Playtika Holding (PLTK) AI Stock Analysis

• Market Cap: $1.37B
• Dividend Yield: 9.98%
• Average Volume (3M): 955.27K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.87
• 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): 0.11
• Shares Outstanding: 376,055,820
• 10 Day Avg. Volume: 962,935
• 30 Day Avg. Volume: 955,267
• PEG Ratio: -0.51
• Price to Book (P/B): -19.68
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 5.74
• Enterprise Value/Market Cap: 2.43
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 1.68
• Enterprise Value/Ebitda: 6.16
• 1Y Price Target: $7.20
• Price Target Upside: 98.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $4.00 ▲(10.19% Upside)

Playtika's overall stock score reflects a combination of strong technical momentum and positive earnings call sentiment, tempered by financial performance concerns. The company's strategic shift towards direct-to-consumer revenue is promising, but high leverage and declining profitability pose risks. The recent executive appointment adds a positive note to the company's future outlook.

Positive Factors

Direct-to-Consumer Revenue Growth

Strong growth in direct-to-consumer revenue indicates successful strategic shift, enhancing long-term revenue stability and market position.

Disney Solitaire's Growth

The rapid success of Disney Solitaire showcases Playtika's ability to innovate and capture market interest, supporting future growth potential.

New Chief Accounting Officer

The appointment of a seasoned financial leader is likely to enhance financial oversight and operational efficiency, supporting long-term stability.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting future investment and growth opportunities due to increased financial strain.

Declining Net Profit Margins

Declining net profit margins indicate pressure on profitability, which could affect long-term financial health and shareholder returns.

Increased Operating Expenses

Rising operating expenses can erode profit margins and reduce financial flexibility, challenging the company's ability to sustain growth.

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: modest TTM revenue growth and strong gross margin, but profitability is under pressure (lower net/EBITDA margins). Balance sheet is the key risk with negative equity and very high leverage, partly offset by still-solid operating cash flow despite declining free-cash-flow growth.

Income Statement

Playtika Holding's income statement reveals moderate performance. The TTM (Trailing-Twelve-Months) shows a slight revenue growth of 2.01%, but net profit margins have decreased to 3.23% from 6.36% in the previous year, indicating pressure on profitability. Gross profit margins remain strong at 72.31%, suggesting efficient cost management. However, declining EBIT and EBITDA margins indicate challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet presents significant concerns due to negative stockholders' equity, resulting in an unfavorable debt-to-equity ratio of -28.76 in the TTM. This high leverage poses a risk to financial stability. Return on equity is negative, reflecting losses attributable to shareholders. The equity ratio is also negative, indicating that liabilities exceed assets, which is a critical risk factor.

Cash Flow

Cash flow analysis shows a mixed picture. Operating cash flow remains strong, with a coverage ratio of 0.71, but free cash flow has declined by 10.60% in the TTM. The free cash flow to net income ratio is healthy at 0.91, indicating good cash conversion. However, the decline in free cash flow growth suggests potential challenges in sustaining cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.73B	2.55B	2.57B	2.62B	2.58B	2.37B
Gross Profit	1.98B	1.86B	1.85B	1.88B	1.85B	1.66B
EBITDA	537.70M	601.40M	704.30M	640.30M	703.10M	511.90M
Net Income	86.20M	162.20M	235.00M	275.30M	308.50M	92.10M
Balance Sheet
Total Assets	3.69B	3.64B	3.17B	2.70B	2.80B	1.78B
Cash, Cash Equivalents and Short-Term Investments	640.80M	565.80M	1.03B	768.70M	1.12B	520.10M
Total Debt	2.54B	2.50B	2.52B	2.53B	2.53B	2.40B
Total Liabilities	3.76B	3.77B	3.40B	3.27B	3.18B	3.02B
Stockholders Equity	-74.80M	-131.10M	-221.50M	-568.60M	-377.70M	-1.24B
Cash Flow
Free Cash Flow	384.70M	449.20M	483.00M	383.70M	452.10M	419.60M
Operating Cash Flow	434.90M	490.10M	515.60M	493.70M	551.70M	517.70M
Investing Cash Flow	-772.40M	-782.10M	-240.20M	-74.60M	-609.40M	-98.10M
Financing Cash Flow	-216.20M	-167.10M	-18.20M	-652.00M	559.70M	-181.30M

Playtika Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3.63 is below the 20-day moving average (MA) of 3.68, below the 50-day MA of 3.86, and below the 200-day MA of 4.02, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 44.20 is Neutral, neither overbought nor oversold. The STOCH value of 71.32 is Neutral, 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	79 Outperform	$439.04M	3.82	12.55%	―	1.21%	0.72%
GDEV	69 Neutral	$344.29M	8.29	―	18.48%	―	―
PLTK	66 Neutral	$1.37B	15.70	―	9.98%	7.49%	-60.32%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GMGI	57 Neutral	$99.02M	-17.07	-4.94%	―	53.06%	-196.63%
MYPS	46 Neutral	$72.98M	-2.02	-14.82%	―	-17.17%	-51.88%
SKLZ	45 Neutral	$58.17M	-0.78	-48.34%	―	-8.99%	-117.83%

Playtika Holding Corporate Events

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.