Core Insights - Playtika reported strong Q4 performance with revenue of $678.8 million and Adjusted EBITDA of $201.4 million, marking the third consecutive year of meeting or exceeding Adjusted EBITDA guidance [2][5][4] - Direct-to-consumer (D2C) revenue reached $250.1 million in Q4, representing 36.8% of total revenue and showing a 19.5% sequential increase and 43.2% year-over-year growth [1][5][4] - The company is shifting its focus towards casual games and D2C channels, aiming for D2C to account for approximately 40% of revenue in the future [6][4] Financial Performance - For the full year 2025, Playtika achieved revenue of $2.755 billion, an 8.1% increase year-over-year, with a net loss of $206.4 million primarily due to a non-cash remeasurement related to SuperPlay [10][11] - Playtika generated record free cash flow of $481.6 million, up 21.4% year-over-year, reflecting effective management of capital expenditures and working capital [10][5] - The company guided for 2026 revenue between $2.7 billion and $2.8 billion, with Adjusted EBITDA projected at $730 million to $770 million [13][5] Strategic Focus - Management emphasized a portfolio-driven approach, focusing on protecting leading casual franchises and scaling D2C to enhance unit economics [2][4] - The company is managing legacy titles as part of a broader portfolio strategy rather than relying solely on them for revenue [3][4] - Playtika is prioritizing investments in SuperPlay and related earn-out obligations while suspending its quarterly dividend to maintain financial flexibility [15][5] Game Performance - SuperPlay achieved record revenue in Q4, with Disney Solitaire revenue increasing 21.4% sequentially to $71.6 million, contributing significantly to overall growth [7][8] - Bingo Blitz revenue was $158.5 million, down 2.5% sequentially, while June's Journey revenue was $70.0 million, showing a slight increase [17][17] - The company is expanding its collaboration with Disney and Pixar Games, with new titles in development [8][15]

Core Insights - The company is shifting its business focus towards long-life casual games, which now account for 74% of total revenue, to reduce reliance on the volatile social casino segment [1] - The acquisition of SuperPlay has become a key growth driver, with Disney Solitaire achieving a $300 million annualized run rate shortly after its global launch [1] - Direct-to-Consumer (D2C) channels have reached a $1 billion annual revenue run rate, enhancing unit economics and player retention [1] Financial Performance - The company is managing social casino titles for cash flow maximization and stability, with Slotomania showing early signs of stabilization in Q4 [1] - Record free cash flow of $481.6 million is attributed to disciplined capital expenditure management and successful integration of higher-margin D2C workflows [1] - The company is streamlining legacy operations to reallocate capital into high-return areas, particularly supporting the scaling efforts of the SuperPlay team [1]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported revenue of $678.8 million, representing a 0.6% sequential increase and a 4.4% year-over-year increase [13] - For the full year 2025, total revenue was $2.755 billion, up 8.1% year-over-year [12] - Adjusted EBITDA for Q4 was $201.4 million, down 7.4% sequentially but up 9.5% year-over-year [13] - The company experienced a net loss of $309.3 million in Q4, compared to a net income of $39.1 million in Q3 [13] - Free cash flow reached a record $481.6 million, an increase of 21.4% year-over-year [12] Business Line Data and Key Metrics Changes - Direct-to-consumer (D2C) revenue accounted for 36.8% of total revenue in Q4, with annual D2C revenue reaching approximately $1 billion [6] - Casual games generated about 74% of total revenue in Q4, indicating a shift towards a more balanced portfolio [7] - SuperPlay achieved record revenue in Q4, with Disney Solitaire revenue up 21.4% quarter-over-quarter [8] Market Data and Key Metrics Changes - Average daily active users (DAU) decreased by 3.7% sequentially to 7.9 million, while average daily paying users (DPU) increased by 0.8% sequentially to 357,000 [19] - The company noted early signs of stabilization in its social casino game Slotomania [11] Company Strategy and Development Direction - The company is focusing on building a balanced portfolio, with an emphasis on long-life casual games and D2C strategies [5][6] - There is a clear strategic shift towards casual gaming, with the company aiming to protect and maximize cash flow from its social casino assets while investing in growth opportunities [20] - The company plans to suspend its quarterly dividend to preserve capital for high-return opportunities, particularly related to the SuperPlay earn-out [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy and adapt to a changing market environment, particularly in the casual gaming sector [10][20] - The company anticipates continued revenue growth driven by SuperPlay and its casual franchises, while also managing the decline in social casino revenue [20] Other Important Information - Operating expenses increased significantly due to the GAAP impact of contingent consideration related to the SuperPlay earn-out [18] - The company ended the year with $820.2 million in cash equivalents, indicating strong liquidity to fund future obligations [19] Q&A Session Summary Question: Role of AI in the business - Management highlighted that AI has been a focus for several years and is seen as a significant growth opportunity for the company [26] Question: Appetite for M&A - M&A remains a core part of the growth strategy, with a focus on high-return opportunities, particularly related to SuperPlay [28] Question: Incentives for D2C platform transition - The company is providing a better user experience through D2C, which is expected to enhance retention and long-term engagement [33] Question: Guidance for Slotomania and social casino performance - The company expects continued declines in social casino revenue but is optimistic about the growth from casual games [37] Question: Trajectory of Disney Solitaire - Significant marketing investment is planned for Disney Solitaire in Q1, which is expected to drive growth [47] Question: Gross margins and D2C impact - There are crosscurrents affecting gross margins, including lower platform fees but increased amortization from past acquisitions [48] Question: Status of Jackpot Tour - The company is still evaluating the performance of Jackpot Tour and is cautious about significant marketing spend until KPIs are met [76]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported revenue of $678.8 million, representing a 0.6% sequential increase and a 4.4% year-over-year increase [11] - For the full year 2025, total revenue was $2.755 billion, up 8.1% year-over-year, with an Adjusted EBITDA of $753.2 million, down 0.6% year-over-year [10] - The company experienced a net loss of $206.4 million for the year, with an Adjusted net income of $197.5 million [10] - Free cash flow reached a record $481.6 million, an increase of 21.4% year-over-year [10] Business Line Data and Key Metrics Changes - Direct-to-Consumer (D2C) revenue accounted for 36.8% of total revenues in Q4, with annual D2C revenue reaching approximately $1 billion [5] - Casual games generated about 74% of total revenue in Q4, indicating a shift towards a more balanced revenue mix [5] - SuperPlay achieved record revenues in Q4, with Disney Solitaire revenue up 21.4% quarter-over-quarter [6] Market Data and Key Metrics Changes - The average Daily Active Users (DAU) decreased by 3.7% sequentially and 1.3% year-over-year to 7.9 million [17] - Average Daily Paying Users (DPU) increased by 0.8% sequentially and 5.3% year-over-year to 357,000 [17] - The company noted early signs of stabilization in its social casino-themed games, particularly Slotomania [9] Company Strategy and Development Direction - The company is focusing on building a balanced portfolio of assets, with a significant emphasis on D2C and casual games [4] - There is a strategic shift towards casual gaming, with the company aiming to protect and maximize cash flow from its social casino titles while investing in growth opportunities [9][18] - The company plans to suspend its quarterly dividend to preserve capital for high-return opportunities, particularly related to the SuperPlay earn-out [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy, highlighting the importance of D2C as a core growth driver [18] - The company anticipates continued revenue growth from its casual franchises, while acknowledging challenges in the social casino segment [18] - Guidance for 2026 includes revenue expectations of $2.7 billion to $2.8 billion and Adjusted EBITDA of $730 million to $770 million [19] Other Important Information - Operating expenses increased significantly due to the GAAP impact of contingent consideration related to the SuperPlay earn-out [15] - The company ended the year with $820.2 million in cash equivalents, indicating a strong liquidity position [17] Q&A Session Summary Question: Role of AI in the business - Management indicated that AI has been a focus for several years and is seen as a future growth engine, enhancing community and content engagement [24][25] Question: Appetite for M&A - M&A remains a core part of the growth strategy, with a focus on high ROI opportunities, particularly related to the SuperPlay platform [26][27] Question: Incentives for D2C transition - The company is enhancing user experience through D2C, which is expected to improve retention and long-term engagement [31][32] Question: Guidance assumptions for Slotomania and Social Casino - The company is undergoing a mix shift towards casual games, with expectations of continued declines in the social casino portfolio impacting margins [36][37] Question: Trajectory of Disney Solitaire - Significant marketing investment is planned for Disney Solitaire in Q1, which is expected to drive growth throughout the year [46] Question: Contingent consideration details - The contingent consideration reflects performance-based earn-outs tied to SuperPlay's EBITDA margins, with specific thresholds for future payments [50][56]

February 26, 2026 LEGAL DISCLAIMER 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 presentation, including statements regarding our business strategy, plans and our objectives for future operations, are forward-looking statements. Further, statements that include words such as "antici ...

Core Insights - Playtika Holding Corp. reported a revenue of $678.8 million for Q4 2025, reflecting a 0.6% increase sequentially and a 4.4% increase year-over-year [9] - Direct-to-Consumer (DTC) revenue reached $250.1 million, marking a 19.5% sequential increase and a 43.2% year-over-year increase [9] - The company experienced a net loss of $(309.3) million, attributed to non-cash impacts from contingent consideration remeasurement related to the SuperPlay acquisition [9][20] - Adjusted net income was reported at $89.0 million, while adjusted EBITDA was $201.4 million, showing a 9.5% year-over-year increase despite a 7.4% sequential decrease [9][34] Q4 2025 Financial Highlights - Revenue for Q4 2025 was $678.8 million, compared to $650.3 million in Q4 2024 [20] - DTC revenue for the quarter was $250.1 million, up from $174.1 million in the previous quarter [9] - Adjusted EBITDA for Q4 2025 was $201.4 million, with an adjusted EBITDA margin of 29.7% [29] FY2025 Financial Highlights - Total revenue for FY2025 was $2,755.4 million, an increase from $2,549.3 million in FY2024 [9] - DTC revenue for FY2025 was $814.5 million, compared to $694.2 million in FY2024 [9] - The company reported a net loss of $(206.4) million for FY2025, a decline from a net income of $162.2 million in FY2024 [9] Operational Metrics - Average Daily Paying Users (DPUs) increased to 357 thousand, a 0.8% sequential increase and a 5.3% year-over-year increase [10] - Average Payer Conversion improved to 4.5%, up from 4.3% in Q3 2025 and 4.2% in Q4 2024 [10] Capital Allocation Framework - The company updated its capital allocation framework, suspending its quarterly dividend to prioritize high-return uses of capital while maintaining buybacks [6] Financial Outlook - For FY2026, Playtika expects revenue to be between $2.70 billion and $2.80 billion, with adjusted EBITDA projected between $730 million and $770 million [7]

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]

Financial Data and Key Metrics Changes - The company reported revenue of $696 million for Q2 2025, reflecting a 1.4% sequential decline but an 11% year-over-year increase [12] - Adjusted EBITDA for the quarter was $167 million, showing a slight sequential decline of 0.2% and a year-over-year decrease of 12.6% [12] - GAAP net income for the quarter was $33.2 million, representing an 8.5% sequential increase but a 61.7% year-over-year decrease [12] Business Line Data and Key Metrics Changes - D2C revenue for the quarter was $175.9 million, reflecting a 1.8% sequential decline and a 1.3% year-over-year increase [13] - Bingo Blitz revenue was $160.2 million, down 1.3% sequentially but up 2.9% year-over-year [14] - Slotomania revenue was $86.5 million, down 22.7% sequentially and 35.4% year-over-year [16] - June's Journey revenue was $69.1 million, up 0.3% sequentially but down 7.4% year-over-year [17] Market Data and Key Metrics Changes - The average DAU decreased by 2.2% sequentially but increased by 8.6% year-over-year to 8.8 million [23] - The average DPU declined by 3.1% sequentially and increased by 26.8% year-over-year to $378,000 [23] - ARPDAU was flat versus Q1 and increased by 2.4% year-over-year to $0.87 [23] Company Strategy and Development Direction - The company is increasing its long-term target for D2C revenue from 30% to 40% to sustain EBITDA and free cash flow [7][14] - The development of a new slot game is on track for launch in Q4 2025, viewed as a key growth driver [9] - The company is focusing on expanding its advertising business, which saw double-digit growth sequentially [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing headwinds in mobile gaming but remains committed to strategic priorities [5] - The company is optimistic about the performance of Disney Solitaire and the Super Play portfolio [6] - Management noted that while some mature titles are experiencing revenue declines, recently acquired titles are transitioning from EBITDA negative to positive [7] Other Important Information - The company has approximately $592.1 million in cash, cash equivalents, and short-term investments as of June 30 [22] - Cost of revenue increased by 16.4% year-over-year, driven by revenue growth and increased amortization expenses [19] - Operating expenses increased by 22.6% year-over-year, primarily due to higher performance marketing spending [20] Q&A Session Summary Question: Insights on stabilizing older titles like Slotomania - Management shared that they are learning from the monetization issues in Slotomania and are encouraged by the changes being made [25][27] Question: Economics of Disney Solitaire - Management indicated that while licensing costs are not disclosed, Disney Solitaire is scaling faster than previous titles and is a successful collaboration [30][32] Question: Structural shifts in the mobile gaming market - Management stated that investments are focused on category-leading games, with less emphasis on older titles lacking leadership [33] Question: Impact of sweepstakes on social casino business - Management acknowledged pressure in the social casino category but could not provide specific numbers related to sweepstakes [39] Question: Appetite for more IP or licensing arrangements - Management expressed openness to pursuing licensed IP opportunities that align with their strategy [42] Question: Development of Jackpot Tour - Management indicated that Jackpot Tour is expected to differentiate itself in the market, with more details to be shared in the future [44][45] Question: Impact of app store fee changes - Management noted that changes in the payment landscape have been a positive tailwind, aiding in the increase of D2C penetration [49][50]

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 Insights - The mobile solitaire game market has seen a shift with the launch of "Disney Solitaire," which has surpassed "Solitaire Grand Harvest" in revenue, achieving $12.13 million in the last 30 days compared to $10.87 million for "Solitaire Grand Harvest" [1][3] - "Disney Solitaire" differentiates itself through its vibrant scenes and beloved cartoon characters, targeting Disney fans, while other IP-based games like "Candy Crush Solitaire" have not performed as well [3] - "Sorcery School," a new entry in the solitaire genre, is gaining traction with a unique fantasy setting and RPG elements, generating nearly $1.1 million in revenue over the last 30 days [5][12] Market Dynamics - "Disney Solitaire" has become the highest-grossing solitaire game in the last 30 days, indicating a competitive shift in the market [3] - Other IP-driven games like "Candy Crush Solitaire" and "Fishdom Solitaire" have struggled to maintain strong revenue, highlighting the challenges of relying solely on established brands [3][19] - The introduction of "Sorcery School" demonstrates a trend towards innovative gameplay in the solitaire genre, combining traditional card mechanics with RPG elements to enhance player engagement [5][19] Company Strategies - Pretty Simple, the developer of "Sorcery School," leverages its experience in narrative-driven games to create a compelling fantasy backdrop, which is less common in the solitaire genre [6][10] - The RPG system in "Sorcery School" allows for a more dynamic gameplay experience, encouraging in-app purchases through a structured economy involving magical items and upgrades [12][17] - The success of "Disney Solitaire" and the emergence of "Sorcery School" suggest that companies are increasingly looking to diversify gameplay mechanics and integrate popular themes to attract players [19]