Management repeatedly pointed to D2C as a key driver of performance and mix. Antokol said D2C represented 36.8% of Q4 revenue and that the company ended the year at roughly a $1 billion annual D2C revenue level. Abrahams reported Q4 D2C revenue of $250.1 million, up 19.5% sequentially and 43.2% year-over-year, attributing the growth to broad-based contributions across games.President and CFO Craig Abrahams said the quarter came in ahead of Playtika’s revenue and Adjusted EBITDA guidance, and noted this was ...

Playtika (NasdaqGS:PLTK) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Company ParticipantsCraig Abrahams - President and CFOMatthew Cost - Executive Director of Equity ResearchRobert Antokol - Co-founder and CEOTae Lee - SVP of Corporate Finance and Investor RelationsConference Call ParticipantsAaron Lee - Senior Research AnalystChris Schoell - Communications and Media Equity Research AnalystClark Lampen - Managing Director and Digital Gaming AnalystDoug Creutz - Senior Research AnalystEric Handler - ...

Playtika (NasdaqGS:PLTK) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Speaker8Good day, and thank you for standing by. Welcome to the Playtika Q4 2025 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, pl ...

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]

Core Viewpoint - AppLovin reported its best quarter in history with record revenue and high EBITDA margins, yet its stock price fell significantly, indicating a disconnect between performance and market reaction [1]. Financial Performance - AppLovin achieved $1.657 billion in Q4 revenue, surpassing the $1.618 billion estimate, and reported earnings per share (EPS) of $3.24 against an expected $2.97 [1]. - The company recorded an 84% adjusted EBITDA margin, showcasing exceptional profitability [1]. - Over the past twelve months, AppLovin generated $4.0 billion in free cash flow while growing revenue by 40% [1]. Market Reaction - Despite strong financial results, AppLovin's shares declined by 29.25%, with a notable drop of 28.90% over the past month to $404.39 [1]. - The stock's decline has sparked discussions among retail investors on platforms like Reddit, with mixed sentiments regarding whether the selloff represents a buying opportunity or a fundamental issue [1]. Investor Sentiment - Social sentiment on Reddit shifted from a bearish score of 30 to a bullish score of approximately 70, indicating that retail traders are increasingly viewing the post-earnings decline as a buying opportunity [1]. - Supporters argue that AppLovin's growth metrics and high margins justify a higher valuation, while skeptics express concerns about potential competition and the impact of AI on the mobile gaming ecosystem [1]. Analyst Ratings - Analysts maintain a Strong Buy rating for AppLovin, with a 12-month price target of $705.17, suggesting a potential upside of approximately 75% from current levels [1]. - No analysts have rated the stock as a Sell, indicating a consensus of optimism despite the recent stock decline [1].

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $1.66 billion, representing a 66% year-over-year increase, driven by advancements in technology and seasonal strength [13] - Adjusted EBITDA for Q4 was $1.4 billion, up 82% year-over-year, with an 84% margin, reflecting a 700 basis point expansion from the previous year [13][15] - Free Cash Flow for Q4 was $1.31 billion, an 88% increase year-over-year, contributing to a cash balance of $2.5 billion [15] - For the full year 2025, revenue reached $5.48 billion, growing 70% year-over-year, with Adjusted EBITDA of $4.51 billion, up 87% year-over-year [15][16] Business Line Data and Key Metrics Changes - The e-commerce initiative has shown strong growth, with existing customers increasing their spend significantly as models improve [21] - The self-service platform for e-commerce was launched in Q4, leading to new customer acquisition and increased spending from existing customers [21][22] Market Data and Key Metrics Changes - The MAX auction is critical for the ecosystem, with increased competition leading to higher bid density and overall growth in the market [8][9] - The company is not seeing evidence of a declining mobile gamer demographic, indicating a stable market for casual gaming [10][11] Company Strategy and Development Direction - The company focuses on leveraging AI to enhance its platform and improve monetization for publishers, believing that increased content creation will lead to more opportunities [10][11] - The strategy includes helping smaller businesses scale through the platform, similar to its approach in the gaming sector [51][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong operating performance despite market volatility and competition concerns, emphasizing the disconnect between market sentiment and actual business performance [6][12] - The outlook for Q1 2026 anticipates revenue between $1.745 billion and $1.775 billion, indicating 5%-7% sequential growth [17] Other Important Information - The company repurchased approximately 800,000 shares for $482 million in Q4, with a total of 6.4 million shares repurchased for $2.58 billion in 2025 [16] - The company maintains a remaining share repurchase authorization of approximately $3.28 billion [16] Q&A Session Summary Question: E-commerce opportunity and self-service launch - Management noted that the e-commerce business is performing well, with significant increases in spend from existing customers and new customer acquisition through the self-service platform [20][21] Question: Automation of ad creatives - The company is still early in the automation process for ad creatives, with plans to roll out generative AI tools to help customers create video ads more efficiently [25][28] Question: Black box nature of the model - Management acknowledged the challenges in providing clear metrics for investors but emphasized the potential for growth as the platform matures and more advertisers come on board [34][36] Question: Impact of AI on the business - Management believes that AI will lower content creation costs, leading to an explosion of content, which will enhance the company's advertising solutions [44][46] Question: Changes in customer types due to self-service - The self-service launch has allowed smaller businesses to enter the platform, leading to direct correlations between ad spend and revenue growth for these companies [49][50] Question: Marketing investment and growth expectations - Management indicated that they are cautious about ramping up marketing until the necessary tools are in place, but they are optimistic about the potential for growth [67][70]

Economic Data Insights - The January employment report on Wednesday at 8:30am will analyze nonfarm payrolls, unemployment rate, and average hourly earnings to assess labor market conditions and their impact on Fed policy [1][3] - The mid-week timing of the employment report creates unique dynamics, compressing the time for market adjustments before Friday's CPI release [3] Retail Sales and Consumer Spending - December retail sales data on Tuesday at 8:30am will provide insights into holiday shopping performance and consumer spending trends as 2026 begins [2][4] - The report will help determine if strong labor markets are translating into sustained consumer spending or if households are retrenching due to inflation pressures [4] Technology Sector Analysis - Earnings from Cisco (CSCO) on Wednesday and Arista Networks (ANET) on Thursday will provide insights into enterprise networking demand and data center investment amid questions about AI spending sustainability [5] - Cisco's results will focus on corporate IT budgets and cybersecurity product adoption, while Arista's earnings will assess trends in hyperscaler capital expenditures [5] Digital Platforms and Financial Technology - Earnings from Robinhood (HOOD) on Tuesday will provide insights into retail trading activity and cryptocurrency transaction volumes [6] - Results from Shopify (SHOP) and AppLovin (APP) will test the health of e-commerce platforms and mobile gaming advertising, respectively [7] Inflation and Market Reactions - The January CPI report on Friday at 8:30am will be critical for assessing inflation trends, particularly in energy prices, housing costs, and services inflation [8] - The timing of the CPI report following the employment data could lead to significant market volatility, especially in rate-sensitive sectors [8]

Group 1 - In January 2026, the mobile game "Gossip Harbor" by Lemon Microfun topped the overseas revenue chart, surpassing "Whiteout Survival" by DianDian Interactive, which had held the top position for the entire year of 2025 [1] - "Gossip Harbor" combines synthesis gameplay with a storyline about a single mother restarting her life, featuring a winter theme event that contributed to a 4% increase in overseas revenue and a 136% surge in downloads [1] - DianDian Interactive's "Whiteout Survival" and the 4X strategy game "Kingshot" ranked second and third respectively in the overseas revenue chart for January [1] Group 2 - DianDian Interactive's "Tasty Travels: Merge Game" entered the top ten revenue rankings for the first time, with a 33% month-over-month revenue increase due to the "Coral Isles" theme event and "Echoes of Vitality" card collection activity [4] - "Mobile Legends: Bang Bang" by Mutong Technology saw a 122% increase in overseas revenue, ranking 8th in the revenue chart, driven by the M7 World Championship and version activities [4] - The game has accumulated nearly $2.4 billion in global revenue since its launch nearly ten years ago, highlighting its status as a leading product in the global mobile esports market [4]

Core Viewpoint - Playtika Holding Corp. is set to release its financial results for Q4 2025 on February 26, 2026, before U.S. markets open, followed by a conference call to discuss the results [1]. Company Overview - Playtika 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 aims to entertain the world through various gaming experiences [3]. - Playtika has a global presence with employees across multiple offices [3]. Conference Call Details - The conference call to discuss the financial results will take place at 5:30 AM Pacific Time / 8:30 AM Eastern Time on the same day as the earnings release [1]. - A live webcast of the conference call and related earnings materials will be accessible on Playtika's Investor Relations website [2].