PLAYSTUDIOS Reports 18.3% Revenue Decline and Increased Net Loss in Q2 2025

PLAYSTUDIOS, Inc. reported a decline in financial performance for the second quarter of 2025, with net revenue of $59.3 million, down 18.3% from $72.6 million in the same period last year. For the first half of 2025, revenue totaled $122.0 million, reflecting an 18.9% decrease compared to $150.4 million in the first half of 2024. The company recorded a net loss of $2.9 million for the quarter, compared to a loss of $2.6 million in the prior year, and a net loss of $5.8 million for the six months ended June 30, 2025, compared to a loss of $3.2 million in the same period of 2024.

The decrease in revenue was primarily attributed to a significant drop in virtual currency sales, which fell by 15.0% to $48.2 million in the second quarter, and a 30.5% decline in advertising revenue, which totaled $11.1 million. The company also reported a decrease in daily active users (DAU) and monthly active users (MAU), which fell by 27.1% and 26.1%, respectively, indicating a reduction in player engagement. In contrast, the playAWARDS segment saw a notable increase in revenue, albeit from a low base, generating $229,000 in the second quarter compared to $2,000 in the prior year.

PLAYSTUDIOS has been actively restructuring its operations, having implemented a reorganization plan in late 2024 that resulted in a 30% reduction in its workforce. This initiative has contributed to a decrease in operating expenses, which fell by 17.9% to $62.8 million in the second quarter. The company also reported a reduction in costs across various categories, including selling and marketing, research and development, and general and administrative expenses.

In terms of strategic developments, PLAYSTUDIOS completed the acquisition of Pixode Games Limited in July 2024, which is expected to diversify its revenue streams into the casual gaming genre. The company anticipates that the relaunch of the Pixode products under the Tetris brand will enhance its portfolio. As of June 30, 2025, PLAYSTUDIOS had cash and cash equivalents of $112.9 million, which it believes will be sufficient to fund operations and capital expenditures for at least the next twelve months.

Looking ahead, PLAYSTUDIOS aims to enhance player engagement through its loyalty programs and continue investing in game development to attract and retain users. The company remains focused on optimizing its player acquisition strategies and managing its virtual economies effectively to improve monetization. Despite the challenges faced in the current fiscal period, management is optimistic about future growth opportunities stemming from its strategic initiatives and product offerings.