Form type: 10-Q
Period end: 2026-06-30
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|---|---|
| Revenue | 731,100,000.00 | 696,000,000.00 | ||
| Total Revenue | ||||
| Cost of revenue | 192,900,000.00 | 195,800,000.00 | ||
| Total COGS | ||||
| Gross Profit | ||||
| General and administrative | 54,100,000.00 | 17,900,000.00 | ||
| Income tax expense (benefit) | 20,500,000.00 | 11,900,000.00 | ||
| Interest expense | 37,800,000.00 | 36,500,000.00 | ||
| Interest income | -4,600,000.00 | -5,700,000.00 | ||
| Other income statement items (derived) | 32,900,000.00 | 33,800,000.00 | ||
| Other operating costs | 500,000.00 | 400,000.00 | ||
| Research and development | 96,400,000.00 | 114,500,000.00 | ||
| Selling and marketing | 252,600,000.00 | 257,700,000.00 | ||
| Total Expenses | ||||
| Net Income | - | |||
| Basic earnings per share | - |
| June 30, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | 438,500,000.00 | 684,200,000.00 |
| Deferred tax assets | 173,600,000.00 | 173,200,000.00 |
| Goodwill and intangibles | 2,070,800,000.00 | 2,121,400,000.00 |
| Operating lease right-of-use assets | 109,200,000.00 | 124,200,000.00 |
| Other assets (derived) | 180,300,000.00 | 165,300,000.00 |
| Other current assets | 0.00 | 14,000,000.00 |
| Other noncurrent assets | 116,300,000.00 | 115,800,000.00 |
| Prepaid expenses and other current assets | 108,900,000.00 | 80,400,000.00 |
| Property, plant and equipment | 94,900,000.00 | 102,900,000.00 |
| Restricted cash and equivalents | 200,000.00 | 1,500,000.00 |
| Short-term investments | 0.00 | 136,000,000.00 |
| Total Assets | ||
| Liabilities | ||
| Accrued compensation | 101,600,000.00 | 142,300,000.00 |
| Debt | 2,383,700,000.00 | 2,389,100,000.00 |
| Deferred revenue | 18,900,000.00 | 28,800,000.00 |
| Deferred tax liabilities | 4,300,000.00 | 8,200,000.00 |
| Distributions payable | 0.00 | 37,700,000.00 |
| Operating lease liabilities, current | 25,100,000.00 | 27,500,000.00 |
| Operating lease liabilities, noncurrent | 101,300,000.00 | 115,400,000.00 |
| Other accrued liabilities | 96,800,000.00 | 98,400,000.00 |
| Other liabilities (derived) | 526,700,000.00 | 887,000,000.00 |
| Other noncurrent liabilities | 419,300,000.00 | 380,800,000.00 |
| Taxes payable | 14,900,000.00 | 15,100,000.00 |
| Total Liabilities | ||
| Equity | ||
| Stockholders equity | -399,900,000.00 | -411,400,000.00 |
| Total Equity | - | - |
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | -9,500,000.00 | 63,800,000.00 |
| Changes in operating assets and liabilities, net | 61,000,000.00 | 101,100,000.00 |
| Net cash from operating activities | ||
| Investing activities | ||
| Investing activities, net | 99,000,000.00 | -135,200,000.00 |
| Net cash from investing activities | - | |
| Financing activities | ||
| Financing activities, net | -398,400,000.00 | -97,000,000.00 |
| Net cash from financing activities | - | - |
| Effect of exchange rate changes on cash | ||
| Net change in cash | - | - |
| Cash at beginning of period | 567,700,000.00 | |
| Cash at end of period | 502,400,000.00 | |
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Balance at beginning of period | -411,400,000.00 | -131,100,000.00 |
| Net income | -9,500,000.00 | 63,800,000.00 |
| Other equity movements | 21,000,000.00 | -20,500,000.00 |
| Balance at end of period | -399,900,000.00 | -87,800,000.00 |
Playtika Holding Corp. is a public reporting company classified under Services-Computer Processing & Data Preparation. The accompanying condensed financial statements are unaudited, have been prepared from the Company's connected books and records, and, in the opinion of management, include all adjustments necessary for a fair presentation of the interim periods presented; results for the interim periods are not necessarily indicative of the results to be expected for the full fiscal year. These notes relate to the period ended June 30, 2026.
Revenue for the three months ended June 30, 2026 was $731.1 million, compared with $696.0 million in the prior-year period, an increase of 5.0%. Cost of revenue was $192.9 million, compared with $195.8 million in the prior-year period, resulting in gross profit of $538.2 million versus $500.2 million, and revenue for the six months ended June 30, 2026 was $1,475.8 million, compared with $1,402.0 million for the six months ended June 30, 2025. Deferred revenue was $18.9 million at June 30, 2026, compared with $26.0 million at the prior period end, a decrease of 27.3%. Net income for the three months ended June 30, 2026 was $48.0 million. Basic earnings per share was $0.13, computed using weighted-average basic shares outstanding of 380,600,000. Basic earnings per share was $(0.02) for the comparable prior-year period.
Debt was $2,383.7 million at June 30, 2026, compared with $2,394.4 million at the prior period end, a decrease of 0.4%. Interest expense for the period was $37.8 million, compared with $36.5 million in the prior period, and interest income was $4.6 million, compared with $5.7 million in the prior period. The Company leases certain facilities and equipment under operating leases; at June 30, 2026, operating lease right-of-use assets were $109.2 million, compared with $115.5 million at the prior period end, current operating lease liabilities were $25.1 million, compared with $21.0 million, and noncurrent operating lease liabilities were $101.3 million, compared with $109.9 million. [COMPLETE: weighted-average remaining lease terms, discount rates, and maturities of debt and lease obligations]
Total stockholders' equity was a deficit of $399.9 million at June 30, 2026, compared with a deficit of $87.8 million at the prior period end. Distributions payable of $37.6 million at the prior period end were reduced to zero as of June 30, 2026. [COMPLETE: description of authorized and outstanding share classes, dividends declared, and other components of the change in stockholders' equity]
| Current | Prior | |
|---|---|---|
| Debt | 2,383,700,000.00 | 2,389,100,000.00 |
| Operating lease liabilities, current | 25,100,000.00 | 27,500,000.00 |
| Operating lease liabilities, noncurrent | 101,300,000.00 | 115,400,000.00 |
| Total debt | 2,510,100,000.00 | 2,532,000,000.00 |
| Current | Prior | |
|---|---|---|
| Property, plant and equipment | 94,900,000.00 | 102,900,000.00 |
| Total property and equipment | 94,900,000.00 | 102,900,000.00 |
| Current | Prior | |
|---|---|---|
| Stockholders equity | -399,900,000.00 | -411,400,000.00 |
| Total stockholders' equity | -399,900,000.00 | -411,400,000.00 |
Playtika Holding Corp. is a public reporting company classified under Services-Computer Processing & Data Preparation. For the period, we generated revenue of $731.1 million, an increase of 5.0% from $696.0 million in the comparable prior-year period, driven primarily by [COMPLETE: description of revenue drivers, such as changes in player spending or game portfolio performance]. Net income was $48.0 million relative to revenue of $731.1 million, a margin of approximately 6.6%, so relatively modest changes in costs or player spending could have a disproportionate effect on profitability. Basic earnings per share of $0.13 reflects net income of $48.0 million over the weighted-average basic share count of 380,600,000.
Cost of revenue was $192.9 million, a decrease of 1.5% from $195.8 million in the prior period, and selling and marketing expenses decreased 2.0% to $252.6 million from $257.7 million. Research and development expenses decreased 15.8% to $96.4 million from $114.5 million, reflecting [COMPLETE: description of drivers of the decline in research and development spending]. General and administrative expenses increased 202.2% to $54.1 million from $17.9 million, and income tax expense increased 72.3% to $20.5 million from $11.9 million. Interest expense of $37.8 million increased 3.6% from $36.5 million in the prior period, and interest income of $4.6 million compared with $5.7 million in the prior period. Other operating costs of $0.5 million increased 25.0% from $0.4 million in the prior period.
Our principal sources of liquidity are our cash and cash equivalents and cash generated from operations. Cash and cash equivalents were $438.5 million at period end, a decrease of 12.5% from $500.9 million in the prior period, and restricted cash and equivalents were $0.2 million compared with $1.5 million in the prior period. Short-term investments of $91.2 million in the prior period were reduced to zero as of the current period. Debt outstanding was $2,383.7 million, a decrease of 0.4% from $2,394.4 million, and operating lease liabilities consisted of $25.1 million of current obligations and $101.3 million of noncurrent obligations. Distributions payable of $37.6 million in the prior period were reduced to zero as of the current period, and taxes payable decreased 70.2% to $14.9 million from $50.0 million. Total stockholders' equity was a deficit of $399.9 million at June 30, 2026, which widened from $87.8 million in the prior period, a change of 355.5%. If our operating performance deteriorates, our leverage and negative equity position could limit our ability to fund operations, invest in game development, or refinance obligations on acceptable terms. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and declines in prevailing interest rates or in our invested balances could reduce the interest income we earn; we do not have material foreign currency or commodity price exposure. Based on our current operating plan, we believe that our existing cash and cash equivalents, together with cash expected to be generated from operations, will be sufficient to fund our operations and meet our obligations for at least the next twelve months.
Our primary market risk exposure is interest rate risk on our cash, cash equivalents, and short-term investments. As of June 30, 2026, we held cash and cash equivalents of $438.5 million, compared to $500.9 million at the end of the prior period, as well as restricted cash and equivalents of $0.2 million, compared to $1.5 million in the prior period. We held no short-term investments as of June 30, 2026, compared to $91.2 million in the prior period. Interest income was $4.6 million for the current period, compared to $5.7 million in the prior period, reflecting changes in the balances of our interest-bearing assets and prevailing interest rates. A sustained change in market interest rates would affect the amount of interest income we earn on these balances in future periods.
We are also exposed to interest rate risk with respect to our outstanding debt, which totaled $2,383.7 million as of June 30, 2026, compared to $2,394.4 million in the prior period. Interest expense was $37.8 million for the current period, an increase of 3.6% from $36.5 million in the prior period. [COMPLETE: description of the fixed versus variable rate composition of outstanding debt and the estimated impact of a hypothetical change in interest rates on interest expense].
We do not have material foreign currency or commodity price exposure. Accordingly, we do not believe that a hypothetical adverse change in foreign currency exchange rates or commodity prices would have a material effect on our financial position, results of operations, or cash flows. We will continue to monitor our exposure to interest rate risk and other market risks and assess whether any changes in our risk profile warrant additional disclosure or mitigation measures.
Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report, and based on that evaluation, our management concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2026. Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and that such information is accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
There were no changes in our internal control over financial reporting that occurred during the quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. In connection with our most recent evaluation of internal control over financial reporting, our certifying officers have disclosed to our auditors and the audit committee of our board of directors all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect our ability to record, process, summarize and report financial information, and any fraud, whether or not material, that involves management or other employees who have a significant role in our internal control over financial reporting.
Management's conclusion language set forth above must be reviewed and adopted by management before filing.
Playtika Holding Corp. is involved in legal proceedings arising in the ordinary course of business from time to time. These matters may include claims, disputes, and other actions incidental to the operation of the Company's business. The outcome of litigation is inherently uncertain, and the Company evaluates pending matters on an ongoing basis to assess their potential impact.
Management does not currently believe that any pending matter is material to the Company's financial statements. Accordingly, as of June 30, 2026, the Company is not a party to any legal proceedings that, in the opinion of management, would be expected to have a material adverse effect on its financial condition or results of operations.
An investment in our securities involves risks, including risks relating to our capital structure and indebtedness. As of the current period, we had debt of $2,383.7 million, total liabilities of $3,692.6 million, and total operating lease liabilities, current and noncurrent, of $25.1 million and $101.3 million, respectively. Interest expense of $37.8 million increased 3.6% from $36.5 million in the prior period, and interest income of $4.6 million compared with $5.7 million in the prior period. Our substantial leverage could limit our financial and operating flexibility, and increases in the cost of servicing our indebtedness could adversely affect our results of operations and cash flows. Total stockholders' equity was a deficit of $399.9 million at June 30, 2026, and the stockholders' equity deficit widened from $87.8 million in the prior period, a change of 355.5%. A continued or increasing stockholders' equity deficit could adversely affect perceptions of our financial condition and our ability to obtain financing on favorable terms.
We are also exposed to market and liquidity risks. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments. We do not have material foreign currency or commodity price exposure. Cash and cash equivalents declined 12.5% to $438.5 million from $500.9 million in the prior period, and short-term investments of $91.2 million in the prior period were reduced to zero as of the current period. Reductions in our liquid resources could constrain our ability to fund operations, investments, or debt service if our operating results were to decline. For the period ended June 30, 2026, we recorded revenue of $731.1 million and net income of $48.0 million, and any deterioration in our operating performance could exacerbate the risks associated with our leverage and equity deficit.
In addition, we face risks arising from litigation and regulatory matters. We are involved in legal proceedings arising in the ordinary course of business from time to time. Although management does not currently believe any pending matter is material to the financial statements, the outcome of litigation is inherently uncertain, and an adverse result in one or more matters could have a material adverse effect on our business, financial condition, or results of operations. [COMPLETE: description of any material changes to the risk factors previously disclosed in the company's most recent Annual Report on Form 10-K, or a statement that there have been no material changes]
During the quarter ended June 30, 2026, the following disclosure is provided pursuant to Item 408(a) of Regulation S-K regarding Rule 10b5-1 trading arrangements adopted or terminated by directors and officers of Playtika Holding Corp. [COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]