Skip to content
    PLTK
    Earnings call· Jun 2026(Q2 FY26)

    Playtika Holding Q2 FY26 earnings call PLTK

    Aug 6, 2026 Source

    Executive summary

    Playtika Q2 FY26 — Margin Recovery and D2C Growth Amidst Strategic Marketing Shift

    Playtika executed its strategy of front-loading user acquisition spend in the first half, leading to significant adjusted EBITDA margin recovery and strong D2C channel growth in Q2. While this strategic shift and softening consumer sentiment are expected to result in sequential revenue declines for Super Play titles in the second half, the company emphasizes long-term player retention and lifetime economics as key performance indicators for its live game portfolio.

    Highlights

    5

    • Adjusted EBITDA margin significantly improved to 28.2% in Q2 from 16.8% in Q1.

    • D2C revenue reached 39.3% of total revenue, up 63.1% year-over-year, protecting margins.

    • Disney Solitaire revenue grew 15.5% sequentially and 288.6% year-over-year despite reduced marketing spend, demonstrating player retention.

    • Slotomania achieved stable performance for three consecutive quarters after a period of decline.

    • Cost of revenue declined 1.5% year-over-year, driven by lower platform fees due to D2C growth.

    Concerns

    5

    • Total revenue declined 1.8% sequentially to $731.1 million.

    • Consumer sentiment softened mid-quarter, leading to a greater-than-typical seasonal slowdown in discretionary spending.

    • Bingo Blitz revenue declined 5.6% sequentially and 9.5% year-over-year, primarily due to a shift away from high-volume, short-lived user acquisition channels.

    • Full-year revenue and adjusted EBITDA are expected to land towards the lower end of the previously provided ranges.

    • Super Play marketing investment reduction by roughly 70% in H2 vs H1 is expected to cause sequential revenue decline for these titles in H2.

    Guidance & targets

    4
    CategoryTargetConfidence
    Full-year Revenue
    towards the lower end of the previously provided ranges
    high materiality
    Medium
    Full-year Adjusted EBITDA
    towards the lower end of the previously provided ranges
    high materiality
    Medium
    Super Play Marketing Investment
    step down significantly
    medium materiality
    High
    Disney Solitaire Revenue
    likely to decline on a sequential basis
    medium materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Bingo Blitz
    Decline concentrated in players acquired within the last 12 months due to shift away from short-lived incentive-driven users. Long-tenured players (over 1 year) generate most revenue and remain stable. DTC continues to support economics.
    #1 Bingo title worldwide
    		$145.1 million-9.5%-5.6%—
    Disney Solitaire
    Grew revenue on lower acquisition spend, indicating strong player retention. Young title (15 months old) still building its base. Expected sequential decline in H2 due to earn-out driven marketing spend reduction, but still expected to grow year-over-year.
    		$142.4 million288.6%15.5%—
    June's Journey
    Strong trends in monetization driven by event, segmentation, and campaign tool improvements. Launched successful IP collaboration with Agatha Christie. Remains a strong and durable casual title.
    strong trends in monetizationelevated engagement among long-tenured players
    		$74.7 million8.1%-1.7%—
    Slotomania
    Oldest game, stable performance for three quarters, proving the model. New marketing campaigns being finalized.
    stable performance for 3 quarters
    		————

    Operational metrics

    14
    Total revenue
    $731.1 milliondown 1.8% sequentially, up 5.0% year-over-year
    Q2 FY26

    Impacted by strategic marketing spend reduction and softening consumer sentiment.

    Adjusted EBITDA
    $206.1 million
    Q2 FY26

    Significant improvement from Q1, reflecting planned reduction in marketing spend.

    Adjusted EBITDA Margin
    16.8%
    Q1 FY26

    Baseline for Q2 improvement.

    Net income
    $48 million
    Q2 FY26
    Adjusted net income
    $53.6 million
    Q2 FY26
    DTC revenue
    $286.9 milliondown 1.7% sequentially, up 63.1% year-over-year
    Q2 FY26

    Key part of future strategy, protecting margins.

    Cost of revenue
    $192.9 milliondown 1.5% year-over-year
    Q2 FY26

    Primarily driven by lower platform fees due to D2C growth.

    R&D expenses
    $96.4 milliondown 15.8% year-over-year
    Q2 FY26

    Reflects full quarter benefit of cost actions (lower headcount, reduced outsourcing) without Q1 severance costs.

    Sales and marketing expenses
    $252.6 milliondown 2% year-over-year, down 30% sequentially
    Q2 FY26

    Reflects significant step-down in marketing spend after front-loaded Q1. Expected to step down further in H2.

    G&A expenses
    $54.1 millionup 202.2% year-over-year
    Q2 FY26

    Reported YoY increase not meaningful due to prior year one-time benefit from revaluation of contingent consideration. Adjusted for this, G&A was up 2.3% YoY.

    Average daily paying users
    367,000down 5.2% sequentially, down 2.9% year-over-year
    Q2 FY26
    Average daily active users
    8 milliondown 7.0% sequentially, down 9.1% year-over-year
    Q2 FY26
    Cash, cash equivalents and short-term investments
    $438.5 million
    as of June 30, 2026
    Super Play marketing investment reduction
    roughly 70%versus the first half
    H2 FY26

    This reduction is weighted towards Q3.

    Industry KPIs

    4
    MetricValueDetails
    ARPU arm—%
    Paid members subscribers367,000users
    Member quality and retention—
    Content spend title performance—

    Product announcements

    1
    ProductTypeDetails
    Agatha Christie collaborationupdate

    Deals & partnerships

    1
    Super PlayEarn-out structure incentivizes concentrating investment early in the year for year-over-year revenue growth and margin expansion.full year basis

    The earn-out framework for Super Play is measured on a full-year basis with two conditions: year-over-year revenue growth and margin expansion. This led to front-loading of user acquisition spend in H1, with a significant step-down in H2.

    Risks & headwinds

    3
    Softening consumer sentiment and inflation impact on discretionary spending.Mid-Q2 and expected to carry into H2 FY26

    step down that was greater than what's typical

    Mitigation: Taking a "prudent view" for the second half, guiding towards the lower end of full-year ranges.

    Sequential revenue decline for Super Play titles in H2.H2 FY26 (especially Q3)

    Super Play marketing investment reduced by roughly 70% in the second half versus the first half

    Mitigation: Deliberate choice tied to earn-out structure, focusing on full-year growth and lifetime economics rather than sequential movement. Product roadmap and content shipping continue.

    Harder year-over-year comparisons for Bingo Blitz.H2 FY26

    Decline in revenue looks steeper than last quarter (Bingo Blitz revenue down 9.5% YoY).

    Mitigation: Strategic shift away from short-lived user acquisition channels towards long-term players; long-tenured players remain stable and generate most revenue.

    What to watch in Q3 FY26

    4

    Super Play Marketing Spend Reduction

    Q3 FY26
    Currentroughly 70% reduction in H2 vs H1
    TargetObserve the actual step-down in marketing expenditure, especially in Q3.

    Why it matters

    This is a deliberate strategy impacting revenue cadence and margin expansion, crucial for understanding the company's profitability and growth balance.

    The titles that we will see the biggest change in marketing spend in the first half versus second half, we expect those titles to still grow year-over-year.

    Q&A highlights

    4

    Why is EBITDA also expected at the lower end if marketing spend is decreasing, suggesting margin improvement?

    Tae Lee explained that the reaffirmation of the range but pointing to the lower end is to align expectations for the second half, which includes a significant step-down in marketing (especially in Q3) causing sequential revenue decline, harder year-over-year comparisons for Bingo Blitz due to past marketing mix changes, and the impact of softening consumer sentiment. He also mentioned reserving flexibility for incremental spend towards year-end.

    “Our first half came in above where the street had it, and the full year range hasn't moved since we updated the range in the past call. And we want to close that gap, and we prefer to do it now versus later in the year after the third quarter.”

    asked by Aaron Lee · answered by Tae Lee

    1 min read5 chapters

    Detailed Narrative

    01

    Strategic Marketing Investment & Margin Recovery

    Playtika intentionally front-loaded user acquisition spend into the first half of FY26, particularly Q1, driven by the Super Play earn-out structure. This strategy resulted in a significant step-down in marketing expenditure in Q2, leading to a substantial recovery in adjusted EBITDA margin to 28.2% from 16.8% in Q1, demonstrating the operating model's design to invest for growth and then realize profitability.

    02

    D2C Channel Expansion

    The Direct-to-Consumer (D2C) channel continued its strong growth trajectory, reaching 39.3% of total revenue in Q2, up 63.1% year-over-year. This channel is highlighted as a key part of the company's future strategy, effectively protecting margins by reducing reliance on platform fees and contributing to overall economic stability.

    03

    Disney Solitaire's Durability & Modeling

    Disney Solitaire's revenue grew 15.5% sequentially and 288.6% year-over-year in Q2, despite a meaningful reduction in marketing spend. This performance indicates strong player retention and engagement. However, due to the front-loaded marketing investment for the Super Play earn-out, sequential revenue for Disney Solitaire is expected to decline in H2, though it is still projected to grow year-over-year.

    04

    Portfolio Performance & Stabilization

    Slotomania, the company's oldest game, achieved stable performance for three consecutive quarters, validating the company's ability to stabilize key franchises. Bingo Blitz experienced a revenue decline of 9.5% year-over-year, attributed to a strategic shift away from short-lived📎 user acquisition channels towards investing in long-term players. June's Journey continued strong monetization trends, growing 8.1% year-over-year.

    05

    Consumer Sentiment Headwinds

    Management observed a softening in consumer sentiment across the industry mid-Q2, leading to a greater-than-typical seasonal slowdown in discretionary spending. This trend, attributed to persistent inflation, is a key factor in the company's prudent view for the second half of the year and its expectation to land at the lower end of its full-year guidance ranges.

    AI-generated summary of the company’s earnings call. Not investment advice.