Playtika returns to profit, but warns of weakness later in the year

The gaming company Playtika returned to profit in the second quarter of 2026, after ending the previous quarter with a loss. The Herzliya-based company reported today revenue of $731.1 million, an increase of 5% compared to the same quarter last year.

However, compared to the first quarter of the year, revenue decreased by 1.8%. Net profit totaled $48 million, compared to $33.2 million in the same quarter last year, an increase of about 45%. In the first quarter of 2026, Playtika recorded a loss of $57.5 million. For the first half of 2026, the company still recorded a loss of $9.5 million, compared to a profit of $63.8 million in the same period in 2025.

Operating profit reached $134.6 million, compared to $109.7 million in the same quarter last year, an increase of about 23%. Playtika's total expenses amounted to $596.5 million.

Playtika's stock closed yesterday on NASDAQ at a price of $3.89, after falling by 4.19%, reflecting a company valuation of about $1.5 billion. Following the publication of the reports, the stock is falling by another 2%, to a price of $3.83.

Disney Solitaire grew, older games weakened

One of Playtika's most prominent growth engines was Disney Solitaire, developed by the Israeli gaming company SuperPlay. The game's revenue reached $142.4 million for the quarter, almost four times the revenue recorded in the same period last year. Compared to the first quarter of the year, its revenue grew by 15.5%.

Playtika stated that SuperPlay began contributing to the company's profitability during the quarter. In the current quarter, Playtika reduced the game's marketing expenses, but its revenue continued to grow.

On the other hand, Bingo Blitz, Playtika's largest game by revenue in the quarter, weakened. Its revenue totaled $145.1 million, a decrease of 9.5% compared to the same quarter last year and 5.6% compared to the first quarter. June’s Journey revenue reached $74.7 million, an increase of 8.1% compared to last year, but a decrease of 1.7% compared to the previous quarter.

Revenue from direct sales to players reached $286.9 million, a jump of 63.1% in a year. This allows the company to reduce commissions paid to tech giants. Compared to the first quarter, revenue from direct sales decreased by 1.7%.

But alongside the increase in revenue, the number of users continued to decline. The number of daily active users (DAU) averaged 8 million, compared to 8.8 million in the same quarter last year. The number of monthly active users (MAU) dropped from 30 million to 24.8 million, and the number of daily paying users dropped from 378,000 to 367,000. However, the rate of users who made in-game purchases rose from 4.3% to 4.6%. The average revenue per daily active user (ARPDAU) also increased from 87 cents to $1.01.

Maintains forecast, but aims for the lower end

Playtika left its 2026 forecast unchanged, according to which annual revenue will total $2.75 to $2.85 billion. The company expects the main profitability metric it uses to be $750 to $790 million. However, the company estimated that it would finish the year close to the lower end of both ranges, citing caution regarding consumer spending and the decision to reduce marketing investment during the second half of the year.

At the end of June, Playtika had $438.5 million in cash, while its long-term debt stood at about $2.37 billion. In the first half of the year, the company paid $350 million as part of payments related to a previous acquisition. CEO and founder Robert Antokol said the results demonstrate the company's ability to develop games that succeed in retaining players for years.

The current reports are published in parallel with a review that Playtika is conducting regarding the future of its business, with the assistance of the investment bank Morgan Stanley. According to reports, Playtika is in talks to sell SuperPlay to the Chinese gaming giant Tencent, at a valuation of $1 billion to $1.5 billion. Playtika did not provide an update in the current reports regarding the process or the reported talks.