Operating margins have faced severe pressure, declining to 8.9% in 2026Q1 as the company struggles to scale expenses against a modest 5.5% year-over-year revenue growth rate.
| Sales/Revenue | 2.79B | 2.76B | 2.55B | 2.57B | 2.62B | 2.58B | 2.37B | 1.89B | 1.49B |
| Revenue Growth % | 7.3% | 8.08% | -0.69% | -1.85% | 1.26% | 8.92% | 25.64% | 26.63% | - |
| Cost of Goods Sold | 753.3M | 758.5M | 692.1M | 718.5M | 735.7M | 729M | 712.2M | 566.3M | 437M |
| COGS % of Revenue | - | 27.53% | 27.15% | 27.99% | 28.13% | 28.22% | 30.03% | 30% | 29.32% |
| Gross Profit | 2.04B | 2B | 1.86B | 1.85B | 1.88B | 1.85B | 1.66B | 1.32B | 1.05B |
| Gross Margin % | 73.04% | 72.47% | 72.85% | 72.01% | 71.87% | 71.78% | 69.97% | 70% | 70.68% |
| Gross Profit Growth % | - | 7.52% | 0.47% | -1.67% | 1.39% | 11.73% | 25.58% | 25.4% | - |
| Operating Expenses | 2.05B | 2B | 1.47B | 1.35B | 1.41B | 1.29B | 1.27B | 823.9M | 621.1M |
| OpEx % of Revenue | - | 72.66% | 57.49% | 52.47% | 53.85% | 50.01% | 53.64% | 43.65% | 41.66% |
| Selling, General & Admin | 1.74B | 1.57B | 993.7M | 889.2M | 936.1M | 905.1M | 1B | 613.4M | 472.8M |
| SG&A % of Revenue | - | 56.94% | 38.98% | 34.64% | 35.79% | 35.04% | 42.3% | 32.5% | 31.72% |
| Research & Development | 420.9M | 426.7M | 403M | 406.4M | 472.3M | 386.7M | 268.9M | 210.5M | 148.3M |
| R&D % of Revenue | - | 15.49% | 15.81% | 15.83% | 18.06% | 14.97% | 11.34% | 11.15% | 9.95% |
| Other Operating Expenses | 400K | 6.4M | 68.9M | 51.3M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -5.2M | 1.3M | 391.6M | 501.6M | 471.4M | 562.2M | 387.2M | 497.4M | 432.6M |
| Operating Margin % | -0.19% | 0.05% | 15.36% | 19.54% | 18.02% | 21.77% | 16.33% | 26.35% | 29.02% |
| Operating Income Growth % | - | -99.67% | -21.93% | 6.41% | -16.15% | 45.2% | -22.16% | 14.98% | - |
| EBITDA | 339.4M | 236.1M | 557.3M | 659.6M | 633.4M | 707.7M | 506.4M | 570.4M | 470.3M |
| EBITDA Margin % | 12.15% | 8.57% | 21.86% | 25.7% | 24.22% | 27.4% | 21.35% | 30.22% | 31.55% |
| EBITDA Growth % | -37.95% | -57.64% | -15.51% | 4.14% | -10.5% | 39.75% | -11.22% | 21.28% | - |
| D&A (Non-Cash Add-back) | 344.6M | 234.8M | 165.7M | 158M | 162M | 145.5M | 119.2M | 73M | 37.7M |
| EBIT | -38.3M | -101.7M | 435.7M | 546.3M | 478.3M | 557.6M | 392.7M | 497.4M | 432.6M |
| Net Interest Income | -116M | -59.7M | -99.5M | -110.8M | -103.4M | -148.1M | -198.2M | -61.1M | -1.9M |
| Interest Income | 26.7M | 11.5M | 55.7M | 42.7M | 14.1M | 1.1M | 100K | 0 | 0 |
| Interest Expense | 142.7M | 71.2M | 155.2M | 153.5M | 117.5M | 149.2M | 198.3M | 61.1M | 1.9M |
| Other Income/Expense | -282.6M | -174.2M | -111.1M | -109.5M | -110.6M | -153.8M | -192.8M | -61.1M | -1.9M |
| Pretax Income | -287.8M | -172.9M | 280.5M | 392.1M | 360.8M | 408.4M | 194.4M | 436.3M | 430.7M |
| Pretax Margin % | -10.3% | -6.28% | 11% | 15.27% | 13.79% | 15.81% | 8.2% | 23.11% | 28.89% |
| Income Tax | 6.7M | 33.5M | 118.3M | 157.1M | 85.5M | 99.9M | 102.3M | 147.4M | 92.7M |
| Effective Tax Rate % | -2.33% | -19.38% | 42.17% | 40.07% | 23.7% | 24.46% | 52.62% | 33.78% | 21.52% |
| Net Income | -294.5M | -206.4M | 162.2M | 235M | 275.3M | 308.5M | 92.1M | 288.9M | 338M |
| Net Margin % | -10.54% | -7.49% | 6.36% | 9.15% | 10.53% | 11.94% | 3.88% | 15.31% | 22.67% |
| Net Income Growth % | -310.66% | -227.25% | -30.98% | -14.64% | -10.76% | 234.96% | -68.12% | -14.53% | - |
| Net Income (Continuing) | -294.5M | -206.4M | 162.2M | 235M | 275.3M | 308.5M | 92.1M | 288.9M | 338M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.78 | -0.55 | 0.44 | 0.64 | 0.69 | 0.75 | 0.24 | 0.71 | 0.83 |
| EPS Growth % | -304.89% | -225% | -31.25% | -7.25% | -8% | 212.5% | -66.2% | -14.46% | - |
| EPS (Basic) | - | -0.55 | 0.44 | 0.64 | 0.69 | 0.75 | 0.24 | 0.71 | 0.83 |
| Diluted Shares Outstanding | 378.3M | 376.4M | 372.1M | 366.8M | 401.6M | 411M | 384.7M | 409.59M | 409.59M |
| Basic Shares Outstanding | 378.3M | 376.4M | 371.8M | 366.3M | 401M | 408.9M | 384.7M | 409.59M | 409.59M |
| Dividend Payout Ratio | - | - | 68.74% | - | 219.22% | - | - | 818.93% | 118.34% |
Marketing spend efficiency decline
According to recent financial disclosures, Playtika's year-over-year revenue growth reached 5.5% in 2026Q1, yet this follows a period of inconsistent performance where growth fluctuated between -2.5% and 11.0%, suggesting that the company's core portfolio is struggling to maintain consistent momentum in a saturated mobile gaming market.
The volatility in quarterly revenue growth indicates that the company's reliance on aging flagship titles may be reaching a point of diminishing returns. Investors should monitor whether the recent uptick in growth is sustainable or merely a temporary result of aggressive, potentially inefficient, user acquisition spending.
As reported in quarterly filings, Playtika has maintained a relatively stable gross margin profile, consistently hovering between 71.7% and 74.2%, which reflects the inherent structural constraints of platform fees paid to major mobile app stores that dictate the company's primary cost of goods sold.
While these margins appear resilient, they provide little buffer against the rising costs of user acquisition that have recently pressured operating profitability. The inability to expand these margins suggests limited pricing power, as the company remains tethered to the take-rates imposed by third-party distribution gatekeepers.
Based on the provided income statement data, Playtika's operating margin collapsed to 8.9% in 2026Q1 from a peak of 22.4% in 2024Q2, highlighting a concerning inability to scale operating expenses efficiently as the company attempts to defend its market share through increased marketing and administrative outlays.
The sharp divergence between gross profit and operating income suggests that the company's centralized 'Boost' platform may be losing its efficacy in driving incremental profitability. This trend warrants further investigation into whether the current SG&A structure is bloated or if the cost of acquiring high-value players has permanently shifted higher.
Financial statements reveal that Playtika's net income has become increasingly erratic, swinging from a $86.6M profit in 2024Q2 to a $309.3M loss in 2025Q4, a trend that suggests significant non-operating charges or asset impairments are frequently obscuring the underlying cash-generating capability of the core gaming business.
The frequent disconnect between operating income and net income suggests that investors should focus on adjusted metrics to gauge true performance. The negative net margins observed in recent periods raise questions about the long-term viability of the current capital allocation strategy and the potential for future asset write-downs.
Data from the most recent quarters indicates that SG&A expenses spiked to $658.8M in 2025Q4, a move that failed to prevent a subsequent net loss, suggesting that the company's aggressive reinvestment strategy may be yielding lower returns on invested capital than in previous, more profitable periods.
Short-sellers would likely focus on the deteriorating relationship between marketing spend and revenue growth as a sign of a maturing, or potentially declining, asset base. If the company cannot demonstrate a clear path back to historical operating margins, the market may continue to apply a valuation discount to the stock.
Quick answers to the most common questions about buying PLTK stock.
For fiscal year 2025, Playtika Holding Corp. (PLTK) reported total revenue of $2.76B. This represents a 84.8% increase compared to $1.49B in 2018.
Playtika Holding Corp. (PLTK) reported a net loss of $206.4M for the fiscal year ending 2025.
Playtika Holding Corp. (PLTK) reported an operating income of $1.3M, resulting in an operating profit margin of 0.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Playtika Holding Corp. (PLTK) generated $2.00B in gross profit for the year, representing a gross profit margin of 72.5%. This demonstrates the company's core pricing power and production efficiency.