Playstudios Q1 2025 net revenue falls 19.4%, net loss increases to $2.9m
The $62.7m in net revenue generated throughout the first quarter of 2025 was primarily driven by the playGames segment, which accounted for nearly $62.6m of the company’s total revenue.
Key Points
- While playGames’ virtual currency revenue fell by almost $10m from the prior year period, advertising revenue also witnessed a 32% decrease year-over-year
- Playstudios’ consolidated EBITDA reported a Q1 2025 figure of $12.5m, which represents a decrease of 18.5% from the prior year period
Playstudios has reported its financial results from the first quarter of 2025, including a fall in net revenue of 19.4% year-over-year to $62.7m and a net loss of $2.9m, over $2m higher than the loss generated throughout Q1 2024.
“We are off to a focused and productive start in 2025 as we work through a broader transition across our business and industry,” Playstudios Chairman and CEO Andrew Pascal said.
“While market conditions remain challenging putting continued pressure on our operating performance, we made meaningful progress this quarter on several key initiatives, including advancing our sweepstakes capabilities, scaling our direct-to-consumer channel, evolving our playAWARDS ecosystem and developing our new casual title, Tetris Block Party. At the same time, our Reinvention plan is helping drive greater efficiency and focus.”
Playstudios continued development of its sweepstakes promotional capabilities for the first quarter of 2025, which is expected to launch externally in limited release during Q2 2025 and reportedly scale through the remainder of 2025.
The company’s reinvention plans progressed towards its targeted $25-$30m in annual savings, which could help explain a 17.7% year-over-year decrease in operating expenses, reported to be $65.5m for Q1 2025. Playstudios loss from operations throughout the period was $2.7m, while the operator’s consolidated EBITDA for Q1 2025 fell by 18.5% from the prior year period for a total of $12.5m.
Good to know: Playstudios’ myVIP World Tournament of Slots will be held at the Atlantis Paradise Island Bahamas from October 22-26, with the property also having completed a redecoration of its casino floor
The $62.7m of net revenue generated by Playstudios for Q1 2025 was primarily driven by its playGames segment, which accounted for nearly $62.6m of the company’s revenue but decreased 19.6% year-over-year. While playGames’ virtual currency produced $50.7m of the segment’s reported revenue for Q1 2025, the figure represents a decrease of almost $10m from the prior year period, while advertising revenue fell by 32% year-over-year to $11.9m.
Of the virtual currency revenue generated during the first quarter of 2025, nearly $45.9m was reported from third party platforms, while the remaining $5m stemmed from direct-to-consumer platforms. The revenue from third party platforms equates to a decrease of 20.8% year-over-year, whereas direct-to-consumer platforms increased revenue by 113.9% from the prior year period.
Despite increasing its revenue by $154k throughout Q1 2025, the operator’s playAwards segment failed to report a revenue figure for the first quarter of 2024. Playstudios attempted to “strengthen” the segment for Q1 2025 with the addition of new premium partners and by announcing the second annual myVIP World Tournament of Slots in partnership with Atlantis Paradise Island.
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