Playtika’s SuperPlay paradox: its biggest winner may be the asset it can’t afford to keep
The Israeli gaming company is benefiting from SuperPlay’s success while facing growing earnout payments, refinancing challenges and pressure to unlock value.
At first glance, Playtika’s second-quarter results suggest that the Israeli mobile gaming company is regaining momentum. Revenue increased, profitability expanded sharply and one of its newest titles, Disney Solitaire, continued its extraordinary growth.
But beneath the improved margins lies a more complicated picture: Playtika’s strongest growth engine is also creating one of its biggest financial challenges.
Disney Solitaire, developed by Israeli studio SuperPlay, generated $142.4 million in revenue in the second quarter, an increase of 15.5% from the previous quarter and 288.6% compared with the same period last year. The game has now grown into one of Playtika’s largest franchises, nearly matching Bingo Blitz, which generated $145.1 million during the quarter.
The success reinforces the strategic dilemma facing Playtika after it acquired SuperPlay in late 2024. The company bought the studio from founders Eyal Netzer and Gilad Almog, both former Playtika executives, for $690 million in cash, with an additional earnout that could reach $1.25 billion depending on SuperPlay’s performance through 2027.
As SuperPlay continues to outperform expectations, the financial obligation attached to the acquisition has grown. Playtika estimated its future contingent payments at $734 million in its 2025 annual report and increased that estimate to $829 million in its first-quarter 2026 results.
The latest results suggest the liability could continue rising.
SuperPlay generated $573 million in revenue in 2025, significantly above the baseline assumptions used to calculate the earnout. Based on Disney Solitaire’s current performance, the studio appears to be continuing its rapid expansion.
That success has fueled speculation that Playtika may ultimately decide to sell SuperPlay. Calcalist reported last month that Playtika was negotiating the possible sale of the Israeli gaming studio to Chinese gaming giant Tencent at a valuation of between $1 billion and $1.5 billion.
Such a transaction would represent a dramatic reversal. SuperPlay was acquired as part of Playtika’s effort to diversify beyond its traditional social casino business and expand into casual gaming, a segment with a broader audience and stronger growth potential. Less than two years later, the company may be considering selling what has become its most valuable growth asset.
The motivation is not only strategic but financial.
Playtika ended June with $438.5 million in cash, down from $684.2 million at the end of 2025. During the first half of the year, the company paid $350 million in contingent consideration related to acquisitions.
Its cash generation has also weakened. Operating cash flow fell to $51.5 million in the first six months of 2026, compared with $164.9 million in the same period last year, while free cash flow dropped to $15 million from $119.6 million.
At the same time, Playtika continues to carry approximately $2.4 billion in long-term debt, including significant maturities expected in 2028 and 2029. The company suspended its dividend earlier this year as it sought to preserve financial flexibility.
The market reaction underscored the gap between Playtika’s improving financial metrics and investor concerns about its longer-term trajectory. The company’s shares fell about 12% following the results, bringing its market value down to roughly $1.3 billion.
The contrast between SuperPlay’s performance and Playtika’s broader business has become increasingly apparent.
While Disney Solitaire continues to grow rapidly, some of Playtika’s older franchises are under pressure. Bingo Blitz revenue declined 5.6% sequentially and 9.5% year over year in the second quarter. The company’s overall user base also continued to shrink, with average daily active users falling to 8 million from 8.8 million a year earlier, and average monthly active users declining to 24.8 million from 30 million.
Despite those challenges, Playtika delivered a stronger second quarter. Revenue reached $731.1 million, up 5% year over year, while adjusted EBITDA increased 23.4% to $206.1 million. The adjusted EBITDA margin expanded to 28.2%, compared with 24% in the same quarter last year.
The improvement was driven partly by reduced marketing spending and tighter cost management. Chief Financial Officer Tae Lee said the quarter reflected the investment strategy outlined earlier in the year, with marketing spending reduced and SuperPlay becoming a positive contributor to adjusted EBITDA.
The company reaffirmed its full-year guidance of $2.75 billion-$2.85 billion in revenue and $750 million-$790 million in adjusted EBITDA, but warned that results are likely to finish toward the lower end of those ranges due to more cautious consumer spending and lower planned marketing investment in the second half.
