Playtika's gaming D2C sales hit $1B run rate as publishers ditch app stores
Summary
Gaming D2C sales reached record levels in Q4 2025 across multiple major publishers simultaneously
Playtika led with $250.1M in D2C revenue, reaching ~$1B annualised run rate by year end
The D2C surge is happening even as Playtika's overall revenue grew only 4.4% - meaning D2C is outpacing the business
Third-party platform revenue fell 9.9% YoY at Playtika, confirming a structural channel shift, not just growth layering
"We are building a multi-channel D2C strategy and we are consistently optimising those channels to improve unit economics and strengthen our business over time."
01
Playtika D2C hits $1B run rate while overall growth stays flat
Playtika Q4 2025 D2C revenue: $250.1M, representing 36.8% of total sales
D2C growth: ↑ 19.5% QoQ, ↑ 43.2% YoY - the channel's fastest expansion on record
Full-year 2025 annualised D2C revenue: ~$1 billion
Third-party platform revenue: $428.7M, ↓ 9.9% YoY - declining every quarter throughout 2025
Total revenue growth: only ↑ 4.4% overall, confirming D2C is redistributing share, not solely generating new revenue
02
Take-Two and Zynga mobile D2C deliver strongest quarter on record
Take-Two CEO Strauss Zelnick confirmed its mobile D2C business (led by Zynga) hit its best quarter ever
Operating expenses for the mobile business are expected to grow ↑ 3% YoY, with UA investment cited as a key factor
"We have introduced recent enhancements that enable more personalised offers, flexible pricing, reduced payment friction, and alternative payment methods."
Zelnick described D2C as "a meaningful growth driver that will help accelerate net bookings, margins and profitability"
Favourable regulatory shifts, including the Epic vs. Google settlement, are accelerating publisher confidence in the channel
03
Mid-tier publishers posting aggressive D2C share gains
Stillfront: D2C now 45% of total bookings, ↑ from 34% in Q4 2024 - margins expanded to 27% from 24%
SciPlay: D2C hit a record 25% of Q4 sales ($48M), ↑ from 13% the prior year
Huuuge Games: D2C share reached a record 37% in Q4, climbing to ~41% in February 2026
Modern Times Group: D2C hit 32% of revenue (including browser) in Q4, ↑ from 19% the prior year
G5 Entertainment: G5 Store revenue ↑ 20.1% YoY and ↑ 2.7% sequentially, contributing to improved profitability
04
UA costs remain the unresolved threat to D2C margin gains
Lower app store fees are being partially offset by rising user acquisition costs across the board
Stillfront UA costs consumed 26% of revenue in Q4 - down YoY but only due to a deliberate profitability focus
Modern Times Group: UA costs were 38% of group revenue in Q4, down from 40%, yet absolute marketing spend increased
Analyst Matthew Ball estimates UA expenses have exceeded app store fees on consumer spending since 2020
By 2027, ad exchange fees on ad revenue could also surpass app store fees, further compressing net gains
05
D2C measurement gaps and publisher expansion plans ahead
Market intelligence firms currently do not track D2C spend - raising directional accuracy concerns for the industry
Sensor Tower is actively working on providing D2C revenue estimates to close the data gap
Ten Square Games is consolidating TSG Store and external link sales into a unified D2C reporting line from Q1 2026
Ten Square is expanding to capture alternative payment methods in the US market
Publishers are expected to continue scaling D2C infrastructure through 2026, with regulatory tailwinds supporting further adoption
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