PlayStudios(MYPS) - 2025 Q2 - Quarterly Report

Cautionary Note Regarding Forward-Looking Statements Forward-Looking Statements Overview Outlines inherent risks and uncertainties for forward-looking statements, detailing factors that could cause actual results to differ and official disclosure channels - Forward-looking statements are based on current expectations and projections about future events and are subject to known and unknown risks, uncertainties, and assumptions[12][13] - Key factors that might cause actual results to differ include business strategy, financial performance, market acceptance of games, financing ability, competitive and regulatory changes, platform relationships, accounting for warrants, internal controls, intellectual property rights, litigation, acquisitions, personnel, geopolitical conditions, and legal/regulatory factors[13][14] - The company uses its Investor Relations website, SEC filings, press releases, public conference calls, public webcasts, and social media to announce material information[16] Part I - Financial Information Item 1. Financial Statements (Unaudited) Presents unaudited condensed consolidated financial statements, including balance sheets, operations, comprehensive loss, equity, cash flows, and detailed accounting notes Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total assets | $316,233 | $322,955 | | Total liabilities | $70,942 | $78,240 | | Total stockholders' equity | $245,291 | $244,715 | | Cash and cash equivalents | $112,860 | $109,179 | | Total current assets | $151,104 | $147,102 | | Total current liabilities | $41,436 | $49,418 | Condensed Consolidated Statements of Operations Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | % Change | | :-------------------------------- | :--------------------------- | :--------------------------- | :----- | :------- | :--------------------------- | :--------------------------- | :----- | :------- | | Net revenue | $59,338 | $72,590 | $(13,252) | (18.3)% | $122,047 | $150,418 | $(28,371) | (18.9)% | | Total operating costs and expenses | $62,825 | $76,553 | $(13,728) | (17.9)% | $128,275 | $156,084 | $(27,809) | (17.8)% | | Loss from operations | $(3,487) | $(3,963) | $476 | (12.0)% | $(6,228) | $(5,666) | $(562) | 9.9% | | Net loss | $(2,948) | $(2,611) | $(337) | 12.9% | $(5,828) | $(3,178) | $(2,650) | 83.4% | | Basic net loss per share | $(0.02) | $(0.02) | $0.00 | 0.0% | $(0.05) | $(0.02) | $(0.03) | 150.0% | | Diluted net loss per share | $(0.02) | $(0.02) | $0.00 | 0.0% | $(0.05) | $(0.02) | $(0.03) | 150.0% | Condensed Consolidated Statements of Comprehensive Loss Condensed Consolidated Statements of Comprehensive Loss (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net loss | $(2,948) | $(2,611) | $(5,828) | $(3,178) | | Total other comprehensive income (loss) | $2,134 | $(570) | $2,180 | $(1,678) | | Comprehensive loss | $(814) | $(3,181) | $(3,648) | $(4,856) | - Other comprehensive income in Q2 2025 was positively impacted by a $1,611k change in foreign currency translation adjustment and a $758k unrealized gain from derivative financial instruments[25] Condensed Consolidated Statements of Stockholders' Equity Stockholders' Equity Changes (in thousands) | Metric | Balance as of Dec 31, 2024 | Net loss (6M 2025) | Stock-based compensation (6M 2025) | Repurchase of common stock (6M 2025) | Other comprehensive income (6M 2025) | Balance as of June 30, 2025 | | :------------------------- | :------------------------- | :------------------ | :--------------------------------- | :----------------------------------- | :----------------------------------- | :-------------------------- | | Total Stockholders' Equity | $244,715 | $(5,828) | $9,152 | $(3,499) | $2,180 | $245,291 | - Treasury stock increased from $51,293k (19,450 shares) at December 31, 2024, to $54,792k (21,739 shares) at June 30, 2025, primarily due to common stock repurchases[28][122] Condensed Consolidated Statements of Cash Flows Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | % Change | | :-------------------------------- | :--------------------------- | :--------------------------- | :----- | :------- | | Net cash provided by operating activities | $16,942 | $19,531 | $(2,589) | (13.3)% | | Net cash used in investing activities | $(8,030) | $(13,060) | $5,030 | (38.5)% | | Net cash used in financing activities | $(6,961) | $(32,444) | $25,483 | (78.5)% | | Net change in cash, cash equivalents, and restricted cash | $3,087 | $(26,585) | $29,672 | nm | | Cash, cash equivalents, and restricted cash at end of period | $113,473 | $106,304 | $7,169 | 6.7% | Notes to Unaudited Condensed Consolidated Financial Statements Provides detailed explanations and disclosures for financial statements, covering background, accounting policies, segment reporting, acquisitions, related-party transactions, and account specifics NOTE 1—BACKGROUND AND BASIS OF PRESENTATION - PLAYSTUDIOS, Inc. was incorporated on August 14, 2020, and domesticated into a **Delaware corporation on June