Playtika Q3 Adjusted EBITDA Rises 15.9% on Flat Revenue

Playtika Holding Corp. reported nearly flat year-over-year revenue for the third quarter of 2026, while adjusted EBITDA rose 15.9% as margins expanded and direct-to-consumer revenue remained well above the prior-year level. The mobile gaming company also recorded fewer paying users, with mixed performance across its largest games.

Revenue was $673.8 million for the quarter ended September 30, down 0.1% from a year earlier and 7.8% sequentially. Adjusted EBITDA increased to $252.1 million, up 22.3% from the second quarter, while adjusted EBITDA margin reached 37.4%, compared with 32.2% a year earlier and 28.2% in the preceding quarter.

GAAP net income was $40.4 million, representing a 6.0% margin. That compared with net income of $39.1 million and a 5.8% margin in the third quarter of 2025, and $48.0 million and a 6.6% margin in the second quarter of 2026.

Adjusted net income was $120.7 million, with a margin of 17.9%, up from $65.8 million and 9.8% a year earlier. The non-GAAP result excludes $4.1 million of impairment charges and $80.0 million of contingent consideration, partly offset by the tax impact of those adjustments.

Direct-to-consumer revenue grows as user counts decline

Revenue generated through Playtika’s direct-to-consumer platforms increased 31.4% year over year, although it declined 4.1% sequentially. The company’s proprietary platforms typically carry payment-processing and related expenses of 3% to 4%, compared with a 30% fee on third-party platforms. Third-party platform revenue fell 14.3% year over year.

Average daily paying users declined to 333,000, down 5.9% year over year and 9.3% from the second quarter. Average daily active users decreased 13.4% year over year, while average revenue per daily active user rose 15.7%. Average payer conversion increased to 4.7% from 4.3% a year earlier and 4.6% in the prior quarter.

Performance varied among Playtika’s major casual games. Bingo Blitz generated $133.0 million of revenue, down 18.2% year over year and 8.3% sequentially. Disney Solitaire revenue reached $111.2 million, up 88.4% from a year earlier but down 21.9% from the second quarter. June’s Journey revenue increased 12.1% year over year and 2.4% sequentially to $76.6 million.

Liquidity and risks

Playtika ended the quarter with $594.6 million in cash, cash equivalents and short-term investments. Available liquidity was approximately $1.1 billion as of September 30, and net leverage for the latest 12 months was about 2.3 times. The company said it expects liquidity to continue improving through free cash flow generation, but the presentation did not provide a formal revenue or earnings outlook.

The company identified refinancing as a material uncertainty, including its $550 million revolving credit facility due to expire in March 2027. Other risks include Playtika’s dependence on third-party distribution platforms, a limited number of games and a relatively small group of paying users, as well as its ability to retain players, release new content and compete in a rapidly changing market. The company also cited its significant debt, international operations, regulatory exposure, cybersecurity threats and geopolitical risks involving Israel and Ukraine.