Playtika (NASDAQ:PLTK) Issues Quarterly Earnings Results, Misses Estimates By $0.96 EPS

Playtika (NASDAQ:PLTK) announced its earnings results on Thursday. The company reported ($0.82) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.14 by ($0.96), FiscalAI reports. The business had revenue of $678.80 million for the quarter, compared to analyst estimates of $660.32 million. Playtika had a net margin of 3.16% and a negative return on equity of 114.44%. The company’s quarterly revenue was up 4.4% on a year-over-year basis. During the same period in the prior year, the company earned ($0.04) earnings per share.

Here are the key takeaways from Playtika’s conference call:

• Q4 and FY results showed strength: Q4 revenue $678.8M with Adjusted EBITDA $201.4M, full-year revenue of $2.755B and record free cash flow $481.6M, underscoring execution and cash generation.
• Direct-to-consumer (D2C) is now core—D2C was 36.8% of Q4 revenue and reached about $1 billion annualized, supporting better unit economics and a long-term target of ~40%.
• SuperPlay is a major growth driver: the studio generated about $573M for the year (up 67.5% vs. baseline) and Disney Solitaire grew 21.4% sequentially, materially shifting the portfolio toward casual games.
• GAAP results were hit by a large non-cash contingent consideration related to the SuperPlay earn-out—$394.1M recorded in G&A—contributing to a Q4 GAAP net loss and creating a sizeable future cash obligation the company will fund from cash on hand.
• 2026 guidance reflects the strategic mix shift: revenue $2.7B–$2.8B, Adjusted EBITDA $730M–$770M, with marketing weighted to H1 and continued focus on stabilizing declining social-casino titles while investing behind high-return casual franchises.

Playtika Trading Down 4.8%

Playtika stock traded down $0.16 during mid-day trading on Friday, hitting $3.24. The company had a trading volume of 684,184 shares, compared to its average volume of 1,589,126. The company has a market capitalization of $1.22 billion, a price-to-earnings ratio of 13.48, a P/E/G ratio of 1.79 and a beta of 0.84. Playtika has a 12-month low of $2.99 and a 12-month high of $5.68. The company’s fifty day moving average is $3.63 and its 200-day moving average is $3.75.

Analysts Set New Price Targets

PLTK has been the topic of a number of recent analyst reports. Wedbush restated an “outperform” rating and set a $7.00 price target on shares of Playtika in a research note on Friday, October 31st. Weiss Ratings raised shares of Playtika from a “sell (d+)” rating to a “hold (c-)” rating in a report on Monday, January 12th. Wall Street Zen lowered Playtika from a “buy” rating to a “hold” rating in a research note on Sunday, January 25th. Citigroup lowered their price target on Playtika from $7.00 to $5.50 and set a “buy” rating for the company in a research report on Friday, February 20th. Finally, Loop Capital set a $3.75 price objective on Playtika in a report on Monday, November 3rd. Three research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, Playtika presently has an average rating of “Hold” and an average target price of $5.56.

Institutional Trading of Playtika

Hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC raised its position in shares of Playtika by 65.7% in the second quarter. AQR Capital Management LLC now owns 6,331,123 shares of the company’s stock worth $29,630,000 after acquiring an additional 2,511,228 shares during the period. Jane Street Group LLC raised its holdings in Playtika by 536.3% in the 1st quarter. Jane Street Group LLC now owns 1,354,552 shares of the company’s stock worth $7,003,000 after purchasing an additional 1,141,685 shares during the period. Arrowstreet Capital Limited Partnership boosted its position in Playtika by 20.6% during the third quarter. Arrowstreet Capital Limited Partnership now owns 3,972,998 shares of the company’s stock worth $15,455,000 after purchasing an additional 679,564 shares in the last quarter. Qube Research & Technologies Ltd grew its holdings in Playtika by 217.8% in the third quarter. Qube Research & Technologies Ltd now owns 920,552 shares of the company’s stock valued at $3,581,000 after purchasing an additional 630,884 shares during the period. Finally, The Manufacturers Life Insurance Company increased its position in shares of Playtika by 19.1% in the second quarter. The Manufacturers Life Insurance Company now owns 3,708,556 shares of the company’s stock valued at $17,541,000 after buying an additional 595,494 shares in the last quarter. 11.94% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Playtika

Here are the key news stories impacting Playtika this week:

• Positive Sentiment: Strong DTC growth and cash generation: Q4 DTC revenue rose 43.2% YoY to $250.1M; FY2025 free cash flow hit a record $481.6M, and adjusted EBITDA was $201.4M — signals of healthy underlying cash profitability. Playtika Holding Corp. Reports Q4 and 2025 Financial Results
• Positive Sentiment: Management outlined FY2026 revenue target of $2.7–$2.8B and continues to emphasize SuperPlay and D2C as growth drivers — a clear strategic path that supports medium‑term revenue expansion. Playtika outlines $2.7B–$2.8B 2026 revenue target as SuperPlay and D2C drive strategic mix shift
• Positive Sentiment: Some analysts/coverage point to possible undervaluation based on adjusted metrics and growth in high‑margin DTC revenue, which could attract value buyers if sentiment stabilizes. Are Investors Undervaluing Playtika (PLTK) Right Now?
• Neutral Sentiment: Adjusted results vs. GAAP: company reports adjusted net income of $89M while GAAP shows a large net loss — investors must decide how much weight to put on non‑GAAP adjustments. Playtika Holdings Reports Q4 2025 Financial Results
• Neutral Sentiment: Transcripts and analyst notes provide detail for modeling: listen/read management commentary on SuperPlay earn‑out assumptions and FY2026 guidance ranges to judge midpoint risk. Playtika (PLTK) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Large GAAP net loss of $(309.3)M in Q4 driven by a non‑cash contingent consideration remeasurement tied to the SuperPlay earn‑out — materially increased contingent consideration on the balance sheet, which spooked some investors. Playtika Holding Corp. Reports Q4 and 2025 Financial Results
• Negative Sentiment: Dividend suspended to preserve capital and manage earn‑out exposure — removes a yield anchor for income investors and signals prioritization of flexibility over returning cash. Playtika Holdings Reports Q4 2025 Financial Results
• Negative Sentiment: Guidance tone: FY2026 revenue range ($2.7–2.8B) is roughly in line or slightly below some street estimates and adjusted EBITDA guidance (730–770M) leaves room for downside vs. expectations — may limit near‑term upside. Playtika outlines $2.7B–$2.8B 2026 revenue target as SuperPlay and D2C drive strategic mix shift

About Playtika

Playtika Ltd. (NASDAQ: PLTK) is a leading developer and publisher of free-to-play mobile and social games. Established in 2010 and headquartered in Herzliya, Israel, the company has built a reputation for creating engaging, social casino and casual gaming experiences. Playtika’s platform leverages data-driven analytics and in-game community features to drive player retention and monetization across multiple titles.

The company’s diverse portfolio includes flagship social casino games such as Slotomania, Bingo Blitz and Caesars Casino, as well as skill-based and casual offerings like World Series of Poker and House of Fun.