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1. Company Snapshot

1.a. Company Description

PLAYSTUDIOS, Inc.develops and publishes free-to-play casual games for mobile and social platforms in the United States, North America, and internationally.The company is headquartered in Las Vegas, Nevada.

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1.b. Last Insights on MYPS

Recent negative drivers behind PLAYSTUDIOS, Inc.'s performance include a shareholder class action lawsuit that survived a motion to dismiss, potentially leading to increased litigation costs and reputational damage. Additionally, the company's Q4 2024 earnings call transcript revealed a lack of clear guidance on future growth prospects, contributing to investor uncertainty. Furthermore, the absence of any recent earnings release suggests a lack of transparency on the company's current financial performance.

1.c. Company Highlights

2. PLAYSTUDIOS' Q3 2025 Earnings: Navigating Headwinds and Reorienting for Growth

PLAYSTUDIOS reported a total revenue of $57.6 million for Q3 2025, down 19.1% year-over-year, and an adjusted EBITDA of $7.2 million, down 50.5% year-over-year. The company's EPS was -$0.07, missing estimates of -$0.02. The decline in revenue was largely attributed to category headwinds pressuring the company's core markets, particularly in the social casino segment. As Andrew Pascal noted, "Our playGAMES core business has been challenged, with year-over-year declines in DAU and ARPDAU."

Publication Date: Nov -30

📋 Highlights
  • Revenue & EBITDA Decline:: Q3 revenue fell to $57.6M (-19.1% YoY), with adjusted EBITDA at $7.2M (-50.5% YoY).
  • Win Zone Expansion:: Sweepstakes platform now live in 15 states, targeting $3.5–4B addressable market with phased integration into social casino operations.
  • Tetris Block Party Launch:: Early performance of new puzzle-based game is "encouraging," with a Q1 2026 broader rollout planned.
  • D2C Growth:: Direct-to-consumer revenue surged 48% QoQ to $7.7M, driven by improved app merchandising and reduced friction.
  • Strategic Focus:: Prioritizing M&A, expense discipline, and sweepstakes integration to stabilize social casino declines, with 2026 guidance expected by year-end.

Segment Performance

The company's direct-to-consumer (D2C) business showed strong growth, with revenue of $7.7 million, a 48% quarter-over-quarter increase. This growth was driven by more effective merchandising within their apps and reduced friction for players. The sweepstakes effort, Win Zone, is gaining traction, now live in 15 states, with a broader rollout planned before year-end. The company is seeing improvements in retention, engagement, and monetization, with the sweepstakes market remaining strong in remaining open states, with an addressable market of $3.5 billion to $4 billion.

Valuation and Outlook

Given the current financial performance, PLAYSTUDIOS' valuation metrics indicate a challenging outlook. The company's P/S Ratio stands at 0.33, and the EV/EBITDA is -0.7, suggesting that the market is pricing in significant challenges. Analysts estimate next year's revenue growth at -0.4%, indicating a continued decline. However, the company's efforts to rebalance its business, including cost-cutting measures and investments in growth initiatives, may help stabilize the decline. With a strong cash position of $106.3 million and no debt, the company is well-positioned to navigate the current headwinds.

Growth Initiatives

The company is exploring opportunities for M&A to accelerate its position in sweepstakes and other areas. Andrew Pascal noted that the company is looking at both organic and inorganic opportunities to drive growth, including potential partnerships with iGaming operators. The company's RGS platform allows them to serve slot content, which could be made available to other providers in the future. With a phased approach to growth initiatives, PLAYSTUDIOS is reorienting its business towards durable growth, with a focus on innovative games, real-world loyalty benefits, and player service.

3. NewsRoom

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PLAYSTUDIOS, Inc. (MYPS) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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PLAYSTUDIOS, Inc. Announces Third Quarter Results

Nov -03

Source: businesswire.com

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PLAYSTUDIOS to Release Third Quarter 2025 Results on November 3rd

Oct -24

Source: businesswire.com

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PLAYSTUDIOS (NASDAQ:MYPS) Shares Down 2% – What’s Next?

Oct -24

Source: defenseworld.net

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PLAYSTUDIOS, Inc. (MYPS) Q2 2025 Earnings Call Transcript

Aug -04

Source: seekingalpha.com

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PLAYSTUDIOS, Inc. (MYPS) Reports Q2 Loss, Lags Revenue Estimates

Aug -04

Source: zacks.com

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PLAYSTUDIOS, Inc. (MYPS) Q1 2025 Earnings Call Transcript

May -06

Source: seekingalpha.com

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PLAYSTUDIOS, Inc. (MYPS) Reports Q1 Loss, Lags Revenue Estimates

May -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.49%)

6. Segments

PlayGAMES

Expected Growth: 2.5%

PlayGAMES' 2.5% growth is driven by increasing mobile gaming popularity, strong brand recognition, and strategic partnerships. The segment benefits from PLAYSTUDIOS' diversified portfolio of games, in-app purchases, and loyalty programs. Additionally, the company's focus on social responsibility and charitable initiatives enhances its reputation, attracting a loyal user base and driving revenue growth.

PlayAWARDS

Expected Growth: 1.8%

PlayAWARDS' 1.8 growth driven by increasing user engagement, retention, and monetization through its loyalty program, strategic partnerships, and expansion into new markets, as well as the growing popularity of social casino games and online gaming.

7. Detailed Products

myVEGAS Slots

A social casino game that offers a variety of slot machines and other casino-style games

myVEGAS Blackjack

A social casino game that offers a variety of blackjack games and tournaments

POP! Slots

A social casino game that offers a variety of slot machines and other casino-style games

Konami Slots

A social casino game that offers a variety of slot machines and other casino-style games based on popular Konami franchises

myKONAMI

A loyalty program that rewards players for playing PLAYSTUDIOS games

PLAYSTUDIOS Rewards

A rewards program that offers real-world rewards and discounts at popular brands and retailers

8. PLAYSTUDIOS, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

PLAYSTUDIOS, Inc. operates in a niche market with a unique business model, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

PLAYSTUDIOS, Inc. has a diverse customer base, but some customers may have significant bargaining power due to their large player bases.

Bargaining Power Of Suppliers

PLAYSTUDIOS, Inc. has a diversified supplier base, and the company's scale and bargaining power reduce the influence of suppliers.

Threat Of New Entrants

While there are barriers to entry in the social gaming industry, new entrants can still emerge, especially with the rise of new technologies and platforms.

Intensity Of Rivalry

The social gaming industry is highly competitive, with many established players and new entrants vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.33%
Debt Cost 3.95%
Equity Weight 96.67%
Equity Cost 7.10%
WACC 7.00%
Leverage 3.45%

11. Quality Control: PLAYSTUDIOS, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Digi

A-Score: 5.2/10

Value: 3.3

Growth: 6.7

Quality: 7.8

Yield: 0.0

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
FARO Technologies

A-Score: 4.8/10

Value: 3.9

Growth: 4.8

Quality: 5.1

Yield: 0.0

Momentum: 10.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
PagerDuty

A-Score: 3.8/10

Value: 3.9

Growth: 7.8

Quality: 3.5

Yield: 0.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
PLAYSTUDIOS

A-Score: 3.8/10

Value: 9.6

Growth: 4.2

Quality: 4.6

Yield: 0.0

Momentum: 1.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Golden Matrix Group

A-Score: 3.2/10

Value: 6.6

Growth: 5.9

Quality: 4.3

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Snail

A-Score: 3.1/10

Value: 10.0

Growth: 2.7

Quality: 5.9

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.65$

Current Price

0.65$

Potential

-0.00%

Expected Cash-Flows