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playSTUDIOS has opened 2025 with financial challenges and strategic adjustments, reporting lower revenue and a net loss in its first quarter. While performance dropped year-over-year, the company also shared updates on long-term goals and product development. Good to know Operating expenses dropped by 17.7% compared to Q1 2024, part of a broader cost-cutting strategy. Virtual currency sales from third party platforms fell 20.8%, while direct-to-consumer sales more than doubled. A new sweepstakes feature is in the works and set for limited release during Q2 2025. Revenue for Q1 2025 came in at $62.7 million, down 19.4% from the same period in 2024. The company also posted a net loss of $2.9 million, which is over $2 million worse than the year before. The bulk of the revenue came from the playGAMES segment, generating $62.6 million. However, that marked a drop of 19.6% from Q1 2024. Within that, virtual currency brought in $50.7 million, down nearly $10 million from last year. Advertising revenue took a harder hit, down 32% to $11.9 million. playSTUDIOS saw a mixed result when comparing where its virtual currency sales came from. Third party platforms like app stores brought in $45.9 million, while its direct-to-consumer channel added $5 million. Although the amount from third parties declined, sales directly from playSTUDIOS ’ own channels grew by 113.9%. CEO Andrew Pascal said the company remains focused despite tough conditions: “We are off to a focused and productive start in 2025 as we work through a broader transition across our business and industry,” he said. Pascal added that playSTUDIOS made progress on several fronts, including new sweepstakes features, expanding direct-to-consumer options, refining its playAWARDS system, and working on a new casual game titled Tetris Block Party. He noted that the company’s Reinvention plan is also helping to improve efficiency. Operating expenses for the quarter totaled $65.5 million, while the loss from operations stood at $2.7 million. Adjusted EBITDA was $12.5 million, reflecting an 18.5% decline year-over-year. The company aims to save $25 million to $30 million annually through its ongoing restructuring plan. playSTUDIOS also gave an update on its playAWARDS segment. It brought in $154,000 in Q1 2025 after not reporting any revenue for that category in Q1 2024. Efforts to grow the segment included launching a new tournament in partnership with Atlantis Paradise Island and adding more premium rewards partners. The company expects to test its sweepstakes product in a limited rollout during the second quarter, with plans to expand it throughout the rest of the year.

Playstudios

playSTUDIOS Reports $62.7 Million in Q1 Revenue