4 million against $39.1 million a year earlier. Adjusted net income was $120.7 million against $65.8 million. Operating income was $116.2 million against $98.4 million. Source
Adjusted EBITDA rose to $252.1 million: Adjusted EBITDA margin was 37.4%, against 32.2% a year earlier. Management called it record quarterly Adjusted EBITDA. Source
Nine-month Adjusted EBITDA margin higher: Nine-month Adjusted EBITDA was $583.4 million against $551.8 million, a 27.1% margin against 26.6%. Nine-month net income was $30.9 million against $102.9 million. Source

Direct-to-consumer and game titles

DTC platforms revenue up yearly: DTC platforms revenue was $275.1 million, down 4.1% sequentially and up 31.4% year over year. Source
Disney Solitaire down sequentially, up yearly: Disney Solitaire revenue was $111.2 million, down 21.9% from $142.4 million in the second quarter and up 88.4% year over year. Source
Bingo Blitz revenue declined: Bingo Blitz revenue was $133.0 million, down 8.3% sequentially and down 18.2% year over year. Source
June’s Journey grew year over year: June’s Journey revenue was $76.6 million, up 2.4% sequentially and 12.1% year over year. The CEO said it grew double digits in its ninth year. Source

“We set a plan for 2026, and we are delivering on it.”
Tae Lee, Chief Financial Officer

Players and payer trends

Paying users fell, conversion rose: Average daily paying users were 333K, down 9.3% sequentially and 5.9% year over year. Average payer conversion was 4.7%, up from 4.6% in the second quarter and 4.3% a year earlier. Source
Daily and monthly users lower: Average DAUs were 7.1 million against 8.2 million a year earlier. Average MAUs were 21.5 million against 26.4 million. Source
ARPDAU higher year over year: ARPDAU was $1.03, against $0.89 in the third quarter of 2025 and $1.01 in the second quarter of 2026. Source

Costs, margins and marketing

Marketing spend stepped down in quarter: Sales and marketing expense was $167.8 million against $206.3 million a year earlier, and nine-month sales and marketing was $781.0 million against $735.8 million. General and administrative rose to $123.9 million from $91.2 million. Source
Cost of revenue and R&D lower: Cost of revenue was $175.0 million against $178.4 million. Research and development was $86.8 million against $98.8 million. Source
Contingent consideration revaluation excluded: Changes in the estimated value of contingent consideration were $80.0 million in the quarter, against $30.8 million a year earlier, and $177.0 million for nine months. These are added back in Adjusted EBITDA. Source
Income tax provision increased: The provision for income taxes was $52.0 million against $19.0 million a year earlier, on income before income taxes of $92.4 million. Source
Severance added back to Adjusted EBITDA: Severance was $1.2 million in the quarter and $16.5 million for the nine months, and is included in other items added back to Adjusted EBITDA. Source

Cash, balance sheet and shareholder returns

Cash and short-term investments rose: Cash, cash equivalents and short-term investments were $594.6 million at September 30, up from $438.5 million at June 30. Source
Nine-month free cash flow lower: Free cash flow was $177.5 million for nine months, against $217.9 million. Operating cash flow was $224.4 million, against $281.8 million. Source
Dividends lower, no buyback this year: Dividends paid were $37.7 million for nine months, against $112.5 million. No share buyback payment was made in the nine months, against $16.1 million a year earlier. Source
Contingent consideration payments reduced liabilities: Payment of contingent consideration was $350.0 million in the nine months. Current contingent consideration fell to $320.0 million and non-current to $130.0 million at September 30. Source
Stockholders' deficit narrowed: Total stockholders' deficit was $358.3 million at September 30, against $411.4 million at December 31, 2025. Long-term debt was $2,370.3 million. Source
Shares outstanding increased: Shares outstanding were 382.7 million at September 30, against 377.0 million at December 31, 2025. Diluted weighted-average shares were 382.9 million in the quarter, against 368.2 million. Source

Strategic review and guidance

Strategic review concluded, stays independent: The Board concluded its review of strategic alternatives and determined the company will continue as an independent, publicly traded company. Source
Board sees independence as long-term value: The Board said the path best positions the company to create long-term value for shareholders. Source
Full-year ranges kept, expected near midpoint: Full-year 2026 revenue of $2.75 to $2.85 billion and Adjusted EBITDA of $750 to $790 million were reaffirmed. Management now expects to land around the midpoint of both ranges, previously toward the lower end. Source

Coming up, as management said on 5 November 2026

Balance sheet strengthening intended: The CFO said the company intends to build on its cost discipline by strengthening the balance sheet. No dated plan was given. Source

Figures management reported

Figure	Reported
Customer counts Source	Average paying users 333K (third quarter 2026); reported player counts used in place of customer counts: average DAUs 7.1 million, average MAUs 21.5 million

Earlier plans management reported on

Met: Management said marketing stepped down as planned in the quarter. Source
On track: Management said it set a 2026 plan and is delivering on it. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Playtika Holding Corp. Reports Q3 2026 Financial Results

Revenue of $673.8 million and Direct-to-Consumer (“DTC”) Revenue of $275.1 million

Revenue Decreased (7.8)% Sequentially and (0.1)% Year Over Year

DTC Platforms Revenue Decreased (4.1)% Sequentially and Increased 31.4% Year Over Year

Herzliya, Israel - November 5, 2026 - Playtika Holding Corp. (NASDAQ: PLTK) today released financial results for its third quarter for the period ending September 30, 2026.

Conclusion of Strategic Review

Playtika’s Board of Directors has concluded its review of strategic alternatives and determined that Playtika will continue to operate as an independent, publicly traded company. The Board believes this path best positions the company to create long-term value for shareholders.

Financial Highlights

Revenue of $673.8 million decreased (7.8)% sequentially and (0.1)% year over year.
DTC platforms revenue of $275.1 million decreased (4.1)% sequentially and increased 31.4% year over year.
Net Income of $40.4 million and Adjusted Net Income of $120.7 million.
Adjusted EBITDA of $252.1 million increased 22.3% sequentially and 15.9% year over year.
Cash, cash equivalents, and short-term investments totaled $594.6 million as of September 30, 2026.

“With the strategic review complete, we are moving forward as an independent company. Our third quarter reflects what makes Playtika durable: loyal players and games built to last,” said Robert Antokol, Chief Executive Officer. “SuperPlay continued to deliver strong year-over-year growth, with Disney Solitaire up 88%, and June’s Journey grew double digits in its ninth year. These results show the resilience of our portfolio.”

“We set a plan for 2026, and we are delivering on it. In the third quarter, marketing stepped down as planned, Adjusted EBITDA margin expanded to 37.4%, and we delivered record quarterly Adjusted EBITDA of $252.1 million, alongside net income of $40.4 million and adjusted net income of $120.7 million,” said Tae Lee, Chief Financial Officer. “We intend to build on that discipline by strengthening our balance sheet.”

Selected Operational Metrics and Business Highlights

Average Daily Paying Users of 333K decreased (9.3)% sequentially and (5.9)% year over year.
Average Payer Conversion of 4.7%, up from 4.6% in Q2 2026 and 4.3% in Q3 2025.
Bingo Blitz revenue of $133.0 million decreased (8.3)% sequentially and (18.2)% year over year.
Disney Solitaire revenue of $111.2 million decreased (21.9)% sequentially and increased 88.4% year over year.
June’s Journey revenue of $76.6 million increased 2.4% sequentially and 12.1% year over year.

Financial Outlook

We are reaffirming our full-year revenue range of $2.75 to $2.85 billion and Adjusted EBITDA range of $750 to $790 million, and we now expect to land around the midpoint of both ranges.

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 September 30,				Nine months ended September 30,
(in millions, except percentages, Average DPUs, and ARPDAU)		2026		2025		2026		2025
Revenues	$673.8		$674.6		$2,149.6		$2,076.6
Total costs and expenses	$557.6		$576.2		$1,948.4		$1,800.7
Operating income	$116.2		$98.4		$201.2		$275.9
Net income	$40.4		$39.1		$30.9		$102.9
Adjusted EBITDA	$252.1		$217.5		$583.4		$551.8
Net income margin	6.0%		5.8%		1.4%		5.0%
Adjusted EBITDA margin	37.4%		32.2%		27.1%		26.6%
Non-financial performance metrics
Average DAUs	7.1		8.2		7.9		8.7
Average DPUs (in thousands)	333		354		362		374
Average Daily Payer Conversion	4.7%		4.3%		4.6%		4.3%
ARPDAU	$1.03		$0.89		$1.00		$0.88
Average MAUs	21.5		26.4		25.5		29.4

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.

Forward-looking statements notice

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.

CONSOLIDATED BALANCE SHEETS

(In millions, except par value)

	September 30,	December 31,
	2026	2025
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$574.9	$684.2
Short-term investments	19.7	136.0
Restricted cash	0.2	1.5
Accounts receivable	145.1	161.8
Prepaid expenses and other current assets	56.3	80.4
Total current assets	796.2	1,063.9
Property and equipment, net	88.3	102.9
Operating lease right-of-use assets	99.5	124.2
Intangible assets other than goodwill, net	346.7	425.7
Goodwill	1,695.7	1,695.7
Deferred tax assets, net	175.4	173.2
Investments in unconsolidated entities	17.1	17.5
Other non-current assets	132.0	115.8
Total assets	$3,350.9	$3,718.9
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities
Current maturities of long-term debt	$10.8	$11.1
Accounts payable	51.6	80.3
Contingent consideration	320.0	454.0
Operating lease liabilities	23.8	27.5
Accrued expenses and other current liabilities	291.6	395.0
Total current liabilities	697.8	967.9
Long-term debt	2,370.3	2,378.0
Contingent consideration	130.0	280.0
Operating lease liabilities	94.0	115.4
Deferred tax liabilities	1.9	8.2
Other long-term liabilities	415.2	380.8
Total liabilities	3,709.2	4,130.3
Commitments and contingencies
Stockholders' equity (deficit)
Common stock of $0.01 par value; 1,600.0 shares authorized; 434.5 and 428.8 shares issued, respectively, and 382.7 and 377.0 shares outstanding, respectively	4.3	4.3
Treasury stock at cost, 51.8 shares	(603.5)	(603.5)
Additional paid-in capital	1,454.7	1,423.1
Accumulated other comprehensive income	6.5	15.9
Accumulated deficit	(1,220.3)	(1,251.2)
Total stockholders' deficit	(358.3)	(411.4)
Total liabilities and stockholders’ deficit	$3,350.9	$3,718.9

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions, except for per share data)

(Unaudited)

	Three months ended September 30,		Nine months ended September 30,
	2026	2025	2026	2025
Revenues	$673.8	$674.6	$2,149.6	$2,076.6
Costs and expenses
Cost of revenue	175.0	178.4	560.1	571.6
Research and development	86.8	98.8	281.2	317.1
Sales and marketing	167.8	206.3	781.0	735.8
General and administrative	123.9	91.2	321.5	174.3
Impairment charges	4.1	1.5	4.6	1.9
Total costs and expenses	557.6	576.2	1,948.4	1,800.7
Income from operations	116.2	98.4	201.2	275.9
Interest and other, net	23.8	40.3	114.1	131.6
Income before income taxes	92.4	58.1	87.1	144.3
Provision for income taxes	52.0	19.0	56.2	41.4
Net income	40.4	39.1	30.9	102.9
Other comprehensive income (loss)
Foreign currency translation	-	0.4	-	23.1
Change in fair value of derivatives	(4.7)	(5.2)	(9.4)	(4.1)
Total other comprehensive income (loss)	(4.7)	(4.8)	(9.4)	19.0
Comprehensive income	$35.7	$34.3	$21.5	$121.9
Net income per share attributable to common stockholders, basic	$0.11	$0.11	$0.08	$0.28
Net income per share attributable to common stockholders, diluted	$0.11	$0.11	$0.08	$0.28
Weighted-average shares used in computing net income per share attributable to common stockholders, basic	381.8	367.9	380.3	372.9
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted	382.9	368.2	381.8	373.1

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

	Nine months ended September 30,
	2026	2025
Cash flows from operating activities	$224.4	$281.8
Cash flows from investing activities
Purchase of property and equipment	(18.3)	(25.6)
Capitalization of internal use software costs	(17.7)	(21.0)
Purchase of software for internal use	(10.9)	(17.3)
Proceeds from short-term investments	135.6	148.1
Purchase of short-term investments	(19.6)	(200.6)
Other investing activities	(0.1)	0.6
Net cash provided by (used in) investing activities	69.0	(115.8)
Cash flows from financing activities
Dividend paid	(37.7)	(112.5)
Repayments on bank borrowings	(14.3)	(14.3)
Payment of tax withholdings on stock-based payments	(1.3)	(2.3)
Payment for share buyback	-	(16.1)
Payment of contingent consideration	(350.0)	-
Net cash used in financing activities	(403.3)	(145.2)
Effect of exchange rate changes on cash and cash equivalents andrestricted cash	(0.7)	0.9
Net change in cash, cash equivalents and restricted cash	(110.6)	21.7
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	$575.1	$589.4

CALCULATION OF FREE CASH FLOW

(In millions)

	Nine months ended September 30,
	2026	2025
Cash flows from operating activities	$224.4	$281.8
Purchase of property and equipment	(18.3)	(25.6)
Capitalization of internal use software costs	(17.7)	(21.0)
Purchase of software for internal use	(10.9)	(17.3)
Free Cash Flow	$177.5	$217.9

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 September 30,		Nine months ended September 30,
	2026	2025	2026	2025
Net income	$40.4	$39.1	$30.9	$102.9
Provision for income taxes	52.0	19.0	56.2	41.4
Interest expense and other, net	23.8	40.3	114.1	131.6
Depreciation and amortization	44.4	59.3	134.5	179.5
EBITDA	160.6	157.7	335.7	455.4
Stock-based compensation	6.0	21.8	32.7	64.8
Impairment charge	4.1	1.5	4.6	1.9
Changes in estimated value of contingent consideration	80.0	30.8	177.0	4.7
Acquisition and related expenses	0.2	5.3	15.8	15.4
Other items	1.2	0.4	17.6	9.6
Adjusted EBITDA	$252.1	$217.5	$583.4	$551.8
Net income margin	6.0%	5.8%	1.4%	5.0%
Adjusted EBITDA margin	37.4%	32.2%	27.1%	26.6%

Reflects stock-based compensation expense related to the issuance of equity awards to our employees and Directors.

Amounts for the three and nine months ended September 30, 2026 consists primarily of $10.1 million of tax credits related to acquisitions. Amounts for all periods also include costs incurred to evaluate and pursue acquisition activities and costs incurred by the Company in connection with the evaluation of strategic alternatives.

Amounts for the three and nine months ended September 30, 2026 consists primarily of $1.2 million and $16.5 million, respectively, incurred by the Company for severance.

Amounts for the three and nine months ended September 30, 2025 consists of $1.3 million and $9.8 million, respectively, incurred by the Company related to restructuring activities and $1.1 million of reimbursement of a tax assessment paid under protest in 2023.

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 September 30,		Nine months ended September 30,
	2026	2025	2026	2025
Net income	$40.4	$39.1	$30.9	$102.9
Impairment charge	4.1	1.5	4.6	1.9
Changes in estimated value of contingent consideration	80.0	30.8	177.0	4.7
Income tax impact of adjustments	(3.8)	(5.6)	(24.6)	(1.0)
Adjusted Net Income	$120.7	$65.8	$187.9	$108.5

Contacts
IR@playtika.com