Financial Performance - Playtika's revenue reached $696 million, reflecting an 11% increase year-over-year[7] - GAAP Net Income was $33.2 million, a decrease of (61.7)% year-over-year[7] - Adjusted Net Income was $6.5 million, a decrease of (91.4)% year-over-year[7] - Adjusted EBITDA was $167 million, a decrease of (12.6)% year-over-year[7] - The Adjusted EBITDA margin was 24%, compared to 30.5% in Q2 2024[7] Key Performance Indicators - Average Daily Paying Users were 378,000, an increase of 26.8% year-over-year[8] - Average Payer Conversion was 4.3%, up from 3.7% in Q2 2024[8] Game Performance - Bingo Blitz revenue was $160.2 million, an increase of 2.9% year-over-year[8] - Slotomania revenue was $86.5 million, a decrease of (35.4)% year-over-year[8] - June's Journey revenue was $69.1 million, a decrease of (7.4)% year-over-year[8] Liquidity and Debt - Cash, cash equivalents, and ST investments totaled $592.1 million as of June 30, 2025[7] - The company has approximately $1.14 billion in available liquidity[22]

[Q2 2025 Financial Results Overview](index=1&type=section&id=Q2%202025%20Financial%20Results%20Overview) Playtika reported resilient Q2 2025 results with revenue growth and strategic DTC platform expansion [Executive Summary & Key Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Financial%20Highlights) Playtika's Q2 2025 revenue increased **11.0% YoY**, driven by game success and an increased DTC target | Metric | Q2 2025 ($ million) | Sequential Change | YoY Change | | :-------------------------------- | :------------------ | :---------------- | :--------- | | Revenue | 696.0 | (1.4)% decrease | 11.0% increase | | DTC Platforms Revenue | 175.9 | (1.8)% decrease | 1.3% increase | | GAAP Net Income | 33.2 | 8.5% increase | (61.7)% decrease | | Adjusted Net Income | 6.5 | (82.0)% decrease | (91.4)% decrease | | Adjusted EBITDA | 167.0 | (0.2)% decrease | (12.6)% decrease | | Cash, cash equivalents, and short-term investments | 592.1 | N/A | N/A | - CEO Robert Antokol highlighted the success of Disney Solitaire, achieving a **$100 million annual run-rate revenue**, and strong engagement and DTC revenue growth for Bingo Blitz[3](index=3&type=chunk) - CFO Craig Abrahams stated the DTC business remains a key priority, with the long-term target for DTC revenue increased from **30% to 40%** to balance margins[3](index=3&type=chunk) [Selected Operational Metrics and Business Highlights](index=1&type=section&id=Selected%20Operational%20Metrics%20and%20Business%20Highlights) Q2 2025 operational metrics show increased paying users and a new game launch planned for Q4 2025 | Metric | Q2 2025 | Sequential Change | YoY Change | | :-------------------------- | :------ | :---------------- | :--------- | | Average Daily Paying Users | 378K | (3.1)% decrease | 26.8% increase | | Average Payer Conversion | 4.3% | Consistent with Q1 2025 | Up from 3.7% in Q2 2024 | | Bingo Blitz Revenue | $160.2M | (1.3)% decrease | 2.9% increase | | Slotomania Revenue | $86.5M | (22.7)% decrease | (35.4)% decrease | | June's Journey Revenue | $69.1M | 0.3% increase | (7.4)% decrease | - Playtika announced plans for the global launch of a new slot game, Jackpot Tour, in **Q4 2025**[6](index=6&type=chunk) [Quarterly Dividend Announcement](index=2&type=section&id=Quarterly%20Dividend%20Announcement) Playtika's Board declared a **$0.10 per share** cash dividend payable in October 2025 - A cash dividend of **$0.10 per share** of common stock was declared, payable on October 10, 2025, to stockholders of record as of September 26, 2025[7](index=7&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) The company revised its full-year 2025 revenue guidance while maintaining Adjusted EBITDA guidance - Playtika revised its full-year revenue guidance to between **$2.70 billion and $2.75 billion**[8](index=8&type=chunk) - The company maintained its Adjusted EBITDA guidance for the full year between **$715 million and $740 million**[8](index=8&type=chunk) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Playtika management will host a conference call on August 7, 2025, to discuss Q2 results - A conference call will be held on **August 7, 2025**, at 5:30 a.m. Pacific Time (8:30 a.m. Eastern Time) to discuss the results, accessible via investors.playtika.com[9](index=9&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) This section provides an overview of Playtika and important disclosures regarding forward-looking statements [About Playtika Holding Corp.](index=2&type=section&id=About%20Playtika%20Holding%20Corp.) Playtika is a leading mobile gaming entertainment and technology company, founded in 2010 in Israel - Playtika (NASDAQ:PLTK) is a mobile gaming entertainment and technology market leader with a diverse portfolio of game titles[11](index=11&type=chunk) - Founded in **2010**, Playtika was an early pioneer in offering free-to-play social games on social networks and mobile platforms[11](index=11&type=chunk) - The company is headquartered in Herzliya, Israel, and operates with employees across offices worldwide, aiming to entertain globally[11](index=11&type=chunk) [Forward-Looking Statements & Risk Factors](index=2&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) Forward-looking statements are subject to significant risks and uncertainties that may cause actual results to differ - The press release contains forward-looking statements regarding business strategy, plans, and future operations, identified by words like 'anticipate,' 'expect,' 'will,' and 'would'[12](index=12&type=chunk)[13](index=13&type=chunk) - These statements are based on current expectations and projections, but involve significant risks, uncertainties, and assumptions, including those discussed in SEC filings[14](index=14&type=chunk) - Important factors that could cause actual results to differ include reliance on third-party platforms, dependence on a limited number of games/users for revenue, ability to compete, integrate acquisitions, retain players, develop new products, significant indebtedness, and geopolitical events[15](index=15&type=chunk)[16](index=16&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents Playtika's balance sheets, income statements, and cash flow statements for Q2 2025 [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased, total liabilities decreased, and stockholders' deficit improved as of June 30, 2025 | Metric | June 30, 2025 ($ million) | December 31, 2024 ($ million) | Change ($ million) | | :-------------------------------- | :-------------------------- | :---------------------------- | :----------------- | | Total Assets | 3,636.8 | 3,639.2 | (2.4) | | Total Liabilities | 3,724.6 | 3,770.3 | (45.7) | | Total Stockholders' Deficit | (87.8) | (131.1) | 43.3 | | Cash and cash equivalents | 500.9 | 565.8 | (64.9) | | Short-term investments | 91.2 | 0 | 91.2 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Q2 2025 revenues increased YoY, but net income and comprehensive income significantly decreased | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | YoY Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :--------- | | Revenues | $696.0M | $627.0M | $69.0M | | Total costs and expenses | $586.3M | $486.3M | $100.0M | | Income from operations | $109.7M | $140.7M | $(31.0)M | | Interest and other, net | $64.6M | $20.4M | $44.2M | | Net income | $33.2M | $86.6M | $(53.4)M | | Comprehensive income | $56.5M | $81.8M | $(25.3)M | | Net income per share (diluted) | $0.09 | $0.23 | $(0.14) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, operating cash flow decreased, while investing cash flow improved and financing cash flow increased | Metric | Six months ended June 30, 2025 ($ million) | Six months ended June 30, 2024 ($ million) | YoY Change ($ million) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------- | | Cash flows from operating activities | 164.9 | 180.1 | (15.2) | | Net cash used in investing activities | (135.2) | (449.1) | 313.9 | | Net cash used in financing activities | (97.0) | (48.6) | (48.4) | | Dividend paid | (74.9) | (37.1) | (37.8) | | Payment for share buyback | (10.9) | 0 | (10.9) | | Net change in cash, cash equivalents and restricted cash | (65.3) | (319.9) | 254.6 | [Calculation of Free Cash Flow](index=7&type=section&id=Calculation%20of%20Free%20Cash%20Flow) Free Cash Flow for the first six months of 2025 was **$119.6 million**, a slight decrease YoY | Metric | Six months ended June 30, 2025 ($ million) | Six months ended June 30, 2024 ($ million) | YoY Change ($ million) | | :-------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------- | | Free Cash Flow | 119.6 | 122.1 | (2.5) | [Non-GAAP Financial Measures Reconciliation](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section reconciles non-GAAP measures like Adjusted EBITDA and Adjusted Net Income to GAAP equivalents [Non-GAAP Measures Explanation](index=8&type=section&id=Non-GAAP%20Measures%20Explanation) Adjusted EBITDA and Adjusted Net Income are non-GAAP measures used to assess operating performance, not GAAP substitutes - Adjusted EBITDA and Adjusted Net Income are non-GAAP measures used to indicate operating performance and should not be seen as alternatives to GAAP net income or cash flow from operating activities[25](index=25&type=chunk) - Adjusted EBITDA is defined as net income before interest expense/income, taxes, depreciation, amortization, impairment, stock-based compensation, contingent consideration, acquisition expenses, and other items[26](index=26&type=chunk) - Adjusted Net Income is defined as net income before impairment charges and contingent consideration[27](index=27&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 decreased to **$167.0 million** due to lower net income and higher interest expenses | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | YoY Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :--------- | | Net income | $33.2M | $86.6M | $(53.4)M | | Interest expense and other, net | $64.6M | $20.4M | $44.2M | | Depreciation and amortization | $61.0M | $38.7M | $22.3M | | Stock-based compensation | $17.5M | $22.9M | $(5.4)M | | Changes in estimated value of contingent consideration | $(33.0)M | $(16.3)M | $(16.7)M | | Adjusted EBITDA | $167.0M | $191.0M | $(24.0)M | | Adjusted EBITDA margin | 24.0% | 30.5% | (6.5)% pts | [Reconciliation of Net Income to Adjusted Net Income](index=9&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) Adjusted Net Income for Q2 2025 significantly decreased to **$6.5 million**, primarily due to lower net income | Metric | Three months ended June 30, 2025 ($ million) | Three months ended June 30, 2024 ($ million) | YoY Change ($ million) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------- | | Net income | 33.2 | 86.6 | (53.4) | | Impairment charge | 0.4 | 0 | 0.4 | | Changes in estimated value of contingent consideration | (33.0) | (16.3) | (16.7) | | Income tax impact of adjustments | 5.9 | 5.7 | 0.2 | | Adjusted Net Income | 6.5 | 76.0 | (69.5) | [Contacts](index=9&type=section&id=Contacts) This section provides contact information for investor relations [Investor Relations Contact](index=9&type=section&id=Investor%20Relations%20Contact) Investor Relations contact details are provided for inquiries - Investor Relations contact is Tae Lee at Tael@playtika.com[34](index=34&type=chunk)

Core Insights - Playtika Holding Corp. reported a revenue of $696.0 million for Q2 2025, reflecting a sequential decrease of 1.4% but an increase of 11.0% year over year [1][9] - Direct-to-Consumer (DTC) revenue was $175.9 million, showing a sequential decrease of 1.8% and a year-over-year increase of 1.3% [1][9] - The company announced a quarterly dividend of $0.10 per share, payable on October 10, 2025 [5] Financial Performance - GAAP Net Income for Q2 2025 was $33.2 million, an increase of 8.5% sequentially but a decrease of 61.7% year over year [9] - Adjusted Net Income was $6.5 million, down 82.0% sequentially and 91.4% year over year [9] - Adjusted EBITDA for the quarter was $167.0 million, a slight decrease of 0.2% sequentially and a decrease of 12.6% year over year [9] Operational Metrics - Average Daily Paying Users (DPUs) were 378,000, a decrease of 3.1% sequentially but an increase of 26.8% year over year [10] - Bingo Blitz generated revenue of $160.2 million, a sequential decrease of 1.3% but an increase of 2.9% year over year [10] - Slotomania revenue was $86.5 million, reflecting a significant sequential decrease of 22.7% and a year-over-year decrease of 35.4% [10] Strategic Initiatives - The company is increasing its long-term target for DTC revenue to 40%, up from 30%, to enhance margin balance amid competitive pressures in mobile gaming [3] - The successful launch of Disney Solitaire has achieved a $100 million annual run-rate revenue, highlighting the effectiveness of collaboration with Disney & Pixar Games [3] Financial Outlook - Playtika revised its revenue guidance for the year to a range of $2.70 to $2.75 billion while maintaining Adjusted EBITDA guidance between $715 and $740 million [6]

Core Viewpoint - Playtika Holding (PLTK) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2025, which could significantly influence its stock price depending on the actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for August 7, and if the reported figures exceed expectations, the stock may rise; conversely, a miss could lead to a decline [2]. - The consensus estimate for Playtika's quarterly earnings is projected at $0.15 per share, reflecting a year-over-year decrease of 34.8%, while revenues are expected to reach $710.65 million, marking a 13.3% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 1.08%, indicating a collective reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for Playtika is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.64%, suggesting a bearish outlook from analysts [12]. Historical Performance - In the last reported quarter, Playtika was expected to post earnings of $0.11 per share but only achieved $0.09, resulting in a surprise of -18.18% [13]. - Over the past four quarters, Playtika has only beaten consensus EPS estimates once [14]. Predictive Indicators - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3; however, Playtika currently holds a Zacks Rank of 3, making it challenging to predict a beat [10][12]. - The predictive power of the Earnings ESP model is significant primarily for positive readings, and a negative Earnings ESP does not necessarily indicate an earnings miss [9][11].

Company Overview - Playtika Holding Corp. is a leader in mobile gaming entertainment and technology, with a diverse portfolio of game titles [3] - Founded in 2010, Playtika was one of the pioneers in offering free-to-play social games on social networks and mobile platforms [3] - The company is headquartered in Herzliya, Israel, and has a global workforce [3] Financial Results Announcement - Playtika will release its financial results for the second quarter of 2025 before U.S. markets open on August 7, 2025 [1] - A conference call to discuss the results will be held on the same day at 5:30 AM Pacific Time, 8:30 AM Eastern Time [1] Investor Relations - A live webcast of the conference call and earnings release materials will be available on Playtika's Investor Relations website [2]

Core Insights - Playtika Holding Corp. (NASDAQ: PLTK) is characterized as a high-margin and cash-flow generative company, with a liveops model that allows its legacy games to remain profitable for years, evidenced by a trailing twelve months (TTM) EBITDA margin of 23.3% [1] Company Overview - The company has a strong cash flow generation capability, which is crucial for sustaining its operations and growth [1] - Playtika's liveops model is a key factor in maintaining profitability over an extended period for its legacy games [1] Financial Performance - The TTM EBITDA margin of 23.3% indicates a solid profitability level, reflecting the company's effective cost management and revenue generation strategies [1]

Group 1 - Playtika's World Series of Poker (WSOP) app has renewed its partnership with professional poker player Samantha Abernathy, who will serve as an ambassador and feature a custom in-game avatar [2][5] - Abernathy, who started as a casual player on the WSOP app, has transitioned to competing in high-stakes games and has cashed in at 31 poker tournaments, highlighting her growth in the poker community [3][4] - The WSOP app aims to appeal to both amateur and professional players, with Abernathy's involvement expected to enhance the platform's energy and reinforce its position as a leading destination for poker enthusiasts [5] Group 2 - The WSOP app is recognized as one of the world's most downloaded free poker games, offering various game modes, tournaments, and special events, while rewarding players with virtual prizes [6] - Playtika, founded in 2010 and headquartered in Herzliya, Israel, is a leader in mobile gaming entertainment and technology, with a mission to entertain through diverse gaming experiences [8]

Core Viewpoint - Small-cap stocks are currently undervalued, presenting potential investment opportunities, especially those offering high dividend yields ranging from 8.3% to 17.1% [2] Group 1: Small-Cap Stocks Overview - The valuation gap between the S&P 500 and S&P 600 is at its widest since the late 1990s, suggesting small-cap stocks are significantly cheaper [2] - The article discusses five small-cap stocks with attractive dividend yields, indicating a potential for high returns despite their current low valuations [2] Group 2: Playtika Holding (PLTK) - Playtika, a mobile game developer, has a dividend yield exceeding 8% but has not raised its payout recently, indicating a decline in earnings and sales [4][5] - Analysts project a 32% increase in profits for 2024, despite the company's struggles in the competitive mobile gaming market [6] - Playtika's valuation is low at 6 times forward earnings, but there are concerns about its growth prospects [7] Group 3: Carlyle Secured Lending (CGBD) - CGBD is a business development company focused on U.S. middle-market companies, primarily investing in first-lien debt [8][9] - Recent earnings reports have shown disappointing results, with an increase in non-accrual loans and a stagnant base dividend of 40 cents per share [10][11] - CGBD shares are trading at a 16% discount to net asset value, but operational challenges raise concerns about future dividend sustainability [12] Group 4: Bain Capital Specialty Finance (BCSF) - BCSF provides financing solutions to a diverse range of companies, with a significant portion of its investments in first-lien debt [13][14] - The company has maintained its regular dividend but has introduced special dividends, raising concerns about future dividend coverage due to declining net investment income projections [16][17] - Analysts expect BCSF's dividend ratios to be high, leaving little room for error in case of operational difficulties [17] Group 5: Two Harbors Investment Corp. (TWO) - TWO operates in the mortgage REIT sector, focusing on mortgage servicing rights and agency residential mortgage-backed securities [19][22] - The company has faced significant share price declines, resulting in a high yield of over 17%, but recent litigation charges could impact its book value and dividend sustainability [24][25] - TWO's current dividend rate of 45 cents per share is at risk due to the potential impact of litigation on earnings available for distribution [25] Group 6: Franklin BSP Realty Trust (FBRT) - FBRT is a mortgage REIT focused on commercial mortgage-backed securities, with a significant portion of its portfolio in multifamily properties [26][27] - The company is trading at a 28% discount to book value, with a low P/E ratio based on 2026 earnings estimates, indicating potential value [28] - Concerns exist regarding the stability of its dividend, as the payout has not changed since 2021, and market conditions could necessitate a review of the dividend policy [29][30]

Core Points - The WSOP app is offering a sweepstakes for a Las Vegas poker vacation, running until July 31, 2025, with nine winners selected over nine weeks [1][2] - The sweepstakes is open to new users who download and register on the app, as well as returning players who log in [2] - The WSOP app aims to connect the excitement of live poker with the convenience of online play, enhancing user engagement [2] Company Overview - Playtika Holding Corp. is a leader in mobile gaming entertainment, founded in 2010, and is known for its free-to-play social games [5] - The company is headquartered in Herzliya, Israel, and has a global presence with employees in various offices [5] - The WSOP app is one of the most downloaded free poker games worldwide, featuring multiple game modes and tournaments [3][5]

Group 1: Campaign Overview - Slotomania launched a new 360 campaign titled "Vegas in PJs" on April 29, 2025, which showcases the comfort of playing from home while enjoying IGT's iconic land-based slots [1] - The campaign features a TV spot that highlights players enjoying the gaming experience in their pajamas, emphasizing the blend of comfort and excitement [1] - The commercial includes a real Slotomania player who won a trip to Europe, reinforcing the community engagement aspect of the campaign [1] Group 2: Strategic Partnership - Slotomania's campaign underscores its strategic partnership with IGT, aiming to bring the thrill of real casino slots to mobile and web players [1] - The collaboration focuses on popular IGT titles such as Cleopatra II, Regal Riches, and Wheel of Fortune Lucky Coins On Stage, enhancing the gaming experience for users [1] - This partnership is positioned to strengthen Slotomania's market presence as a leading destination for immersive at-home gaming [1] Group 3: Company Background - Slotomania is recognized as the world's 1 free-to-play slots game, developed by Playtika LTD, a subsidiary of Playtika Holding Corp [2] - The platform offers a wide variety of high-quality slot games with engaging graphics and sound effects, catering to a large community of slot enthusiasts [2] - Playtika, founded in 2010, is a leader in mobile gaming entertainment, known for pioneering free-to-play social games on various platforms [3]