PlayAGS Reports Q1 2025 Financial Results with Revenue of $94.8 Million

PlayAGS, Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $94.8 million, a slight decrease of 1.2% from $96.0 million in the same period last year. The company's gaming operations revenue increased by 4.6% to $64.9 million, driven primarily by growth in the Interactive segment, which saw a 74.9% increase in revenue. However, equipment sales fell by 11.9% to $29.9 million, attributed to a decrease in the number of electronic gaming machines (EGMs) sold, which dropped from 1,441 units in Q1 2024 to 1,243 units in Q1 2025.

Operating expenses for the quarter rose to $78.2 million, up 2.7% from $76.2 million a year earlier. The increase was largely due to higher costs associated with gaming operations and research and development, which surged by 21.3% to $13.2 million. The company reported a net income of $3.2 million, down 26.1% from $4.3 million in the prior year, with basic earnings per share decreasing from $0.11 to $0.07. The effective income tax rate for the quarter was 30.7%, significantly higher than the 13.2% reported in the same quarter last year.

In terms of strategic developments, PlayAGS is in the process of completing a merger with Bingo Holdings I, LLC, which is expected to close by the third quarter of 2025. The merger will see shareholders receive $12.50 in cash for each share of common stock. The company has already secured the necessary stockholder approval and is awaiting regulatory approvals. This merger is part of PlayAGS's broader strategy to enhance its market position and expand its product offerings.

Operationally, PlayAGS reported a total installed base of 23,246 EGMs as of March 31, 2025, reflecting a 2.6% increase from the previous year. The company also noted a slight decline in revenue per day from its EGM segment, which fell to $25.52 from $26.38 year-over-year. The Table Products segment showed growth, with revenues increasing by 8.5% to $5.0 million, supported by a rise in the installed base of table products to 5,800 units.

Looking ahead, PlayAGS anticipates continued growth in its Interactive segment, driven by an increase in the number of games live at online casino customer sites. The company remains focused on expanding its presence in underserved markets and enhancing its product offerings to meet evolving customer demands. Despite the challenges faced in equipment sales, management believes that the strategic initiatives in place will position the company for long-term growth and profitability.