What Playtika (PLTK) Said on Its Q3 Earnings Call

Key Points

• Record adjusted EBITDA: Playtika reported third-quarter revenue of $673.8 million, essentially flat year over year, while adjusted EBITDA rose 15.9% to a record $252.1 million as lower marketing spending lifted margins.
• Staying independent: After completing a strategic review, the company plans to pursue its own growth plan and refinance upcoming debt maturities without increasing total debt. It reaffirmed full-year guidance and expects results near the midpoint of its revenue and adjusted EBITDA ranges.
• Mixed game trends, stronger direct sales: SuperPlay grew and became profitable, while Bingo Blitz revenue declined 18.2% year over year. Direct-to-consumer revenue increased 31.4% to $275.1 million, or 40.8% of total revenue.

Playtika NASDAQ: PLTK reported record adjusted EBITDA for the third quarter of 2026 and said it will remain independent following a board review of strategic alternatives, turning its attention to refinancing debt and strengthening its balance sheet.

The mobile game company generated revenue of $673.8 million, essentially flat from a year earlier and down 7.8% from the second quarter. Adjusted EBITDA rose 15.9% year-over-year to $252.1 million, producing a 37.4% margin as marketing spending declined.

Playtika reaffirmed its full-year revenue guidance of $2.75 billion to $2.85 billion and adjusted EBITDA guidance of $750 million to $790 million. Chief Financial Officer Tae Lee said the company now expects to land around the midpoint of both ranges, citing greater confidence in its game portfolio after taking a more cautious view of the second half last quarter.

Strategic Review Ends as Refinancing Takes Priority

Chief Executive Officer Robert Antokol said the board’s special committee had completed its review of strategic alternatives and determined that the best path to long-term value was to execute the company’s plan independently and strengthen its balance sheet.

Playtika had $594.6 million in cash, equivalents and short-term investments as of Sept. 30. Lee said the company intends to refinance upcoming maturities without increasing total debt and expects to pay the SuperPlay earnout in the second quarter of 2027 using cash on hand and cash generated by the business.

Asked about the timing and potential terms for refinancing 2028 debt, Lee said Playtika intends to address maturities well before they come due but declined to give a date or speculate on pricing. Terms will depend on market conditions, he said.

Playtika generated approximately $288 million in free cash flow through the first nine months of the year, excluding the classification of earnout-related payments in the second quarter, and expects more than $400 million for the full year, Lee said.

SuperPlay Grows While Bingo Blitz Declines

Antokol said revenue at acquired studio SuperPlay grew by double digits in the third quarter. The studio, which was losing money when Playtika bought it, is now profitable and is expected to be profitable for the full year, he said.

Disney Solitaire, one of SuperPlay’s games, generated $111.2 million in quarterly revenue, up 88.4% year-over-year but down 21.9% sequentially. Lee said the sequential decline was expected as Playtika reduced user acquisition spending, while the game’s daily audience and paying player base remained substantially larger than a year earlier.

Bingo Blitz, Playtika’s largest revenue title in the quarter, produced $133 million in revenue, down 18.2% year-over-year and 8.3% sequentially. Lee said the annual decline primarily reflected the company’s decision late last year to move away from acquisition channels that brought in players with weaker retention. He expects the effect on year-over-year comparisons to ease in the fourth quarter as Playtika laps that change.

June’s Journey revenue rose 12.1% year-over-year to $76.6 million. Lee attributed the growth in part to live operations, personalization and changes to the game economy. He said the company still sees potential for the title to become a $1 million-a-day game. Slotomania, meanwhile, has stabilized, with revenue close to flat after declining nearly half year-over-year a year ago, Lee said.

Lower Marketing Spend Lifts Margin

Sales and marketing expense fell 18.7% year-over-year and 33.6% sequentially to $167.8 million, reflecting a planned reduction in spending. Playtika’s adjusted EBITDA margin rose from 16.8% in the first quarter and 28.2% in the second quarter. Lee cautioned that quarterly margins can shift with marketing timing and seasonality and should be evaluated on a full-year basis.

Direct-to-consumer revenue rose 31.4% year-over-year to $275.1 million, or 40.8% of total revenue. Lee said Playtika reached its goal of a 40% direct-to-consumer run rate ahead of the two-year timeline it set a year earlier.

Net income was $40.4 million, while adjusted net income was $120.7 million. Average daily active users fell 13.4% year-over-year to 7.1 million, and average daily paying users declined 5.9% to 333,000. Lee said lower user acquisition contributed to the declines and that the remaining players were more engaged and valuable.

Looking ahead, Lee said Playtika would provide more detail on next year’s marketing plans with its fourth-quarter results. He expects a similar seasonal pattern, with stronger spending early in the year and a pullback in the second half.

About Playtika (NASDAQ:PLTK)

Playtika Holding Corp. is a digital entertainment company that develops and operates free-to-play mobile and web games. Its business focuses on social casino, casual, and other interactive gaming experiences that generate revenue through in-game purchases and advertising.

Playtika's portfolio has included widely recognized titles such as Slotomania, Bingo Blitz, House of Fun, Caesars Slots, and World Series of Poker. The company uses data analytics, live-operations capabilities, and ongoing content updates to engage players and support the long-term performance of its games.

Founded in 2010, Playtika initially helped pioneer free-to-play social casino gaming on social networks and later expanded into mobile platforms.

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