PLAYSTUDIOS, Inc.

Total revenue for Q3 was $57.6 million, down approximately 19.1% year over year and down 2.7% sequentially. Year-to-date revenue was $179.7 million, down 18.9% year over year. Adjusted EBITDA was $7.2 million, down 50.5% year over year, with a 12.6% operating margin versus 20.5% in Q3 2024; year-to-date adjusted EBITDA was $30.5 million, down approximately 31% year over year. MAU declined 24.9% year over year and 5.4% sequentially, while DAU fell 25.3% year over year and 5.8% sequentially. D2C revenue was $7.7 million, up 48% quarter over quarter and equal to 16.7% of total in-app purchase revenue, versus 9.1% in Q3 2024. Cash was approximately $106.3 million, with no debt and a fully undrawn $81 million credit facility. Management said full-year net revenue and consolidated adjusted EBITDA are now expected to fall below the low end of the previously provided guidance ranges.

Andrew Pascal framed the quarter as part of a broader reinvention effort in a difficult category, saying the company is trying to “reshape the business with discipline” and that “nothing is off the table.” He stressed that prior cost cuts improved the fixed cost base, but also reduced content and live-ops velocity, which contributed to softer portfolio performance. Strategically, he emphasized Win Zone, Tetris Block Party, stronger player value, and AI-enabled development as the main levers for reaccelerating growth over time.

Scott Peterson said the quarter’s revenue and EBITDA decline was driven mainly by lower DAU, especially in casual, along with continued revenue softness. He pointed to the company’s liquidity position of about $106.3 million in cash, no debt, and an undrawn $81 million credit facility, saying that gives flexibility to pursue long-term opportunities. He also said the company now expects full-year net revenue and consolidated adjusted EBITDA to land below the low end of prior guidance due to softer player activity and monetization.

Analysts pressed on how much the full-year guide was being reduced, and Scott said the company did not give specifics because launch timing and quarterly trends are still moving, but the third-quarter trends were continuing into Q4; when asked directly, he confirmed the core business should see a sequential revenue decline in Q4 versus Q3. Questions also focused on whether sweepstakes and California’s ban could stabilize the core social casino business; Andrew said they have not yet seen benefit from California because the ban takes effect later, but they are hopeful players will return to traditional social play and rewarded-play alternatives. On strategic alternatives, Andrew said they are evaluating both organic improvements and M&A, and that the company’s large U.S. player database could create optionality with iGaming operators or other partners.