Shares of Playtika Holding Corp. (NASDAQ: PLTK) plummeted 5.45% in pre-market trading on Thursday following the release of its second-quarter 2025 financial results. The digital entertainment company's performance fell short of analyst expectations, prompting concerns among investors.
Playtika reported Q2 revenue of $696 million, representing an 11% year-over-year increase but missing the consensus estimate of $705.40 million. The company's adjusted net income saw a dramatic decline, falling 82% sequentially and 91.4% year-over-year to $6.5 million. Earnings per share (EPS) came in at $0.02, significantly below the analyst consensus of $0.13 and down from $0.23 in the same period last year.
Adding to investor concerns, Playtika revised its full-year 2025 revenue guidance to a range of $2.70 billion to $2.75 billion, down from its previous forecast. This adjustment, coupled with the earnings miss, likely contributed to the sharp decline in the stock price. Despite the challenges, the company maintained its Adjusted EBITDA guidance between $715 million and $740 million, highlighting its focus on balancing growth and profitability in a competitive mobile gaming landscape.