PLAYSTUDIOS, Inc.
For the period ended Jun 30, 2026. Filed Aug 11, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 11, 2026
MYPS$4.680.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-11.
0001823878-26-000041
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-11.
0001823878-26-000052
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 106 previous paragraphs and 115 current paragraphs.
78 unchanged; 22 reworded; 8 added; 6 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 10 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
Selling and marketing expenses increased by $10.1 million to $36.3 million during the six months ended June 30, 2026 compared to $26.3 million during the six months ended June 30, 2025. The increase was primarily due to increases in user acquisition expense of $9.3 million, which is attributable to the Company's investment in our growth initiatives, stock compensation of $0.3 million, outside services of $0.3 million, and brand and other marketing expense of $0.2 million.
Current report
Research and development expenses increased by $2.0 million to $29.9 million during the six months ended June 30, 2026 compared to $27.9 million during the six months ended June 30, 2025. The increase was primarily due to increases in employee costs of $2.0 million, information technology expense of $0.6 million, facilities expense of $0.5 million, and other research and development expense of $0.2 million. This was offset by a decrease of stock compensation of $1.3 million.
Current report
General and administrative expenses decreased by $5.0 million to $18.2 million during the six months ended June 30, 2026 compared to $23.2 million during the six months ended June 30, 2025. The decrease is primarily due to decreases in stock compensation of $3.2 million, a charitable donation of $0.3 million, information technology expense of $0.3 million, facilities expense of $0.3 million, and other general and administrative costs of $0.9 million.
Current report
Depreciation and amortization expenses increased by $0.4 million to $19.5 million during the six months ended June 30, 2026 compared to $19.2 million during the six months ended June 30, 2025.
Current report
Restructuring expenses increased by $8.0 million to $9.4 million during the six months ended June 30, 2026 compared to $1.4 million during the six months ended June 30, 2025. The increase was primarily due to increases in internal reorganization costs of $5.3 million, costs related to various merger and acquisition opportunities of $1.4 million, non-recurring legal expense of $1.2 million, and other restructuring activities of $0.1 million.
Current report
Other (Loss) Income, Net
Current report
As of June 30, 2026, we were not a party to any revolving credit facility or other committed long-term borrowing arrangement.
Current report
During the six months ended June 30, 2026, investing activities used $8.0 million of net cash as compared to $8.0 million during the six months ended June 30, 2025.
Removed paragraphs (6)
Previous report
Our actual results and the timing of certain events may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such a discrepancy include, but are not limited to, those discussed elsewhere in this Quarterly Report on Form 10-Q, particularly in the section titled “Risk Factors” set forth in Part II, Item 1A of this Quarterly Report on Form 10-Q. All forward-looking statements in this report are based on information available to us as of the date hereof, and we assume no obligation to update any such forward-looking statements to reflect future events or circumstances, except as required by law.
Previous report
Retail Value of Purchases
Previous report
Retail Value of Purchases is defined as the cumulative retail value of all rewards listed as Purchases for the period identified. The retail value of each reward listed as Purchases is the retail value as determined by the partner upon creation of the reward. In the case where the retail value of a reward adjusts depending on time of redemption, the average retail value is used. Retail Value of Purchases only include the retail value of real-world partner rewards and exclude the cost of any PLAYSTUDIOS branded merchandise. Retail values are based on partner-provided estimates and may not reflect actual market prices, realized redemption value, or player experience. Retail value also does not represent revenue recognized by the Company. We use Retail Value of Purchases to help us understand the real-world value of the rewards that are purchased by our players during a particular period.
Previous report
Other Income, Net
Previous report
As of March 31, 2026, we do not have any outstanding amounts under the Credit Agreement.
Previous report
During the three months ended March 31, 2026, investing activities used $4.1 million of net cash as compared to $3.6 million during the three months ended March 31, 2025. The change in cash used in investing activities was due to increased additions to internal-use software during the three months ended March 31, 2026.
Reworded paragraphs (22)
Previous wording
The following discussion and analysis provide information which our management believes is relevant to an assessment and understanding of our condensed consolidated results of operations and financial condition. The discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto contained in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in the “Risk Factors” section of this Quarterly Report on Form 10-Q. Actual results may differ materially from those contained in any forward-looking statements. Unless the context otherwise requires, references to “we”, “us”, “our”, and “the Company” are intended to mean the business and operations of PLAYSTUDIOS, Inc. and its consolidated subsidiaries.
Current wording
The following discussion and analysis is intended to assist readers in understanding of our results of operations, financial condition and liquidity and should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements that involve risks and uncertainties. See "Cautionary Note Regarding Forward-Looking Statements" and Part II, Item 1A, "Risk Factors," for a discussion of important factors that could cause actual results to differ materially from those anticipated in these forward-looking statements. Unless the context otherwise requires, references to "we," "us," "our," and "the Company" refer to PLAYSTUDIOS, Inc. and its consolidated subsidiaries.
Previous wording
Daily Payer Conversion is defined as DPU as a percentage of DAU on a particular day. Daily Payer Conversion is also sometimes referred to as "Percentage of Paying Users" or "PPU". The term "Average Daily Payer Conversion" is defined as the Average DPU divided by Average DAU for a given period. We use Daily Payer Conversion and Average Daily Payer Conversion to help us understand the monetization of our active players.
Current wording
Daily Payer Conversion is defined as DPU as a percentage of DAU on a particular day. Daily Payer Conversion is also sometimes referred to as "Percentage of Paying Users" or "PPU". The term "Average Daily Payer Conversion" is defined as the
Previous wording
Comparison of the three months ended March 31, 2026 versus the three months ended March 31, 2025
Current wording
Comparison of the three and six months ended June 30, 2026 versus the three and six months ended June 30, 2025
Previous wording
The following table summarizes our consolidated results of operations for the three months ended March 31, 2026 and 2025 (in thousands, except percentages):
Current wording
The following table summarizes our consolidated results of operations for the three and six months ended June 30, 2026 and 2025 (in thousands, except percentages):
Previous wording
Net revenue decreased $4.7 million, or (7.5)%, to $57.9 million during the three months ended March 31, 2026 compared to $62.6 million during the three months ended March 31, 2025. The decrease was due to a $6.0 million decrease in virtual currency revenue primarily driven by decreases in DPU within certain games, which was partially offset by increased revenue due to our new growth initiatives and a $1.3 million increase in advertising revenue.
Current wording
Net revenue decreased $4.9 million, or (8.3)%, to $54.2 million during the three months ended June 30, 2026 compared to $59.1 million during the three months ended June 30, 2025. The decrease was due to a $6.1 million decrease in virtual currency revenue primarily driven by decreases in DPU within certain games, which was partially offset by increased revenue due to our new growth initiatives and a $1.2 million increase in advertising revenue.
Previous wording
Net revenue increased $0.4 million during the three months ended March 31, 2026 compared to the same period in prior year. The key performance indicators presented above are used by management to assess the playAWARDS segment's operating performance, however, are not indicative revenue metrics.
Current wording
Net revenue increased $0.6 million during the three months ended June 30, 2026 compared to the same period in prior year. The key performance indicators presented above are used by management to assess the playAWARDS segment's operating performance, however, are not indicative revenue metrics.
Previous wording
Cost of revenue decreased by $3.7 million to $12.0 million during the three months ended March 31, 2026 compared to $15.8 million during the three months ended March 31, 2025. The decrease was primarily related to a decrease in virtual currency revenue. As a percentage of revenue, cost of revenue decreased from 25.2% for the three months ended March 31, 2025 to 20.6% for the three months ended March 31, 2026 due to an increase in direct to consumer revenue, which incur lower processing fees.
Current wording
Cost of revenue decreased by $3.7 million to $10.8 million during the three months ended June 30, 2026 compared to $14.6 million during the three months ended June 30, 2025. The decrease was primarily related to a decrease in virtual currency revenue. As a percentage of revenue, cost of revenue decreased from 24.5% for the three months ended June 30, 2025 to 19.7% for the three months ended June 30, 2026 due to an increase in direct to consumer revenue, which incur lower processing fees.
Previous wording
Selling and marketing expenses increased by $7.9 million to $21.0 million during the three months ended March 31, 2026 compared to $13.2 million during the three months ended March 31, 2025. The increase was primarily due to increases in user acquisition expense of $6.5 million which is attributable to the Company's investment in our growth initiatives, employee costs of $0.5 million, and brand and other marketing expense of $0.9 million.
Current wording
Selling and marketing expenses increased by $2.2 million to $15.3 million during the three months ended June 30, 2026 compared to $13.1 million during the three months ended June 30, 2025. The increase was primarily due to increases in user acquisition expense of $2.7 million, which is attributable to the Company's investment in our growth initiatives, and stock compensation of $0.2 million. This was offset by a decrease of brand and other marketing expense of $0.7 million.
Previous wording
Research and development expenses increased by $1.1 million to $14.7 million during the three months ended March 31, 2026 compared to $13.7 million during the three months ended March 31, 2025. The increase was primarily due to increases in employee costs of $1.1 million and other research and development expense of $0.7 million. This was offset by a decrease of stock compensation of $0.7 million.
Current wording
Research and development expenses increased by $0.9 million to $15.1 million during the three months ended June 30, 2026 compared to $14.2 million during the three months ended June 30, 2025. The increase was primarily due to increases in employee costs of $0.9 million and other research and development expense of $0.6 million. This was offset by a decrease of stock compensation of $0.6 million.
Previous wording
General and administrative expenses decreased by $2.4 million to $9.4 million during the three months ended March 31, 2026 compared to $11.9 million during the three months ended March 31, 2025. The decrease is primarily due to decreases in stock compensation of $1.3 million, a charitable donation of $0.3 million, and other general and administrative cost of $0.8 million.
Current wording
General and administrative expenses decreased by $2.6 million to $8.8 million during the three months ended June 30, 2026 compared to $11.3 million during the three months ended June 30, 2025. The decrease is primarily due to decreases in stock compensation of $1.9 million and other general and administrative cost of $0.7 million.
Previous wording
Depreciation and amortization expenses increased by $0.2 million to $9.8 million during the three months ended March 31, 2026 compared to $9.6 million during the three months ended March 31, 2025.
Current wording
Depreciation and amortization expenses increased by $0.2 million to $9.7 million during the three months ended June 30, 2026 compared to $9.5 million during the three months ended June 30, 2025.
Previous wording
Restructuring expenses increased by $3.3 million to $4.7 million during the three months ended March 31, 2026 compared to $1.3 million during the three months ended March 31, 2025. The increase was primarily due to increases in internal reorganization costs of $2.3 million, costs related to various merger and acquisition opportunities of $1.2 million, and other restructuring costs of $0.2 million. This was offset by a decrease in non-recurring legal expense of $0.4 million.
Current wording
Restructuring expenses increased by $4.7 million to $4.8 million during the three months ended June 30, 2026 compared to $0.1 million during the three months ended June 30, 2025. The increase was primarily due to increases in internal reorganization costs of $3.0 million, non-recurring legal expense of $1.6 million, and costs related to various merger and acquisition opportunities of $0.1 million.
Previous wording
The change in fair value of warrant liabilities is related to the warrants discussed in Note 10—Accrued and Other Current Liabilities to our condensed consolidated financial statements herein. The change in fair value of contingent consideration is related to the Pixode Acquisition discussed in Note 7—Fair Value Measurement. Interest income, net is related to interest earned on cash and cash equivalents offset by fees and expenses associated with the Credit Agreement as discussed in Note 12—Long-Term Debt to our condensed consolidated financial statements herein. Other income primarily relates to gains or (losses) from equity investments and gains or (losses) from foreign currency transactions with our foreign subsidiaries.
Current wording
The change in fair value of contingent consideration is related to the Pixode Acquisition discussed in Note 7—Fair Value Measurement. Interest income, net is related to interest earned on cash and cash equivalents offset by fees and expenses associated with the Credit Agreement as discussed in Note 12—Long-Term Debt to our condensed consolidated financial statements herein. Other (loss) income primarily relates to gains or (losses) from equity investments, gains or (losses) from foreign currency transactions with our foreign subsidiaries, and the change in fair value of warrant liabilities is related to the warrants discussed in Note 10—Accrued and Other Current Liabilities to our condensed consolidated financial statements herein.
Previous wording
Provision for income taxes resulted in a tax expense of $0.6 million for the three months ended March 31, 2026, compared to a tax expense of $0.3 million for the three months ended March 31, 2025.
Current wording
Provision for income taxes resulted in a tax expense of $1.5 million for the three months ended June 30, 2026, compared to a tax expense of $0.2 million for the three months ended June 30, 2025.
Previous wording
Comparison of the three months ended March 31, 2026 versus the three months ended March 31, 2025
Current wording
Comparison of the three and six months ended June 30, 2026 versus the three and six months ended June 30, 2025
Previous wording
playGAMES AEBITDA was $8.7 million for the three months ended March 31, 2026 compared to $18.3 million for the three months ended March 31, 2025, a decrease of $9.6 million. playGAMES AEBITDA margin was 15.0% for the three months ended March 31, 2026 compared to 29.3% for the three months ended March 31, 2025. The decrease to playGAMES AEBITDA was a result of decreased virtual currency revenue primarily driven by decreases in DPU and an increase of user acquisition expense. This was partially offset by an increase in direct-to-consumer sales which incurs lower processing fees, driving a reduction in cost of sales, as well as an increase of revenue related to the launch of Tetris Block Party.
Current wording
playGAMES AEBITDA was $11.5 million for the three months ended June 30, 2026 compared to $16.5 million for the three months ended June 30, 2025, a decrease of $5.0 million. playGAMES AEBITDA margin was 21.2% for the three months ended June 30, 2026 compared to 27.9% for the three months ended June 30, 2025. The decrease to playGAMES AEBITDA was a result of decreased virtual currency revenue, primarily driven by decreases in DPU, and an increase of user acquisition expense. This was partially offset by an increase in direct-to-consumer sales which incurs lower processing fees, driving a reduction in cost of sales.
Previous wording
playAWARDS AEBITDA was $(1.5) million for the three months ended March 31, 2026 compared to $(2.3) million for the three months ended March 31, 2025. The increase in AEBITDA can be attributed to an increase in revenue and a decrease in employee costs.
Current wording
playAWARDS AEBITDA was $(0.9) million for the three months ended June 30, 2026 compared to $(2.4) million for the three months ended June 30, 2025. The increase in AEBITDA can be attributed to an increase in revenue and a decrease in employee and other costs.
Previous wording
(1)Amounts reported during the three months ended March 31, 2026 and March 31, 2025 relate to internal reorganization costs, including severance-related costs, fees related to evaluating various merger and acquisition opportunities, and non-recurring legal costs.
Current wording
(1)Amounts reported during the three and six months ended June 30, 2026 and June 30, 2025 relate to internal reorganization costs, including severance-related costs, fees related to evaluating various merger and acquisition opportunities, and non-recurring legal costs.
Previous wording
(2)Amounts reported in “Other, net” include interest expense, interest income, gains/losses from equity investments, foreign currency gains/losses, and non-cash gains/losses on the disposal of assets.
Current wording
(2)Amounts reported in “Other, net” include the change in fair value of the Warrants, interest expense, interest income, gains/losses from equity investments, foreign currency gains/losses, and non-cash gains/losses on the disposal of assets.
Previous wording
As of March 31, 2026, we had cash and cash equivalents of $103.7 million, which consisted of cash on hand and money market mutual funds. As of March 31, 2026 we had restricted cash of $0.6 million. Historically, we have funded our operations, including capital expenditures, primarily through cash flow from operating activities. We believe that our existing cash and cash equivalents, and cash generated from operations, will be sufficient to fund our operations and capital expenditures for at least the next twelve (12) months. However, we intend to continue to make significant investments to support our business growth and may require additional funds to respond to business challenges, including the need to develop new games and features or enhance our existing games, improve our operating infrastructure, or acquire complementary businesses, personnel and technologies. Accordingly, we may need to engage in equity or debt financing to secure additional funds or we may decide to do so opportunistically.
Current wording
As of June 30, 2026, we had cash and cash equivalents of $102.7 million, which consisted of cash on hand and money market mutual funds. As of June 30, 2026 we had restricted cash of $0.6 million. Historically, we have funded our operations, including capital expenditures, primarily through cash flow from operating activities. We believe that our existing cash and cash equivalents, and cash generated from operations, will be sufficient to fund our operations and capital expenditures for at least the next twelve (12) months. However, we intend to continue to make significant investments to support our business growth and may require additional funds to respond to business challenges, including the need to develop new games and features or enhance our existing games, improve our operating infrastructure, or acquire complementary businesses, personnel and technologies. Accordingly, we may need to engage in equity or debt financing to secure additional funds or we may decide to do so opportunistically.
Previous wording
During the three months ended March 31, 2026, operating activities provided $3.7 million of net cash as compared to $3.3 million during the three months ended March 31, 2025. The increase in cash provided from operating activities was primarily due to a favorable change in operating assets and liabilities due to timing fluctuations in payables being paid.
Current wording
During the six months ended June 30, 2026, operating activities provided $9.4 million of net cash as compared to $16.9 million during the six months ended June 30, 2025. The decrease in cash provided from operating activities was primarily due to a decrease in revenue, primarily driven by decreases in DPU.
Previous wording
During the three months ended March 31, 2026, financing activities used $0.7 million of net cash as compared to $2.5 million during the three months ended March 31, 2025. The change in cash used in financing activities was due to $1.6 million less in share repurchases and $0.4 million less in payments made for tax withholding on stock-based compensation.
Current wording
During the six months ended June 30, 2026, financing activities used $3.5 million of net cash as compared to $7.0 million during the six months ended June 30, 2025. The change in cash used in financing activities was due to $1.9 million less in share repurchases, $1.0 million less in payments made for tax withholding on stock-based compensation, and $0.7 million less in payments for minimum guarantee liabilities.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Average DPU divided by Average DAU for a given period. We use Daily Payer Conversion and Average Daily Payer Conversion to help us understand the monetization of our active players.
Current report — wording carried from elsewhere
Net revenue decreased $9.6 million, or (7.9)%, to $112.1 million during the six months ended June 30, 2026 compared to $121.7 million during the six months ended June 30, 2025. The decrease was due to a $12.1 million decrease in virtual currency revenue primarily driven by decreases in DPU within certain games, which was partially offset by increased revenue due to our new growth initiatives and a $2.5 million increase in advertising revenue.
Current report — wording carried from elsewhere
Net revenue increased $1.0 million during the six months ended June 30, 2026 compared to the same period in prior year. The key performance indicators presented above are used by management to assess the playAWARDS segment's operating performance, however, are not indicative revenue metrics.
Current report — wording carried from elsewhere
Cost of revenue decreased by $7.5 million to $22.9 million during the six months ended June 30, 2026 compared to $30.3 million during the six months ended June 30, 2025. The decrease was primarily related to a decrease in virtual currency revenue. As a percentage of revenue, cost of revenue decreased from 24.9% for the six months ended June 30, 2025 to 20.2% for the six months ended June 30, 2026 due to an increase in direct to consumer revenue, which incur lower processing fees.
Current report — wording carried from elsewhere
Provision for income taxes resulted in a tax expense of $2.1 million for the six months ended June 30, 2026, compared to a tax expense of $0.6 million for the six months ended June 30, 2025.
Current report — wording carried from elsewhere
playGAMES AEBITDA was $20.1 million for the six months ended June 30, 2026 compared to $34.8 million for the six months ended June 30, 2025, a decrease of $14.6 million. playGAMES AEBITDA margin was 18.0% for the six months ended June 30, 2026 compared to 28.6% for the six months ended June 30, 2025. The decrease to playGAMES AEBITDA was a result of decreased virtual currency revenue, primarily driven by decreases in DPU, and an increase of user acquisition expense. This was partially offset by an increase in direct-to-consumer sales which incurs lower processing fees, driving a reduction in cost of sales.
Current report — wording carried from elsewhere
playAWARDS AEBITDA was $(2.4) million for the six months ended June 30, 2026 compared to $(4.7) million for the six months ended June 30, 2025. The increase in AEBITDA can be attributed to an increase in revenue and a decrease in employee and other costs.