Playstudios Q2 revenue misses estimates on legacy portfolio pressure

PLAYSTUDIOS

11/08/2026 19:15

Overview
U.S. mobile games publisher's Q2 revenue fell yr/yr and missed analyst expectations
Company posted wider net loss as legacy social casino revenue and audience declined
Company continues cost-cutting and expects to repurchase shares under existing plan

Outlook
Company is not providing formal financial guidance at this time
Company's near-term priority is to complete Renewal, stabilize portfolio, and improve margins
Investments in new initiatives will be selective and may be reduced or suspended if returns do not meet standards

Result Drivers
LEGACY PORTFOLIO PRESSURE - Co said revenue and audience for its legacy social casino games continued to decline due to persistent secular headwinds
DIRECT-TO-CONSUMER GROWTH - Direct-to-consumer revenue more than doubled and made up a larger share of in-app purchases, supporting improved platform economics
RESTRUCTURING AND COST CUTS - Co continued to implement restructuring and cost reduction measures, including studio closures and job cuts, to lower fixed costs and improve profitability

Company press release: ID:nBwc5SBsra

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$54.99 mln
$57.05 mln (2 Analysts)
Q2 Loss Per Share
 
$0.10
 
Q2 Net Loss
 
$13.27 mln
 
Q2 Consolidated  Adjusted EBITDA Margin
 
13.30%
 
Q2 Pretax Loss
 
$11.79 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for PLAYSTUDIOS, Inc. is $0.50, about 25.4% below its August 10 closing price of $0.67

Reuters Recommended Reads
Aug 10 - SharpLink Gaming Q2 revenue misses, loss widens on unrealized losses and impairments
Aug 10 - Galaxy Gaming Q2 revenue rises 5% on record recurring sales
Aug 10 - China's Sohu.com Q2 revenue rises on growth in online gaming

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)