Should you sell your Playtika stock?

Playtika Holding Corporation (Playtika Holding Corp Stock Quote, Chart, News, Analysts, Financials NASDAQ:PLTK) reported stronger-than-expected third-quarter profitability and ended its strategic review, concluding that remaining independent offers the best opportunity to create long-term shareholder value.

On Nov. 5, Roth Capital Partners analyst Eric Handler maintained his “Neutral” rating and US$2.75 target on the Israel-based mobile gaming company, saying lower marketing and research spending helped offset relatively flat revenue.

“3Q results were encouraging as Playtika reported modestly better than estimated revenue, while adjusted EBITDA was well ahead of forecasts,” Handler said.

Playtika reported third-quarter revenue of US$673.8-million, essentially unchanged year-over-year but ahead of Roth’s US$670-million estimate and consensus of US$667-million. Credit-adjusted EBITDA increased 15.9% to US$252.1-million, exceeding Handler’s US$225.9-million forecast and consensus of US$223-million. The Adjusted EBITDA margin expanded to 37.4% from 32.2% a year earlier, supported by a 9.5% reduction in operating expenses.

“The adjusted EBITDA upside was a result of a more significant than estimated slowdown in marketing and lower R&D expenses,” Handler said.

Sales and marketing expenses declined 19% year-over-year, while research and development spending fell 12%.

Disney Solitaire remained Playtika’s strongest-performing title, generating US$111-million in revenue, up 88% year-over-year. However, revenue declined 22% sequentially following a planned reduction in spending to acquire new players. Among its established games, Bingo Blitz revenue fell 18.2% year-over-year, while June’s Journey increased 12%.

Direct-to-consumer revenue rose 31% to US$275-million, accounting for a record 40.8% of total revenue, up from 31% a year earlier. The increase allows Playtika to generate more sales through its own channels rather than relying on third-party app stores.

Management maintained its 2026 guidance for revenue of US$2.75-billion to US$2.85-billion and Adjusted EBITDA of US$750-million to US$790-million.

“Given the sizable 3Q adjusted EBITDA beat, it seems likely that estimates will shift more towards the upper end of expectations from the low end of the range,” Handler said.

Playtika also completed its strategic review and determined that remaining independent was its preferred path forward, ending uncertainty surrounding a potential sale or other strategic transaction.

Handler forecasts revenue of US$2.78-billion and Adjusted EBITDA of US$757.3-million in fiscal 2026, increasing to revenue of US$2.82-billion and Adjusted EBITDA of US$795.8-million in fiscal 2027.

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