Playtika Holding (PLTK) AI Stock Analysis

Compare

719 Followers

Top Page

Playtika Holding

(NASDAQ:PLTK)

Rating:59Neutral

Price Target:

$4.00

▲(8.70% Upside)

Playtika's overall stock score reflects a mix of moderate financial performance and valuation attractiveness, offset by technical weaknesses and mixed earnings call outcomes. The company's strong cash flow and attractive dividend yield are positive, but high leverage and declining profitability pose risks. Technical indicators suggest bearish momentum, while the earnings call presents both opportunities and challenges.

Positive Factors

Casual Game Performance

Casual game revenue increased significantly due to the strong performance of Disney Solitaire.

Direct-to-Consumer Growth

The combination of Playtika's own DTC success and regulatory tailwinds in the industry has given management the confidence to raise its DTC target to 40% share, bolstering margins.

New Game Releases

The company's first new slot game in over a decade, Jackpot Tour, is expected to release and potentially help recapture social casino revenue.

Negative Factors

Core Franchise Challenges

Analyst downgrades the stock to Neutral due to headwinds in mobile gaming and concerning trends within core franchises.

Revenue Expectations

Playtika's Q2 results missed expectations on revenue and EBITDA due to continued social casino weakness.

Slotomania Performance

Social casino revenue was down -14% y/y and -4% q/q, with Slotomania declining -17% y/y and -6% q/q as management indicated that title performance was disappointing, and that softness would likely persist for at least the next few quarters.

Playtika Holding (PLTK) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.38B

Dividend Yield10.75%

Average Volume (3M)1.75M

Price to Earnings (P/E)16.1

Beta (1Y)0.96

Revenue Growth4.98%

EPS Growth-60.29%

CountryUS

Employees3,500

SectorCommunication Services

Sector Strength90

IndustryElectronic Gaming & Multimedia

Share Statistics

EPS (TTM)0.09

Shares Outstanding375,796,970

10 Day Avg. Volume2,068,661

30 Day Avg. Volume1,746,241

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap2.68

Enterprise Value/Revenue1.39

Enterprise Value/Gross Profit1.92

Enterprise Value/Ebitda7.09

Forecast

1Y Price Target

$7.92

Price Target Upside115.22% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering6

Playtika Holding Business Overview & Revenue Model

Company DescriptionPlaytika 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 MoneyPlaytika generates revenue primarily through in-app purchases made by users within its free-to-play mobile games. Players can buy virtual currency and other digital goods that enhance gameplay, such as power-ups, extra lives, and aesthetic customizations. Additionally, the company earns money through advertising by integrating ads into its games, allowing third-party advertisers to reach its extensive player network. Playtika's revenue model is bolstered by its sophisticated data analytics capabilities, which optimize user acquisition, retention, and monetization strategies. Strategic partnerships and acquisitions also play a role in expanding its portfolio and audience reach, further contributing to its financial performance.

Playtika Holding Key Performance Indicators (KPIs)

Any

Average Daily Paying Users

Average Daily Paying Users
Measures the number of users making purchases daily, indicating the company’s ability to convert players into paying customers and sustain revenue streams.

Chart InsightsPlaytika's average daily paying users have surged to a record high in early 2025, reflecting strategic shifts towards casual games and successful new launches like Disney Solitaire. Despite challenges in the Slotomania franchise, the company's focus on direct-to-consumer growth and strong performances from titles like Bingo Blitz and Dice Dreams are driving user engagement. This aligns with their record-breaking revenue milestone, indicating a robust recovery and potential for sustained growth in user base and revenue streams.

Data provided by:

Main Street Data

Playtika Holding Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 05, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant achievements like the Disney Solitaire launch and Bingo Blitz's strong performance. However, these were balanced by challenges, notably the decline in Slotomania's revenue and a decrease in adjusted EBITDA. Despite the positive developments, the revised revenue guidance and other financial pressures indicate a mix of positive and negative trends.

Q2-2025 Updates

Positive Updates

Disney Solitaire Success

Disney Solitaire achieved a $100 million annual run rate revenue threshold, showcasing strong collaboration with Disney & Pixar Games.

Bingo Blitz Performance

Bingo Blitz recorded $160.2 million in revenue, a 2.9% year-over-year increase, and achieved record revenues from D2C platforms.

Increased D2C Revenue Target

Playtika increased its long-term D2C revenue target from 30% to 40% to sustain EBITDA and free cash flow.

Year-over-Year Revenue Growth

Overall revenue saw an 11% year-over-year increase, driven by the successful execution of the M&A strategy.

Negative Updates

Slotomania Revenue Decline

Slotomania revenue decreased by 22.7% sequentially and 35.4% year-over-year due to challenges in the game economy.

Adjusted EBITDA Decrease

Adjusted EBITDA decreased 12.6% year-over-year, primarily due to increased sales and marketing expenses related to SuperPlay games.

GAAP Net Income Drop

GAAP net income for the quarter was $33.2 million, a 61.7% year-over-year decrease.

Revised Revenue Guidance

The revenue guidance for the year was revised down from $2.8 billion - $2.85 billion to $2.7 billion - $2.75 billion.

Company Guidance

In the Playtika Q2 2025 Earnings Conference Call, the company reported a revenue of $696 million and an adjusted EBITDA of $167 million for the second quarter. Despite a sequential revenue decline of 1.4%, there was an 11% year-over-year increase. The company highlighted the success of their newly launched game, Disney Solitaire, which reached a $100 million annual run rate revenue. Playtika updated its long-term Direct-to-Consumer (D2C) revenue target to 40%, up from 30%, to sustain EBITDA and free cash flow amidst changing market dynamics. The call also addressed the ongoing challenges with Slotomania, which saw a 22.7% sequential and a 35.4% year-over-year revenue decline, as the company works on stabilizing its game economy. Additionally, Bingo Blitz showed strong performance with $160.2 million in revenue, while June's Journey reported $69.1 million in revenue. Playtika revised its annual revenue guidance to $2.7 billion to $2.75 billion but maintained its adjusted EBITDA guidance of $715 million to $740 million.

Playtika Holding Financial Statement Overview

Summary

Playtika Holding shows moderate revenue growth and strong gross profit margins, but faces challenges with declining net profitability and high financial leverage. The balance sheet reflects significant debt levels, posing potential financial risks. However, the company shows strength in cash flow generation, which could support future growth and debt servicing.

Income Statement

Positive

Playtika Holding shows a steady revenue growth rate of 2.65% in the TTM period, indicating moderate growth potential. However, the net profit margin has decreased to 3.23% from 6.36% in the previous year, suggesting declining profitability. The gross profit margin remains strong at 72.31%, reflecting efficient cost management. EBIT and EBITDA margins have also decreased, indicating potential challenges in operational efficiency.

Balance Sheet

Negative

The company's balance sheet reveals significant financial leverage with a negative debt-to-equity ratio of -28.76, highlighting high debt levels relative to equity. The negative return on equity indicates challenges in generating returns for shareholders. The equity ratio is also negative, reflecting a capital structure heavily reliant on debt, which poses financial risk.

Cash Flow

Positive

Cash flow analysis shows a positive free cash flow growth rate of 3.64%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.72, suggesting a reasonable conversion of income into cash. The free cash flow to net income ratio of 0.89 indicates that the company is generating substantial cash relative to its net income, which is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.67B	2.55B	2.57B	2.62B	2.58B	2.37B
Gross Profit	1.93B	1.86B	1.85B	1.88B	1.85B	1.66B
EBITDA	523.20M	603.00M	703.60M	640.30M	703.10M	511.90M
Net Income	86.40M	162.20M	235.00M	275.30M	308.50M	92.10M
Balance Sheet
Total Assets	3.64B	3.64B	3.17B	2.70B	2.80B	1.78B
Cash, Cash Equivalents and Short-Term Investments	593.60M	565.80M	1.03B	768.70M	1.12B	520.10M
Total Debt	2.53B	2.50B	2.52B	2.53B	2.53B	2.40B
Total Liabilities	3.72B	3.77B	3.40B	3.27B	3.18B	3.02B
Stockholders Equity	-87.80M	-131.10M	-221.50M	-568.60M	-377.70M	-1.24B
Cash Flow
Free Cash Flow	430.30M	449.20M	483.00M	383.70M	452.10M	419.60M
Operating Cash Flow	474.90M	490.10M	515.60M	493.70M	551.70M	517.70M
Investing Cash Flow	-468.20M	-782.10M	-240.20M	-74.60M	-609.40M	-98.10M
Financing Cash Flow	-215.50M	-167.10M	-18.20M	-652.00M	559.70M	-181.30M

Playtika Holding Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3.68

Price Trends

50DMA

4.37

Negative

100DMA

4.61

Negative

200DMA

5.58

Negative

Market Momentum

MACD

-0.22

Negative

RSI

37.94

Neutral

STOCH

58.33

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 3.68 is below the 20-day moving average (MA) of 3.89, below the 50-day MA of 4.37, and below the 200-day MA of 5.58, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 37.94 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLTK.

Playtika Holding Risk Analysis

Playtika Holding disclosed 73 risk factors in its most recent earnings report. Playtika Holding reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Playtika Holding Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DDI	75 Outperform	$470.76M	4.43	12.05%	―	0.51%	-8.46%
GDEV	64 Neutral	$246.03M	6.33		24.40%	-5.57%	―
Sector *	60 Neutral	$43.56B	4.52	-13.01%	4.07%	1.87%	-43.08%
PLTK	59 Neutral	$1.38B	16.14	-220.61%	10.75%	4.98%	-60.29%
SKLZ	58 Neutral	$157.69M	―	-40.15%	―	-18.41%	-61.67%
GMGI	56 Neutral	$178.54M	494.74	-8.87%	―	97.84%	-268.53%
MYPS	52 Neutral	$129.11M	―	-12.32%	―	-13.95%	-75.02%

* Communication Services Sector Average

Performance Comparison

PLTK

Playtika Holding

3.72

-3.38

-47.61%

GMGI

Golden Matrix Group

1.29

-1.34

-50.95%

SKLZ

Skillz

8.77

2.85

48.14%

DDI

Doubledown Interactive Co

9.48

-5.19

-35.38%

GDEV

Nexters

14.24

-6.04

-29.78%

MYPS

PLAYSTUDIOS

1.00

-0.50

-33.33%

Playtika Holding Corporate Events

Executive/Board ChangesShareholder Meetings

Playtika Holding Elects Board at Annual Meeting

Neutral

Jun 16, 2025

On June 12, 2025, Playtika Holding Corp. held its annual stockholders’ meeting, where all nominees for the board of directors were successfully elected. Additionally, the stockholders ratified the selection of Kost Forer Gabbay & Kasierer as the independent registered public accounting firm for 2025 and approved the executive compensation on a non-binding basis. These decisions reflect continued shareholder support for the company’s strategic direction and governance.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025