Prepared Remarks: FY2026 Q1

Playtika’s first-quarter 2026 earnings report highlights a period of strong operational momentum driven by the rapid scaling of its SuperPlay studio and the continued expansion of its direct-to-consumer (DTC) business. The company’s primary thesis centers on a strategic shift toward casual gaming, which now accounts for 76% of its portfolio, while maintaining a disciplined approach to its legacy social casino titles. Management emphasizes that the company is successfully executing a strategy of acquiring high-potential teams and backing them with the capital and operational discipline necessary to build long-lasting, cash-generative franchises.

Financial performance for the quarter included total revenue of $744.7 million, representing a 9.7% sequential increase and a 5.5% year-over-year growth. Adjusted EBITDA reached $125.2 million, with margins reflecting an intentional, front-loaded investment in user acquisition for the high-performing Disney Solitaire title. The company reported a net loss of $57.5 million, largely attributed to non-cash fair-value adjustments related to contingent consideration for SuperPlay. Notably, the DTC segment achieved a record $291.8 million in revenue, marking a 62.8% year-over-year increase and serving as a critical driver for improved unit economics and long-term durability.

Looking forward, the company has raised its full-year 2026 revenue guidance to a range of $2.75 billion to $2.85 billion, citing better-than-expected performance across both its new acquisitions and the core organic portfolio. Management maintains a focus on capital structure flexibility, having suspended dividends to prioritize liquidity and debt maturity management. Furthermore, the company views artificial intelligence as a significant tailwind for scaled operators, intending to leverage the technology to enhance content creation and operational efficiency without compromising the fundamental requirement for product-market fit and disciplined user acquisition.