PLAYSTUDIOS 2025 Q2 Earnings Net Loss Widens Despite Guidance

PLAYSTUDIOS (MYPS) reported its fiscal 2025 Q2 earnings on August 8, 2025, with the company maintaining its focus on cost efficiency and growth initiatives. The report indicated continued challenges in the sector, with a revenue decline and an expanded net loss.

The company’s second-quarter results fell short of the prior-year performance, with total revenue dropping to $59.34 million, a 18.3% decrease compared to $72.59 million in Q2 2024. Virtual currency revenue was the largest contributor, amounting to $48.21 million, while advertising revenue totaled $11.13 million. Additional revenue sources, categorized as "point in time or over time," brought in a minimal $2,000.

Earnings per share (EPS) remained at a loss of $-0.02 for the quarter, in line with the same period in 2024. However, the net loss for Q2 2025 widened to $-2.95 million, an increase of 12.9% compared to the $-2.61 million loss in Q2 2024.

The stock price of PLAYSTUDIOS continued to face downward pressure, with a 3.67% drop during the latest trading day and a 16.67% decline month-to-date. The post-earnings trading strategy, involving buying after a beat and selling after 30 days, underperformed significantly, returning -48.24% versus a benchmark gain of 47.91%.

CEO Andrew Pascal highlighted the company’s efforts to streamline operations and enhance shareholder returns. He emphasized the launch of new initiatives, including a new Tetris title and sweepstakes programs, as well as the strategic use of cash reserves for potential growth-oriented investments.

For the full year 2025, PLAYSTUDIOS has provided a revenue outlook of $250–$270 million and Adjusted EBITDA guidance of $45–$55 million, reflecting a cautious but growth-focused approach.

Additional News
Within the three-week window following the August 8, 2025 earnings report, several key developments relevant to the company’s broader context emerged. Notably, there was no major M&A activity directly involving PLAYSTUDIOS, but industry trends highlighted increased strategic acquisitions in the gaming and digital entertainment sectors. At the C-level, there were no personnel changes at PLAYSTUDIOS, though other firms in the sector announced leadership adjustments to align with market shifts. Regarding capital returns, no new dividend or buyback initiatives were declared by the company. However, broader market discussions emphasized the importance of capital efficiency and shareholder value creation, aligning with PLAYSTUDIOS’ stated priorities. These external trends reinforce the company’s strategic direction toward cost optimization and new product launches to drive long-term growth.