Playstudios witnesses 15.1% revenue fall for Q3, net loss grows to $11m

Playstudios has reported financial results from the third quarter of 2026, having witnessed a revenue decrease of 15.1% to $48.9m, as well as net loss growth of 21.1% for a total of just over $11m. 

“Our third quarter results continue to reflect the challenging operating environment facing our legacy social casino portfolio. While these pressures persist, we continue to make progress toward building a simpler, more efficient and more financially disciplined organization, as reflected in our improved operating margins this quarter,” Playstudios Chairman and CEO Andrew Pascal said. 

“Through our restructuring program… we have taken decisive steps to reduce our cost structure, streamline operations and concentrate resources on the businesses and capabilities that we believe offer the strongest foundation for sustainable profitability and cash generation.”

During the quarter, Playstudios chose to discontinue operations of its Tetris Block Party and The Win Zone initiatives, as neither “demonstrated the sustained engagement, monetization or economic returns necessary to justify continued investment” according to Pascal. 

Even with the decreased revenue and net loss growth reported for Q3, Playstudios still managed to increase its consolidated AEBITDA 37.8% to $10m.

Playstudios also reported an $11m loss from operations, however, representing an increase from the $9.1m loss witnessed during Q3 2025. 

Virtual currency accounted for $38.3m of Playstudios’ total revenue for Q3 2026 and decreased 17.3%, while advertising revenue totaled nearly $10.6m but fell 6.1% year-over-year.

Segment expenses totaled nearly $35.6m during the quarterly period, equating to a decrease of 23.7%. Cost of sales and payroll & related expenses were $9.2m and $9.9m, respectively, while user acquisition drove an additional $6.1m. 

For virtual currency, revenue from third-party platforms decreased 42.3% to $22.3m, although direct-to-consumer platform revenue grew by a significant 108.4% to $16m. 

Average daily active users fell 21.7% during Q3 to 1,731, as monthly active user count decreased 28.1% to 6,830 players. Daily player count failed to generate more positive results, decreasing 21.1% to just 15 users.