Key Highlights

  • Third quarter Revenue was $48.9 million.
  • Consolidated AEBITDA reached $10.0 million, a 20.4 percent margin.
  • Direct-to-consumer revenue rose 108 percent to $16.0 million.
  • The net loss for the quarter was $11.0 million.

PLAYSTUDIOS, Inc. (NASDAQ:MYPS), a developer and publisher of free-to-play mobile and social games and creator of the playAWARDS loyalty platform, reported results for the third quarter ended September 30, 2026. Revenue was $48.9 million, the company posted a net loss of $11.0 million, and consolidated AEBITDA was $10.0 million. Chairman and Chief Executive Officer Andrew Pascal said the results continue to reflect a challenging operating environment for the company's legacy social casino portfolio.

Direct-to-Consumer Revenue Growth

Direct-to-consumer revenue was $16.0 million in the quarter, compared with $7.7 million a year earlier, an increase of 108 percent. That growth shows a larger share of revenue coming from sales made directly to players rather than through third-party platforms, which the company has pursued as part of its strategy. The shift changes the revenue mix of the business.

The company said the continued shift toward direct-to-consumer revenue has helped it exceed its cost of sales reduction goals.

Profitability and Restructuring

Consolidated AEBITDA of $10.0 million represented a 20.4 percent margin, compared with $7.2 million a year earlier. The company described improved operating margins for the quarter as a result of its Renewal restructuring program, through which it has reduced costs, streamlined operations and concentrated resources on its key businesses.

The company said it has closed all four studios, exceeded its targeted role eliminations and surpassed its cost of sales reduction goals. Those actions reduce the Fixed Cost base, though the net loss of $11.0 million shows that restructuring has not yet eliminated the gap between reported costs and revenue.

Sector Context

Free-to-play mobile and social gaming companies depend on player spending, the cost of user Acquisition and platform terms. Social casino games face particular pressure from changing regulations and competition, which is why the company describes its legacy portfolio as operating in a challenging environment. Direct sales strategies are one way companies in the category adjust their economics.

Risks and What to Watch Next

The company's legacy portfolio faces ongoing pressure, and the net loss means restructuring progress has yet to produce reported profit.

Final Takeaways

PLAYSTUDIOS reported higher direct-to-consumer revenue and an improved AEBITDA margin, while its net loss and legacy portfolio pressures remain. The restructuring has reduced costs and streamlined operations, but reported profitability is still negative. Future quarters will indicate whether the direct revenue shift and cost actions combine to narrow the net loss.