Shares of Playtika Holding Corp. (NASDAQ: PLTK) plummeted 8.66% in pre-market trading on Thursday following the release of the company's first-quarter 2025 financial results. The mobile gaming giant reported earnings that fell short of analyst expectations, despite posting record revenue for the quarter.

Playtika reported quarterly earnings of $0.08 per share, missing the analyst consensus estimate of $0.13 by 38.46%. This represents a significant decrease from earnings of $0.14 per share in the same period last year. However, the company's quarterly sales reached $706.0 million, beating the analyst consensus estimate of $699.67 million by 0.91% and marking an 8.42% increase from $651.2 million in Q1 2024.

While Playtika celebrated record-breaking revenue, surpassing $700 million for the first time in its history, investors seemed more focused on the company's profitability concerns. Net income for the quarter was $30.6 million, down 42.3% year-over-year. The decrease in profitability, despite revenue growth, likely contributed to the negative market reaction. Despite the earnings miss, Playtika reaffirmed its full-year 2025 guidance, projecting revenue between $2.80 and $2.85 billion and Adjusted EBITDA between $715 and $740 million. This reaffirmation suggests that the company remains confident in its long-term prospects, even as it faces near-term challenges in maintaining profit margins.