Playtika Holding (PLTK) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: 9.98%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 7.49%
• EPS Growth: -60.32%
• Country: US
• Employees: 3,500
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.82
• Shares Outstanding: 379,334,320
• 10 Day Avg. Volume: 2,626,794
• 30 Day Avg. Volume: 1,950,802
• PEG Ratio: 0.03
• Price to Book (P/B): -3.61
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 2.80
• Enterprise Value/Market Cap: 2.91
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 1.53
• Enterprise Value/Ebitda: 9.34
• 1Y Price Target: $5.54
• Price Target Upside: 102.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.5
• Revenue Forecast (FY): $2.78B

• Rating: 52 Neutral
• Price Target: $3.00 ▲(9.49% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is held back primarily by financial risk (negative equity with high debt) and weak technicals (price below all key moving averages with negative MACD). These are partially offset by strong free-cash-flow generation and a guidance outlook that points to stable revenue and sizable Adjusted EBITDA, supported by ongoing D2C and SuperPlay momentum, though GAAP volatility and DAU declines remain key risks.

Positive Factors

Strong free cash flow

Sustained, sizable FCF (~$531M TTM) shows the live-ops monetization converts revenue into cash even when GAAP profits wobble. That durable cash engine funds reinvestment, earn-out obligations, debt paydown or buybacks and provides resilience through cyclicality.

High gross margins

Consistently ~70%+ gross margins reflect digital product economics and low incremental costs. These structural margins support durable operating leverage, allowing reinvestment in live content and UA while preserving core profitability even if revenue growth slows.

D2C scaling and SuperPlay growth

Rapid D2C growth and SuperPlay revenue expansion diversify distribution and reduce platform fees, improving long-term economics. A larger D2C mix plus successful SuperPlay assets create multiple structural growth levers and greater control over user monetization and data.

Negative Factors

Weak balance sheet leverage

Negative equity and heavy debt materially constrain financial flexibility and raise refinancing and interest-rate sensitivity. Elevated leverage limits runway for large M&A or aggressive UA, forcing prioritization of debt servicing and conservative capital allocation over growth.

Declining user engagement (DAU)

F2P revenue depends on active users; sustained DAU declines erode the revenue base and raise the cost of replacing users via UA. Even with better ARPDAU, persistent engagement declines jeopardize long-term top-line sustainability and conversion of product investments into growth.

Contingent earn-out and GAAP volatility

The multi-year earn-out created large contingent liabilities and non-cash remeasurements that drove GAAP losses and forced a dividend suspension. This structural uncertainty pressures capital allocation, requires cash preservation for future payments, and complicates reported earnings clarity.

Playtika Holding Business Overview & Revenue Model

Company Description

Playtika Holding Corp. develops mobile games in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company owns a portfolio of casual and casino-themed games. It distributes its games to the end customer through various web and mobile platforms, such as Apple, Facebook, Google, and other web and mobile platforms and its own proprietary platforms. The company was founded in 2010 and is headquartered in Herzliya Pituarch, Israel. Playtika Holding Corp. is a subsidiary of Playtika Holding Uk Ii Limited.

How the Company Makes Money

Playtika primarily generates revenue through in-game purchases and microtransactions within its games, allowing players to buy virtual goods and enhancements to improve their gaming experience. The free-to-play model attracts a large user base, with monetization strategies that include selling virtual currency, premium items, and seasonal content. Additionally, Playtika benefits from advertising revenue through in-game ads and partnerships with advertisers looking to reach its extensive player audience. The company also engages in strategic partnerships and collaborations with other gaming and technology companies, which can provide additional revenue streams and enhance its market presence.

Playtika Holding Financial Statement Overview

Summary

Mixed fundamentals: strong and improving free cash flow (TTM FCF ~$531M) and resilient ~70%+ gross margins, but revenue has been largely flat and profitability has deteriorated to a TTM net loss. The balance sheet is a major risk with persistently negative equity (about -$411M TTM) and high debt (~$2.4–$2.5B), reducing financial flexibility despite solid cash generation.

Income Statement

Revenue has been essentially flat over the last several years (2024 down slightly; TTM (Trailing-Twelve-Months) up modestly), while profitability has deteriorated sharply. Gross margins remain strong and stable (~70%+), but operating profitability has compressed materially (EBITDA margin down from ~27% in 2021–2023 to ~20% in TTM), and TTM net income turned negative after several profitable years—signaling either cost pressure and/or heavier non-operating charges. Overall: strong product-level economics, but weakening earnings quality and a negative TTM bottom line.

Balance Sheet

The balance sheet is the clear weak point: stockholders’ equity is negative across all periods shown (and worsened to about -$411M in TTM), which materially reduces financial flexibility. Total debt is consistently high at roughly $2.4–$2.5B, and with negative equity the leverage profile is elevated and structurally riskier. While total assets have grown, the combination of high debt and negative equity increases refinancing/interest-rate sensitivity and leaves less buffer if operating performance softens.

Cash Flow

Cash generation is a key strength. Operating cash flow is consistently strong (~$490M–$568M), and free cash flow is substantial, improving in TTM to ~$531M with strong growth versus the prior period. Even with TTM net losses, free cash flow remains positive, indicating the business continues to convert revenue into cash. The main watch item is that cash flow coverage relative to debt service needs could tighten if margins keep compressing, given the heavy leverage.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.76B	2.55B	2.57B	2.62B	2.58B
Gross Profit	2.00B	1.86B	1.85B	1.88B	1.85B
EBITDA	133.10M	601.40M	704.30M	640.30M	703.10M
Net Income	-206.40M	162.20M	235.00M	275.30M	308.50M
Balance Sheet
Total Assets	3.72B	3.64B	3.17B	2.70B	2.80B
Cash, Cash Equivalents and Short-Term Investments	820.20M	565.80M	1.03B	768.70M	1.12B
Total Debt	2.65B	2.50B	2.52B	2.53B	2.53B
Total Liabilities	4.13B	3.77B	3.40B	3.27B	3.18B
Stockholders Equity	-411.40M	-131.10M	-221.50M	-568.60M	-377.70M
Cash Flow
Free Cash Flow	531.40M	449.20M	483.00M	383.70M	452.10M
Operating Cash Flow	567.70M	490.10M	515.60M	493.70M	551.70M
Investing Cash Flow	-221.70M	-782.10M	-240.20M	-74.60M	-609.40M
Financing Cash Flow	-230.00M	-167.10M	-18.20M	-652.00M	559.70M

Playtika Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLTK, the sentiment is Negative. The current price of 2.74 is below the 20-day moving average (MA) of 3.29, below the 50-day MA of 3.56, and below the 200-day MA of 3.85, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 30.76 is Neutral, neither overbought nor oversold. The STOCH value of 10.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLTK.

Playtika Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DDI	77 Outperform	$452.92M	4.17	11.19%	―	1.21%	0.72%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GDEV	59 Neutral	$274.67M	5.18	―	18.48%	―	―
GMGI	57 Neutral	$93.29M	69.76	-4.94%	―	53.06%	-196.63%
PLTK	52 Neutral	$1.05B	-7.20	―	9.98%	7.49%	-60.32%
MYPS	46 Neutral	$64.12M	-3.32	-14.82%	―	-17.17%	-51.88%
SKLZ	45 Neutral	$52.12M	-1.76	-48.34%	―	-8.99%	-117.83%

Playtika Holding Corporate Events

Playtika Holding Announces New Revolving Credit Facility

On February 16, 2026, Playtika Holding Corp. executed a fifth amendment to its existing credit agreement, arranging to refinance its current $550 million revolving credit facility with a new $550 million revolving credit facility scheduled to become effective on March 11, 2026, subject to certain conditions. The new facility, which extends the maturity to March 6, 2027, largely preserves the prior facility’s key terms, including interest based on Term SOFR or a base rate plus a margin, and introduces leverage-based step-downs on both the interest margin and a quarterly commitment fee on unused commitments, providing Playtika with continued liquidity under substantially similar conditions while modestly extending its debt maturity profile.

The most recent analyst rating on (PLTK) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Playtika Holding stock, see the PLTK Stock Forecast page.

Playtika Announces Major Workforce Reduction and Restructuring

On January 14, 2026, Playtika announced a workforce reduction plan that will cut approximately 15% of its employees in the first quarter of 2026, incurring an estimated $12 million to $15 million in severance, benefits, and related costs, with actions expected to be substantially completed during that quarter subject to local laws. The restructuring is aimed at reshaping the company’s cost structure and reallocating resources toward high-potential growth titles, protecting leading casual franchises, maximizing value from social casino games, expanding its direct-to-consumer platform, and accelerating adoption of AI and automation, with Playtika indicating that while the plan should create operating expense efficiencies, a substantial portion of the savings will be reinvested in growth initiatives, leaving the ultimate impact on profitability dependent on the timing and scale of these investments.

The most recent analyst rating on (PLTK) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Playtika Holding stock, see the PLTK Stock Forecast page.

Playtika Extends Credit Facility Maturity to 2027

On April 23, 2025, Playtika Holding Corp. entered into a Fourth Amendment to its Credit Agreement, extending the maturity of its $550 million revolving credit facility from March 11, 2026, to September 11, 2027, subject to certain conditions. The amendment’s effectiveness is contingent upon registration with China’s National Development and Reform Commission, which was withdrawn by the controlling shareholder, potentially affecting the credit facility’s extension.

The most recent analyst rating on (PLTK) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Playtika Holding stock, see the PLTK Stock Forecast page.