Skip to main content

Playtika Holding Corp.

For the period ended Jun 30, 2025. Filed Aug 7, 2025.

View on SEC.gov

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2025 · Filed Aug 7, 2025

PLTK$2.59+6.1%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

See the whole filing, with its images and exhibits

Notes to the Consolidated Financial Statements

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(In millions, unless specified otherwise)

NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of business and organization

Playtika Holding Corp. (“Playtika”) and its subsidiaries (together with Playtika, the “Company”) is one of the world’s leading developers of mobile games creating fun, innovative experiences that entertain and engage its users. It has built best-in-class live game operations services and a proprietary technology platform to support its portfolio of games which enable it to drive strong user engagement and monetization. The Company’s games are free-to-play, and the Company seeks to provide novel, curated in-game content and offers to its users at optimal points in their game journeys to drive user engagement and monetization.

Basis of presentation and consolidation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and include Playtika and all subsidiaries in which the Company has a controlling financial interest. Control generally equates to ownership percentage, whereby (i) affiliates that are more than 50% owned are consolidated; (ii) investments in affiliates of 50% or less but greater than 20% are generally accounted for using the equity method where the Company has determined that it has significant influence over the entities; and (iii) investments in affiliates of 20% or less are generally accounted for at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

The significant accounting policies referenced in the annual consolidated financial statements of the Company as of December 31, 2024 have been applied consistently in these unaudited interim consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been recorded within the accompanying financial statements, consisting of normal, recurring adjustments, and all intercompany balances and transactions have been eliminated in the consolidation. Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 27, 2025.

Use of estimates

The preparation of the interim consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

SuperPlay Ltd.

On November 20, 2024, the Company and Playtika Ltd., a wholly owned subsidiary of the Company, completed the acquisition of SuperPlay Ltd. (“SuperPlay”) (the “SuperPlay Acquisition”) for an aggregate purchase price equal to (i) $700.0 million, payable at the closing of the Transaction, subject to certain post-closing adjustments, plus (ii) earnout payments of up to $1.250 billion, the amounts of which will be based on certain gross revenue growth and Adjusted EBITDA metrics of SuperPlay during the calendar years 2025, 2026 and 2027, in each case, payable following the end of the applicable measurement period. In addition, the Company granted retention awards totaling up to approximately $50 million to SuperPlay’s employees in accordance with the Transaction terms, which is expected to vest and be expensed over up tofour years.

-7-

Management has accounted for this acquisition as a business combination. As such, management has recorded the identified assets and liabilities at their respective fair value. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities was recorded as goodwill. The purchase consideration also included a liability classified contingent consideration, measured at fair value through earnings. The Company engaged a third-party valuation specialist to assist the Company with estimating the acquisition-date fair value of the intangible assets acquired and contingent consideration payable. The Company finalized the purchase accounting valuation in the second quarter of 2025 and there were no changes to the preliminary valuation.

In May 2025, the Share Purchase Agreement was amended to adjust certain covenants. During the three months and six months ended June 30, 2025, the Company recorded $50.0 million and $44.6 million, respectively, of income, net, to adjust contingent consideration associated with the SuperPlay Acquisition to its estimated fair value of $310.0 million as of June 30, 2025, which is comprised of $160.0 million in accrued expenses and other current liabilities and $150.0 million in long term liabilities on the consolidated balance sheet.

Concentration of credit risk and significant customers

Financial instruments, which potentially expose the Company to concentrations of credit risk, consist primarily of cash and cash equivalents, short-term investments, restricted cash, accounts receivable and derivative contracts. The Company’s investment policy imposes certain maturity limits on the Company’s portfolio and restricts the permitted investments to the purchase of bank deposits and highly rated fixed income securities.

Apple and Google are significant distribution and payment platforms for the Company's games. A significant portion of the Company’s revenues has been generated from players who accessed the Company's games through these platforms. Therefore, the Company's accounts receivable are derived mainly from sales through thesetwo platforms.

The following table summarizes the major accounts receivable of the Company as a percentage of the total accounts receivable as of the dates indicated:

June 30,2025December 31,2024
%
Apple58%60%
Google27%29%

Accounts receivable are recorded at their transaction amounts and do not bear interest. The Company bases its allowance for credit losses on management's best estimate of the amount of probable credit losses in the Company's existing accounts receivable based on historical collection experience and current and expected future economic and market conditions.

Cash and cash equivalents and Short-term investments

Cash and cash equivalents consist of cash and highly liquid investments with maturities of three months or less from the date of purchase. Cash equivalents include investments in term deposits, commercial papers and money market funds that can be redeemed immediately at the current net asset value.

Investments with maturities of more than three months but less than one year from the date of purchase are included in short-term investments. Such short-term investments include investments in commercial papers.

The Company classifies investments in debt securities as available-for-sale (“AFS”). AFS debt securities are carried at fair value, with unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in

-8- stockholders’ equity. Realized gains and losses on sale of investments are included in Interest and other, net on the statements of comprehensive income and are derived using the specific identification method for determining the cost of securities sold.

The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in Interest and other, net.

Employee related benefits

Appreciation and retention plan

In August 2019, the Company adopted the Playtika Holding Corp. Retention Plan (the “2021-2024 Retention Plan”) in order to retain key employees and reward them for contributing to the success of the Company.

The Company recognized compensation expenses in respect of retention unit and appreciation unit awards under its appreciation and retention plans of $23.3 million and $46.2 million during the three and six months ended June 30, 2024, respectively. The 2021-2024 Retention Plan concluded in 2024 and there will be no additional compensation expenses related to the associated retention unit and appreciation unit awards.

Derivative instruments

The Company uses interest rate swap contracts to reduce its exposure to fluctuating interest rates associated with the Company’s variable rate debt, and to effectively increase the portion of debt upon which the Company pays a fixed interest rate. The Company’s interest rate swap agreements are designated as cash flow hedges under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging (“ASC 815”), involving the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreement, without the exchange of the underlying notional amount. These hedges are highly effective in offsetting changes in the Company’s future expected cash flows due to the fluctuation of the Company’s variable rate debt.

The Company monitors the effectiveness of its hedges on a quarterly basis, both qualitatively and quantitatively. The Company performed a regression analysis at inception of the hedging relationship and at period end in which it compared the change in the fair value of the swap transaction and the change in fair value of a hypothetical interest rate swap having terms that identically match the terms of the debt's interest rate payments based on historical swap rates. Based upon this analysis, the Company concluded that the hedging instruments are expected to be highly effective at offsetting changes in the hedged transactions attributable to the risk being hedged. For each future reporting period, the Company will continue performing retrospective and prospective assessments of hedge effectiveness in a single regression analysis by updating the regression analysis that was prepared at the inception of the hedging relationship.

The Company uses foreign currency derivative contracts to reduce its exposure to fluctuating exchange rates between the United States dollar (as the Company’s functional currency) and certain expense lines denominated in Euros (“EUR”), Israeli Shekels (“ILS”), Polish Zloty (“PLN”) and Romanian Leu (“RON”). The Company’s derivative contracts are designated as cash flow hedges under ASC 815. The Company monitors the effectiveness of its hedges on a quarterly basis, both qualitatively and quantitatively, and expects these hedges to remain highly effective at offsetting fluctuations in exchange rates through their respective maturity dates. See Note 7, Derivative Instruments, for additional discussion.

The fair value of derivative financial instruments is recognized as an asset or liability at each balance sheet date, with changes in fair value recorded in other comprehensive income on the consolidated statements of comprehensive income until the future underlying transactions occur. The fair value approximates the amount the Company would pay or receive if these contracts were settled at the respective valuation dates. The inputs used to measure the fair value of the Company’s interest rate swap agreements and foreign currency derivative contracts are categorized as Level 2 in the fair value hierarchy as established by ASC 820, Fair Value Measurement (“ASC 820”). See Note 8, Fair Value Measurements, for additional discussion.

Cash flows from derivatives, which are designated as accounting hedges, are presented consistently with the cash flow classification of the related hedged items.

-9-

Investment in unconsolidated entities

The Company holds certain equity investments in various unconsolidated entities that, based upon the structure of the investment, are not within the scope of equity method investment accounting that would lead to the consolidation conclusions above. Instead, these investments fall within the scope of ASC 321, Investments - Equity Securities. As permitted within that guidance, the Company has elected to account for these investments at cost less impairment, adjusted for changes in fair value from observable transactions for identical or similar investments of the same issuer as of the respective transaction dates. Due to poor performance of certain of these investments leading to significant uncertainty regarding their future viability, the Company recorded an impairment of $7.0 million related to one of its investments during the six months ended June 30, 2024. No change to the carrying amounts were recorded in the six month period ended June 30, 2025.

Stock repurchase program

On May 9, 2024, the Company announced that its Board of Directors authorized a stock repurchase program for up to $150 million of the Company’s common stock. Repurchases of the Company’s outstanding common stock are retired and accounted for using the constructive retirement method. For shares repurchased in excess of par, purchase price in excess of par value is recorded in additional paid in capital on the consolidated balance sheet.

Net income per share attributable to common stockholders

For all periods presented herein, basic net income per share is calculated by dividing net income by the weighted-average common shares outstanding. Diluted net income per share reflects the effect of all potentially dilutive common shares outstanding by dividing net income by the weighted-average of all common and potentially dilutive shares outstanding. Performance Stock Units (“PSUs”) are considered potentially dilutive as of the first day of the reporting period in which the underlying performance metric is achieved. In the event of a loss, diluted shares are not considered because of their anti-dilutive effect. The Company uses the treasury stock method on a grant-by-grant basis as the method for determining the dilutive effect of options, Restricted Stock Units (“RSUs”) and PSUs. Under this method, it is assumed that the hypothetical proceeds received upon settlement are used to repurchase common shares at the average market price during the period.

NOTE 2. SHORT-TERM INVESTMENTS

Short-term investments at June 30, 2025 are as follows (in millions):

June 30, 2025
Amortized costAllowance for credit lossesUnrealized gainsUnrealized losses
Term deposits$1.8$—$—$—
Commercial papers89.4———
Total short-term investments$91.2$—$—$—

The Company didnot hold short-term investments at December 31, 2024.

-10-

NOTE 3. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities at June 30, 2025 and December 31, 2024 were as follows (in millions):

June 30,2025December 31,2024
Contingent consideration$203.5$25.0
Accrued expenses106.4113.3
Employees and related expenses94.0153.7
Tax accruals50.049.4
Media buy42.847.9
Dividend payable37.637.3
Deferred revenues26.036.4
Total accrued expenses and other current liabilities$560.3$463.0

NOTE 4. LEASES

The Company's leases include office real estate and data center leases for its facilities worldwide, which are all classified as operating leases, and which expire on various dates, the latest of which is December 2035. Certain lease agreements include rental payments that are adjusted periodically for the consumer price index ("CPI"). The Company’s ROU assets and lease liabilities were calculated using the initial CPI and will not be subsequently adjusted. Certain leases include renewal options that management believes are reasonably certain to be exercised.

The following is a summary of weighted average remaining lease terms and discount rates for all of the Company's operating leases:

June 30,2025December 31, 2024
Weighted average remaining lease term (years)7.16.3
Weighted average discount rates4.5%4.5%

Total operating lease expense was $6.8 million and $5.1 million during the three months ended June 30, 2025 and 2024, respectively, and $13.0 million and $11.1 million during the six months ended June 30, 2025 and 2024, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities was $6.3 million and $5.3 million during the three months ended June 30, 2025 and 2024, respectively, and $13.5 million and $11.6 million during the six months ended June 30, 2025 and 2024, respectively.

Maturities of lease liabilities are as follows as of June 30, 2025 (in millions):

Remaining 2025$12.8
202627.5
202723.6
202817.5
202916.2
Thereafter57.2
Total undiscounted cash flows154.8
Less: imputed interest(23.9)
Present value of lease liabilities$130.9

-11-

NOTE 5. DEBT

June 30, 2025 · December 31, 2024
(in millions, except interest rates)MaturityInterestrateBook valueFace valueBook value
Term Loan20287.190%$1,799.2$1,819.3$1,805.4
Senior Notes20294.250%595.2600.0594.7
Revolving Credit Facility2026n/a———
Total debt2,394.42,419.32,400.1
Less: Current portion of long-term debt(11.1)(19.0)(11.6)
Long-term debt$2,383.3$2,400.3$2,388.5

Book value of debt in the table above is reported net of deferred financing costs and original issue discount of $24.9 million and $28.7 million at June 30, 2025 and December 31, 2024, respectively.

Credit Agreement

The Company has a $1.9 billion senior secured first lien term loan (the “Term Loan”) maturing on March 11, 2028 and a $550 million revolving credit facility (the “Revolving Credit Facility”) (together, the “Credit Agreement”), maturing on September 11, 2027 (subject to certain conditions, see below). The Term Loan requires quarterly principal payments equal to 0.25% of the original aggregate principal amount of the Term Loan with balance due at maturity.

The Revolving Credit Facility includes a maximum first-priority net senior secured leverage ratio financial maintenance covenant of 6.25 to 1.0. At June 30, 2025, the Company’s first-priority net senior secured leverage ratio was 1.71 to 1.0.

The Company was in compliance with its financial and other covenants under the Credit Agreement as of June 30, 2025.

On April 23, 2025, the Company entered into a Fourth Amendment (the “Fourth Amendment”) to the Credit Agreement defined in Note 5, Debt, which, among other things, (a) amended the Pricing Grid (as defined in the Credit Agreement) for the Company’s revolving credit facility under the Credit Agreement (the “Revolving Credit Facility”), (b) decreased the aggregate principal amount of the Revolving Credit Facility from $600 million to $550 million, and (c) subject to the satisfaction of certain conditions (including a regulatory approval), will extend the maturity of the Revolving Credit Facility to September 11, 2027.

Pursuant to the terms of the Fourth Amendment, borrowings under the Revolving Credit Facility bear interest at a rate equal to, at the Company’s option, either (a) a forward-looking term rate based on the secured overnight financing rate for the applicable interest period (“Term SOFR”), subject to a floor of 0.00% or (b) a base rate determined by reference to the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate as determined by the administrative agent and (iii) the one-month Term SOFR plus 1.00% per annum, in each case plus an applicable margin. Such applicable margin with respect to the Revolving Credit Facility is 3.00% per annum in the case of any Term SOFR loan and 2.00% per annum in the case of any base rate loan, subject tothree 0.25% step-downs based on the Company’s first lien net leverage ratio. In addition, on a quarterly basis, the Company is required to pay each lender under the Revolving Credit Facility a commitment fee in respect of any unused commitments under the Revolving Credit Facility in the amount of 0.50% of the principal amount of the unused commitments of such lender, subject totwo 0.125% step-downs based on the Company’s first lien net leverage ratio.

Other than what is disclosed above, other significant terms and conditions of the Credit Agreement have not changed from what was disclosed in Note 12, Debtin our Annual Report on Form 10-K filed with the SEC on February 27, 2025.

-12-

Offering of 4.250% Senior Notes due 2029

Indenture

On March 11, 2021, the Company issued $600.0 million aggregate principal amount of its 4.250% senior notes due 2029 (the “Notes”) under an indenture, dated March 11, 2021 (the “Indenture”), among the Company, the subsidiary guarantors party thereto and Wilmington Trust, National Association, as trustee (the “Trustee”).

Maturity and Interest

The Notes mature on March 15, 2029. Interest on the Notes will accrue at a rate of 4.250% per annum. Interest on the Notes is payable semi-annually in cash in arrears on March 15 and September 15 of each year.

The significant terms and conditions of the Notes have not changed from what was disclosed in Note 12, Debt in our Annual Report on Form 10-K filed with the SEC on February 27, 2025.

NOTE 6. EQUITY TRANSACTIONS AND STOCK INCENTIVE PLAN

Overview of Stock Incentive Plan

On May 26, 2020, the Board of Directors of the Company approved the Playtika Holding Corp. 2020 Incentive Award Plan (the “Plan”).

As of June 30, 2025, a total of 61,411,981 shares of the Company’s common stock had been allocated to awards granted under the Plan and 14,169,074 shares remained available for future grants.

Cash dividend

On May 8, 2025, the Board of Directors of the Company declared a cash dividend of $0.10 per share of the Company’s outstanding common stock payable on July 7, 2025 to stockholders of record as of the close of business on June 23, 2025. The dividend amount of $37.6 million is recorded in accrued expenses and other current liabilities at June 30, 2025.

Stock repurchase program

On May 9, 2024, the Company announced that its Board of Directors authorized a stock repurchase program for up to $150 million of the Company’s common stock. Under the repurchase program, repurchases can be made using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with the rules of the Securities and Exchange Commission and other applicable legal requirements. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. The repurchase program does not obligate the Company to acquire any particular amount of common stock, and may be suspended or discontinued at any time at the Company’s discretion. During the three months ended June 30, 2025, the Company repurchased and retired approximately 1.2 million shares of its common stock at an average cost of $4.92 per share. As of June 30, 2025, $138.3 million remains available under the Company’s stock repurchase program.

-13-

Stock options

The following table summarizes the Company’s stock option activity during the six months ended June 30, 2025:

Stock · Weighted · Weighted
OptionsAverageAverageIntrinsic
OutstandingRemainingExerciseValue
(in millions)Term (in years)Price(in millions)
Outstanding at January 1, 20251.36.7$17.42
Granted—$—
Exercised—
Cancelled(0.1)$18.64
Expired—$—
Outstanding at June 30, 20251.26.2$17.34$—
Exercisable at June 30, 20251.16.1$18.11$—

The Company used the Black-Scholes option pricing model to estimate the grant-date fair value associated with all employee stock options. There wereno options granted in the six months ended June 30, 2025 or 2024.

RSUs

The following table summarizes the Company’s RSU activity during the six months ended June 30, 2025:

Weighted · Total Fair
Average · Value of
SharesGrant DateShares Vested
(in millions)Fair Value(in millions)
Outstanding at January 1, 202519.6$8.70
Granted1.5$5.91
Vested(3.3)$10.67$16.8
Cancelled(1.7)$8.94
Outstanding at June 30, 202516.1$8.02

The Company estimates the fair value of RSUs and PSUs with a service condition or performance condition using the value of its common stock on the date of grant, reduced by the present value of dividends expected to be paid on its shares of common stock prior to vesting. The table below summarizes the assumptions used for the RSUs granted during the six months ended June 30, 2025 and 2024:

Six months ended June 30,
20252024
Risk-free interest rate3.70% - 4.22%4.11% - 4.57%
Expected dividend yield5.42% - 7.37%5.16% - 5.51%
Expected term in years2.8 - 3.13.1 - 3.6
Expected volatility49.39% - 51.08%49.71% - 50.56%

-14-

PSUs

The following table summarizes the Company’s PSU activity during the six months ended June 30, 2025:

Weighted · Total Fair
Average · Value of
Shares(1) · Grant Date · Shares Vested
(in millions) · Fair Value · (in millions)
Outstanding at January 1, 202510.9$5.33
Granted—$—
Vested*$9.72*
Cancelled(0.6)$9.72
Outstanding at June 30, 202510.3$5.10

(1) The number of PSUs outstanding represent the total number of PSUs granted to each recipient eligible to vest if the Company meets its highest specified performance goals for the applicable period.

  • Represents an amount less than 0.1 or $0.1

Stock-based compensation

The following table summarizes stock-based compensation costs as reported by award type (in millions):

Three months endedJune 30,Six months endedJune 30,
2025202420252024
Stock options$0.3$0.9$0.6$1.7
RSUs14.024.229.050.1
PSUs3.4(1.6)13.9(4.1)
Total stock-based compensation costs$17.7$23.5$43.5$47.7

The following table summarizes stock-based compensation costs, net of amounts capitalized, as reported on the Company’s consolidated statement of comprehensive income (in millions):

Three months endedJune 30,Six months endedJune 30,
2025202420252024
Research and development expenses$4.3$7.8$8.8$15.9
Sales and marketing expenses0.71.61.53.4
General and administrative expenses12.513.532.727.3
Total stock-based compensation costs, net of amounts capitalized$17.5$22.9$43.0$46.6

The Company capitalized stock-based compensation of $0.2 million and $0.6 million during the three months ended June 30, 2025 and 2024, respectively, and $0.5 million and $1.1 million during the six months ended June 30, 2025 and 2024, respectively.

As of June 30, 2025, the Company’s total unrecognized stock-based compensation expenses related to stock options, RSUs and PSUs was approximately $0.8 million, $121.8 million and $29.2 million, respectively. The expense related to stock options, RSUs and PSUs are expected to be recognized over a weighted average period of 1.2 years,2.7 years and 1.6 years, respectively.

-15-

NOTE 7. DERIVATIVE INSTRUMENTS

Interest rate swap agreements

In March 2021, the Company entered intotwo interest rate swap agreements, each with a notional value of $250 million. Each of these swap agreements is with a different financial institution as the counterparty to reduce the Company’s counterparty risk. The initial terms of each swap required the Company to pay a fixed interest rate of 0.9275% in exchange for receiving one-month LIBOR. In June 2023 thesetwo interest rate swap agreements were amended so that effective July 31, 2023, the Company will pay a fixed interest rate of 0.85% in exchange for receiving one-month term Secured Overnight Financing Rate (“SOFR”). The amendment did not impact the hedge effectiveness.

The interest rate swap agreements settle monthly commencing in April 2021 through their termination dates on April 30, 2026. The estimated fair value of the Company’s interest rate swap agreements is derived from a discounted cash flow analysis.

In January 2023, the Company entered intotwo additional interest rate swap agreements, each with a notional value of $250 million. Each of these swap agreements is with a different financial institution, and each swap requires the Company to pay a fixed interest rate of 3.435% in exchange for receiving one-month LIBOR forsix months and one-month Term SOFR afterwards. The interest rate swap agreements settle monthly commencing in February 2023 through their termination dates on February 28, 2028. The estimated fair value of the Company’s interest rate swap agreements is derived from a discounted cash flow analysis.

The aggregate fair value of the Company’s interest rate swap agreements was a net asset of $11.8 million as of June 30, 2025, and was recorded in the accompanying consolidated balance sheets based upon the timing of the underlying expected cash flows in amounts detailed in Note 8, Fair Value Measurements.

Foreign currency hedge agreements

At June 30, 2025, the Company had outstanding derivative contracts to purchase certain foreign currencies, including EUR, ILS, RON, and PLN at future dates. The amount of future salary expenses the Company had hedged was approximately $175.6 million, and all contracts are expected to mature during the upcoming 12 months. The aggregate fair value of the Company’s derivative contracts was a net asset of $15.0 million as of June 30, 2025 and was recorded in the accompanying consolidated balance sheets in amounts detailed in Note 8, Fair Value Measurements.

The following table summarizes the volume of derivative instrument activity (in millions):

Three months endedJune 30,Six months endedJune 30,
2025202420252024
Derivative instruments - foreign currency derivative contracts$47.0$65.4$85.8$105.4
Derivative instruments - interest rate swaps————
Derivative instruments - others (non-hedging)————

NOTE 8. FAIR VALUE MEASUREMENTS

The Company accounts for fair value in accordance with ASC 820. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a three-tier hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

-16-

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The carrying value of accounts receivable and payables and the Company's restricted cash approximates fair value due to the short time to expected payment or receipt of cash.

The following table summarizes the fair value measurement of the Company’s long-term debt (in millions):

June 30, 2025
Face ValueFair ValueFair Value Hierarchy
Term Loan$1,819.3$1,787.5Level 2
Senior Notes600.0544.5Level 2
Total debt$2,419.3$2,332.0
December 31, 2024
Face ValueFair ValueFair Value Hierarchy
Term Loan$1,828.8$1,831.1Level 2
Senior Notes600.0541.5Level 2
Total debt$2,428.8$2,372.6

The estimated fair value of the Company’s term loan is based upon the prices at which the Company’s debt traded in the days immediately preceding the balance sheet date. As the trading volume of the Company’s debt is low relative to the overall debt balance, the Company does not believe that the associated transactions represent an active market, and therefore this indication of value represents a level 2 fair value input.

-17-

The following table sets forth the assets and liabilities measured at fair value on a recurring basis in the Company’s consolidated balance sheets at June 30, 2025 and December 31, 2024 (in millions):

Fair Value at
Fair Value HierarchyJune 30,2025December 31, 2024
Cash equivalents
Money market fundsLevel 1$277.7$331.4
Term depositsLevel 144.293.1
Commercial papersLevel 212.710.0
Short-term investments
Term depositsLevel 11.8—
Commercial papersLevel 2$89.4$—
Prepaid expenses and other current assets
Derivative instruments - interest rate swapsLevel 2$14.6$19.4
Derivative instruments - foreign currency derivative contractsLevel 215.01.1
Other non-current assets
Derivative instruments - interest rate swapsLevel 2$—$9.8
Accrued expenses and other current liabilities
Derivative instruments - interest rate swapsLevel 2$0.1$—
Derivative instruments - foreign currency derivative contractsLevel 2$—$3.3
Other long-term liabilities, including employee related benefits
Derivative instruments - interest rate swapsLevel 2$2.7$—

The carrying values of the Company’s cash equivalents and short-term investments approximate fair value because of the short duration of these financial instruments.

The inputs used to measure the fair value of the Company’s interest rate swap contracts and foreign currency contracts are categorized as Level 2 in the fair value hierarchy as established by ASC 820.

The change in fair value of contingent consideration payable was valued using significant unobservable inputs (Level 3), was included in the general and administrative expenses in the Company’s consolidated statements of comprehensive income and consisted of the following (in millions):

Balance as of January 1, 2025$379.6
Fair value adjustments based upon post-acquisition performance and passage of time(26.1)
Balance as of June 30, 2025 (1)$353.5

(1)Amount comprised of $310.0 million and $43.5 million for SuperPlay and InnPlay acquisitions, respectively.

The Company estimated the fair value of its SuperPlay contingent consideration liability using a Monte Carlo simulation to model components of cash flow analyses. The significant assumptions used in the SuperPlay model include revenue volatility of 20% and a 20-year-risk free rate of 4.8%. The Company estimated the fair value of its InnPlay contingent consideration liability using probability-weighted discounted cash flow analyses. These fair value measurements are based on significant inputs not observable in the market and thus represent Level 3 measurements as defined in ASC 820. The extent to which the

-18- actual results differ from assumptions made within the simulation and analyses, along with adjustments resulting from the passage of time, will result in changes in these liabilities in future periods.

The Company has not elected the fair value measurement option available under U.S. GAAP for any of its assets or liabilities

that meet the option for this criteria.

NOTE 9. COMMITMENTS AND CONTINGENCIES

On November 23, 2021, the Company, its directors and certain of its officers were named in a putative class action lawsuit filed in the United States District Court for the Eastern District of New York (Bar-Asher v. Playtika Holding Corp. et al.). The complaint is allegedly brought on behalf of a class of purchasers of the Company’s securities between January 15, 2021 and November 2, 2021, and alleges violations of federal securities laws arising out of alleged misstatements or omissions by the defendants during the alleged class period. On March 10, 2022, the court appointed LBMotion Ltd as lead plaintiff, and the plaintiff filed an amended complaint on May 6, 2022. The amended complaint alleges violations of Section 11 and 15 of the Securities Act of 1933 and seeks, among other things, damages and attorneys’ fees and costs on behalf of the putative class. The amended complaint also added the companies that served as underwriters for the Company’s IPO as defendants in the lawsuit. On September 15, 2022, in accordance with local rules of the Court, the Company and other defendants in the case filed a letter notifying the Court of defendants’ service upon plaintiffs of, among other things, a notice of motion to dismiss plaintiffs’ amended complaint and a memorandum of law in support of the defendants’ motion to dismiss plaintiffs’ amended complaint. On November 30, 2022, the Company filed with the Court a motion to dismiss. The Company’s motion to dismiss was granted with prejudice on March 18, 2024. However, on April 15, the plaintiffs filed a notice of appeal. The plaintiffs’ appeal has been briefed and is currently pending. As the Company is awaiting a ruling on the appeals process, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows. The Company has defended this case vigorously and will continue to do so.

On November 4, 2022, the Company and certain of its directors were named in a derivative action lawsuit filed in the United States District Court for the Eastern District of New York (Bushansky v. Antokol., et al.). The complaint was brought on behalf of the Company by a putative stockholder alleging that the named directors were negligent in their oversight of the preparation of the Company’s Proxy Statement in alleged violation of federal securities laws and that those directors breached their fiduciary duties upon related allegations. The complaint also asserts claims for contribution and indemnification, and aiding and abetting. The complaint seeks, among other things, damages, disgorgement and restitution by the director defendants, and attorneys’ fees and costs. Based upon an agreement of plaintiff, the Company, and the other defendants, on February 13, 2023, the Court stayed this action until the resolution of the motion to dismiss in the class action case of Bar-Asher v. Playtika Holding Corp. When the motion to dismiss in the class action case of Bar-Asher v. Playtika Holding Corp. was granted as discussed above, this action was administratively closed. The Company does not expect this action to move forward until after the appeal of the class action case of Bar-Asher v. Playtika Holding Corp. has been decided. As this stage, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows. The Company intends to vigorously defend this case.

On May 17, 2022, Guy David Ben Yosef filed a Motion for Approval of a class action lawsuit in district court in Tel Aviv-he

Jaffa Israel against Playtika Group Israel Ltd. (“PGI”), on behalf of all of PGI’s customers who made game token purchases

in Israel as part of games marketed by PGI during theseven years preceding the filing of the motion and for all subsequent customers of such games who purchase tokens until the resolution of the claim. The Motion alleged that certain of the Company’s slot, poker and solitaire-themed games, including Slotomania, Caesars Slots, Solitaire Grand Harvest, House of Fun and Poker Heat, constitute illegal gambling and are prohibited under Israeli law and are misleading under Israeli consumer protection laws and alleges unjust enrichment. The Motion asserted damages of NIS 50 million. This matter was resolved pursuant to a settlement agreement that was approved by the Court on April 23, 2025. The financial impact of the settlement was not material to the Company’s financial statements as a whole.

On April 10, 2023, Playtika Holding UK II Limited, the Company’s controlling shareholder, and certain officers of the Company were sued (Kormos v Playtika Holding UK II Limited, et al.) in the Delaware Chancery Court. The lawsuit alleges generally that the defendants breached fiduciary duties owed to the Company and its stockholders with respect to the controlling shareholder’s indication of an interest in selling some or all of its shares, and the resulting strategic review process and self-tender offer. On August 18, 2023, defendants filed with the Court motions to dismiss the claims. A hearing on the

-19- motions to dismiss was held on November 21, 2023. On January 18, 2024, the court denied Playtika Holding UK II Limited’s motion to dismiss in an oral ruling. The court issued a written opinion on May 3, 2024 granting the motion to dismiss of the claims against the Company’s officers. At this stage, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows.

On June 7, 2024, the Company received a demand letter from counsel for Scott G. Kormos, one of the plaintiffs in the Kormos v Playtika Holding UK II Limited, et al. matter described above, pursuant to Section 220 of the Delaware General Corporation Law (“DGCL”), seeking disclosure of certain of the Company’s books and records, particularly relating to the share repurchase program the Company announced in May 2024. The Company has responded to the demand, stating its belief that the demand letter fails to fully comply with the requirements of Section 220 of the DGCL. However, in the interest of resolution and while preserving all rights, the Company made a small production of documents in response to the demand.

On December 12, 2024, the Company received a demand letter from counsel for Scott G. Kormos, one of the plaintiffs in the Kormos v Playtika Holding UK II Limited, et al. matter described above, pursuant to Section 220 of the DGCL, seeking disclosure of certain of the Company’s books and records, particularly relating to the pledge of the Company’s common stock by Playtika Holding UK II Limited. The Company has responded to the demand, stating its belief that the demand letter fails to fully comply with the requirements of Section 220 of the DGCL. However, in the interest of resolution and while preserving all rights, the Company made a small production of documents in response to the demand.

On November 13, 2023, plaintiff Gina v. Burt filed a lawsuit against the Company and its subsidiary, Playtika Ltd., in the Circuit Court of Coffee County, Tennessee, alleging that the Company’s social casino-themed games are unlawful gambling under Tennessee law. The lawsuit seeks to recover all amounts paid by Tennessee residents to the Company in connection with its games during the period beginningone year before the filing of the lawsuit until the case is resolved but excluding any residents who spent $75,000 or more during such time period. The case has been stayed until August 29, 2025, at plaintiff’s request to allow plaintiff to amend the complaint. As the case is in preliminary stages, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows. The Company intends to defend this case vigorously.

On March 8, 2023, plaintiff Gayla Hamilton Mills filed a lawsuit against the Company and its subsidiary, Playtika Ltd., in the Circuit Court of Franklin County, Alabama, alleging that the Company’s casino-themed social games are unlawful gambling under Alabama law. The lawsuit seeks to recover all amounts paid by Alabama residents to the Company in connection with its games during the period beginningone year before the filing of the lawsuit until the case is resolved. After the Company removed the case to the U.S. District Court for the Northern District of Alabama, plaintiff dismissed the complaint and filed a very similar new complaint in the Circuit Court of Franklin County, Alabama on August 25, 2023. The new complaint asserted the same cause of action and bases for relief, but limited the requested recovery to the amounts paid to the Company in connection with its games only by those Alabama residents who spent less than $75,000 during theone year before the filing of the lawsuit until the case is resolved. As the case is in preliminary stages, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows. The Company intends to defend this case vigorously.

On August 22, 2024, plaintiff Dianne Fuqua filed a lawsuit against the Company and its subsidiary, Playtika Ltd., in the District Court for the Western District of Kentucky, alleging that the Company’s casino-themed social games are unlawful gambling under Kentucky law. The lawsuit seeks to recover three times the amount paid by Kentucky residents to the Company from its games during the period from August 2019 through June 2023 plus interest, costs and any other relief plaintiff is entitled to. The Company filed a motion to compel arbitration on July 11, 2025. Plaintiff filed an opposition to the renewed motion on July 25, 2025 and the Company is entitled to file a reply on or before August 8, 2025. As the case is in preliminary stages, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows. The Company intends to defend this case vigorously.

On April 24, 2025, plaintiff Debbie Duncan filed a putative class action lawsuit in the U.S. District Court for the Eastern District of Washington against Playtika Ltd. The suit is purportedly brought on behalf of both Washington-specific and nationwide classes of persons who purchased virtual coins in the Slotomania game during the relevant limitations period. The complaint alleges that Slotomania violates Washington law and that Playtika Ltd. has engaged in unlawful and deceptive practices more generally with respect to Slotomania. Playtika Ltd.’s response to the complaint is due August 21, 2025. As the

-20- case is in preliminary stages, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows. The Company intends to defend this case vigorously.

On June 6, 2025, plaintiff Stuart Mills filed a putative class action lawsuit against the Company and its subsidiary, Playtika Ltd., on behalf of all Alabama-based players of the Company’s games in the Circuit Court of Franklin County, Alabama. The suit, like the suit brought by Gayla Hamilton Mills, alleges that the Company’s casino-themed social games are unlawful gambling under Alabama law. The lawsuit seeks to recover all amounts paid by Alabama residents to the Company in connection with its games during the period beginning one year before the filing of the lawsuit until the case is resolved. The suit was filed by the same counsel who represent Gayla Hamilton Mills. The Company removed the case to the U.S. District Court for the Northern District of Alabama on July 11, 2025. Plaintiff’s motion to remand to state court, if any, is due August 11, 2025. If no motion to remand is filed, the Company’s responsive pleading to the complaint will be due on September 25, 2025. As the case is in preliminary stages, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows.

On June 24, 2025, we received a letter from the Attorney General of the State of Washington alleging that certain of our games violate state gambling and consumer protection laws, and requesting that we pay certain monetary penalties and prevent those games from being available to play in the state in the future. No litigation has been filed in respect of these allegations. While we disagree with the Attorney General’s allegations, and we intend to vigorously defend the matter, at this time, we are unable to reasonably estimate the potential loss or range of losses we may incur from this matter.

On February 27, 2023, the company received a deficit notice from the Ben Gurion Airport Customs House concerning the purchase of a private aircraft. The deficit notice claims that the company's acquisition of the aircraft is an import into Israel, and, as a result, it was obliged to pay purchase tax and VAT for the acquisition. The company disputes that any tax or VAT is owed. On July 26, 2023, the Customs House's definitive response was received, with the deficit notice still intact. The current claimed amount of the deficit notice is approximately $3.6 million. The Company paid the deficit notice under protest and filed a claim with the district court on December 12, 2023. The Customs House submitted its statement of defense on April 17, 2024 and the Company submitted its response to the statement of defense on June 16, 2024. A pre-trial hearing which was scheduled for June 17, 2025 has been postponed as the parties have been engaged in settlement discussions. The Company intends to pursue this case vigorously.

On June 1, 2024, the Company received pre-arbitration notices from a law firm purporting to represent 5,264 claimants who have played the Company’s games and intend to file arbitration demands alleging that the Company’s games are unlawful or that they otherwise have suffered harm for which recovery is available. On July 26, 2024, the law firm filed arbitration demands on behalf of 4,549 claimants. On September 13, 2024, the arbitral body requested that the Company waive certain dispute resolution provisions in the version of the terms of service invoked by claimants as a condition to its administering the arbitration. The Company declined to waive such provisions and, as a result, the arbitration was closed on October 3, 2024. On September 16, 2024, the Company received pre-arbitration notices from the same law firm purporting to represent an additional 2,560 claimants alleging the same claims as the other claimants. As of the date hereof, the Company lacks adequate information to assess the nature or validity of these claims. As such, the Company cannot estimate what impact, if any, these claims may have on its results of operations, financial condition or cash flows. The Company intends to defend these claims vigorously.

On October 17, 2024, the Company received pre-arbitration notices from a different law firm purporting to represent 798 claimants who have played the Company’s games and intend to file arbitration demands alleging that the Company’s games are unlawful and that the claimants made purchases in the Company’s games which were the result of unfair and deceptive practices that violate consumer protection laws. On January 31, 2025, the affiliated law firms filed arbitration demands on behalf of approximately 1,500 claimants. Due to the dispute resolution provisions in the version of the Company’s terms of service invoked by claimants, the arbitral body declined to arbitrate the claims and the arbitration was closed on March 10, 2025. On March 23, 2025, the Company received pre-arbitration notices from the same law firm purporting to represent another 902 claimants. On April 15, 2025, the Company received notice that pre-arbitration notices for 194 claimants had been filed in error and were being withdrawn. On April 24, 2025, one of the affiliated law firms filed the putative class action on behalf of plaintiff Debbie Duncan described above. As these claims are in preliminary stages, the Company cannot estimate what impact, if any, they may have on its results of operations, financial condition or cash flows. The Company intends to defend these claims vigorously.

-21-

On July 8, 2025, the Company received pre-arbitration notices from another law firm purporting to represent 3,860 claimants who have played the Company’s games and intend to file arbitration demands alleging that the Company’s social casino games violate state laws against gambling and that the games use false, deceptive and misleading practices. The notice demands the payment of the greater of $5,000 or the actual amount of in-game losses for the claimants, plus punitive and other damages and attorneys’ fees as well as the cessation of the alleged unlawful conduct. On August 5, 2025, we were notified that the law firm was continuing to solicit claimants and that they now represented 4,688 claimants. As of the date hereof, the Company lacks adequate information to assess the nature or validity of these claims. As such, the Company cannot estimate what impact, if any, these claims may have on its results of operations, financial condition or cash flows. The Company intends to defend these claims vigorously.

NOTE 10. REVENUE FROM CONTRACTS WITH CUSTOMERS

The following table provides information about disaggregated revenue by geographic location of the Company’s players and type of platform (in millions):

Three months endedJune 30,Six months endedJune 30,
2025202420252024
Geographic location
USA$438.1$425.0$900.2$865.2
EMEA164.6115.8320.4237.4
APAC50.942.596.686.7
Other42.443.784.888.9
Total$696.0$627.0$1,402.0$1,278.2

Revenues through third-party platforms and through the Company’s own direct-to-consumer platforms were as follows (in millions):

Three months endedJune 30,Six months endedJune 30,
2025202420252024
Third-party platforms$520.1$453.3$1,046.9$933.0
Direct-to-consumer platforms175.9173.7355.1345.2
Total revenues$696.0$627.0$1,402.0$1,278.2

Contract balances

Payments from players for virtual items are collected by platform providers or payment processors and remitted to the Company (net of the platform or clearing fees) generally within 30 days after the player transaction. The Company’s right to receive the payments collected by the platform providers or payment processors is recorded as an accounts receivable as the right to receive payment is unconditional. Deferred revenues, which represent a contract liability, represent mostly unrecognized fees billed for virtual items which have not yet been consumed at the balance sheet date. Platform fees paid to platform providers or payment processors and associated with deferred revenues represent a contract asset.

-22-

Balances of the Company’s contract assets and liabilities are as follows (in millions):

June 30,2025December 31,2024
Accounts receivable$194.0$187.6
Contract assets (1)5.99.4
Contract liabilities (2)26.036.4

(1)Contract assets are included within prepaid expenses and other current assets in the Company’s consolidated balance sheets.

(2)Contract liabilities are included within accrued expenses and other current liabilities as “deferred revenues” in the Company’s consolidated balance sheets.

During the three and six months ended June 30, 2025, the Company recognized $8.7 million and $30.9 million, respectively, of its contract liabilities that were outstanding as of December 31, 2024.

Unsatisfied performance obligations

Substantially all of the Company’s unsatisfied performance obligations relate to contracts with an original expected length of one year or less.

NOTE 11. SEGMENT INFORMATION

The Company operates its business asone operating segment andone reportable segment. The Company has identified its Chief Executive Officer as its Chief Operating Decision Maker (“CODM”). The CODM uses revenues and net income for purposes of assessing performance and deciding how to allocate resources. In addition to revenues and net income, the following significant expense categories and amounts are regularly provided to the CODM for use when allocating resources: interest expense (as disclosed in Note 12, Interest and Other, Net,)and advertising expense, which was $207.1 million and $136.3 million for the three months ended June 30, 2025 and 2024, respectively, and was $431.5 million and $296.4 million for the six months ended June 30, 2025 and 2024, respectively. Asset information as presented on the consolidated balance sheets is provided to the CODM.

The Company’s long-lived assets, net, by country of domicile are as follows (in millions):

June 30,2025December 31,2024
Israel$97.6$95.4
USA48.358.4
Germany34.35.9
Other40.645.6
Total long-lived assets, net$220.8$205.3

-23-

NOTE 12. INTEREST AND OTHER, NET

Interest and other, net are as follows (in millions):

Three months endedJune 30,Six months endedJune 30,
2025202420252024
Interest expense$36.5$38.9$72.6$77.9
Interest income(5.7)(13.7)(11.5)(26.7)
Foreign currency translation differences, net33.8(4.8)30.1(7.6)
Other——0.1—
Total interest and other, net$64.6$20.4$91.3$43.6

NOTE 13. INCOME TAXES

Three months endedJune 30,Six months endedJune 30,
(in millions, except tax rate)2025202420252024
Income before income taxes$45.1$120.3$86.2$195.2
Provision for income taxes$11.9$33.7$22.4$55.6
Effective tax rate26.4%28.0%26.0%28.5%

The effective tax rates were determined using a worldwide estimated annual effective tax rate and took discrete items into consideration. The difference between the effective tax rate and the 21% U.S. federal statutory rate for the six months ended June 30, 2025 was primarily due to the inclusion of Global Intangible Low-Taxed Income, tax rates in foreign jurisdictions, state income taxes, and changes in valuation allowances, partially offset by a favorable impact of tax positions that do not meet the more likely than not standard. The difference between the effective tax rate and the 21% U.S. federal statutory rate for the six months ended June 30, 2024 was primarily due to the inclusion of Global Intangible Low-Taxed Income and non-deductible stock-based compensation expense, partially offset by a non-recurring favorable impact of reversal of accruals related to undistributed earnings.

NOTE 14. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following tables show a summary of changes in accumulated other comprehensive income (loss), net of tax, by component for the three and six months ended June 30, 2025 and 2024 (in millions):

Foreign Currency TranslationInterest Rate SwapsForeign Currency Derivative ContractsTotal
Balance as of January 1, 2025$(20.9)$22.5$(1.8)$(0.2)
Other comprehensive income (loss) before reclassifications7.2(4.1)1.64.7
Amounts reclassified from accumulated other comprehensive income (loss)—(4.2)—(4.2)
Balance as of March 31, 2025(13.7)14.2(0.2)0.3
Other comprehensive income (loss) before reclassifications15.5(0.8)15.330.0
Amounts reclassified from accumulated other comprehensive income (loss)—(4.3)(2.4)(6.7)
Balance as of June 30, 2025$1.8$9.1$12.7$23.6

-24-

Foreign Currency TranslationInterest Rate SwapsForeign Currency Derivative ContractsTotal
Balance as of January 1, 2024$(10.0)$27.8$2.8$20.6
Other comprehensive income (loss) before reclassifications(4.0)14.5(2.5)8.0
Amounts reclassified from accumulated other comprehensive income (loss)—(6.2)(0.1)(6.3)
Balance as of March 31, 2024(14.0)36.10.222.3
Other comprehensive income (loss) before reclassifications(1.5)5.1(3.5)0.1
Amounts reclassified from accumulated other comprehensive income (loss)—(6.3)1.4(4.9)
Balance as of June 30, 2024$(15.5)$34.9$(1.9)$17.5

The amounts in the summary of changes in accumulated other comprehensive income (loss) tables, above, are net of tax expense/(benefits) as follows (in millions):

Three months endedJune 30,Six months endedJune 30,
2025202420252024
Interest rate swaps$(1.5)$(0.3)$(4.0)$2.2
Foreign currency derivative contracts2.5(0.4)2.8(0.9)

Amounts reclassified from accumulated other comprehensive income for interest rate swaps and foreign currency derivative contracts were reclassified to interest expense and operating expenses, respectively, in the Company’s consolidated statements of comprehensive income during the three and six months ended June 30, 2025 and 2024.

NOTE 15. NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders (in millions, except per share data):

Three months endedJune 30,Six months endedJune 30,
2025202420252024
Numerator:
Net income$33.2$86.6$63.8$139.6
Denominator:
Weighted-average shares used in computing net income per share attributable to common stockholders, basic375.5371.4375.4370.9
Stock-based compensation awards0.10.40.40.4
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted375.6371.8375.8371.3
Net income per share, basic$0.09$0.23$0.17$0.38
Net income per share, diluted$0.09$0.23$0.17$0.38

The Company uses the treasury stock method on a grant-by-grant basis as the method for determining the dilutive effect of options, RSUs and PSUs. Under this method, it is assumed that the hypothetical proceeds received upon settlement are used to repurchase common shares at the average market price during the period. The following outstanding employee equity

-25- awards were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive for the periods presented (in millions):

Three months endedJune 30,Six months endedJune 30,
2025202420252024
Stock options1.21.51.31.6
RSUs16.615.016.918.8
Total17.816.518.220.4

In addition,10.3 million PSUs were excluded from the calculation of diluted net income per share for each of the three and six months ended June 30, 2025 and 1.5 million PSUs were excluded from the calculation of diluted net income per share for each of the three and six months ended June 30, 2024, because the minimum performance measures were not yet met.

NOTE 16. SUBSEQUENT EVENTS

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are currently assessing the impact of the OBBBA, and the result will be reflected in the Company's Form 10-Q for the quarter ending September 30, 2025.

The Company performed a review for subsequent events through the date of these financial statements. No other material items were noted for disclosure.

-26-

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.