Playtika (NASDAQ:PLTK) reported second-quarter revenue of $731.1 million, up 5.0% from a year earlier but down 1.8% sequentially, as the mobile-game company reduced marketing spending after front-loading user acquisition investment earlier in the year.
Adjusted EBITDA totaled $206.1 million, producing a 28.2% margin, compared with a 16.8% margin in the first quarter. Net income was $48 million, while adjusted net income was $53.6 million.
Marketing Pullback Drives Margin Recovery
CEO Robert Antokol said the quarter demonstrated the company’s model of investing in player acquisition and benefiting from longer-term player retention and spending. He pointed to Disney Solitaire, where Playtika reduced marketing spending from the first quarter while revenue continued to grow.
“We brought our marketing spending down and the game still grew,” Antokol said. “This only happens when the players you have added continue to stay with you, when they keep playing and they keep spending.”
Sales and marketing expense was $252.6 million, down 30% sequentially and 2% year-over-year. Lee said the reduction reflected the company’s planned step-down in spending following heavier first-quarter investment, particularly in SuperPlay titles. Playtika expects marketing spending to decline further in the second half.
Lee said the timing of user-acquisition spending was influenced by the structure of SuperPlay’s earn-out, which is based on full-year revenue growth and EBITDA margin expansion. The company concentrated spending earlier in the year to build revenue cohorts, then reduced spending to allow profitability to improve.
SuperPlay became a positive adjusted EBITDA contributor during the second quarter, according to management. However, Lee said revenue from the studio’s games is expected to decline sequentially in the second half as marketing spending falls, while still growing year-over-year.
Disney Solitaire and Portfolio Performance
Disney Solitaire generated $142.4 million in second-quarter revenue, increasing 15.5% sequentially and 288.6% year-over-year. The game launched globally in April 2025 and remains early in its lifecycle, Lee said.
Management expects Disney Solitaire revenue to decline sequentially during the second half because of reduced user-acquisition investment. Lee emphasized that this expected decline reflects spending timing rather than weakening engagement or the game’s long-term prospects.
“We’re going to keep on growing this game, but we’re going to do it in a way that’s profitable,” Lee said, adding that the product roadmap includes new gameplay modes and content planned for the third and fourth quarters.
Bingo Blitz remained the company’s largest revenue title, delivering $145.1 million in revenue. That result was down 5.6% sequentially and 9.5% year-over-year. Lee said much of the year-over-year decline was concentrated among players acquired within the last 12 months, after the company moved away from acquisition channels that produced high volumes of incentive-driven users with shorter lifespans.
According to Lee, players who have been with Bingo Blitz for more than a year generate most of the title’s revenue and remained the franchise’s foundation. He added that Bingo Blitz remained the top bingo title worldwide.
June’s Journey produced $74.7 million in revenue, down 1.7% sequentially but up 8.1% year-over-year. Management cited stronger monetization from events, segmentation and campaign tools, along with continued elevated engagement among long-tenured players. The company also launched an Agatha Christie intellectual-property collaboration during the quarter.
Antokol also highlighted Slotomania, which he said has posted stable performance for three consecutive quarters after a difficult period. The company is finalizing new marketing campaigns and evaluating the title’s future growth opportunities, he said.
DTC Growth and Cost Controls
Direct-to-consumer revenue reached $286.9 million, down 1.7% sequentially but up 63.1% year-over-year. DTC represented 39.3% of total revenue in the quarter, approaching the 40% level that management had previously discussed as a longer-term objective.
Lee said Playtika was not providing an updated DTC target, but described the channel as a key part of its margin-protection strategy. DTC penetration varies by game based on the maturity of each title’s platform and the initiatives prioritized by individual studios, he said.
- Cost of revenue was $192.9 million, down 1.5% year-over-year, primarily reflecting lower platform fees from DTC growth, partly offset by higher royalty expenses.
- Research and development expense was $96.4 million, down 15.8% year-over-year, reflecting lower headcount and outsourcing costs.
- General and administrative expense was $54.1 million, up 202.2% year-over-year, though management said the comparison was affected by a one-time contingent-consideration revaluation benefit in the prior-year period. Excluding that item, G&A increased 2.3%.
Average daily paying users totaled 367,000, down 5.2% sequentially and 2.9% year-over-year. Average daily active users fell 7.0% sequentially and 9.1% from a year earlier to 8 million. Average revenue per daily active user increased 7.4% sequentially and 16.1% year-over-year.
Consumer Caution Shapes Second-Half View
As of June 30, Playtika held approximately $438.5 million in cash equivalents and short-term investments.
While management reaffirmed annual guidance, Lee said Playtika observed a larger-than-usual seasonal decline in demand from May to June. The company attributed the softer trends to pressure on discretionary spending from persistent inflation and weakening consumer confidence.
“We’re not going to over attribute our quarter to it, but we do think it’s real and are prudent on the back half,” Lee said.
The company said the largest marketing-spending reduction is expected in the third quarter, with spending then becoming more even during the final quarter of the year. Management said it intends to continue evaluating opportunities for incremental investment that could support a stronger start to the following year.
About Playtika (NASDAQ:PLTK)
Playtika Ltd. (NASDAQ: PLTK) is a leading developer and publisher of free-to-play mobile and social games. Established in 2010 and headquartered in Herzliya, Israel, the company has built a reputation for creating engaging, social casino and casual gaming experiences. Playtika’s platform leverages data-driven analytics and in-game community features to drive player retention and monetization across multiple titles.
The company’s diverse portfolio includes flagship social casino games such as Slotomania, Bingo Blitz and Caesars Casino, as well as skill-based and casual offerings like World Series of Poker and House of Fun.
