Playtika Holding Corp (NASDAQ:PLTK) Reports Mixed Q3 2025 Results with EPS Beat and Revenue Miss

Last update: Nov 6, 2025

Playtika Holding Corp (NASDAQ:PLTK) reported financial results for the third quarter of 2025, delivering a performance that diverged from analyst expectations on key metrics. The mobile gaming company posted revenue and earnings figures that painted a mixed picture, leading to a notable pre-market stock price reaction as investors digested the results.

Earnings and Revenue Versus Estimates

The company’s top and bottom-line results for the quarter presented a clear beat on profitability but a slight miss on revenue, creating a complex narrative for the market.

Revenue: Playtika reported Q3 revenue of $674.6 million. This fell short of the analyst consensus estimate of approximately $683.0 million.
Earnings Per Share (Non-GAAP): The company reported Non-GAAP EPS of $0.18, which comfortably exceeded the analyst estimate of $0.1505.

This earnings beat, against the backdrop of a revenue miss, appears to be the primary driver behind the stock's significant pre-market surge of over 8%. The market's positive reaction suggests that investors are placing a greater emphasis on profitability and operational efficiency in the current quarter.

Market Reaction and Price Action

The immediate market response to the earnings release has been decisively positive. The substantial pre-market gain indicates that investors are rewarding the company for its ability to translate revenue into earnings more effectively than anticipated. This short-term price action overshadows the stock's more modest performance over recent weeks, which had seen gains of under 1% in the last week and just under 6% over the past month. The strong pre-market move suggests a reassessment of the company's value based on its profitability metrics.

Financial and Operational Highlights

Beyond the headline earnings figures, Playtika's Q3 report highlighted several key areas of strength, particularly in its strategic initiatives.

Direct-to-Consumer Growth: The company achieved a record $209.3 million in Direct-to-Consumer (DTC) revenue, representing a significant 20.0% increase year-over-year. This strategic shift towards higher-margin DTC platforms is a central pillar of the company's growth plan.
Profitability Metrics: Adjusted EBITDA saw a substantial increase to $217.5 million, up 10.3% from the prior year. The Adjusted EBITDA margin expanded to 32.2%, demonstrating improved operational leverage.
User Metrics: The company reported an increase in Average Daily Paying Users to 354,000, a 17.6% year-over-year rise, while the Average Payer Conversion rate improved to 4.3% from 4.0% a year ago.
Capital Returns: Playtika's Board of Directors declared a quarterly cash dividend of $0.10 per share, payable in January 2026, underscoring its commitment to returning capital to shareholders.

Forward Guidance and Analyst Expectations

Looking ahead, Playtika provided its financial outlook, reaffirming its full-year guidance. The company expects revenue to land between $2.70 billion and $2.75 billion, with Adjusted EBITDA projected between $715 million and $740 million. This company guidance sits notably above the current analyst sales estimate for the full year 2025, which stands at approximately $2.79 billion. For the upcoming fourth quarter, analysts are forecasting revenue of around $678.5 million. The company's decision to maintain a robust full-year outlook, despite the Q3 revenue miss, likely contributed to the positive market sentiment.

For a detailed breakdown of future earnings estimates and historical performance, review the earnings and estimates data for PLTK.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented is based on publicly available data and should not be relied upon as the sole basis for making an investment decision.