The 5 Most Interesting Analyst Questions From PlayStudios’s Q3 Earnings Call

2 weeks ago 9

Jabin Bastian

Sun, November 9, 2025 astatine 11:33 PM CST 3 min read

PlayStudios’ 3rd 4th was marked by continued gross and idiosyncratic declines, a inclination that absorption attributed to persistent class headwinds and the interaction of caller cost-reduction efforts. CEO Andrew Pascal described the operating situation arsenic “extremely challenging,” citing a displacement successful absorption from contented improvement to efficiency, which contributed to a further softening successful the portfolio. Notably, Pascal acknowledged, “Our valuation contiguous sits lone somewhat supra our currency position, and we cognize immoderate investors are questioning our direction,” signaling a cautious and self-critical code passim the call.

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Revenue: $57.65 cardinal vs expert estimates of $59.45 cardinal (19.1% year-on-year decline, 3% miss)
Adjusted EPS: -$0.01 vs expert estimates of $0.01 ($0.03 miss)
Adjusted EBITDA: $7.25 cardinal vs expert estimates of $10.06 cardinal (12.6% margin, 28% miss)
Operating Margin: -13.6%, down from -6.7% successful the aforesaid 4th past year
Daily Active Users: 2.21 million, down 750,000 twelvemonth connected year
Market Capitalization: $100.9 million

While we bask listening to the management's commentary, our favourite portion of net calls are the expert questions. Those are unscripted and tin often item topics that absorption teams would alternatively debar oregon topics wherever the reply is complicated. Here is what has caught our attention.

Ryan Sigdahl (Craig-Hallum) asked astir feedback from sweepstakes users and the broader rollout plan. CEO Andrew Pascal confirmed affirmative aboriginal information and intends to grow Win Zone to each disposable states earlier ramping up selling investment.
Sigdahl (Craig-Hallum) besides probed for imaginable benefits to halfway games from caller regulatory bans successful California. Pascal responded that immoderate interaction volition beryllium monitored erstwhile the prohibition takes effect, with targeted selling planned.
Sigdahl (Craig-Hallum) questioned the equilibrium betwixt integrated improvements and M&A for growth. Pascal emphasized that some are being considered, but nary deals are imminent.
Aaron Lee (Macquarie) inquired astir visibility into 2026 and guidance for sweepstakes contributions. Pascal stated that predictability should amended by year-end aft broader launches and go-to-market tests.
Michael Hickey (Benchmark) asked whether the halfway concern would spot further sequential gross decline. CFO Scott Peterson affirmed that Q4 gross from the halfway is expected to decrease, fixed existent trends.