Q3 2025 Playtika Holding Corp Earnings Call

November 6, 2025

After the speaker's presentation, there will be a question and answer session to ask a question. During this session you will need to press star one one on your telephone you would been here an automated message advising your hand is raised.

To withdraw your question. Please press star one one again please be advised that today's conference is being recorded I would now.

Now like to hand, the conference over to your first speaker today Daily S V P corporate finance and Investor Relations. Please go ahead.

Welcome everyone and thank you for joining us today for the third quarter of 2025 earnings call for Playtech of holding Corp. Joining me on the call today are Robert ethical co founder and CEO of <unk> and Craig Abrahams, Thank EBIT, President and Chief Financial Officer.

I would like to remind you that today's discussion may contain forward looking statements, including but not limited to the company's anticipated future revenue and operating performance and more specifically the future performance of our individual titles such as thought ammonia or our recently launched solitaire. These.

These statements and other comments are not a guarantee of future performance, but rather are subject to risks and uncertainties some of which are beyond our control. These forward looking statements apply as of today and you should not rely on them as representing our views in the future.

We undertake no obligation to update these statements. After this call we have posted an accompanying slide deck to our Investor Relations website, which contains information on forward looking statements and non-GAAP measures and we will also post our prepared remarks immediately following the call.

For a more complete discussion of the risks and uncertainties. Please see our filings with the SEC with that I'll now turn the call over to Robert.

Good morning, and thank you everyone for joining our call today.

As we head towards the end of 'twenty to 'twenty five I want to start with superbly.

I will silver bullet portfolio is driving exceptional growth led by solid, though which has scale faster than any title in our 15 year history.

This is solid continues to outperform expectation establishing himself it's one of 2025.

New mobile launches.

The title is tracking.

You guys run rate above $200 million.

Supported by strong engagement and rising due to mix.

Building on that momentum I am pleased to announce that we have expanded our collaboration with Disney and Pixar games and developing a new title in the Super play pipeline.

We will share additional detail the pulpwood timing.

Turning to the quarter I'm proud to share that classical continues to execute with focus and discipline.

This quarter, we delivered another record in direct to consumer revenue.

Reaching an all time high with a broad based contribution from pingo beliefs doing journey solitaire gun to others and that was super play portfolio.

This performance reinforce the strength of our strategy to deepen client relationships.

Protect our operating margins.

Supported by recent policy changes that opened a new payment channels and expanded our ability to route transactions through direct to consumer platforms.

As we look at 2020 six our portfolio transition will continue.

This includes ongoing work to strengthen our slot business.

So demand remains strategically important to play ticker and while it continues to be significant headwind for the business.

We are focused on stabilizing the franchise over time.

In parallel we will continually relocating resource towards the highest return opportunities and away from titles that no longer meet our ROI thresholds.

We believe this strategy will strengthen our portfolio mix and you have long term cash generation.

With that context, Craig will walk through the details behind our record <unk> number.

Provide updates so novel top titles and review the quarter's results in greater detail.

Thank you Robert our performance in the third quarter reflects the strength of our operating model and disciplined approach to investment.

Our direct to consumer mix continue to expand margins and Super place performance underscores the strategic rationale behind our acquisition strategy.

We also advanced targeted investments in our new games pipeline and platform capabilities, including AI driven initiatives in our house of fun studio that replace manual processes, improving efficiency and scalability across live operations.

We are reassessing, our cost structure across the organization to sharpen operating efficiency, while protecting capacity to invest behind our highest return opportunities.

On spending we executed the planned step down in second half marketing and Capex remains on track to finish below our full year guidance.

With that let's get into the details of the quarter.

We generated $674 $6 million of revenue in the quarter down three 1% sequentially and up eight 7% year over year.

GAAP net income was $39 $1 million up 17, 8% sequentially and down 5% year over year.

Adjusted EBITDA was $217 $5 million up 32% sequentially and up 10, 3% year over year, driven primarily by the planned step down in sales and marketing for our Super play titles and continued margin momentum from our D to C business.

Okay.

DTC revenue crossed the $200 million threshold to $209 $3 million up 19% sequentially and up 20% year over year.

Growth was broad based across the portfolio with the majority of DTC revenue coming from our casual games consistent with the portfolio transition underway to position the company for long term success.

We develop and operate our own DTC platforms, which enable us to achieve outstanding approval rates.

Reduced reliance on third party providers and optimize processing methodologies for even stronger results.

As Google play policies evolve in the U S. Following recent court rulings.

We see a potential tailwind for further D to C adoption and economics subject to final implementation and our own testing.

<unk> represented 31% of total revenue this quarter and we are working to achieve 40% on a run rate basis in the next few years.

Now, let's review the performance of our top three titles.

<unk> delivered another record quarter with revenue of $162 6 million up one 5% sequentially and one 7% year over year underscoring the franchise's resilience and ongoing leadership in this category.

The studio drove results through seasonal programming.

Personalized promotions and VIP engagement supported by pasting enhancements and optimized offer packaging the sustained payor mix and timing game.

These initiatives reflect our continued investment in live ops cadence personalized merchandising and routing more transactions through DTC channels strategies that not only drove strong engagement, but position bingo blades for incremental margin and mix benefits as adoption scales.

Yeah.

<unk> revenue was $68 $5 million down, 28% sequentially and 46, 7% year over year.

This performance reflects the deliberate rebalancing of the game economy. We initiated earlier this year work, we anticipated would create revenue pressure as we recalibrate progression rewards and pricing to support healthier long term cohort returns.

While we work through these changes we intentionally reduced performance marketing to avoid inefficient spending which contributed to lower slot of <unk> in the quarter.

Once the pace of decline moderates, we plan to selectively re accelerate performance marketing to rebuild scale.

We are not assuming in near term revenue recovery and our focus remains on improving game experience payer attention and ROI discipline marketing with the goal of stabilizing the franchise.

Looking ahead, we remain on track to launch our new slot title jackpot toward this quarter, but we do not expect material contributions to 2025 results.

Journey revenue was $68 3 million down one 2% sequentially and down two 7% year over year.

The franchise remained resilient supported by a strong live ops cadence and personalized in game offers and we aligned our content teaming with an updated live ops and monetization strategy.

During the quarter, we deepen monetization through economy updates and new features which lifted arb down.

D to C adoption continue to rise in the quarter, where adoption is tracking ahead of plan.

These initiatives reinforce june's journeys position as a durable high quality franchise and provide a foundation for incremental margin benefits as we scale. These levers.

Turning now to specific line items in our P&L.

Cost of revenue increased six 1% year over year, reflecting both our revenue growth and higher amortization expense associated with the Super play acquisition.

Operating expenses were up 21, 6% year over year, driven primarily by higher performance marketing investment and the GAAP impact of increased contingent consideration both related to the Super play acquisition.

R&D decreased by <unk>, 4% year over year, primarily driven by the termination of our long term cash compensation program offset by increases in employee compensation related to increased head count.

Operator: Tom, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press Star 101 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press Star 101 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Tae Lee, SVP, Corporate Finance and Investor Relations. Please go ahead.

We do not expect material contributions to 2025 results.

June's journey revenue was $68 3 million down one 2% sequentially and down two 7% year over year.

Yeah.

Sales and marketing increased by 37, 6% year over year, primarily driven by incremental performance marketing spend for the Super play portfolio.

The franchise remained resilient supported by a strong live ops cadence and personalized in game offers and we aligned our content deeming with an updated live ops and monetization strategy.

As planned we saw meaningful sequential decline in performance marketing during Q3, which contributed to the improvement in adjusted EBITDA.

During the quarter, we deepen monetization through economy updates and new features which lifted arb down.

We expect the seasonal pattern of heavier spend in the first half.

Craig Abrahams: Welcome, everyone, and thank you for joining us today for the third quarter 2025 earnings call for Playtika Holding Corp. Joining me on the call today are Robert Antokol, co-founder and CEO of Playtika, and Craig Abrahams, Playtika's president and chief financial officer. I would like to remind you that today's discussion may contain forward-looking statements, including, but not limited to, the company's anticipated future revenue and operating performance, and more specifically, the future performance of our individual titles such as Slotomania or our recently launched Disney Solitaire. These statements and other comments are not a guarantee of future performance, but rather are subject to risks and uncertainties, some of which are beyond our control. These forward-looking statements apply as of today, and you should not rely on them as representing our views in the future. We undertake no obligation to update these statements after this call.

D to C adoption continue to rise in the quarter, where adoption is tracking ahead of plan.

<unk> down in the second half to continue next year, reflecting the cadence of our marketing strategy and earn out timing rather than a structural change to long term margin levels.

These initiatives reinforce june's journeys position as a durable high quality franchise and provide a foundation for incremental margin benefits as we scale. These levers.

G&A expenses increased by 18, 8% year over year, including a $38 million GAAP expense related to the revaluation of contingent consideration from the Super play acquisition.

Turning now to specific line items in our P&L.

Cost of revenue increased six 1% year over year, reflecting both our revenue growth and higher amortization expense associated with the Super play acquisition.

Given super pleased momentum, we remind investors that the acquisition related contingent consideration may fluctuate in any fair value Remeasurement would flow through GAAP G&A, but is excluded from adjusted EBITDA.

Our adjusted EPS also excludes this impact.

R&D decreased by <unk>, 4% year over year, primarily driven by the termination of our long term cash compensation program offset by increases in employee compensation related to increased head count.

Excluding adjustments related to contingent consideration G&A would've declined year over year by 23, 7% largely driven by the termination of our long term cash compensation program.

Craig Abrahams: We have posted an accompanying slide deck to our investor relations website, which contains information on forward-looking statements and non-GAAP measures, and we will also post our prepared remarks immediately following the call. For a more complete discussion of the risks and uncertainties, please see our filings with the SEC. With that, I will now turn the call over to Robert.

As previously disclosed Super placed first year earn out is tied to year over year portfolio revenue growth of the Super play games versus a $342 million baseline.

Sales and marketing increased by 37, 6% year over year, primarily driven by incremental performance marketing spend for the Super play portfolio.

When revenue growth exceed 60% the multiple applied to incremental gross revenue steps up to two times from one five times subject to the portfolio, achieving adjusted EBITDA above negative $10 million.

As planned we saw meaningful sequential decline in performance marketing during Q3, which contributed to the improvement in adjusted EBITDA.

Robert Antokol: Good morning, and thank you, everyone, for joining our call today. As we approach the end of 2025, I want to start with SuperPlay. Our SuperPlay portfolio is driving exceptional growth, led by Disney Solitaire, which has scaled faster than any title in our 15-year history. Disney Solitaire continues to outperform expectations, establishing itself as one of 2025's standout new mobile launches. The title is tracking an annualized run rate above $200 million, supported by strong engagement and rising D2C mix. Building on that momentum, I am pleased to announce that we have expanded our collaboration with Disney and Pixar Games and are developing a new title in the SuperPlay pipeline. We will share additional details at the appropriate time. Turning to the quarter, I'm proud to share that Playtika continues to execute with focus and discipline.

We expect the seasonal pattern of heavier spend in the first half and a step down in the second half to continue next year, reflecting the cadence of our marketing strategy and earn out timing rather than a structural change to long term margin levels.

I am pleased to say the business is currently tracking towards that 60% growth threshold subject to the same conditions.

As of September 30th we had approximately $648 million in cash cash equivalents and short term investments.

G&A expenses increased by 18, 8% year over year, including a $38 million GAAP expense related to the revaluation of contingent consideration from the Super play acquisition.

Looking at our operating metrics average GPU declined by six 3% sequentially and increased 17, 6% year over year to 354000.

Given super plays momentum, we remind investors that the acquisition related contingent consideration may fluctuate in any fair value Remeasurement would flow through GAAP G&A, but is excluded from adjusted EBITDA.

Our average <unk> decreased six 8% sequentially and increased seven 9% year over year.

<unk> increased two 3% sequentially and was flat year over year.

Our adjusted EPS also excludes this impact.

Finally, we expect to finish the year within our guidance range for both revenue and adjusted EBITDA.

Excluding adjustments related to contingent consideration.

G&A would've declined year over year by 23, 7% largely driven by the termination of our long term cash compensation program.

With that we'd be happy to answer your questions.

Thank you at this time, we will conduct a question and answer session.

As previously disclosed Super placed first year earn out is tied to year over year portfolio revenue growth of the Super play games versus a $342 million baseline.

As a reminder to ask a question you would need to press star one one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

Robert Antokol: This quarter, we delivered another record in direct-to-consumer revenue, reaching an all-time high with a broad-based contribution from Bingo Blitz, June's Journey, Solitaire Grand Harvest, and our SuperPlay portfolio. This performance reinforced the strength of our strategy to deepen player relationships and protect our operating margins, supported by recent policy changes that opened new payment channels and expanded our ability to route transactions through direct-to-consumer platforms. As we look at 2026, our portfolio transitions will continue. This includes ongoing work to strengthen our slot business. Slotomania remains strategically important to Playtika, and while it continues to be a significant headwind for the business, we are focused on stabilizing the franchise over time. In parallel, we will continue relocating resources toward higher-return opportunities and away from titles that no longer meet our ROI thresholds. We believe this strategy will strengthen our portfolio mix and enhance long-term cash generation.

We spend Bob on a comparable the Q&A roster.

Our first question comes from Colin Sebastian from Baird. Please go ahead.

Thanks, and good morning, and good good afternoon, guys I guess I guess first off could you expand a bit maybe on the commentary around reallocating resources and then.

I am pleased to say the business is currently tracking towards that 60% growth threshold subject to the same conditions.

The AI initiatives at the studio level, maybe which games can be impacted and where youre seeing the most productive uses of AI.

As of September 30th we had approximately $648 million in cash cash equivalents and short term investments.

Hey, John Thanks for the question. So we continue to look at.

Looking at our operating metrics average GPU declined by six 3% sequentially and increased 17, 6% year over year to 354000.

Our acquired titles investing in growth, there and our biggest franchises as well.

I think we've had obviously a lot of benefit from DTC expansion this quarter and looking at rolling that out across all titles as well as our Super play titles.

Our average <unk> decreased six 8% sequentially and increased seven 9% year over year.

<unk> increased two 3% sequentially and was flat year over year.

<unk>.

In terms of capital allocation, we continue to look to return capital to shareholders through dividends and buybacks as well as pursuing selective accretive M&A and.

Finally, we expect to finish the year within our guidance range for both revenue and adjusted EBITDA.

So I think nothing nothing has changed there.

With that we'd be happy to answer your questions.

In terms of your question as it relates to AI.

Constantly looking at ways that we can enhance our player experience and.

Thank you at this time, we will conduct a question and answer session.

Do it in a way that allows our studios to be more efficient and.

As a reminder to ask a question you will need to press star one one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

And move more quickly as they release features for our customers to improve our products.

Robert Antokol: With that context, Craig will walk through the details behind our record D2C numbers, provide updates on our top titles, and review the quarter's results in greater detail.

Personalizing products is probably where we see a lot of the upside in terms of our live ops capabilities as well as providing player support.

Please standby Elbe on a comparable the Q&A roster.

Our first question comes from Colin Sebastian from Baird. Please go ahead.

Thanks for that Greg and maybe just as a follow up.

Craig Abrahams: Thank you, Robert. Our performance in the third quarter reflects the strength of our operating model and disciplined approach to investment. Our direct-to-consumer mix continued to expand margins, and SuperPlay's performance underscores the strategic rationale behind our acquisition strategy. We also advanced targeted investments in our new games pipeline and platform capabilities, including AI-driven initiatives in our House of Funds studio that replace manual processes, improving efficiency and scalability across live operations. We are reassessing our cost structure across the organization to sharpen operating efficiency while protecting capacity to invest behind our highest return opportunities. On spending, we executed the planned step-down in second-half marketing, and CapEx remains on track to finish below our full-year guidance. With that, let's get into the details of the quarter. We generated $674.6 million of revenue in the quarter, down 3.1% sequentially, and up 8.7% year-over-year.

Thanks, and good morning, and good good afternoon, guys I guess I guess first off could you expand a bit maybe on the commentary around reallocating resources and then.

On your commentary on marketing the conversion or monetization metrics look pretty solid here, even with the step down in marketing. So I guess is the need to lean back into spending on paid acquisition does that is that more about supporting new games or some of the other factors that you mentioned, including DTC.

The AI initiatives at the studio level, maybe which games can be impacted and where youre seeing the most productive uses of AI.

Sure if we look at our growth titles.

Gone.

Thanks for the question. So we continue to look at our acquired titles investing in growth there and our biggest franchises as well.

No.

With the structure of the Super play earn out a lot of the marketing was heavy in the first half and pare down in the second half. So we expect that to ramp up again at the start of next year.

I think we've had obviously a lot of benefit from DTC expansion this quarter and looking at rolling that out across all titles as well as our Super play titles.

As it relates to our biggest franchises and our other growth titles.

Marketing is a key to drive continue to drive growth, where we have a strong return on investment. So we apply that return on investment criteria as we analyze all of our investment opportunities.

In terms of capital allocation, we continue to look to return capital to shareholders through dividends and buybacks as well as pursuing selective accretive M&A and so I think nothing nothing has changed there.

And when we see opportunities to invest we're going to deploy capital and where we see opportunities where the UA costs are higher or does it make sense, we'll pull back.

In terms of your question as it relates to AI.

Constantly looking at ways that we can enhance our player experience and.

Craig Abrahams: GAAP net income was $39.1 million, up 17.8% sequentially, and down 0.5% year-over-year. Adjusted EBITDA was $217.5 million, up 30.2% sequentially, and up 10.3% year-over-year, driven primarily by the planned step-down in sales and marketing for our SuperPlay titles, and continued margin momentum from our D2C business. D2C revenue crossed the $200 million threshold to $209.3 million, up 19% sequentially, and up 20% year-over-year. Growth was broad-based across the portfolio, with the majority of D2C revenue coming from our casual games, consistent with the portfolio transition underway to position the company for long-term success. We develop and operate our own D2C platforms, which enable us to achieve outstanding approval rates, reduce reliance on third-party providers, and optimize processing methodologies for even stronger results.

Do it in a way that allows our studios to be more efficient and.

Okay, Thanks, and nice job guys.

And move more quickly as they release features for our customers to improve our products.

Thank you.

Our next question comes from Omar <unk> from Bank of America. Please go ahead.

Personalizing products is probably where we see a lot of the upside in terms of our live ops capabilities as well as providing player support.

Alright. Thanks.

Correct, Greg good to hear that Super play is working well.

Thanks for that Greg and maybe just as a follow up.

As we get to the end of 2025 I was wondering if you.

Could share any thoughts about.

The dividend in 2026.

And you're thinking about capital allocation in 2026, if its any different in 2025.

Sure if we look at our growth titles.

Thanks for the question.

Can share anything now on the future of what we can say is we're constantly.

No.

With the structure of the Super play earn out a lot of the marketing was heavy in the first half and pare down in the second half. So we expect that to ramp up again at the start of next year.

Evaluating our capital allocation framework, making sure it makes sense in light of.

What's going on in the business and the market more broadly.

As it relates to our biggest franchises and our other growth titles.

And Super play has had tremendous performance we gave a slide.

Marketing is a key to drive continue to drive growth, where we have a strong return on investment. So we apply that return on investment criteria as we analyze all of our investment opportunities.

Craig Abrahams: As Google Play policies evolve in the US following recent court rulings, we see a potential tailwind for further D2C adoption in economics, subject to final implementation and our own testing. D2C represented 31% of total revenue this quarter, and we are working to achieve 40% on a run-rate basis in the next two years. Now, let's review the performance of our top three titles. Bingo Blitz delivered another record quarter with revenue of $162.6 million, up 1.5% sequentially and 1.7% year-over-year, underscoring the franchise's resilience and ongoing leadership in its category. The studio drove results through seasonal programming, personalized promotions, and VIP engagement, supported by pacing enhancements and optimized offer packaging to sustain payer mix and time in game.

And the in the presentation that we uploaded to the IR site. This morning that shows that sort of play is on track to grow them at the 60% threshold, so 60% growth over the $342 million baseline and so its tremendous performance from our studio that is continuing to focus on scaling their margins.

And where we see opportunities to invest we're going to deploy capital and where we see opportunities where the UA costs are higher or does it make sense, we'll pull back.

And becoming more profitable as they look into next year and so with that.

Okay, Thanks, and nice job guys.

It's really impressive growth.

Thank you.

Our next question comes from Omar <unk> from Bank of America. Please go ahead.

Yes.

Thank you.

Alright. Thanks.

Our next question comes from Aaron Lee from Macquarie. Please go ahead.

Correct, Greg good to hear that Super play is working well.

Hey, good morning, guys. Thanks for taking my question.

As we get to the end of 2025 I was wondering if you.

Nice results this quarter.

There is also recent news that Google is borrowings sweepstakes from advertising under the social Casino category you could just curious do you see this as being a meaningful tailwind for your business at all.

Could share any thoughts about either.

The dividend in 2026.

And Youre thinking about capital allocation in 2026, if its any different in 2025.

Craig Abrahams: These initiatives reflect our continued investment in live ops cadence, personalized merchandising, and routing more transactions through D2C channels, strategies that not only drove strong engagement, but positioned Bingo Blitz for incremental margin and mixed benefits as adoption scales. Slotomania revenue was $68.5 million, down 20.8% sequentially and 46.7% year-over-year. This performance reflects the deliberate rebalancing of the game economy we initiated earlier this year, work we anticipated would create revenue pressure as we recalibrate progression, rewards, and pricing to support healthier long-term cohort returns. While we worked through these changes, we intentionally reduced performance marketing to avoid inefficient spending, which contributed to lower Slotomania DAU in the quarter. Once the pace of decline moderates, we plan to selectively re-accelerate performance marketing to rebuild scale.

We don't we don't comment on speculation, but obviously, it's a situation we will continue to monitor and wherever we see opportunities we'll deploy capital.

Okay.

Thanks for the question Yeah, we can share anything now on the future of what we can say is we're constantly.

Okay fair enough.

Evaluating our capital allocation framework, making sure it makes sense in light of.

And then on Jackpot tour nice to see Thats still on track for a fourth quarter launch in the past you've said that the game will be differentiated from the other slot titles do you expect any cannibalization of your current slot portfolio at once that launches.

Whats going on in the business and the market more broadly.

And Super play has had tremendous performance we gave a slide.

And the in the presentation that we uploaded to the IR site. This morning that shows that Super play is on track to grow them at the 60% threshold, so 60% growth over the $342 million baseline and so its tremendous performance from our studio that is continuing to focus on scaling their margins.

Thanks for the question.

No.

As I said in the past.

But the tool is going to be a little bit different.

We will employ a different audience and.

Today, when we look at our portfolio.

The social casino, we see some places that we deemed been in the past. So we are very excited about it and we think it will help us in order to support it.

And becoming more profitable as they look into next year and so with that it's.

Thats really impressive growth.

Thank you.

The issue that we head into Dominion in the past and this is a very good day.

Yes.

Thank you.

Craig Abrahams: We are not assuming a near-term revenue recovery, and our focus remains on improving game experience, payer retention, and ROI discipline marketing, with the goal of stabilizing the franchise. Looking ahead, we remain on track to launch our new slot title, Jackpot Tour, this quarter, but we do not expect material contributions to 2025 results. June's Journey revenue was $68.3 million, down 1.2% sequentially, and down 2.7% year-over-year. The franchise remained resilient, supported by a strong live ops cadence and personalized in-game offers, and we aligned our content theming with an updated live ops and monetization strategy. During the quarter, we deepened monetization through economy updates and new features, which lifted ARPDAO. D2C adoption continued to rise in the quarter, where adoption is tracking ahead of plan.

Our next question comes from Aaron Lee from Macquarie. Please go ahead.

And for US for next year for growth of course.

<unk>.

Alright sounds good congrats on the quarter.

Hey, good morning, guys. Thanks for taking my question.

Results this quarter.

Thank you.

There is also recent news that Google is borrowings sweepstakes from advertising under the social casino category.

Our next question comes from Doug groups from TD Cowen. Please go ahead.

Hey, Thank you.

Just curious do you see this as being a meaningful tailwind for your business at all.

Wanted to ask about the big acceleration in D. C growth you had I think you mentioned that Super play was a contributor when did you when did you move their titles on to your DTC platform are all their titles on it and was there anything else that you'd call out that you did specifically in the quarter that drove that big step up in DTC growth. Thank you.

We don't we don't comment on speculation, but obviously, it's a situation we will continue to monitor and wherever we see opportunities we'll deploy capital.

Okay fair enough.

So.

We've spoken in the past one of our biggest advantage is our DTC platform.

The way this is our own cloud forward that they will developing well supporting we're not working with any third party, which is always very important to say.

Craig Abrahams: These initiatives reinforce June's Journey's position as a durable, high-quality franchise, and provide a foundation for incremental margin benefits as we scale these levers. Turning now to specific line items in our P&L. Cost of revenue increased 6.1% year-over-year, reflecting both our revenue growth and higher amortization expense associated with the SuperPlay acquisition. Operating expenses were up 21.6% year-over-year, driven primarily by higher performance marketing investment, and the GAAP impact of increased contingent consideration, both related to the SuperPlay acquisition. R&D decreased by 0.4% year-over-year, primarily driven by the termination of our long-term cash compensation program, offset by increases in employee compensation related to increased headcount. Sales and marketing increased by 37.6% year-over-year, primarily driven by incremental performance marketing spend for the SuperPlay portfolio. As planned, we saw a meaningful sequential decline in performance marketing during Q3, which contributed to the improvement in adjusted EBITDA.

Thanks for the question.

No.

As I said in the past.

Well speaking about the <unk> game.

The tool is going to be a little bit different.

But the most of our games already is on our platform will only need to see platform.

The polls.

It's a different audience and today.

Today, when we look at our portfolio.

We're very focused in this well really as Craig said in the past wherever the discipline with the expense and will.

Social casino, we see some places that we deemed been in the past. So we are very excited about it and we think it will help us in order to support it.

Focusing on <unk>.

The cash flow of the revenue and the philosophy for US. This is one of the biggest Shannon is too broad.

The issue that we head into Dominion in the past and this is a very good day.

EBITDA for next year.

As I said this is one of our biggest advantage and there will be more surprises in the future.

And for US for next year for growth of course.

<unk>.

Alright sounds good congrats on the quarter.

Doug specifically in the third quarter U S iOS.

Thank you.

<unk> was the major catalysts driving growth.

Our next question comes from Doug groups from TD Cowen. Please go ahead.

Okay. Thank you.

<unk>.

Hey, Thank you.

Thank you.

Wanted to ask about the big acceleration in D. C growth you had I think you mentioned that Super play was a contributor or when did you. When did you move their titles on to your DTC platform are all their titles on it but was there anything else that you'd call out that you did specifically in the quarter that drove that big step up in DTC growth. Thank you.

Our next question comes from Eric Sheridan from Dolby.

Goldman Sachs. Please go ahead.

Thanks, so much for taking the question two if I could.

How should we be thinking about what's going into stabilizing the title broadly on the operational side and how do we think about the duration path to stabilizing that that'd be number one and then number two when you think about allocating marketing dollars and.

So.

Craig Abrahams: We expect this seasonal pattern of heavier spend in the first half and a step-down in the second half to continue next year, reflecting the cadence of our marketing strategy and earn-out timing rather than a structural change to long-term margin levels. G&A expenses increased by 18.8% year-over-year, including a $30.8 million GAAP expense related to the revaluation of contingent consideration from the SuperPlay acquisition. Given SuperPlay's momentum, we remind investors that the acquisition-related contingent consideration may fluctuate, and any fair value remeasurement would flow through GAAP G&A, but is excluded from adjusted EBITDA. Our adjusted EPS also excludes this impact. Excluding adjustments related to contingent consideration, G&A would have declined year-over-year by 23.7%, largely driven by the termination of our long-term cash compensation program. As previously disclosed, SuperPlay's first-year earn-out is tied to year-over-year portfolio revenue growth of the SuperPlay games versus a $342 million baseline.

We've spoken in the past one of our biggest advantage is our DTC platform.

Incremental investments into the user base, how would you characterize the different return profiles youre seeing right now from user acquisition versus user retention and driving more frequent behavior among existing users. Thank you.

The way this is our own cloud forward that they will do well.

Eloping well supporting a we're not working with any third party, which is always very important to say.

Well speaking about the age game differently, but most of our games already on our platform on the DTC platform.

Yes.

So.

I will speak a little bit slow demand and then a new CMO.

We're very focused in this well really as Craig said in the past wherever the discipline with the expense.

Okay.

About your second question, so the guidance little money as we said in the beginning of the year. We know what is our focus we are working very hard.

Focusing on <unk>.

The cash flow of the revenue and therefore for US. This is one of the biggest Shannon is to draw.

We believe we can stabilize the game that we believe we can make the game a bit though.

EBITDA for next year.

As I said this is one of our biggest advantage and there will be more surprises in the future.

We are walking on the economy of the game, we did many many different approaches this year and by the way when you look at that what we used to and if you look at <unk>.

Doug specifically in the third quarter U S. iOS was the was the major catalysts driving growth.

Good thing, but that's to you.

<unk> is doing very well, we know how to finish the game and we are very positive in our ability to do it.

Okay. Thank you.

Fourth local money.

Thank you.

Our next question comes from Eric Sheridan from Dolby.

Good thing Daniel can answer.

Regarding our marketing so it's basically it really depends on the game and the different kpis that we are looking but theoretically.

Goldman Sachs. Please go ahead.

Thanks, so much for taking the question two if I could.

Slovenia, how should we be thinking about what's going into stabilizing the title broadly on the operational side and how do you think about the duration path to stabilizing that that'd be number one and then number two when you think about allocating marketing dollars and.

For each game, we have some games that they are 15 years old. So obviously, we are always bringing back players.

Craig Abrahams: When revenue growth exceeds 60%, the multiple applied to incremental gross revenue steps up to 2x from 1.25x, subject to the portfolio achieving adjusted EBITDA above negative $10 million. I am pleased to say the business is currently tracking towards that 60% growth threshold, subject to the same conditions. As of 30 September 2023, we had approximately $640.8 million in cash, cash equivalents, and short-term investments. Looking at our operating metrics, average DPU declined by 6.3% sequentially and increased 17.6% year-over-year to 354,000. Our average DAU decreased 6.8% sequentially and increased 7.9% year-over-year. ARPDAO increased 2.3% sequentially and was flat year-over-year. Finally, we expect to finish the year within our guidance range for both revenue and adjusted EBITDA. With that, we'd be happy to answer your questions.

And we believe that the environment and the excitement that we provide to them is something that will keep them claim so for each game, we have different allocation.

We're targeting <unk> for user acquisition.

In some places they're targeting can be heavily shift their marketing budget.

Yes.

Yeah.

Thank you.

Yes.

Our next question comes from Eric Handler.

Yes.

So.

I will speak a little bit.

From Roth capital. Please go ahead.

New CMO.

Good morning, Thanks for the question given the success that you've had and scaling Disney Solitaire.

Okay.

<unk> second question, so the guidance little money as we said in the beginning of the year. We know what these are our focus we are working very well.

Part of this year I'm curious if that's having.

Making a change any of your thoughts or desires with other internally produced games.

We believe we can stabilize the game that we believe we can make the game a bit though.

We are walking on the economy of the game, we did many many different approaches this year and by the way when you look at that what we used to and you look at <unk>.

Well I think you can.

Thanks for the question, Eric I think you can see this quarter.

That we announced on this call them the new fourth game from Super play Disney title and so obviously the success of Disney Solitaire has given us and our partner our confidence and launching a fourth title.

Good thing, but Thats a few U S.

This unit is doing very well, we know how to finish the game and we are very positive in our ability to do it.

Robert Antokol: Thank you. At this time, we will conduct a question-and-answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while I compile the Q&A roster. Our first question comes from Collins Sebastian from Baird. Please go ahead.

Fourth local money.

Market data and just Didnt answer.

Regarding the marketing so it's basically it really depends on the game and the different kpis that we are looking but theoretically.

Super play is three for three in terms of launching successful games at scale.

Not sure of any other studio in the West I can think of that's had that reason success and so further investing with them in a fourth title.

For each game, we have some games that they are 15 years old. So obviously, we are always bringing back players.

And we believe that the environment and the excitement that we provide to them is something that will keep them claim so for each game, we have different allocation.

In our branded wanted that is something we're really excited about them. So I think there definitely has had an influence in our thinking.

Doug Creutz: Thanks, good morning and good afternoon, guys. I guess, first off, could you expand a bit maybe on the commentary around reallocating resources and then the AI initiatives at the studio level? Maybe which games could be impacted and where you're seeing the most productive uses of AI?

We have jackpot tour coming out later this year and.

We're targeting an for user acquisition.

In some places they're targeting can be heavily shift their marketing budget.

They are looking at other pipeline opportunities to grow as we look forward.

Thanks, Greg.

Thank you.

Yeah.

Our next question comes from Albert Kim from UBS. Please go ahead.

Our next question comes from Eric Handler.

From Roth capital. Please go ahead.

Craig Abrahams: Hey, Colin. Thanks for the question. We continue to look at our acquired titles, investing in growth there, in our biggest franchises as well. I think we've had, obviously, a lot of benefit from D2C expansion this quarter, and looking at rolling that out across all titles as well as our SuperPlay titles. In terms of capital allocation, we continue to look to return capital to shareholders through dividends and buybacks, as well as pursuing selective accretive M&A. I think nothing has changed there. In terms of your question as it relates to AI, constantly looking at ways that we can enhance our player experience and do it in a way that allows our studios to be more efficient and move more quickly as they release features for our customers to improve our products.

Okay.

Good morning, Thanks for the question.

Florida.

Given the success that you've had and scaling Disney Solitaire.

Social casino got it.

Albert we can't hear you.

As part of this year.

Im curious if thats having.

Yeah.

Making change any of your thoughts or desires with other internally produced games.

Is that.

Well when we fly next question.

Our next question comes from Matthew cost from Emmis. Please go ahead.

Well I think thanks.

Hi, Brian Thanks for the questions.

Thanks for the question, Eric I think you can see this quarter.

So EBITDA for the quarter came in very strong really strong margins well ahead of expectation.

We announced on this call them the new fourth game from Super play is it Disney title and so obviously the success of Disney Solitaire has given us and our partner our confidence and launching a fourth title.

Help us think through the moving pieces to hold the EBITDA guide that each of the year and what are kind of the puts and takes there.

And then in terms of users and payers I think are I think we're down just a bit quarter on quarter in the third quarter or is that just a function primarily of installed anemia and casino.

Super play is three for three in terms of launching successful games at scale.

Craig Abrahams: Personalizing products is probably where we see a lot of the upside in terms of our live ops capabilities, as well as providing player support.

Not sure of any other studio in the West I can think of that's had that reason success and so further investing with them in a fourth title and.

You so much.

Sure. So on the first question, we had guided previously that marketing would come down in the second half.

Branded wanted that something we're really excited about so I think there definitely has had an influence on our thinking.

Doug Creutz: Thanks for that, Craig. Maybe just as a follow-up, on your commentary on marketing, the conversion and monetization metrics look pretty solid here even with the step-down in marketing. I guess, is the need to lean back into spending on paid acquisition more about supporting new games or some of the other factors that you mentioned, including D2C?

I think obviously that we'd ever kind of laid out the split quarter to quarter.

We have jackpot tour coming out later this year and.

So marketing came down this quarter, we're expecting to invest more in marketing.

We're constantly looking at other pipeline opportunities to grow as we look forward.

As we look into the into the fourth quarter.

As we see opportunities for investment I think the enhancement on DTC and the and the nice jump that we had there in terms of penetration to 31% helped drive some margin tailwind as well.

Thanks, Greg.

Thank you.

Our next question comes from Albert <unk> Kim from UBS. Please go ahead.

Craig Abrahams: Sure. If we look at our growth titles, with the structure of the SuperPlay earn-out, a lot of the marketing was heavy in the first half and pared down in the second half. We expect that to ramp up again at the start of next year. As it relates to our biggest franchises and our other growth titles, marketing is a key to continue to drive growth where we have strong return on investment. We apply that return on investment criteria as we analyze all of our investment opportunities. Where we see opportunities to invest, we're going to deploy capital, and where we see opportunities where the UA costs are high or doesn't make sense, we'll pull back.

Okay.

Yes.

And.

Florida.

As we look at the portfolio as a whole.

Okay, social casino got it.

We can see.

And to selectively look for opportunities for investment on the marketing side. So we've decided to keep our guidance stable.

Yeah.

Albert we can't hear you.

Well.

In terms of and then in terms of the Kpis.

Is that.

We don't break out the <unk>.

What I can say is we did pull back on slot ammonia as we saw the underperformance there and we'll continue to invest more.

Well when we fly next question.

As we add product enhancements and see stabilization, there and invest behind behind growth opportunities.

Our next question comes from Matthew cost from <unk>. Please go ahead.

Hi, everyone. Thanks for the questions.

Doug Creutz: Okay, thanks and nice job, guys.

Great. Thank you.

EBITDA for the quarter came in very strong you know really strong margins well ahead of our expectation.

Robert Antokol: Thank you. Our next question comes from Omar Dusauqi from Bank of America. Please go ahead.

Thank you.

Our next question comes from Albert Kim from UBS. Please go ahead.

Help us think through the moving pieces to hold the EBITDA guide for the year and what are kind of the puts and takes there.

Omar Dusauqi: Hi, thanks. Craig, good to hear that Superplay is working well. As we get to the end of 2025, I was wondering if you could share any thoughts about the dividend in 2026, and your thinking about capital allocation in 2026, if it's any different than 2025.

Hi.

Thanks for taking the question hopefully you can hear me now but.

And then in terms of users and payers you know I think I think we're down just a bit quarter on quarter in the third quarter or is that just a function primarily of install the anemia and casino.

Just wanted to follow up on sort of media and the wider social casino category.

Are there any shifts in the competitive dynamic that you would call out since last quarter.

And you mentioned that there was some strengthening of the U S and our U S business.

Thank you so much.

Sure. So on the first question, we had guided previously that marketing would come down in the second half.

Does the international opportunity stand in your point of view and which regions could you drive the most upside in the coming years. Thank you.

I think obviously that then we'd have kind of laid out the split quarter to quarter.

Sure clarification on U S. Pos.

Craig Abrahams: Thanks for the question. Yeah, we can't share anything now on the future. What we can say is we're constantly evaluating our capital allocation framework, making sure it makes sense in light of what's going on in the business and the market more broadly. SuperPlay has had tremendous performance. We gave a slide in the presentation that we uploaded to the IR site this morning that shows that SuperPlay is on track to grow at the 60% threshold, so 60% growth over the $342 million baseline. It's tremendous performance from a studio that is continuing to focus on scaling their margins and becoming more profitable as they look into next year. With that, it's really impressive growth.

Marketing came down this quarter, we're expecting to invest more in marketing as.

What we were saying was that we saw strong DTC performance in that channel.

As we look into the end of the fourth quarter.

As we see opportunities for investment I think the enhancement on D C and the and the nice jump that we had there in terms of penetration to 31% helped drive some margin tailwind as well.

It wasn't a comment on broader performance for that market.

And.

With the success of Disney solid there, so I think that.

You know that as we look at the portfolio as a whole.

We always look at continued international growth.

You know we continue to selectively look for opportunities for investment on the marketing side. So we've decided to keep our guidance table.

But U S iOS and U S. Android opportunities continue to be probably the biggest market for us.

Thanks.

In terms of India in terms of the Kpis.

As the competition.

<unk> I don't think the market has changed quarter to quarter. The dynamics there have been pretty consistent.

We don't break out the <unk>.

What I can say is you know we did pull back on slot ammonia as we saw the underperformance there and we'll continue to invest more.

Omar Dusauqi: Thank you.

Alright, I am showing no further questions at this time. Thank you for your participation in today's conference.

Robert Antokol: Thank you. Our next question comes from Aaron Lee from Macquarie. Please go ahead.

As we add product enhancements and see stabilization, there and invest behind behind growth opportunities.

This concludes the program you may now disconnect.

Great. Thank you.

Aaron Lee: Hey, good morning, guys. Thanks for taking my question. Nice results this quarter. There was also recent news that Google is barring sweepstakes from advertising under the social casino category. I'm just curious, do you see this as being a meaningful tailwind for your business at all?

Thank you.

Our next question comes from Albert <unk> from UBS. Please go ahead.

Hi.

Thanks for taking the question hopefully you can hear me now.

Yes, just wanted to follow up on Slovenia, and wider social casino category.

Craig Abrahams: We don't comment on speculation, but obviously it's a situation we'll continue to monitor, and wherever we see opportunities, we'll deploy capital.

Are there any shifts in the competitive dynamic that you would call out since last quarter.

You mentioned that there was some strengthening of the U S and our U S business.

Does the international opportunity stands and your point of view and which regions could you drive the most upside in the coming years. Thank you.

Aaron Lee: Fair enough. On Jackpot Tour, nice to see that's still on track for a fourth-quarter launch. In the past, you've said that the game will be differentiated from your other slot titles. Do you expect any cannibalization of your current slot portfolio once that launches?

Sure clarification on U S iOS.

What we were saying was that we saw strong DTC performance in that channel.

Robert Antokol: Thanks for the question. No. As I said in the past, Jackpot Tour is going to be a little bit different. We'll approach a different audience. Today, when we look at our portfolio at the social casino, we see some places that we didn't be in the past. We are very excited about it, and we think it will help us to support the issues that we had in Slotomania in the past. This is a very good direction for us for next year, for growth, of course. Thank you.

It wasn't a comment on broader performance for that market.

You know as we look at international markets I think as we've seen through the Super play acquisition, we've seen very strong performance in markets like Japan, and other markets opening up for us and so with that with the success of Disney saw there. So I think that you know we always look at our continued international growth.

But U S iOS and U S. Android opportunities continue to be probably the biggest market for us.

Thanks.

Alright.

Competition for slot ammonia I don't think the market has changed quarter to quarter. The dynamics there have been pretty consistent.

Aaron Lee: All right, sounds good. Congrats on the quarter.

Robert Antokol: Thank you. Our next question comes from Doug Creutz from TD Cowen. Please go ahead.

Alright, I am showing no further questions at this time thank.

Thank you for your participation in today's conference.

Doug Creutz: Hey, thank you. I just wanted to ask about the big acceleration in D2C growth you had. I think you mentioned that SuperPlay was a contributor. When did you move their titles onto your D2C platform? Are all their titles on it? Was there anything else that you call out that you did specifically in the quarter that drove that big step up in D2C growth? Thank you.

This concludes the program you may now disconnect.

Okay.

Yeah.

Okay.

[music].

Robert Antokol: As we spoke in the past, one of our biggest advantages is our D2C platform. By the way, this is our own platform that we are developing, we are supporting, we are not working with any third parties. This is always, for me, very important to say. We are not speaking about each game differently, but most of our games already are on our platform, on the D2C platform. We are very focused on this. We are very, as Craig said in the past, we are very disciplined with the expense, and we are very focused on the cash flow, the revenues. For us, this is one of the biggest channels to grow our EBITDA for next year. As I said, this is one of our biggest advantages, and there will be more surprises in the future.

Yes.

[music].

Craig Abrahams: Doug, specifically in the third quarter, US iOS was the major catalyst driving growth.

Doug Creutz: Okay, thank you.

Robert Antokol: Thank you. Our next question comes from Eric Sheridan from Goldman Sachs. Please go ahead.

Eric Sheridan: Thanks so much for taking the question. If I could, on Slotomania, how should we be thinking about what's going into stabilizing that title broadly on the operational side, and how to think about the duration path to stabilizing that? That'd be number one. Number two, when you think about allocating marketing dollars and incremental investments into the user base, how would you characterize the different return profiles you're seeing right now from user acquisition versus user retention and driving more frequent behavior among existing users? Thank you.

Robert Antokol: I will speak a little bit about Slotomania, and then Neil, our CMO, will speak about your second question. Regarding Slotomania, as we said in the beginning of the year, we know what is our focus. We are working very hard, and we believe we can stabilize the game. We believe we can make the game better. We are working on the economy of the game. We did many, many different approaches this year. By the way, when you look at our history and you look at WSOP games that had the greatest thing in the last few years, and this year is doing very well, we know how to fix games, and we are very positive in our ability to do it. For Slotomania, regarding marketing, Neil can answer.

Neil: Hi. Regarding the marketing, it basically really depends on the game and the different KPIs that we are looking. Theoretically, for each game, we have some games that are 15 years old. Obviously, we are always bringing back players that churn, and we believe that the environment and the excitement that we provide to them is something that will keep them playing. For each game, we have different allocations for retargeting and for user acquisition. In some places, the retargeting can be heavily shifting the marketing budget. Thank you.

Eric Sheridan: Thank you.

Robert Antokol: Thank you. Our next question comes from Eric Handler from Roth Capital. Please go ahead.

Matt Cost: Good morning. Thanks for the question. Given the success that you've had in scaling Disney Solitaire this far this year, I'm curious if that's making you change any of your thoughts or desires with other internally produced games.

Craig Abrahams: Well, I think you can—thanks for the question, Eric. I think you can see this quarter that we announced on this call. The new fourth game from Superplay is a Disney title. Obviously, the success of Disney Solitaire has given us and our partner confidence in launching a fourth title. Superplay is three for three in terms of launching successful games at scale. I'm not sure of any other studio in the West I can think of that's had that recent success. Further investing with them in a fourth title, and a branded one at that, is something we're really excited about. I think there definitely has had an influence on our thinking. We have Jackpot Tour coming out later this year, and we're constantly looking at other pipeline opportunities to grow as we look forward.

Yes.

[music].

Okay.

Matt Cost: Thanks, Craig.

Robert Antokol: Thank you. Our next question comes from Albert Kim from UBS. Please go ahead.

Albert Kim: I'm Slotomie.

Robert Antokol: Okay. Social casino category. Albert, we can't hear you that well.

Albert Kim: Is that?

Robert Antokol: One moment for our next question. Our next question comes from Matthew Caust from MS. Please go ahead.

Matt Cost: Hi, everyone. Thanks for the questions. Still, EBITDA for the quarter came in very strong, really strong margins, well ahead of expectations. Help us think through the moving pieces to hold the EBITDA guide steady for the year. What are kind of the puts and takes there? In terms of users and payers, I think we're down just a bit quarter on quarter in the third quarter. Is that just a function primarily of Slotomania and casino? Thank you so much.

Craig Abrahams: Sure. On the first question, we had guided previously that marketing would come down in the second half. I think, obviously, that we never kind of laid out the split quarter to quarter. Marketing came down this quarter. We're expecting to invest more in marketing as we look into the fourth quarter, as we see opportunities for investment. I think the enhancement on D2C and the nice jump that we had there in terms of penetration to 31% helped drive some margin tailwind as well. As we look at the portfolio as a whole, we continue to selectively look for opportunities for investment on the marketing side. We decided to keep guidance stable. In terms of the KPIs, we don't break out the mix.

Good day, and thank you for standing by welcome.

Welcome to the <unk> Q3, 2025 earnings call at this time, all participants are in listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session you will need to press star one on one on your telephone you would been here an automated message advising your HAE.

And is raised to withdraw your question. Please press star one again, please be advised that today's conference is being recorded.

Craig Abrahams: What I can say is we did pull back on Slotomania as we saw the underperformance there, and we'll continue to invest more as we add product enhancements and see stabilization there, and invest behind growth opportunities.

Now like to hand, the conference over to your first speaker today, K Lee SVP corporate finance and Investor Relations. Please go ahead.

Welcome everyone and thank you for joining us today for the third quarter of 2025 earnings call for <unk> holding Corp. Joining me on the call today are Robert ethical co founder and CEO of <unk> and Craig Abrahams. Thank you Cook, President and Chief Financial Officer.

Matt Cost: Great. Thank you.

Robert Antokol: Thank you. Our next question comes from Albert Kim from UBS. Please go ahead.

Albert Kim: Hi. Thanks for taking the question. Hopefully, you can hear me now. I just wanted to follow up on Slotomania and the wider social casino category. Are there any shifts in the competitive dynamic that you would call out since last quarter? You mentioned that there was some strength in the US and iOS business. Where does the international opportunity stand in your point of view, and which regions could you drive the most upside in the coming years? Thank you.

I would like to remind you that today's discussion may contain forward looking statements, including but not limited to the company's anticipated future revenue and operating performance and more specifically the future performance of our individual titles to just sort of media, where our recently launched solitaire.

Statements and other comments Benoit guarantee of future performance, but rather are subject to risks and uncertainties some of which are beyond our control. These forward looking statements apply as of today and you should not rely on them as representing our views in the future.

Craig Abrahams: Sure. For clarification on US iOS, what we were saying was that we saw strong D2C performance in that channel. It wasn't a comment on broader performance for that market. As we look at international markets, I think as we've seen through the Superplay acquisition, we've seen very strong performance in markets like Japan and other markets opening up for us. With the success of Disney Solitaire, I think that we always look at continued international growth. US iOS and US Android opportunities continue to be probably the biggest market for us.

We undertake no obligation to update these statements. After this call we have posted an accompanying slide deck to our Investor Relations website, which contains information on forward looking statements and non-GAAP measure and we will also post our prepared remarks immediately following the call.

For a more complete discussion of the risks and uncertainties. Please see our filings with the SEC.

I'll now turn the call over to Robert.

Good morning, and thank you everyone for joining our call today.

As we approach the end of 'twenty 25, I want to start with so properly.

Albert Kim: Thanks.

I will silver bullet portfolio is driving exceptional growth led by deeply solid, though which has killed faster than any titling novel 15 used his story.

Craig Abrahams: As it relates to the competition for Slotomania, I don't think the market has changed quarter to quarter. The dynamics there have been pretty consistent.

Robert Antokol: All right. I am showing no further questions at this time. Thank you for your participation in today's conference. This concludes the program. You may now disconnect.

Solid continues to outperform expectation establishing itself as one of 2025.

Our new mobile launches.

The title is tricky.

Guys run rate above $200 million.

Bolstered by strong engagement.

Rising due to see mix.

Building on that momentum I am pleased to announce that we have expanded our collaboration with Disney and Pixar games and developing a new title in the Super Blade pipeline.

We will share additional detail the pulpwood timing.

Turning to the quarter I am proud to share the clerical continues to execute with focus and discipline.

This quarter, we delivered another record in direct to consumer revenue.

Reaching an all time high with a broad based contribution from Bengal believed June journey Solitaire gun hub with a novel Super play portfolio.

This performance reinforced the strength of our strategy to deepen client relationships.

We'll take our operating margins.

Supported by recent policy changes that opened a new payment channels and expanded our ability to route transaction through direct to consumer platforms.

As we look at 2020 six our portfolio of the vision will continue.

This includes ongoing work to strengthen our slot business.

So the money remains strategically important to play ticker and while it continues to be significant headwind for the business.

We are focused on stabilizing the franchise overtime.

In parallel we will continually relocating diesels towboat higher return opportunities and away from titles that no longer meet our ROI thresholds.

We believe this strategy will strengthen our portfolio mix enhance long term cash generation.

We did context, Craig will walk through the details behind our <unk> numbers.

Updates on novel top titles and review the quarters results.

Hey, too detailed.

Thank you Robert our performance in the third quarter reflects the strength of our operating model and disciplined approach to investment.

Our direct to consumer mix continued to expand margins and Super place performance underscores the strategic rationale behind our acquisition strategy.

We also advanced targeted investments in our new games pipeline and platform capabilities, including AI driven initiatives in our house upon CEO, they replace manual processes, improving efficiency and scalability across live operations.

We are reassessing, our cost structure across the organization to sharpen operating efficiency, while protecting capacity to invest behind our highest return opportunities.

On spending we executed the planned step down in second half marketing and Capex remains on track to finish below our full year guidance.

With that let's get into details of the quarter.

We generated $674 $6 million of revenue in the quarter down three 1% sequentially and up eight 7% year over year.

GAAP net income was $39 $1 million up 17, 8% sequentially and down 5% year over year.

Adjusted EBITDA was $217 5 million up 32% sequentially and up 10, 3% year over year, driven primarily by the planned step down in sales and marketing for our Super play titles and continued margin momentum from our D to C business.

Okay.

DTC revenue crossed the $200 million threshold to $209 $3 million up 19% sequentially and up 20% year over year.

We develop and operate our own D to C platforms, which enable us to achieve outstanding approval rates.

<unk> reliance on third party providers and.

And optimize processing methodologies for even stronger results.

As Google play policies evolve in the U S. Following recent court rulings, we see a potential tailwind for further D to C adoption and economics subject to final implementation and our own testing.

<unk> represented 31% of total revenue this quarter and we are working to achieve 40% on a run rate basis in the next few years.

Now, let's review the performance of our top three titles.

<unk> delivered another record quarter with revenue of $162 6 million up one 5% sequentially and one 7% year over year underscoring the franchise's resilience and ongoing leadership in this category.

The studio drove results through seasonal programming.

Personalized promotions and VIP engagement supported by pacing enhancements and optimized software packaging, the sustained payor mix and timing game.

These initiatives reflect our continued investment in live ops cadence.

Personalized merchandising and routing more transactions through DTC channels strategies that not only drove strong engagement, but position bingo blades for incremental margin and mix benefits as adoption scales.

<unk> revenue was $68 $5 million down, 28% sequentially and 46, 7% year over year.

This performance reflects the deliberate rebalancing of the game economy, we initiated earlier this year.

Work, we anticipated would create revenue pressure as we recalibrate progression rewards and pricing to support healthier long term cohort returns.

While we work through these changes we intentionally reduced performance marketing to avoid inefficient spending which contributed to lower slot of any NDA you in the quarter.

Once the pace of decline moderates, we plan to selectively reaccelerate performance marketing to rebuild scale.

We are not assuming in near term revenue recovery and our focus remains on improving game experience payer attention and ROI discipline marketing with the goal of stabilizing the franchise.

Looking ahead, we remain on track to launch our new slot title Jackpots are this quarter, but we do not expect material contributions to 2025 results.

Journey revenue was $68 3 million down one 2% sequentially and down two 7% year over year.

Our franchise remained resilient supported by a strong live ops cadence and personalized in game offers and we aligned our content deeming with an updated live ops and monetization strategy.

During the quarter, we deepen monetization through economy updates and new features which lifted arb down.

D to C adoption continue to rise in the quarter, where adoption is tracking ahead of plan.

These initiatives reinforce june's journeys position as a durable high quality franchise and provide a foundation for incremental margin benefits as we scale. These levers.

Yeah.

Turning now to specific line items in our P&L.

Cost of revenue increased six 1% year over year, reflecting both our revenue growth and higher amortization expense associated with the Super play acquisition.

Operating.

<unk> were up 21, 6% year over year, driven primarily by higher performance marketing investment and the GAAP impact of increased contingent consideration.

Both related to the Super play acquisition.