Playstudios (MYPS) investor relations material

Executive summary

• Net revenue for Q1 2026 was $58.4 million, down 6.9% year-over-year, with a net loss of $10.7 million (18.3% margin) compared to a $2.9 million loss (4.6% margin) in Q1 2025, reflecting pressure on the legacy social casino portfolio and a challenging mobile gaming market.

• Operating expenses increased 9.6% to $71.7 million, driven by higher selling and marketing, research and development, and restructuring costs, including a $6.5 million rise in user acquisition expense.

• The company initiated a reorganization plan in March 2026, reducing its global workforce by 27%, closing 4 out of 9 studios, and incurring $2.9 million in restructuring charges in Q1.

• Strategic initiatives, including cost reduction programs (Reinvention and Renewal), organizational simplification, and investment in new growth drivers such as Tetris Block Party and The Win Zone, are underway.

• Tetris Block Party reached over 135,000 DAU since its December launch.

Financial highlights

• Virtual currency revenue declined 11.8% to $44.7 million, while advertising revenue rose 10.9% to $13.2 million.

• Direct-to-consumer revenue grew 150% to $12.4 million, now representing 27.4% of virtual currency revenue, up from 9.8% last year.

• Adjusted EBITDA (AEBITDA) was $3.6 million (6.1% margin), down from $12.5 million (19.9% margin) in Q1 2025.

• Cash and cash equivalents stood at $103.7 million as of March 31, 2026.

• User acquisition expense increased by $6.5 million year-over-year, reflecting investment in new products.

Outlook and guidance

• Management expects continued investment in growth initiatives and product development, with sufficient liquidity to fund operations for at least the next 12 months.

• No formal financial guidance provided due to evolving legacy portfolio performance and early-stage growth initiatives.

• The company may seek additional financing to support business challenges or strategic opportunities.

• Management remains committed to transparency and ongoing investor engagement.