Shares of Playtika Holding Corp. (NASDAQ: PLTK) tumbled 5.45% in pre-market trading on Thursday following the release of the company's second-quarter 2025 financial results, which fell short of analyst expectations. The mobile gaming company reported lower-than-anticipated revenue and earnings, coupled with a significant decline in adjusted net income and a downward revision of its full-year revenue guidance.

Playtika reported Q2 revenue of $696 million, representing an 11% year-over-year increase but missing the analyst consensus estimate of $705.40 million. The company's adjusted earnings per share came in at $0.02, significantly below the expected $0.13 per share. More alarmingly, adjusted net income plummeted by 82% sequentially and 91.4% year-over-year to $6.5 million.

Adding to investor concerns, Playtika revised its 2025 revenue guidance to between $2.70 billion and $2.75 billion, down from its previous forecast. The company attributed the challenges partly to the underperformance of its Slotomania game, which saw a 22.7% sequential decrease in revenue. Despite these setbacks, Playtika maintained its adjusted EBITDA guidance between $715 million and $740 million for the year.

While facing headwinds, Playtika highlighted some positive developments, including the success of its recently launched Disney Solitaire game and strong engagement in its Bingo Blitz title. The company also announced plans to increase its long-term direct-to-consumer (DTC) revenue target to 40%, up from 30%, as part of its strategy to balance margins in the competitive mobile gaming landscape.

As investors digest these mixed results and adjusted outlook, Playtika's stock movement reflects the market's immediate reaction to the earnings miss and lowered guidance, overshadowing the company's efforts to navigate challenges in the mobile gaming sector.