Playstudios (MYPS) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $59.3M, down 18.3% year-over-year, with a net loss of $2.9M compared to a $2.6M loss in Q2 2024.

• Market disruption from sweepstakes-based social casinos led to DAU and MAU declines across core and casual portfolios.

• Strategic focus on sweepstakes expansion, direct-to-consumer growth, new game launches (notably Tetris Block Party), and modernizing core games.

• Operating expenses decreased 17.9% year-over-year, driven by lower user acquisition, employee, and restructuring costs.

• Early signals from sweepstakes and D2C channels are positive, validating the current reinvention strategy.

Financial highlights

• Q2 2025 net revenue: $59.3M (down 18.3% year-over-year); net loss: $2.9M; adjusted EBITDA: $10.7M (18.1% margin), down from $14.1M (19.5%) in Q2 2024.

• DAU fell to 2.3M (down 27.1% year-over-year); MAU dropped to 10M; ARPDAU rose to $0.28, up 12% year-over-year.

• Direct-to-consumer revenue reached $6.7M, up 107% year-over-year and 34% sequentially, now 13.9% of total in-app purchase revenue.

• Cash and cash equivalents stood at $112.9M as of June 30, 2025, with no debt and $81M credit facility undrawn.

• Stock repurchases totaled 2.3M shares in Q2 2025, with $40M remaining authorized for buybacks.

Outlook and guidance

• Maintains full-year 2025 guidance: net revenue $250–$270M, Consolidated AEBITDA $45–$55M.

• Q3 is expected to be similar to Q2, with no meaningful differences anticipated.

• Management expects existing cash, cash flow, and credit facility to fund operations and capital expenditures for at least the next 12 months.

• Continued focus on executing strategic initiatives to restore business momentum and invest in new game development.

• Expects external launch of sweepstakes promotions and Tetris Block Party in Q4 2025.