Source: Sharecast
In the year to 31 December 2025, revenue from continuing operations fell 10% on the previous year to €763.6m, while adjusted earnings before interest, tax, depreciation and amortisation were 9% lower at €197m.
In February, Playtech guided to full-year adjusted EBITDA of "at least" €195m, significantly above analyst consensus of €177m at the time.
Playtech said its performance reflected the impact of the sale of Snaitech, which has transformed the group into a B2B-focused business, and the revised agreement with Caliente Interactive.
The company also hailed an "excellent" start to 2026 and said it now expects to deliver FY26 adjusted EBITDA ahead of current consensus expectations, despite tax headwinds across several markets. It also remains confident of delivering its medium-term targets of adjusted EBITDA of €250m to €300m and free cash flow of €70m to €100m.
Shares in the gambling software development firm tumbled, however, down 9.3% at 324.61p at 1405 GMT.
Morgan Stanley, which rates the stock at ‘underweight’ with a 215p price target, said adjusted EBITDA was in line with the upgrade update given in February, but revenue fell short. It also noted there was no significant progress with the Evolution case and said this is being treated as a contingent liability with no indication of the amount that might be claimed.
"We expect the prospects for the equity to be shaped primarily by the ongoing legal defamation case with Evolution for which we see uncertainties over timelines and a wide range of potential outcomes, creating overhang for the stock," the bank said.
Meanwhile, Citi, which rates the stock at ‘buy’ with a 355p price target, said the soft revenue performance outside of the Americas may dampen any reaction to the positive FY26 EBITDA outlook.
Chief executive Mor Weizer said: "2025 was a year of significant transition for Playtech, as we completed the sale of Snaitech and returned to our roots as a leading, global, predominantly pure-play B2B business. Against this backdrop, we delivered a performance well ahead of expectations earlier in the year, demonstrating the strength of our technology offering.
"The US delivered a particularly strong performance, with revenue nearly doubling as momentum accelerated across our partnerships. We achieved a number of important strategic milestones, expanding into additional iGaming states and continuing to grow our Live offering. I'm really pleased to see our efforts in the US paying off, and we will continue to invest to capitalise on the significant opportunities ahead in this huge market.
"Our position in Latin America also strengthened, supported by the revised agreement with Caliente, which is performing well and further enhances our position in Mexico."
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