PlayStudios(MYPS) - 2025 Q2 - Quarterly Results

Company Overview and Financial Highlights PLAYSTUDIOS reported Q2 and YTD 2025 financial declines in revenue and net loss, but strong direct-to-consumer growth, while maintaining full-year guidance despite current pace Second Quarter 2025 Financial Highlights PLAYSTUDIOS reported Q2 2025 revenue of $59.3 million, a decrease from $72.6 million in Q2 2024, with a net loss of $2.9 million and consolidated AEBITDA declining to $10.7 million, while Direct-to-Consumer revenue grew by 107% to $6.7 million | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | % Change | | :----------------------------- | :----------------- | :----------------- | :---------------- | :------- | | Revenue | $59.3 | $72.6 | $(13.3) | (18.3%) | | Net loss | $(2.9) | $(2.6) | $(0.3) | (11.5%) | | Consolidated AEBITDA | $10.7 | $14.1 | $(3.4) | (24.1%) | | Direct to Consumer revenue | $6.7 | $3.2 | $3.5 | 107% | - As of June 30, 2025, cash and cash equivalents on the balance sheet was $112.9 million[6] - PLAYSTUDIOS' $81 million revolving credit facility remains undrawn[6] - The Company had 125.2 million shares outstanding[6] Year to Date 2025 Financial Highlights For the six months ended June 30, 2025, PLAYSTUDIOS' revenue was $122.0 million, down from $150.4 million in the same period of 2024, with net loss increasing to $5.8 million and Consolidated AEBITDA decreasing to $23.2 million, while Direct-to-Consumer revenue rose 110% to $11.7 million | Metric | YTD 2025 (Millions) | YTD 2024 (Millions) | Change (Millions) | % Change | | :------------------ | :------------------ | :------------------ | :---------------- | :------- | | Revenue | $122.0 | $150.4 | $(28.4) | (18.9%) | | Net loss | $(5.8) | $(3.2) | $(2.6) | (81.3%) | | Consolidated AEBITDA | $23.2 | $29.5 | $(6.3) | (21.4%) | | Direct to Consumer revenue | $11.7 | $5.6 | $6.1 | 110% | CEO Commentary and Strategic Priorities CEO Andrew Pascal acknowledged significant market headwinds impacting the core business but highlighted growing traction in the direct-to-consumer channel, promising early momentum in the sweepstakes initiative, and continued progress on Tetris Block Party development as key strategic priorities for future growth and business stabilization - The core business continues to navigate meaningful market headwinds[3] - Strategic priorities include growing traction in the direct-to-consumer channel, promising early momentum in the sweepstakes initiative, and continued progress on the development of Tetris Block Party[3] Recent Business Highlights Recent business highlights include the continued development of sweepstakes promotional capabilities targeting a Q4 2025 launch, expanded direct-to-consumer monetization, progress on Tetris Block Party development for a Q4 2025 launch, strengthening of the playAWARDS platform, and the repurchase of 1.4 million shares of Class A common stock - Continued development of sweepstakes promotional capabilities, expected to launch externally in available markets in Q4 2025[12] - Progressed development of Tetris Block Party, targeting launch in Q4 2025[12] - Repurchased an aggregate of 1.4 million shares of Class A common stock at an average price of $1.41 per share in the quarter[12] Full Year 2025 Guidance The Company maintains its full year 2025 guidance for net revenue in the range of $250 million to $270 million and Consolidated AEBITDA in the range of $45 million to $55 million, despite not currently being on pace to meet these targets | Metric | Full Year 2025 Guidance (Millions) | | :------------------- | :------------------------------- | | Net Revenue | $250 - $270 | | Consolidated AEBITDA | $45 - $55 | - The Company is not changing its full year 2025 guidance, although it is currently not on pace to meet it[8] About PLAYSTUDIOS, Inc. PLAYSTUDIOS is an award-winning developer of free-to-play mobile and social games, also known for its playAWARDS loyalty platform offering real-world rewards Company Description and Offerings PLAYSTUDIOS is an award-winning developer of free-to-play mobile and social games, known for titles like Tetris® mobile app, Pop! Slots, and myVEGAS Slots, and is the creator of the playAWARDS loyalty platform, which allows players to earn real-world rewards from global hospitality, entertainment, and leisure brands - PLAYSTUDIOS is an award-winning developer of free-to-play mobile and social games, including the iconic Tetris® mobile app, Pop! Slots, myVEGAS Slots, myVEGAS Blackjack, my KONAMI Slots, myVEGAS Bingo, MGM Slots Live, Solitaire, Spider Solitaire and Sudoku[10] - Creator of the groundbreaking playAWARDS loyalty platform, which enables players to earn real-world rewards from a global collection of hospitality, entertainment, and leisure brands[10] - playAWARDS partners include MGM Resorts International, Wolfgang Puck, Norwegian Cruise Line, Resorts World, IHG, Bowlero, Gray Line Tours, and Hippodrome Casino among others[10] Performance Indicators Definitions This section defines key metrics for playGAMES, including DAU, MAU, and ARPDAU, and for the playAWARDS platform, such as Available Rewards and Retail Value of Purchases playGAMES Key Performance Indicators Definitions This section defines key metrics used to track player engagement and monetization for playGAMES, including Daily Active Users (DAU), Monthly Active Users (MAU), Daily Paying Users (DPU), Daily Payer Conversion, and Average Daily Revenue Per DAU (ARPDAU) - DAU (Daily Active Users): Number of individuals who played a game on a particular day, tracked by player ID for PLAYSTUDIOS games and app instance ID for Brainium games[14] - MAU (Monthly Active Users): Number of individuals who played a game in a particular month, tracked similarly to DAU[15] - ARPDAU (Average Daily Revenue Per DAU): Average daily revenue per Average DAU, calculated as game and advertising revenue for the period divided by days and Average DAU, used to measure overall monetization[18] playAWARDS Platform Metrics Definitions This section defines key metrics for the playAWARDS platform, such as Available Rewards, Purchases, Retail Value of Purchases, and Retail Value of Daily Rewards Inventory, which are used to measure audience interest, engagement, and the real-world value of rewards - Available Rewards: Monthly average number of unique real-world partner rewards available in applications' rewards stores, excluding PLAYSTUDIOS digital rewards[19] - Purchases: Total number of real-world partner rewards purchased for the period in which a player exchanges loyalty points for a reward, net of refunds, excluding PLAYSTUDIOS digital rewards[20][21] - Retail Value of Purchases: Cumulative retail value of all rewards listed as Purchases for the period, as determined by the partner, used to understand the real-world value of rewards purchased by players[22] Non-GAAP Financial Measures This section defines Consolidated AEBITDA as a non-GAAP measure, explaining its calculation and management's rationale for its use in performance analysis Consolidated AEBITDA Definition and Rationale Consolidated AEBITDA is presented as a non-GAAP measure, defined as net income (loss) before interest, income taxes, depreciation and amortization, restructuring and related costs, stock-based compensation, and other income/expense items, which management believes provides useful information for analyzing and benchmarking business performance by excluding certain fluctuating or non-cash costs - Consolidated AEBITDA is defined as net income (loss) before interest, income taxes, depreciation and amortization, restructuring and related costs, stock-based compensation expense, and other income and expense items[25] - Management believes Consolidated AEBITDA provides useful information to investors regarding the Company's results of operations because it assists in analyzing and benchmarking performance and value, providing an indicator not affected by fluctuations in certain costs or other items[26] Forward-Looking Statements This section provides a cautionary statement regarding forward-looking statements, highlighting potential material differences in actual results due to various known and unknown risks and uncertainties Disclaimer and Risk Factors This section serves as a cautionary statement, indicating that the press release contains forward-looking statements regarding future financial performance, operations, and strategic plans, and highlights that actual results may differ materially due to known and unknown risks, uncertainties, and assumptions - This press release contains forward-looking statements regarding future financial and operating performance, liquidity, capital resources, game development and release plans, business restructuring, and M&A strategy[27] - Actual results may differ materially from predictions due to known and unknown risks, uncertainties, and assumptions, including those related to the ability to develop and publish games, defects in IT infrastructure, player attraction and retention, market acceptance of new games, competition, financial performance, and legal/regulatory developments[27][28] Condensed Consolidated Financial Statements This section presents the Condensed Consolidated Statement of Operations, showing net revenue and loss trends, and the Condensed Consolidated Balance Sheets, detailing assets, liabilities, and equity Condensed Consolidated Statement of Operations The Condensed Consolidated Statement of Operations shows a net loss of $2.9 million for Q2 2025 (vs. $2.6 million in Q2 2024) and $5.8 million for YTD 2025 (vs. $3.2 million in YTD 2024), with net revenue decreasing significantly from $72.6 million to $59.3 million in Q2 and from $150.4 million to $122.0 million YTD, while operating expenses also saw reductions | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net revenue | $59,338 | $72,590 | $122,047 | $150,418 | | Total operating costs and expenses | $62,825 | $76,553 | $128,275 | $156,084 | | Loss from operations | $(3,487) | $(3,963) | $(6,228) | $(5,666) | | Net loss | $(2,948) | $(2,611) | $(5,828) | $(3,178) | | Basic Net loss per share | $(0.02) | $(0.02) | $(0.05) | $(0.02) | Condensed Consolidated Balance Sheets As of June 30, 2025, PLAYSTUDIOS reported total assets of $316.2 million, a decrease from $323.0 million at December 31, 2024, with cash and cash equivalents increasing slightly to $112.9 million, total liabilities decreasing to $70.9 million, and total stockholders' equity seeing a slight increase to $245.3 million | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $112,860 | $109,179 | | Total current assets | $151,104 | $147,102 | | Total assets | $316,233 | $322,955 | | Total current liabilities | $41,436 | $49,418 | | Total liabilities | $70,942 | $78,240 | | Total stockholders' equity | $245,291 | $244,715 | Reconciliation of Net Loss to Consolidated AEBITDA This section provides a detailed reconciliation of net loss to Consolidated AEBITDA, illustrating the adjustments made and the resulting AEBITDA margins for the reported periods AEBITDA Reconciliation and Margin The reconciliation shows that Consolidated AEBITDA for Q2 2025 was $10.7 million (18.1% margin), down from $14.1 million (19.5% margin) in Q2 2024, and for the six months ended June 30, 2025, AEBITDA was $23.2 million (19.0% margin), compared to $29.5 million (19.6% margin) in the prior year, with key adjustments including depreciation & amortization and stock-based compensation expense | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(2,948) | $(2,611) | $(5,828) | $(3,178) | | Depreciation & amortization | $9,535 | $11,654 | $19,167 | $23,220 | | Stock-based compensation expense | $4,608 | $4,930 | $8,866 | $9,724 | | Consolidated AEBITDA | $10,714 | $14,138 | $23,201 | $29,452 | | Consolidated AEBITDA Margin | 18.1% | 19.5% | 19.0% | 19.6% | Supplemental Data This section provides disaggregated financial data by segment, a detailed net revenue breakdown by type and platform, and key performance indicators for both playGAMES and playAWARDS Segment Information This section provides financial data disaggregated by reportable segments, playGAMES and playAWARDS, for Q2 and YTD 2025 versus 2024, detailing their respective net revenues, expenses, and AEBITDA contributions | Metric (in thousands) | Q2 2025 playGAMES | Q2 2024 playGAMES | Q2 2025 playAWARDS | Q2 2024 playAWARDS | YTD 2025 playGAMES | YTD 2024 playGAMES | YTD 2025 playAWARDS | YTD 2024 playAWARDS | | :-------------------- | :---------------- | :---------------- | :----------------- | :----------------- | :----------------- | :----------------- | :------------------ | :------------------ | | Net revenue | $59,109 | $72,588 | $229 | $2 | $121,664 | $150,416 | $383 | $2 | | Reportable segment AEBITDA | $16,475 | $21,920 | $(2,386) | $(3,476) | $34,784 | $45,371 | $(4,675) | $(7,098) | Net Revenue Breakdown This section details the breakdown of net revenue by type (virtual currency, advertising, other) and by platform (third-party, direct-to-consumer) for Q2 and YTD 2025 versus 2024, highlighting overall revenue decline but strong growth in direct-to-consumer channels | Metric (in thousands) | Q2 2025 | Q2 2024 | % Change (QoQ) | YTD 2025 | YTD 2024 | % Change (YoY) | | :-------------------- | :------ | :------ | :------------- | :------- | :------- | :------------- | | Virtual currency revenue | $48,208 | $56,477 | (14.6%) | $99,049 | $116,724 | (15.1%) | | Advertising revenue | $11,128 | $16,006 | (30.5%) | $22,991 | $33,448 | (31.3%) | | Direct-to-consumer (DTC) platforms revenue | $6,683 | $3,232 | 106.8% | $11,654 | $5,556 | 109.8% | | DTC revenue as a percentage of virtual currency revenue | 13.9% | 5.7% | 143.9% | 11.8% | 4.8% | 145.8% | playGAMES Key Performance Indicators This section presents key operational metrics for playGAMES, including Average DAU, MAU, DPU, Daily Payer Conversion, and ARPDAU, for Q2 and YTD 2025 versus 2024, indicating a decline in user engagement but improved monetization per active user | Metric | Q2 2025 | Q2 2024 | Change | % Change | YTD 2025 | YTD 2024 | Change | % Change | | :----------------------------- | :------ | :------ | :----- | :------- | :------- | :------- | :----- | :------- | | Average DAU (in thousands) | 2,347 | 3,220 | (873) | (27.1%) | 2,489 | 3,357 | (868) | (25.9%) | | Average MAU (in thousands) | 10,046 | 13,597 | (3,551) | (26.1%) | 10,730 | 14,174 | (3,444) | (24.3%) | | Average DPU (in thousands) | 19 | 24 | (5) | (20.8%) | 20 | 26 | (6) | (23.1%) | | ARPDAU (in dollars) | $0.28 | $0.25 | $0.03 | 12.0% | $0.27 | $0.25 | $0.02 | 8.0% | playAWARDS Key Performance Indicators This section presents key operational metrics for the playAWARDS platform, including Available Rewards, Purchases, Retail Value of Purchases, and Retail Value of Daily Rewards Inventory, for Q2 and YTD 2025 versus 2024, showing a decrease in rewards and purchases but an increase in the retail value of daily rewards inventory | Metric (in thousands) | Q2 2025 | Q2 2024 | Change | % Change | YTD 2025 | YTD 2024 | Change | % Change | | :-------------------------------- | :------ | :------ | :----- | :------- | :------- | :------- | :----- | :------- | | Available Rewards (in units) | 331 | 561 | (230) | (41.0%) | 349 | 541 | (192) | (35.5%) | | Purchases (in units) | 199 | 520 | (321) | (61.6%) | 480 | 1,020 | (540) | (52.9%) | | Retail Value of Purchases | $12,662 | $31,405 | $(18,743) | (59.7%) | $29,647 | $71,997 | $(42,350) | (58.8%) | | Retail Value of Daily Rewards Inventory | $3,060 | $1,775 | $1,285 | 72.4% | $2,532 | $1,838 | $694 | 37.8% |