Playstudios has released its financial results for the third quarter of 2025, as the operator witnessed a net revenue decrease of 19.1% to $57.6m, as well as a net loss of $9.1m, equating to a significant increase of 194.4% year-over-year.
The operator attributed the decrease and net loss to "recent softness in player activity and monetization," and now projects full-year 2025 revenue and consolidated AEBITDA to fall below previously issued guidance ranges.
"While our core social casino business continues to encounter meaningful market headwinds, we remain focused and committed to our strategic priorities," Playstudios Chairman and CEO Andrew Pascal said.
"We're seeing growing traction in our direct-to-consumer channel, continued progress with the development of our sweepstakes initiative and promising early momentum in Tetris Block Party. Together, these signals validate our direction and bolster our confidence in the future. We are intensely focused on stabilizing the business, while we also build the capabilities we believe will fuel the next phase of growth in the quarters ahead."
Throughout Q3 2025, consolidated AEBITDA fell 50.5% to $7.2m, despite direct-to-consumer revenue increasing 48% from the prior year period for a total of $7.7m. Total operating costs and expenses also fell year-over-year, decreasing by 13.8% to $65.5m, but the lowered costs did little to prevent a loss from operations of $7.9m for Q3 2025.
Virtual currency accounted for nearly $46.4m of Playstudios total revenue for the third quarter of 2025, but the figure still equates to a decrease of 19.4%.
Advertising revenue produced an additional $11.3m, representing a decrease of 17.3%. While direct-to-consumer revenue increased for Playstudios throughout Q3 2025, revenue generated from third-party platforms fell 26.1% to $38.7m.
Cost of sales were reported to be $13.6m by Playstudios for Q3 2025, while payroll & related costs accounted for $9.4m of total expenses. User acquisition also cost the operator $9.4m for Q3 2025, equating to a decrease of approximately $1m from the total spent throughout the third quarter of 2024.
In Q3 2025, Playstudios soft launched its Tetris Block Party content, as well as completed its second annual myVIP World Tournament of Slots. Playstudios managed to average 2.2m daily active users throughout the third quarter of 2025, while monthly active users were reported to be 9.5m by the operator.
Research and development costs for Playstudios totaled just over $14.8m throughout Q3 2025, as selling and marketing expenses accounted for an additional $14.2m across the monthly period. General & administrative and depreciation & amortization cost Playstudios $12.1m and $9.6m, respectively, as the operator currently possesses $299.2m in total assets following Q3 2025.
Playstudios will host its 2025 myVIP World Tournament of Slots from Atlantis Paradise Island in the Bahamas, as social casino players who previously qualified for the tournament will compete in a series of events for the chance to win a $1m grand prize
