Playtech Reports Strong FY25 Results, Upgrades FY26 Outlook on Americas Growth

Playtech’s FY25: leaner, more focused, and riding the Americas wave

Playtech has properly pivoted. After selling Snaitech for €2.3 billion and handing shareholders a chunky €1.8 billion special dividend, the Group now reads like a focused, global B2B technology business with a growing stream of investment income. FY25 landed ahead of expectations and management has upgraded FY26 Adjusted EBITDA guidance to “ahead of consensus”. Let’s unpack what changed, what grew, and what to watch.

Headline numbers you need to know

Metric (continuing ops unless stated)	FY25	FY24	Change
Revenue	€763.6 million	€848.0 million	-10%
Adjusted EBITDA (incl. investment income)	€197.0 million	€217.5 million	-9%
Adjusted EBITDA from operations (B2B+B2C)	€135.2 million	€214.7 million	-37%
Adjusted investment income	€61.8 million	€2.8 million	n/a
Adjusted post-tax profit	€44.2 million	€61.8 million	-28%
Free Cash Flow	€29.5 million	€73.1 million	▼ (see notes)
Net cash/(debt) at year end	€28.5 million	€(142.8) million	Strengthened
Special dividend (paid)	€1.8 billion (€5.73/sh)	–	Completed
Share buyback + block trade	€77 million (8.3% shares)	–	Completed

Jargon buster: Adjusted EBITDA is a profit measure that strips out one-offs and non-cash items to show underlying performance. Free Cash Flow (FCF) is cash left after leases, capex, development costs, finance and normalised tax – the lifeblood for buybacks, dividends and debt paydown.

Americas momentum is doing the heavy lifting

The key growth story is the Americas, especially the US:

• US and Canada revenue grew 71% in constant currency; US alone nearly doubled.
• New US state launches in West Virginia and Delaware (2025), plus Connecticut (2026). Playtech now has regulated iGaming presence in six states.
• Live Casino capacity expanded materially – more than 60 tables across New Jersey, Michigan and Pennsylvania vs more than 35 in FY24.
• Strong partners are scaling: DraftKings, FanDuel, Hard Rock Digital and Delaware North feature prominently.
• Hard Rock Digital’s fair value rose to €178.8 million (FY24: €141.0 million) and paid €10.3 million in dividends.

Elsewhere in the Americas, regulated Latin America revenue was up 8% on an underlying basis when you strip out changes to the Caliente agreement (more on that below). Brazil is now regulated, Colombia’s tax regime moved around during the year, and Mexico looks set for a World Cup halo into 2026 via market leader Caliente.

Caliente deal reset: less revenue now, more equity value and dividends

Playtech revised its long-term agreement with Caliente Interactive from 31 March 2025. The Company no longer earns the “additional B2B services fee” in revenue; instead it owns 30.8% of Caliente Interactive and recognises its share of income in Adjusted EBITDA as “investment income”.

• Adjusted investment income jumped to €61.8 million (FY24: €2.8 million), largely driven by Playtech’s share of Caliente Interactive’s income.
• Caliente Interactive also paid total dividends of €45.7 million (not included in Adjusted EBITDA) for the nine months following the new deal.
• Underlying software fees from Caliente still grew strongly, despite the accounting shift.

Why it matters: the model becomes more capital-light and geared to equity returns – dividends and share of profits – rather than a chunky service fee. That is why B2B revenue fell and B2B Adjusted EBITDA margin moved lower, while investment income has surged.

Core B2B still growing where it counts

• B2B revenue: €688.3 million (-9%), B2B Adjusted EBITDA: €141.4 million (-36%), both as expected given the Caliente switch.
• Excluding the Caliente fee impact: B2B revenue rose 1% and B2B Adjusted EBITDA fell 10% as Playtech invested in Live and absorbed some non-recurring costs.
• Regulated B2B revenue (over 80% of B2B): -7%, but up 6% on an underlying basis excluding Caliente changes.
• SaaS revenue, a nice recurring stream, jumped 48% to €118.1 million.
• Live revenue grew 6% in constant currency, with roughly 500 tables live across 17 studios.

On the flip side, the UK was softer (-6%) due to customer-specific changes and a tougher regulatory backdrop, though those transitions are largely complete. Europe ex-UK grew 4%, with Poland and Spain notable bright spots.

Small residual B2C, winding down what’s non-core

B2C is no longer strategic post-Snaitech. Revenue fell to €78.5 million and Adjusted EBITDA losses narrowed to €6.2 million as HAPPYBET is being wound down (to complete in 2026). Sun Bingo held steady operationally, but Playtech impaired the remaining prepayment (€52.9 million) following confirmation that UK Remote Gaming Duty rises to 40% from April 2026.

Balance sheet firepower remains

• Net cash at year end of €28.5 million vs net debt of €142.8 million a year ago.
• €150.0 million 2019 bond fully repaid in June 2025; €300.0 million 2023 bond remains outstanding (maturity 2028).
• Revolving credit facility of €225.0 million is undrawn and available to 2030.
• 8.3% of the share capital repurchased for €76.5 million in H2.

Free Cash Flow of €29.5 million reflects the removal of the old Caliente fee (only €10.0 million in 2025 vs €80.6 million in 2024), partly offset by €31.3 million cash dividends received from Caliente before year end. Management notes that if post year-end dividends related to FY25 had landed before 31 December, FCF would have been €41.6 million.

Guidance and medium-term targets

Management says 2026 has started “excellent” and expects FY26 Adjusted EBITDA ahead of current consensus, despite tax headwinds in several markets. The medium-term targets are unchanged:

• Adjusted EBITDA: €250 million – €300 million
• Free Cash Flow: €70 million – €100 million

Key growth drivers remain the US and broader Americas, product depth in Live and Casino, and compounding SaaS revenues. The investment portfolio – notably Caliente Interactive and Hard Rock Digital – is now an earnings and cash contributor in its own right.

What I like, and what I’m watching

Reasons to be positive

• The Americas engine is revving – US revenue nearly doubled and Live capacity is scaling to meet demand.
• The Caliente reset converts fee income into equity returns; investment income of €61.8 million is proof of concept.
• Balance sheet discipline: net cash position, 2019 bond repaid, undrawn RCF, and still room for capital returns.
• SaaS at €118.1 million (+48%) adds high-quality, diversified recurring revenue.

Watch-outs and headwinds

• Regulation and tax: UK duty rises, Brazil’s new rules bedding in, and Colombia’s shifting tax regime all add friction.
• Operational EBITDA is lower post-Caliente switch; mix now relies more on associates and dividends, which can be volatile.
• Free Cash Flow is currently modest; delivery toward €70 million – €100 million will matter for future buybacks/dividends.
• Legal backdrop: Evolution AB’s matter sits as a contingent liability; no claim served, but it’s on the list to monitor.

The bottom line for shareholders

Playtech today is a simpler, higher-quality story: a global B2B platform with Live and Casino leverage, fast-growing SaaS, and an equity-backed pipeline of cash from Caliente Interactive and Hard Rock Digital. FY25 headline declines were largely mechanical from the Caliente accounting switch and the Snaitech disposal – under the surface, the US is accelerating, SaaS is compounding, and the balance sheet has swung to net cash even after a gargantuan dividend and buybacks.

If management delivers on its upgraded FY26 outlook and medium-term targets, the mix shift towards recurring B2B and investment income could translate into steadier cash generation and more optionality on capital returns. Execution in the Americas and navigating regulatory tax bites are the key swing factors from here.

Quick glossary

• Adjusted EBITDA: Underlying profit before interest, tax, depreciation and amortisation, excluding one-offs and non-cash items.
• Investment income: Share of profits from associates (e.g. Caliente Interactive) and dividends from equity investments (e.g. Hard Rock Digital).
• SaaS: Software-as-a-Service – hosted tech and services sold on subscription-like terms.
• Regulated vs regulating: Markets that are licensed today versus those moving towards formal regulation.