PLAYSTUDIOS — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue was $48.9 million for the quarter ended September 30, 2026, a 15.1% decrease from $57.6 million in the same period of 2025.
• Net loss was $11.0 million (net loss margin of 22.6%), compared to a net loss of $9.1 million (net loss margin of 15.8%) in the prior year quarter.
• Consolidated AEBITDA was $10.0 million (margin of 20.4%), an increase from $7.2 million (margin of 12.6%) in the prior year quarter.
• Direct-to-consumer revenue was $16.0 million, representing a 108% increase from $7.7 million in the prior year quarter.
• 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 period.
• Loss from operations was $19.8 million for the quarter, compared to a loss of $7.9 million in the prior year period.
• For the nine months ended September 30, 2026, net loss was $35.0 million and Consolidated AEBITDA was $20.9 million.

Guidance and Future Outlook:

• The Company is not providing formal financial guidance due to ongoing pressure within the broader social casino market.
• Management intends to evaluate and selectively invest in future growth opportunities once a stronger and more predictable operating base is established.
• The Company expects to realize annualized savings from its Renewal restructuring program in the range of $37.0 million to $39.0 million.

Business Segments and Product Lines:

• The Company discontinued two growth initiatives: Tetris Block Party (operations ceased in October 2026) and The Win Zone.
• The discontinuation of these initiatives resulted in a non-cash impairment charge of $6.7 million and a goodwill impairment of $9.2 million during the quarter.
• The playGAMES segment generated $48.4 million in net revenue for the quarter, while the playAWARDS segment generated $0.5 million.
• The Company closed all four studios targeted by the Renewal restructuring program and eliminated 177 positions.
• Average DAU was 1.7 million and Average MAU was 6.8 million for the quarter.
• ARPDAU was $0.31 for the quarter, up from $0.28 in the prior year period.

Market and Competitive Landscape:

• Legacy social casino revenue and audience remain under pressure due to continued secular headwinds across the category.
• Third-party platform virtual currency revenue decreased 42.3% to $22.3 million, while Direct-to-Consumer virtual currency revenue increased 108.4% to $16.0 million.
• The Company is prioritizing its existing portfolio and applying more stringent financial and operating criteria to future growth investments.

Risks and Challenges:

• The social casino market faces ongoing secular headwinds affecting revenue and audience metrics.
• The Company incurred significant one-time costs including restructuring expenses of $9.2 million and goodwill impairment of $9.2 million in the quarter.
• Future performance depends on the successful execution of cost-saving initiatives and the ability to improve operating margins.

Management Commentary and Tone:

• CEO Andrew Pascal described the operating environment as challenging but noted progress toward a simpler, more efficient, and financially disciplined organization.
• Management characterized the decision to discontinue Tetris Block Party and The Win Zone as difficult but necessary to prioritize profitability and financial returns.
• The tone reflects a focus on capital discipline, with management stating that exiting underperforming initiatives will strengthen the financial position.

Other Key Points:

• The Company continues to execute its share repurchase program, with $44.6 million of authorization remaining as of the release date.
• Management believes the current market valuation implies a negative enterprise value.
• The Company is expanding the use of AI across development and operating teams to improve productivity and margins.
• The Company recognized a change in the fair value of contingent consideration of $8.0 million as other income during the quarter.
• The Renewal restructuring program has exceeded targeted role eliminations and surpassed cost of sales reduction goals.