Nov 5, 2026, 5:03 PM ETCommunication Services

PLAYSTUDIOS, Inc. — Third Quarter 2026 Earnings Summary

MYPSPLAYSTUDIOS INC

Financial Performance

Consolidated revenue was $48.9 million for the three months ended September 30, 2026, a 15.1% decrease from $57.6 million in the same period of 2025.
Net loss was $11.0 million for the quarter, compared to a net loss of $9.1 million in the prior year period; net loss margin increased to 22.6% from 15.8%.
Consolidated AEBITDA was $10.0 million, representing a 20.4% margin, an improvement from $7.2 million (12.6% margin) in the prior year.
Direct-to-consumer (DTC) revenue reached $16.0 million, a 108% increase from $7.7 million in the prior year, accounting for 41.7% of virtual currency revenue.
Cash and cash equivalents were $95.9 million as of September 30, 2026.
Total operating costs and expenses were $68.7 million for the quarter, compared to $65.5 million in the prior year.
Goodwill impairment of $9.2 million and non-cash impairment charges of $6.7 million were recognized during the quarter.

The Company is not providing formal financial guidance due to ongoing pressure within the broader social casino market.
Management expects to realize annualized cost savings from the Renewal restructuring program in the range of $37.0 million to $39.0 million.
The Company intends to evaluate selective future growth opportunities only after establishing a stronger and more predictable operating base.
Management plans to continue engaging with investors regarding progress and priorities.

The Company discontinued two growth initiatives: Tetris Block Party (operations ceased October 2026) and The Win Zone (decision made September 18, 2026), citing insufficient engagement and economic returns.
The playGAMES segment reported segment AEBITDA of $14.5 million for the quarter, while the playAWARDS segment reported a segment AEBITDA loss of $1.1 million.
The Renewal restructuring program has resulted in the closure of four studios and the elimination of 177 positions, exceeding role elimination targets.
The Company is expanding the use of AI across development and operating teams to improve productivity and margins.
Average DAU was 1.7 million and Average MAU was 6.8 million for the quarter; ARPDAU was $0.31, up 10.7% year-over-year.

Legacy social casino revenue and audience remain under pressure due to continued secular headwinds across the category.
Virtual currency revenue from third-party platforms decreased 42.3% year-over-year, while DTC virtual currency revenue increased 108.4%.
The Company believes its current market valuation implies a negative enterprise value based on recent trading prices and cash position.

Ongoing secular headwinds in the social casino category continue to impact revenue and audience metrics.
The discontinuation of growth initiatives resulted in significant non-cash impairment charges ($6.7 million) and goodwill impairment ($9.2 million).
Future performance depends on the successful execution of cost-saving initiatives and the ability to improve operating margins.

CEO Andrew Pascal described the operating environment as challenging but emphasized progress toward a "simpler, more efficient, and more financially disciplined organization."
Management highlighted the disciplined approach to capital allocation, prioritizing profitability and financial returns over continued investment in underperforming initiatives.
The tone reflects confidence in the Renewal program's ability to strengthen the financial position and simplify the business model.

The Company executed a share repurchase program, with $44.6 million of authorization remaining as of the release date.
The Company recognized a change in the fair value of contingent consideration of $8.0 million in other income for the quarter.
The playAWARDS platform increased Available Rewards by 31.1% year-over-year to 426 units, while Purchases decreased 24.1% to 154 units.
The Company closed all four targeted studios and surpassed cost of sales reduction goals under the Renewal program.