Core Viewpoint - Playtika Holding Corp. (PLTK) is considered undervalued, with potential for margin improvement as more consumers purchase directly from Playtika rather than through app stores [1] Group 1: Company Analysis - The stock of Playtika is perceived as cheap, indicating a potential investment opportunity [1] - There is an expectation that margins will continue to improve due to a shift in consumer purchasing behavior [1] Group 2: Market Insights - The analysis suggests that Wall Street may be overlooking the extent of Playtika's direct sales growth [1] - The focus is on quantitative data and business fundamentals rather than market narratives [1]

I’m bullish on Playtika Holding Corp. ( PLTK ). The stock looks cheap. There’s a good chance margins keep improving thanks to more people buying straight from Playtika, not the app stores. Wall Street’s missing how muchWith over 15 years of experience in the markets and a degree in economics, I focus on breaking down companies with clarity and discipline. My goal is to give individual investors a straightforward, honest view—what’s working, what isn’t, and where the risks and opportunities actually are. I d ...

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1] - The energy demands of AI technologies are immense, with data centers consuming as much energy as small cities, leading to concerns about power grid capacity and rising electricity prices [2] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for supporting the anticipated surge in energy demand from AI [3][7] Investment Opportunity - The company in focus is not a chipmaker or cloud platform but is positioned to benefit significantly from the increasing energy needs of AI data centers [3] - It operates as a "toll booth" for energy, collecting fees on exported liquefied natural gas (LNG) and is poised to capitalize on the onshoring trend driven by tariffs [5][6] - The company is debt-free and has a substantial cash reserve, equating to nearly one-third of its market capitalization, making it financially robust compared to other firms in the sector [8] Market Position - The company plays a crucial role in U.S. LNG exportation and is capable of executing large-scale engineering, procurement, and construction projects across various energy sectors [7] - It has a significant equity stake in another AI-related company, providing investors with indirect exposure to multiple growth engines in the AI space [9] - The stock is currently undervalued, trading at less than seven times earnings, which presents a compelling investment opportunity [10] Future Outlook - The ongoing AI infrastructure supercycle, combined with the onshoring boom and a surge in U.S. LNG exports, positions the company favorably for future growth [14] - The influx of talent into the AI sector ensures continuous innovation and advancements, further solidifying the importance of investing in AI-related companies [12] - The potential for significant returns within 12 to 24 months is emphasized, suggesting a strong upside for investors who act promptly [15]

Core Insights - Playtika's World Series of Poker (WSOP) free-to-play app has launched a collaboration with the National Football League (NFL), featuring special NFL-themed in-game content available until February 8, 2026 [1][4]. Group 1: Collaboration Details - The partnership combines the excitement of NFL games with poker, creating a unique gaming experience that enhances user engagement [2][3]. - Users can participate in a 13-week sweepstakes with NFL rewards, adding an extra layer of competition and excitement [2][3]. Group 2: New Features and Events - The collaboration introduces several new features, including NFL-themed missions, collectible cards, and exclusive avatars representing NFL teams [9]. - Players can earn special in-game currency and compete in themed events for exclusive NFL-branded rewards, such as collectible rings and championship bracelets [9]. Group 3: Company Background - Playtika, founded in 2010 and headquartered in Herzliya, Israel, is a leader in mobile gaming and technology, known for its free-to-play social games [8]. - The WSOP app is one of the most downloaded free poker games globally, catering to millions of players across various platforms [5].

Core Insights - Playtika Holding Corp. is undergoing significant layoffs, with estimates suggesting up to 700 employees will be let go, representing about 20% of its workforce as of the end of last year [1][2] - The company has faced challenges in growth despite being profitable, with revenue declines in 2023 and 2024, and a notable drop in profit by 42% in the first nine months of 2025 [3][4] - Playtika's market capitalization has decreased significantly from $11 billion at its flotation in early 2021 to $1.5 billion currently, reflecting an 85% loss in value [4] Company Operations - Playtika develops mobile games, including casual and casino games, and has experienced multiple rounds of layoffs over the years, with the most recent occurring after a previous reduction of nearly 100 employees in June [2] - The company has a total revenue guidance for 2025 of $2.7-2.75 billion, indicating a growth of 5.9-7.9% compared to the previous year, alongside an adjusted EBITDA of $715-740 million [4] Market Analysis - Twelve analysts cover Playtika's stock, with eight holding neutral views and four being positive, and the average price target is 50% above the current stock price [5]

Core Insights - Playtika Holding Corp. (NASDAQ:PLTK) is recognized among the 15 stocks with the highest dividend potential for investment [1] - Freedom Capital Markets has initiated coverage on Playtika with a Hold rating and a price target of $3.75 [2] Financial Performance - In Q3 2025, Playtika reported revenue of $674.6 million, reflecting an 8% decline year-over-year - Direct-to-Consumer (D2C) revenue increased by 20% year-over-year to $209.3 million - Average Daily Paying Users rose to 354,000, marking a 17.6% increase from the previous year - The company maintains its full-year revenue outlook of $2.70–$2.75 billion and adjusted EBITDA of $715–$740 million [3] Strategic Goals - Management aims to achieve 40% D2C revenue on a run-rate basis within the next two years, up from the current 31% - CEO Robert Antokol indicated that the portfolio transition will continue into 2026, focusing on stabilizing Slotomania and preparing for the launch of a new slot title, Jackpot Tour, which is not expected to significantly impact 2025 results [4] Company Overview - Playtika develops and publishes mobile games, including free-to-play casual and social casino titles like Bingo Blitz and Slotomania [5]

Core Viewpoint - The article emphasizes the effectiveness of value investing as a strategy to identify undervalued stocks, highlighting Playtika (PLTK) as a strong candidate based on various financial metrics [2][6]. Company Analysis - Playtika (PLTK) holds a Zacks Rank of 2 (Buy) and has received an "A" grade for Value, indicating it is among the highest-quality value stocks available [3]. - PLTK's PEG ratio is currently at 0.80, which is significantly lower than the industry average of 1.39, suggesting that it may be undervalued [4]. - The company's P/S ratio stands at 0.58, compared to the industry's average P/S of 1.37, further supporting the notion of PLTK being undervalued [5]. - The data indicates that Playtika is likely undervalued, and its strong earnings outlook positions it as one of the market's strongest value stocks [6].

Financial Data and Key Metrics Changes - The company generated $674.6 million in revenue for Q3 2025, down 3.1% sequentially but up 8.7% year-over-year [8] - GAAP net income was $39.1 million, up 17.8% sequentially but down 0.5% year-over-year [9] - Adjusted EBITDA reached $217.5 million, up 30.2% sequentially and up 10.3% year-over-year [9] - Direct-to-consumer (D2C) revenue crossed $200 million, reaching $209.3 million, up 19% sequentially and up 20% year-over-year [9][10] - D2C represented 31% of total revenue this quarter, with a target of achieving 40% on a run-rate basis in the next two years [10] Business Line Data and Key Metrics Changes - Bingo Blitz revenue was $162.6 million, up 1.5% sequentially and 1.7% year-over-year [10] - Slotomania revenue was $68.5 million, down 20.8% sequentially and 46.7% year-over-year [11] - June's Journey revenue was $68.3 million, down 1.2% sequentially and down 2.7% year-over-year [12] Market Data and Key Metrics Changes - The U.S. iOS platform was identified as a major catalyst driving D2C growth [35] - International markets, particularly Japan, have shown strong performance, with continued opportunities for growth [56] Company Strategy and Development Direction - The company is focusing on stabilizing the Slotomania franchise while reallocating resources towards higher-return opportunities [5][11] - There is an ongoing effort to enhance player experience through AI-driven initiatives and improve operational efficiency [7][18] - The company plans to continue its strategy of returning capital to shareholders through dividends and buybacks while pursuing selective M&A [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the performance of Disney Solitaire and its impact on future game launches [4][44] - The company is optimistic about stabilizing Slotomania and improving its game economy [39] - There is a cautious outlook regarding near-term revenue recovery for Slotomania, with a focus on enhancing game experience and payer retention [11][12] Other Important Information - The company had approximately $640.8 million in cash, cash equivalents, and short-term investments as of September 30 [16] - Cost of revenue increased by 6.1% year-over-year, while operating expenses rose by 21.6% year-over-year [13] Q&A Session Summary Question: Can you expand on reallocating resources and AI initiatives? - The company is investing in growth for acquired titles and enhancing player experience through AI, focusing on efficiency and quicker feature releases [18][19] Question: Thoughts on dividend and capital allocation for 2026? - The company is evaluating its capital allocation framework but cannot share specific future plans at this time [24][25] Question: Impact of Google barring sweepstakes from advertising? - The company is monitoring the situation but does not comment on speculation [28] Question: Will Jackpot Tour cannibalize current slot titles? - Management believes Jackpot Tour will target a different audience and will not cannibalize existing titles [29] Question: What drove the acceleration in D2C growth? - The D2C platform is a significant advantage, with most games already on it, and U.S. iOS was a major catalyst for growth [34][35] Question: How to stabilize Slotomania and marketing allocation? - The company is focused on improving Slotomania's game economy and will adjust marketing based on performance metrics [39][40] Question: Changes in competitive dynamics for Slotomania? - The competitive dynamics have remained consistent, with strong performance in U.S. iOS and international markets [56][58]

Core Insights - Playtika Holding (PLTK) reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of $0.17 per share, and up from $0.11 per share a year ago, representing an earnings surprise of +5.88% [1] - The company generated revenues of $674.6 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.59% and increasing from $620.8 million year-over-year [2] - Playtika's stock has underperformed, losing about 46% since the beginning of the year, while the S&P 500 has gained 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $668.67 million, and for the current fiscal year, it is $0.53 on revenues of $2.74 billion [7] - The estimate revisions trend for Playtika was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Gaming industry, to which Playtika belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - GDEV Inc., another company in the same industry, is expected to report quarterly earnings of $0.42 per share, reflecting a year-over-year decline of -46.8% [9]

Financial Performance - Revenues for Q3 2025 reached $674.6 million, a 8.5% increase from $620.8 million in Q3 2024[18] - Net income for Q3 2025 was $39.1 million, slightly down from $39.3 million in Q3 2024, resulting in a net income per share of $0.11[18] - Comprehensive income for Q3 2025 was $34.3 million, compared to $28.8 million in Q3 2024, indicating a positive trend[18] - Net income for the nine months ended September 30, 2025, was $102.9 million, compared to $178.9 million for the same period in 2024[25] - Total revenues for the three months ended September 30, 2025, were $674.6 million, a 8.7% increase from $620.8 million in the same period of 2024[117] - Revenue from the USA for the three months ended September 30, 2025, was $418.5 million, compared to $410.9 million in 2024, reflecting a growth of 1.6%[117] - Revenue from EMEA for the three months ended September 30, 2025, increased by 33.7% to $162.3 million from $121.4 million in 2024[117] - Direct-to-consumer platform revenues for the nine months ended September 30, 2025, were $564.4 million, up from $519.6 million in 2024, marking a 8.6% increase[117] Expenses and Costs - The company reported total costs and expenses of $576.2 million for Q3 2025, an increase from $523.3 million in Q3 2024[18] - Research and development expenses for Q3 2025 were $98.8 million, nearly unchanged from $99.2 million in Q3 2024[18] - Sales and marketing expenses surged to $206.3 million in Q3 2025, up 37.6% from $149.9 million in Q3 2024[18] - Advertising expenses for the three months ended September 30, 2025, were $153.2 million, compared to $114.9 million in 2024, representing a 33.2% increase[121] - Interest expense for the three months ended September 30, 2025, was $36.6 million, a decrease from $38.7 million in 2024[124] Assets and Liabilities - Total current assets increased to $993.2 million as of September 30, 2025, compared to $872.8 million at December 31, 2024, reflecting a growth of 13.8%[16] - Total liabilities decreased slightly to $3,763.2 million from $3,770.3 million at the end of 2024[16] - Cash and cash equivalents stood at $565.8 million as of September 30, 2025, down from $587.9 million at December 31, 2024[16] - The accumulated deficit improved to $(894.2) million from $(904.1) million at the end of 2024[16] - Total cash, cash equivalents, and restricted cash at the end of the period was $589.4 million, compared to $1,147.4 million at the end of September 2024[26] - The company's accounts receivable as of September 30, 2025, was $168.0 million, down from $187.6 million at the end of 2024[119] - Total accrued expenses and other current liabilities increased to $611.3 million as of September 30, 2025, up from $463.0 million at December 31, 2024[57] - The Company has a total debt of $2,391.8 million as of September 30, 2025, with a term loan maturing in 2028 and senior notes maturing in 2029[63] Cash Flow - Cash flows from operating activities provided $281.8 million, down from $337.0 million in the previous year[25] - The company had cash and cash equivalents totaling $589.4 million as of September 30, 2025, an increase from $567.7 million at December 31, 2024[192] - The company reported a net cash used in investing activities of $115.8 million for the nine months ended September 30, 2025[25] Stock and Dividends - The company declared cash dividends of $0.10 per share, totaling $112.5 million for the nine months ended September 30, 2025[25] - A cash dividend of $0.10 per share was declared, amounting to $37.6 million, payable on July 7, 2025[74] - The Company repurchased approximately 1.3 million shares at an average cost of $4.09 per share, with $133.1 million remaining under the stock repurchase program[75] Acquisitions and Investments - The acquisition of SuperPlay Ltd. was completed for an initial purchase price of $700.0 million, with potential earnout payments of up to $1.250 billion based on future performance[33] - As of September 30, 2025, the estimated fair value of contingent consideration related to the SuperPlay acquisition was $340.0 million[35] - The Company recorded impairment charges of $1.9 million for the nine months ended September 30, 2025, down from $36.3 million in the previous year[25] - The Company recorded impairments of $29.3 million and $36.3 million related to certain equity investments during the three and nine months ended September 30, 2024, respectively[52] Legal and Compliance - The Company does not expect any material financial impact from ongoing litigation related to various lawsuits, including those alleging unlawful gambling practices[97][103][109] - The Company intends to vigorously defend against all ongoing litigation, which may impact its financial condition but cannot be estimated at this time[97][109] - The company intends to vigorously defend against multiple legal claims alleging unlawful practices related to its games, but cannot estimate the potential impact on financial results[110][111][113][116] Financial Instruments and Derivatives - The Company had outstanding derivative contracts to purchase foreign currencies hedging approximately $187.5 million in future salary expenses, with a net asset fair value of $13.2 million[86] - The aggregate fair value of the Company's interest rate swap agreements was a net asset of $7.2 million as of September 30, 2025[85] - The fair value of derivative instruments related to interest rate swaps decreased from $19.4 million to $9.5 million, a decline of approximately 51%[92] - The estimated fair value of the company's interest rate swap agreements is derived from a discounted cash flow analysis, with borrowings under the Term Loan at $1,796.2 million as of September 30, 2025[187] Taxation - The effective tax rate for the nine months ended September 30, 2025, was 28.7%, down from 30.9% in the same period of 2024[125]