PLAYSTUDIOS Reports Q3 Loss, Revenue Miss, Shares Drop Over 14%

PlayStudios reported disappointing third-quarter 2025 financial results, with revenues falling 19.1% year-over-year to $57.65 million, missing Wall Street expectations. The company posted a GAAP loss of $0.07 per share, considerably worse than the consensus loss estimate of $0.02 per share, marking continued struggles as it has only surpassed EPS estimates once in the last four quarters. CEO Andrew Pascal acknowledged the challenging operating environment and the need to reposition the business amid ongoing market headwinds, with the company's valuation barely above its cash position. PlayStudios' operating margin deteriorated to -13.6%, down from -6.7% a year ago, reflecting ongoing profitability issues. Despite some optimism from sell-side analysts predicting modest revenue growth of 2.1% over the next year, the company's recent performance indicates sustained demand challenges and a declining revenue trend over the past two years. Share prices have dropped about 50% year-to-date, underperforming the broader market significantly.