Playstudios FY2026 Q1 Earnings Release
Download PDFUNIT ED S T A TES
SE C URIT IE S A ND E X CH ANG E C O M MIS SIO N
Wash in gto n , D .C . 2 0549
FO RM
10-Q
(M ark O ne)
☒ QUARTER LY R EPO RT P U RSU ANT T O S E C TIO N 1 3 O R 1 5(d ) O F T H E S E C URIT IE S E X CH ANG E A CT O F 1 934
For t h e q uarte rly p erio d e n ded
March 3 1, 2 026
OR
☐ TR ANSIT IO N R EPO RT P U RSU ANT T O S E C TIO N 1 3 O R 1 5(d ) O F T H E S E C URIT IE S E X CH ANG E A CT O F 1 934
For t r a n sit io n p erio d f r o m t o
Com mis sio n F ile N um ber
001-3 9652
PL A YST U DIO S, I n c.
(E xact n am e o f r e g is tr a n t a s s p ecif ie d i n i ts c h arte r)
Dela w are
88-1 802794
(S ta te o r o th er j u ris d ic tio n o f
in co rp ora tio n o r o rg an iz atio n)
(I.R .S . E m plo yer
Id en tif ic atio n N um ber)
10150 C ovin gto n C ro ss D riv e
Las V eg as
,
NV
89144
( 725
)
877-7 000
(A ddre ss, i n clu din g z ip c o de, a n d t e le p hone n um ber, i n clu din g a re a c o de, o f r e g is tr a n t’ s p rin cip al e x ecu tiv e o ffic es)
Secu rit ie s r eg is te red p ursu an t t o S ectio n 1 2(b ) o f t h e A ct:
Tit le o f e a ch c la ss
Tra d in g S ym bol
Nam e o f e a ch e x ch an ge o n w hic h r eg is te red
Cla ss A c o m mon s to ck
MYPS
The
Nasd aq
C ap ita l M ark et
Red eem ab le w arra n ts e x erc is a b le f o r o ne s h are o f C la ss A
co m mon s to ck a t a n e x erc is e p ric e o f $ 11.5 0 p er s h are
MYPSW
The
Nasd aq
C ap ita l M ark et
In dic ate b y c h eck m ark w heth er th e R eg is tr a n t ( 1 ) h as f ile d a ll r e p orts r e q uir e d to b e f ile d b y S ectio n 1 3 o r 1 5(d ) o f th e S ecu ritie s E xch an ge A ct o f 1 934 d urin g th e
pre ced in g 1 2 m onth s ( o r f o r s u ch s h orte r p erio d th at th e R eg is tr a n t w as r e q uir e d to f ile s u ch r e p orts ), a n d ( 2 ) h as b een s u bje ct to s u ch f ilin g r e q uir e m en ts f o r th e p ast 9 0 d ay s.
Y es
☒ N o
☐
In dic ate b y c h eck m ark w heth er t h e R eg is tr a n t h as s u bm itte d e le ctr o nic ally e v ery I n te ra ctiv e D ata F ile r e q uir e d t o b e s u bm itte d p urs u an t t o R ule 4 05 o f R eg ula tio n S –
T ( § 232.4 05 o f t h is c h ap te r) d urin g t h e p re ced in g 1 2 m onth s ( o r f o r s u ch s h orte r p erio d t h at t h e R eg is tr a n t w as r e q uir e d t o s u bm it s u ch f ile s).
Yes
☒ N o
☐
In dic ate b y c h eck m ark w heth er th e re g is tr a n t is a la rg e a ccele ra te d file r, a n a ccele ra te d file r, a n on-a ccele ra te d file r, a s m alle r re p ortin g c o m pan y o r a n e m erg in g
gro w th c o m pan y. S ee th e d efin itio ns o f “ la rg e a ccele ra te d file r,” “ accele ra te d file r,” “ sm alle r re p ortin g c o m pan y” a n d “ em erg in g g ro w th c o m pan y” in R ule 1 2b-2 o f th e
Exch an ge A ct.
Larg e a ccele ra te d f ile r
☐ Accele ra te d f ile r
☒
N on-a ccele ra te d f ile r
☐ Sm alle r r e p ortin g c o m pan y
☒
Em erg in g g ro w th c o m pan y
☐
If a n e m erg in g g ro w th c o m pan y, in dic ate b y c h eck m ark if th e r e g is tr a n t h as e le cte d n ot to u se th e e x te n ded tr a n sitio n p erio d f o r c o m ply in g w ith a n y n ew o r r e v is e d
fin an cia l a cco untin g s ta n dard s p ro vid ed p urs u an t t o S ectio n 7 (a )(2 )(B ) o f t h e S ecu ritie s A ct.
☐
In dic ate b y c h eck m ark w heth er t h e r e g is tr a n t i s a s h ell c o m pan y ( a s d efin ed i n R ule 1 2b-2 o f t h e E xch an ge A ct) : Y es
☐ N o
☒
As o f A pril 3 0, 2 026, t h ere w ere
111,8 97,4 52
s h are s o f C la ss A c o m mon s to ck , $ 0.0 001 p ar v alu e p er s h are , a n d
16,4 57,7 69
s h are s o f C la ss B c o m mon s to ck , $ 0.0 001
par v alu e p er s h are , o uts ta n din g.
1
TA BLE O F C O NTE N TS
Tab le o f C on te n ts
Page
Cau tio nary N ote R eg ard in g F orw ard -L ookin g S ta te m en ts
3
Part I – F in an cia l I n fo rm atio n
5
Ite m 1 . F in an cia l S ta te m en ts ( U nau dite d )
5
Conden se d C onso lid ate d B ala n ce S heets
a s o f M arc h 3 1, 2 026 a n d D ecem ber 3 1, 2 025
5
Conden se d C onso lid ate d S ta te m en ts o f O pera tio ns
f o r t h e T hre e M onth s E nded M arc h 3 1, 2 026 a n d M arc h 3 1, 2 025
6
Conden se d C onso lid ate d S ta te m en ts o f C om pre h en siv e
Loss f o r t h e T hre e M onth s E nded M arc h 3 1, 2 026 a n d M arc h 3 1, 2 025
7
Conden se d C onso lid ate d S ta te m en ts o f S to ck hold ers ‘ E quity
f o r t h e T hre e M onth s E nded M arc h 3 1, 2 026 a n d M arc h 3 1, 2 025
8
Conden se d C onso lid ate d S ta te m en ts o f C ash F lo w s
f o r t h e T hre e M onth s E nded M arc h 3 1, 2 026 a n d M arc h 3 1, 2 025
9
Note s t o U nau dite d C onden se d C onso lid ate d F in an cia l S ta te m en ts
10
Ite m 2 . M an ag em en t’s D is c u ssio n a n d A naly sis o f F in an cia l C onditio n a n d R esu lts o f O pera tio ns
28
Ite m 3 . Q uan tita tiv e a n d Q ualita tiv e D is c lo su re s A bout M ark et R is k
39
Ite m 4 . C ontr o ls a n d P ro ced ure s
39
Part I I – O th er I n fo rm atio n
40
Ite m 1 . L eg al P ro ceed in gs
40
Ite m 1 A . R is k F acto rs
40
Ite m 2 . U nre g is te re d S ale s o f E quity S ecu ritie s a n d U se o f P ro ceed s
41
Ite m 3 . D efa u lts U pon S en io r S ecu ritie s
42
Ite m 4 . M in e S afe ty D is c lo su re s
42
Ite m 5 . O th er I n fo rm atio n
42
Ite m 6 . E xhib its
42
Sig natu re s
43
2
TA BLE O F C O NTE N TS
CAUTIO NARY N O TE R EG ARDIN G F O RW ARD-L O OKIN G S T A TEM EN TS
This Q uarte rly R ep ort o n F orm 1 0-Q c o nta in s f o rw ard -lo okin g s ta te m en ts w ith in t h e m ean in g o f S ectio n 2 7A o f t h e S ecu ritie s A ct o f 1 933, a s a m en ded ( th e
“S ecu ritie s A ct” ), a n d S ectio n 2 1E o f t h e S ecu ritie s E xch an ge A ct o f 1 934, a s a m en ded ( th e “ E xch an ge A ct” ). T hese f o rw ard -lo okin g s ta te m en ts a re b ase d o n o ur c u rre n t
ex pecta tio ns, e stim ate s, f o re casts , a n d p ro je ctio ns a b out f u tu re e v en ts a n d o pera tin g p erfo rm an ce. A ll s ta te m en ts , o th er t h an s ta te m en ts o f p re se n t o r h is to ric al f a ct i n clu ded i n
th is Q uarte rly R ep ort, a b out o ur s tr a te g y, b usin ess m odel, c o m petitiv e p ositio n, f u tu re o pera tio ns, f u tu re f in an cia l p erfo rm an ce, l iq uid ity , p ro fita b ility , c o st s tr u ctu re , m ark et
opportu nitie s, r e g ula to ry e n vir o nm en t, a n d m an ag em en t’ s p la n s a n d o bje ctiv es a re f o rw ard -lo okin g s ta te m en ts . A ny s ta te m en ts t h at r e fe r t o p ro je ctio ns, f o re casts o r o th er
ch ara cte riz atio ns o f f u tu re e v en ts o r c ir c u m sta n ces, i n clu din g a n y u nderly in g a ssu m ptio ns, a re f o rw ard -lo okin g s ta te m en ts . I n s o m e c ase s, y ou c an i d en tif y f o rw ard -lo okin g
sta te m en ts b y t e rm in olo gy s u ch a s “ m ay ,” “ sh ould ,” “ co uld ,” “ w ould ,” “ ex pect,” “ p la n ,” “ an tic ip ate ,” “ in te n d,” “ b elie v e,” “ estim ate ,” “ co ntin ue,” “ g oal,” “ p ro je ct” o r t h e
neg ativ e o f s u ch t e rm s o r o th er s im ila r e x pre ssio ns.
Forw ard -lo okin g s ta te m en ts c o nta in ed i n t h is Q uarte rly R ep ort o n F orm 1 0-Q m ay i n clu de, b ut a re n ot l im ite d t o , s ta te m en ts a b out:
• our b usin ess s tr a te g y, o pera tin g p rio ritie s, c o m petitiv e p ositio nin g, a n d m ark et o pportu nitie s;
• our f u tu re f in an cia l p erfo rm an ce, i n clu din g o ur e x pecta tio ns r e g ard in g r e v en ue t r e n ds, c o st o f r e v en ue, g ro ss p ro fit, g ro ss m arg in , o pera tin g e x pen se s ( in clu din g s a le s
an d m ark etin g, r e se arc h a n d d ev elo pm en t, a n d g en era l a n d a d m in is tr a tiv e e x pen se s), p ro fita b ility , l iq uid ity , a n d c ash f lo w s;
• mark et a ccep ta n ce, e n gag em en t, m onetiz atio n, a n d r e te n tio n o f o ur g am es, l o yalty o ffe rin gs, a n d n ew p ro ducts ;
• our a ccess t o c ap ita l, a b ility t o r a is e f in an cin g i n t h e f u tu re , a n d c o nditio ns i n t h e g lo bal c re d it a n d f in an cia l m ark ets ;
• fa cto rs r e la tin g t o o ur b usin ess, o pera tio ns, f in an cia l p erfo rm an ce, a n d s u bsid ia rie s, i n clu din g c o m petitiv e d ynam ic s, c h an ges i n l a w s a n d r e g ula tio ns a ffe ctin g o ur
busin ess, o ur a b ility t o i m ple m en t b usin ess p la n s a n d f o re casts , i d en tif y a n d r e aliz e o pportu nitie s, a n d g en era l m acro eco nom ic c o nditio ns a ffe ctin g d is c re tio nary
co nsu m er s p en din g, a w ard s p artn ers , a n d a d vertis e rs ;
• our r e lia n ce o n, a n d a b ility t o m ain ta in r e la tio nsh ip s w ith , t h ir d -p arty p la tf o rm s, p ay m en t p ro vid ers , a n d o th er k ey p artn ers , i n clu din g t h e A pple A pp S to re , G oogle P la y
Sto re , A m azo n A ppsto re , a n d F aceb ook;
• th e a cco untin g f o r o ur o uts ta n din g w arra n ts t o p urc h ase s h are s o f C la ss A c o m mon s to ck ;
• our a b ility t o m ain ta in a n d i m pro ve e ffe ctiv e i n te rn al c o ntr o l o ver f in an cia l r e p ortin g;
• our a b ility t o m ain ta in , p ro te ct, e n fo rc e, l ic en se , a n d e n han ce o ur i n te lle ctu al p ro perty r ig hts ;
• th e i m pact o f l itig atio n, r e g ula to ry i n quir ie s, i n vestig atio ns, e n fo rc em en t a ctio ns, a n d o ur a b ility t o s u ccessfu lly d efe n d o r r e so lv e s u ch m atte rs ;
• our a b ility t o i d en tif y , p urs u e, c o m ple te , a n d i n te g ra te a cq uis itio ns o r o th er s tr a te g ic t r a n sa ctio ns c o nsis te n t w ith o ur b usin ess o bje ctiv es;
• our s u ccess i n a ttr a ctin g, r e ta in in g, a n d m otiv atin g o ffic ers , k ey e m plo yees, d ir e cto rs , a n d o th er t a le n t;
• th e i m pact o f g eo politic al c o nditio ns, i n clu din g i n te rn atio nal c o nflic ts , r e g io nal i n sta b ility , t r a d e t e n sio ns, s a n ctio ns, t e rro ris m , c y ber t h re ats , d is ru ptio ns t o g lo bal
mark ets o r s u pply c h ain s, a n d r e la te d e co nom ic o r o pera tio nal u ncerta in ty ; a n d
• th e i m pact o f l e g al a n d r e g ula to ry f a cto rs o n o ur c u rre n t a n d p la n ned b usin ess o pera tio ns, i n clu din g t h e e n actm en t, a m en dm en t, i n te rp re ta tio n, o r e n fo rc em en t o f l a w s o r
re g ula tio ns g overn in g g am in g, g am blin g, a d vertis in g, d ata p riv acy , c o nsu m er p ro te ctio n, s w eep sta k es p ro m otio ns, v ir tu al c u rre n cie s, p ay m en t s y ste m s, o r d ig ita l
pla tf o rm s, t h at m ay a ffe ct h ow w e o pera te , w here w e o pera te , o r t h e p ro ducts a n d s e rv ic es w e o ffe r.
These f o rw ard -lo okin g s ta te m en ts a re b ase d o n o ur c u rre n t p la n s, e stim ate s, a n d p ro je ctio ns i n l ig ht o f i n fo rm atio n c u rre n tly a v aila b le t o u s a n d a re s u bje ct t o k now n
an d u nknow n r is k s, u ncerta in tie s, a n d a ssu m ptio ns, i n clu din g t h ose d esc rib ed u nder t h e h ead in g “ R is k F acto rs ” i n t h is Q uarte rly R ep ort o n F orm 1 0-Q , u nder “ Ite m 1 A . R is k
Facto rs ” i n o ur A nnual R ep ort o n F orm 1 0-K f o r t h e f is c al y ear e n ded D ecem ber 3 1, 2 025, a n d i n o ur o th er f ilin gs w ith t h e S ecu ritie s a n d E xch an ge
3
TA BLE O F C O NTE N TS
C om mis sio n ( th e “ S E C ”) f ro m t im e t o t im e, t h at c o uld c au se o ur a ctu al r e su lts , p erfo rm an ce, o r a ch ie v em en ts t o d if fe r m ate ria lly f ro m t h ose e x pre sse d o r i m plie d b y t h ese
fo rw ard -lo okin g s ta te m en ts . T he r is k s d esc rib ed u nder t h e h ead in g “ R is k F acto rs ” a re n ot e x hau stiv e. N ew r is k s e m erg e f ro m t im e t o t im e, a n d i t i s n ot p ossib le f o r u s t o p re d ic t
all r is k s o r a sse ss t h e i m pact o f a ll s u ch r is k s o n o ur b usin ess o r t h e e x te n t t o w hic h a n y r is k o r c o m bin atio n o f r is k s m ay c au se a ctu al r e su lts t o d if fe r m ate ria lly f ro m t h ose
co nta in ed i n a n y f o rw ard -lo okin g s ta te m en ts .
Forw ard -lo okin g s ta te m en ts a re n ot g uara n te es o f f u tu re p erfo rm an ce, a n d y ou s h ould n ot p la ce u ndue r e lia n ce o n t h em . T hese s ta te m en ts s p eak o nly a s o f t h e d ate o f
th is Q uarte rly R ep ort o n F orm 1 0-Q . E xcep t a s r e q uir e d b y a p plic ab le l a w , w e u nderta k e n o o blig atio n t o p ublic ly u pdate o r r e v is e a n y f o rw ard -lo okin g s ta te m en ts t o r e fle ct
ev en ts o r c ir c u m sta n ces a fte r t h e d ate o f t h is Q uarte rly R ep ort o n F orm 1 0-Q , w heth er a s a r e su lt o f n ew i n fo rm atio n, f u tu re e v en ts , o r o th erw is e .
We i n te n d t o u se o ur I n vesto r R ela tio ns w eb site ,
ir .p la y stu dio s.c o m
, S E C f ilin gs, p re ss r e le ase s, p ublic c o nfe re n ce c alls , a n d w eb casts a s m ean s o f d is c lo sin g m ate ria l
non-p ublic i n fo rm atio n a n d f o r c o m ply in g w ith o ur d is c lo su re o blig atio ns u nder R eg ula tio n F D . I n fo rm atio n p oste d o n o r a ccessib le t h ro ugh o ur w eb site o r s o cia l m ed ia
ch an nels i s n ot i n co rp ora te d b y r e fe re n ce i n to t h is Q uarte rly R ep ort o n F orm 1 0-Q , a n d y ou s h ould n ot c o nsid er s u ch i n fo rm atio n t o b e p art o f t h is Q uarte rly R ep ort.
4
TA BLE O F C O NTE N TS
PA RT I . F in an cia l I n fo rm atio n
Ite m 1 . F in an cia l S ta te m en ts
PL A YST U DIO S, I N C.
CO NDEN SE D C O NSO LID ATED B A LA NCE S H EETS
(u nau dit e d , i n t h ou sa n ds, e x cep t p ar v alu e a m ou nts )
March 3 1,
2026
Decem ber 3 1,
2025
ASSE TS
Curre n t a sse ts :
Cash a n d c ash e q uiv ale n ts
$ 103,6 77
$ 104,9 35
Receiv ab le s, n et
22,8 52
22,8 18
Pre p aid e x pen se s a n d o th er c u rre n t a sse ts
7,3 28
7,0 18
Tota l c u rre n t a sse ts
133,8 57
134,7 71
Pro perty a n d e q uip m en t, n et
12,4 34
13,4 26
Opera tin g l e ase r ig ht- o f-u se a sse ts
6,2 92
7,5 33
In ta n gib le a sse ts a n d i n te rn al- u se s o ftw are , n et
71,6 43
76,4 30
Goodw ill
52,2 22
52,2 22
Defe rre d i n co m e t a x es
4,0 90
4,1 40
Oth er l o ng-te rm a sse ts
1,8 87
2,0 96
Tota l n on-c u rre n t a sse ts
148,5 68
155,8 47
Tota l a sse ts
$ 282,4 25
$ 290,6 18
LIA BIL IT IE S A ND S T O CK HOLD ER S’ E Q UIT Y
Curre n t l ia b ilitie s:
Acco unts p ay ab le
11,1 04
7,8 08
Opera tin g l e ase l ia b ilitie s, c u rre n t
3,6 85
3,6 56
Min im um g uara n te e l ia b ility , c u rre n t
8,4 19
9,4 69
Contin gen t c o nsid era tio n, c u rre n t
2,5 35
5,5 61
Accru ed a n d o th er c u rre n t l ia b ilitie s
18,3 09
16,6 84
Tota l c u rre n t l ia b ilitie s
44,0 52
43,1 78
Opera tin g l e ase l ia b ilitie s, n oncu rre n t
3,2 20
4,0 70
Min im um g uara n te e l ia b ility , n oncu rre n t
12,0 00
12,0 00
Contin gen t c o nsid era tio n, n oncu rre n t
2,9 93
2,7 47
Defe rre d i n co m e t a x es
776
617
Oth er l o ng-te rm l ia b ilitie s
58
140
Tota l n on-c u rre n t l ia b ilitie s
19,0 47
19,5 74
Tota l l ia b ilitie s
$ 63,0 99
$ 62,7 52
Com mitm en ts a n d c o ntin gen cie s ( N ote 1 5)
Sto ck hold ers ’ e q uity :
Pre fe rre d s to ck , $
0.0 001
p ar v alu e (
100,0 00
s h are s a u th oriz ed ,
no
s h are s i s su ed a n d o uts ta n din g a s o f M arc h 3 1, 2 026 a n d
Decem ber 3 1, 2 025)
— —
Cla ss A c o m mon s to ck , $
0.0 001
p ar v alu e (
2,0 00,0 00
s h are s a u th oriz ed ,
133,5 96
a n d
131,8 23
s h are s i s su ed , a n d
111,8 57
a n d
110,0 84
s h are s o uts ta n din g a s o f M arc h 3 1, 2 026 a n d D ecem ber 3 1, 2 025, r e sp ectiv ely )
11
11
Cla ss B c o m mon s to ck , $
0.0 001
p ar v alu e (
25,0 00
s h are s a u th oriz ed ,
16,4 57
a n d
16,4 57
s h are s i s su ed a n d o uts ta n din g a s o f
Marc h 3 1, 2 026 a n d D ecem ber 3 1, 2 025, r e sp ectiv ely ).
2 2
Additio nal p aid -in c ap ita l
342,9 45
340,8 02
Accu m ula te d d efic it
( 70,6 39
) ( 59,9 63
)
Accu m ula te d o th er c o m pre h en siv e i n co m e
1,7 99
1,8 06
Tre asu ry s to ck , a t c o st,
21,7 39
a n d
21,7 39
s h are s a t M arc h 3 1, 2 026 a n d D ecem ber 3 1, 2 025, r e sp ectiv ely
( 54,7 92
) ( 54,7 92
)
Tota l s to ck hold ers ’ e q uity
219,3 26
227,8 66
Tota l l ia b ilitie s a n d s to ck hold ers ’ e q uity
$ 282,4 25
$ 290,6 18
The a cco m pan yin g n ote s a re a n i n te g ra l p art o f t h ese c o nden se d c o nso lid ate d f in an cia l s ta te m en ts .
5
TA BLE O F C O NTE N TS
PL A YST U DIO S, I N C.
CO NDEN SE D C O NSO LID ATED S T A TEM EN TS O F O PE R ATIO NS
(u nau dit e d , i n t h ou sa n ds, e x cep t p er s h are d ata )
Three M on th s E nded M arch 3 1,
2026
2025
N et r e v en ue
$ 58,4 10
$ 62,7 09
O pera tin g e x pen se s:
Cost o f r e v en ue
12,0 45
15,7 79
Sellin g a n d m ark etin g
21,0 25
13,1 69
Rese arc h a n d d ev elo pm en t
14,7 24
13,6 74
Gen era l a n d a d m in is tr a tiv e
9,4 36
11,8 61
Dep re cia tio n a n d a m ortiz atio n
9,8 33
9,6 32
Restr u ctu rin g a n d r e la te d
4,6 52
1,3 35
Tota l o pera tin g c o sts a n d e x pen se s
71,7 15
65,4 50
Loss f ro m o pera tio ns
( 13,3 05
) ( 2,7 41
)
O th er i n co m e ( e x pen se ), n et:
Chan ge i n f a ir v alu e o f w arra n t l ia b ilitie s
18
101
Chan ge i n f a ir v alu e o f c o ntin gen t c o nsid era tio n
2,7 80
( 325
)
In te re st i n co m e, n et
722
906
Oth er l o ss, n et
( 281
) ( 473
)
Tota l o th er i n co m e, n et
3,2 39
209
Loss b efo re i n co m e t a x es
( 10,0 66
) ( 2,5 32
)
In co m e t a x e x pen se
( 610
) ( 348
)
N et l o ss
$ ( 10,6 76
) $ ( 2,8 80
)
N et l o ss p er s h are a ttr ib uta b le t o C la ss A a n d C la ss B c o m mon s to ck hold ers :
Basic
$ ( 0.0 8
) $ ( 0.0 2
)
Dilu te d
$ ( 0.0 8
) $ ( 0.0 2
)
W eig hte d a v era g e s h are s o f c o m mon s to ck o uts ta n din g:
Basic
127,6 60
125,2 53
Dilu te d
127,6 60
125,2 53
(1 )
Am ounts e x clu de d ep re cia tio n a n d a m ortiz atio n.
The a cco m pan yin g n ote s a re a n i n te g ra l p art o f t h ese c o nden se d c o nso lid ate d f in an cia l s ta te m en ts .
(1 )
6
TA BLE O F C O NTE N TS
PL A YST U DIO S, I N C.
CO NDEN SE D C O NSO LID ATED S T A TEM EN TS O F C O M PR EH EN SIV E L O SS
(u nau dit e d , i n t h ou sa n ds)
Three M on th s E nded M arch 3 1,
2026
2025
N et l o ss
$ ( 10,6 76
) $ ( 2,8 80
)
O th er c o m pre h en siv e ( lo ss) i n co m e:
Chan ge i n f o re ig n c u rre n cy t r a n sla tio n a d ju stm en t
( 7 ) 8
Unre aliz ed g ain f ro m d eriv ativ e f in an cia l i n str u m en ts
— 50
Recla ssif ic atio n o f l o ss/( g ain ) f ro m s e ttle m en t o f d eriv ativ e f in an cia l i n str u m en ts i n clu ded i n n et l o ss
— ( 12
)
Tota l o th er c o m pre h en siv e ( lo ss) i n co m e
( 7 ) 46
Com pre h en siv e l o ss
$ ( 10,6 83
) $ ( 2,8 34
)
(1 )
These a m ounts a re p re se n te d g ro ss o f t h e e ffe ct o f i n co m e t a x es. T he c o rre sp ondin g e ffe cts o f i n co m e t a x es a re i m mate ria l.
The a cco m pan yin g n ote s a re a n i n te g ra l p art o f t h ese c o nden se d c o nso lid ate d f in an cia l s ta te m en ts .
(1 )
(1 )
(1 )
7
TA BLE O F C O NTE N TS
PL A YST U DIO S, I N C.
CO NDEN SE D C O NSO LID ATED S T A TEM EN TS O F S T O CK HOLD ER S’ E Q UIT Y
(u nau dit e d , i n t h ou sa n ds)
Cla ss A C om mon S to ck
Cla ss B C om mon S to ck
Addit io n al
Paid -I n
Cap it a l
Accu m ula te d
Oth er
Com preh en siv e
(L oss) I n co m e
Tota l
Sto ck hold ers’
Equit y
Shares
Am ou nt
Shares
Am ou nt
Accu m ula te d
Defic it
Trea su ry S to ck
Bala n ce a s o f D ecem ber 3 1, 2 024
108,2 87
$ 11
16,4 57
$ 2 $ 327,9 51
$ ( 632
) $ ( 31,3 24
) $ ( 51,2 93
) $ 244,7 15
Net l o ss
—
—
—
—
—
—
( 2,8 80
) —
( 2,8 80
)
Exerc is e o f s to ck o ptio ns
110
—
—
—
122
—
—
—
122
Restr ic te d s to ck v estin g, n et o f s h are s
with held
1,5 61
—
—
—
( 741
) —
—
—
( 741
)
Sto ck -b ase d c o m pen sa tio n
—
—
—
—
4,3 74
—
—
—
4,3 74
Rep urc h ase o f c o m mon s to ck
( 910
) —
—
—
—
—
—
( 1,5 54
) ( 1,5 54
)
Oth er c o m pre h en siv e i n co m e
—
—
—
—
—
46
—
—
46
Bala n ce a s o f M arch 3 1, 2 025
109,0 48
$ 11
16,4 57
$ 2 $ 331,7 06
$ ( 586
) $ ( 34,2 04
) $ ( 52,8 47
) $ 244,0 82
Cla ss A C om mon S to ck
Cla ss B C om mon S to ck
Addit io n al
Paid -I n
Cap it a l
Accu m ula te d
Oth er
Com preh en siv e
In co m e ( L oss)
Tota l
Sto ck hold ers’
Equit y
Shares
Am ou nt
Shares
Am ou nt
Accu m ula te d
Defic it
Trea su ry S to ck
Bala n ce a s o f D ecem ber 3 1, 2 025
110,0 84
$ 11
16,4 57
$ 2 $ 340,8 02
$ 1,8 06
$ ( 59,9 63
) $ ( 54,7 92
) $ 227,8 66
Net l o ss
—
—
—
—
—
—
( 10,6 76
) —
( 10,6 76
)
Exerc is e o f s to ck o ptio ns
18
—
—
—
—
—
—
—
—
Restr ic te d s to ck v estin g, n et o f s h are s
with held
1,7 55
—
—
—
( 378
) —
—
—
( 378
)
Sto ck -b ase d c o m pen sa tio n
—
—
—
—
2,5 21
—
—
—
2,5 21
Rep urc h ase o f c o m mon s to ck
—
—
—
—
—
—
—
—
—
Oth er c o m pre h en siv e l o ss
—
—
—
—
—
( 7 ) —
—
( 7 )
Bala n ce a s o f M arch 3 1, 2 026
111,8 57
$ 11
16,4 57
$ 2 $ 342,9 45
$ 1,7 99
$ ( 70,6 39
) $ ( 54,7 92
) $ 219,3 26
The a cco m pan yin g n ote s a re a n i n te g ra l p art o f t h ese c o nden se d c o nso lid ate d f in an cia l s ta te m en ts
8
TA BLE O F C O NTE N TS
PL A YST U DIO S, I N C.
CO NDEN SE D C O NSO LID ATED S T A TEM EN TS O F C ASH F L O W S
(u nau dit e d , i n t h ou sa n ds)
Three M on th s E nded
March 3 1,
2026
2025
Cash f lo w s f r o m o p era tin g a ctiv it ie s:
Net l o ss
$ ( 10,6 76
) $ ( 2,8 80
)
Adju stm en ts :
Dep re cia tio n a n d a m ortiz atio n
9,8 33
9,6 32
Sto ck -b ase d c o m pen sa tio n e x pen se
2,3 84
4,2 58
Chan ge i n f a ir v alu e o f c o ntin gen t c o nsid era tio n
( 2,7 80
) 325
Asse t i m pair m en ts
133
—
Defe rre d i n co m e t a x b en efit
209
215
Oth er
823
558
Chan ges i n o pera tin g a sse ts a n d l ia b ilitie s
Receiv ab le s, n et
321
1,0 92
Pre p aid e x pen se s a n d o th er c u rre n t a sse ts
( 923
) ( 1,7 30
)
In co m e t a x r e ceiv ab le
( 46
) 100
Acco unts p ay ab le & a ccru ed l ia b ilitie s
4,4 09
( 8,3 79
)
Oth er
31
109
Net c ash p ro vid ed b y o pera tin g a ctiv itie s
3,7 18
3,3 00
Cash f lo w s f r o m i n vestin g a ctiv it ie s:
Purc h ase o f p ro perty a n d e q uip m en t
( 66
) ( 118
)
Additio ns t o i n te rn al- u se s o ftw are
( 4,0 06
) ( 3,4 61
)
Oth er
( 46
) ( 30
)
Net c ash u se d i n i n vestin g a ctiv itie s
( 4,1 18
) ( 3,6 09
)
Cash f lo w s f r o m f in an cin g a ctiv it ie s:
Pro ceed s f ro m s to ck o ptio n e x erc is e s
— 122
Pay m en ts f o r t a x w ith hold in g o f s to ck -b ase d c o m pen sa tio n
( 378
) ( 740
)
Pay m en t o f m in im um g uara n te e l ia b ilitie s
( 347
) ( 284
)
Rep urc h ase s o f t r e asu ry s to ck
— ( 1,5 54
)
Net c ash u se d i n f in an cin g a ctiv itie s
( 725
) ( 2,4 56
)
Fore ig n c u rre n cy t r a n sla tio n
( 130
) 84
Net c h an ge i n c ash , c ash e q uiv ale n ts , a n d r e str ic te d c ash
( 1,2 55
) ( 2,6 81
)
Cash , c ash e q uiv ale n ts , a n d r e str ic te d c ash a t b eg in nin g o f p erio d
105,5 55
110,3 86
Cash , c ash e q uiv ale n ts , a n d r e str ic te d c ash a t e n d o f p erio d
$ 104,3 00
$ 107,7 05
Supple m en ta l c a sh f lo w d is c lo su res:
In te re st p aid
$ 41
$ 41
In co m e t a x es p aid , n et o f r e fu nds
616
549
Non -c a sh i n vestin g a n d f in an cin g a ctiv it ie s:
Cap ita liz atio n o f s to ck -b ase d c o m pen sa tio n
$ 137
$ 116
Additio ns t o i n ta n gib le a sse ts r e la te d t o l ic en sin g a g re em en ts
— 834
The a cco m pan yin g n ote s a re a n i n te g ra l p art o f t h ese c o nden se d c o nso lid ate d f in an cia l s ta te m en ts .
9
TA BLE O F C O NTE N TS
NO TES T O C O NDEN SE D C O NSO LID ATED F IN ANCIA L S T A TEM EN TS
(u nau dite d , i n t h ousa n ds, u nle ss o th erw is e n ote d )
N O TE 1 — BA CK GRO UND A ND B A SIS O F P R ESE N TA TIO N
O rg an iz a tio n a n d D esc rip tio n o f B usin ess
On J u ne 2 1, 2 021 ( th e “ C lo sin g D ate ”), A cie s A cq uis itio n C orp ., a C ay m an I s la n ds e x em pte d c o m pan y ( “ A cie s” ), c o nsu m mate d a b usin ess c o m bin atio n ( th e “ A cie s
M erg er” ) w ith P la y S tu dio s, I n c., a D ela w are c o rp ora tio n ( “ O ld P L A YST U DIO S”), p urs u an t t o t h e A gre em en t a n d P la n o f M erg er, d ate d a s o f F eb ru ary 1 , 2 021 ( th e “ M erg er
A gre em en t” ), b y a n d a m ong A cie s, O ld P L A YST U DIO S, C ata ly st M erg er S ub I , I n c., a D ela w are c o rp ora tio n a n d a d ir e ct w holly o w ned s u bsid ia ry o f A cie s, a n d C ata ly st
M erg er S ub I I, L LC , a D ela w are l im ite d l ia b ility c o m pan y a n d a d ir e ct w holly o w ned s u bsid ia ry o f A cie s. F ollo w in g t h e C lo sin g D ate , A cie s c h an ged i ts n am e t o
PL A YST U DIO S, I n c.
PL A YST U DIO S, I n c., f o rm erly k now n a s A cie s A cq uis itio n C orp . ( th e ” C om pan y” o r ” P L A YST U DIO S”), w as i n co rp ora te d o n A ugust 1 4, 2 020 a s a C ay m an I s la n ds
ex em pte d c o m pan y a n d d om estic ate d a s a D ela w are c o rp ora tio n o n t h e C lo sin g D ate .
The C om pan y d ev elo ps a n d o pera te s o nlin e a n d m obile s o cia l g am in g a p plic atio ns ( “ g am es” o r “ g am e”), m ost o f w hic h i n co rp ora te a u niq ue l o yalty p ro gra m o ffe rin g
“re al w orld ” r e w ard s p ro vid ed b y a c o lle ctio n o f r e w ard s p artn ers . T he C om pan y’s g am es a re f re e-to -p la y a n d a v aila b le t h ro ugh t h e A pple A pp S to re , G oogle P la y S to re ,
A m azo n A ppsto re , a n d F aceb ook ( c o lle ctiv ely , “ p la tf o rm s” o r “ p la tf o rm o pera to rs ” ). T he C om pan y c re ate s g am es b ase d o n i ts o w n o rig in al c o nte n t a s w ell a s l ic en se d t h ir d –
party b ra n ds. T he C om pan y p rim arily g en era te s r e v en ue t h ro ugh t h e i n -g am e s a le o f v ir tu al c u rre n cie s a n d i n -g am e a d vertis in g.
Unle ss t h e c o nte x t o th erw is e r e q uir e s, a ll r e fe re n ces h ere in t o “ P L A YST U DIO S,” t h e “ C om pan y,” “ w e,” “ u s,” a n d “ o ur” r e fe r c o lle ctiv ely t o P L A YST U DIO S, I n c.
an d i ts s u bsid ia rie s.
B asis o f P re se n ta tio n a n d C on so lid atio n
The a cco m pan yin g c o nden se d c o nso lid ate d f in an cia l s ta te m en ts w ere p re p are d i n a cco rd an ce w ith a cco untin g p rin cip le s g en era lly a ccep te d i n t h e U nite d S ta te s o f
A m eric a ( “ U S G AAP”) a n d p urs u an t t o t h e r u le s a n d r e g ula tio ns o f t h e S ecu ritie s a n d E xch an ge C om mis sio n ( “ S E C ”). T he c o nden se d c o nso lid ate d f in an cia l s ta te m en ts
in clu de t h e a cco unts o f P L A YST U DIO S, I n c. a n d i ts c o nso lid ate d s u bsid ia rie s. A ll i n te rc o m pan y b ala n ces a n d t r a n sa ctio ns h av e b een e lim in ate d u pon c o nso lid atio n. C erta in
re cla ssif ic atio ns i n t h ese f in an cia l s ta te m en ts h av e b een m ad e t o c o m ply w ith U S G AAP a p plic ab le t o p ublic c o m pan ie s a n d S E C R eg ula tio n S -X .
The s ig nif ic an t a cco untin g p olic ie s r e fe re n ced i n t h e a n nual c o nso lid ate d f in an cia l s ta te m en ts o f t h e C om pan y a s o f D ecem ber 3 1, 2 025 h av e b een a p plie d c o nsis te n tly
in t h ese u nau dite d i n te rim c o nden se d c o nso lid ate d f in an cia l s ta te m en ts . I n t h e o pin io n o f t h e C om pan y, t h e a cco m pan yin g u nau dite d f in an cia l s ta te m en ts c o nta in a ll
ad ju stm en ts , c o nsis tin g o f o nly n orm al r e cu rrin g a d ju stm en ts , n ecessa ry f o r a f a ir p re se n ta tio n o f i ts f in an cia l p ositio n a s o f M arc h 3 1, 2 026, i ts r e su lts o f o pera tio ns f o r t h e
th re e m onth s e n ded M arc h 3 1, 2 026, a n d 2 025, a n d c ash f lo w s f o r t h e t h re e m onth s e n ded M arc h 3 1, 2 026, a n d 2 025. T he C onden se d C onso lid ate d B ala n ce S heet a s o f
D ecem ber 3 1, 2 025 w as d eriv ed f ro m t h e a u dite d a n nual f in an cia l s ta te m en ts b ut d oes n ot c o nta in a ll o f t h e f o otn ote d is c lo su re s f ro m t h e a n nual f in an cia l s ta te m en ts .
U se o f E stim ate s
The p re p ara tio n o f c o nden se d c o nso lid ate d f in an cia l s ta te m en ts i n c o nfo rm ity w ith U S G AAP r e q uir e s u s t o m ak e e stim ate s a n d a ssu m ptio ns t h at a ffe ct t h e r e p orte d
am ounts i n t h e c o nso lid ate d f in an cia l s ta te m en ts a n d n ote s t h ere to . S ig nif ic an t e stim ate s a n d a ssu m ptio ns r e fle cte d i n t h e C om pan y’s c o nden se d c o nso lid ate d f in an cia l
sta te m en ts i n clu de t h e e stim ate d c o nsu m ptio n r a te o f v ir tu al g oods t h at i s u se d i n t h e d ete rm in atio n o f r e v en ue r e co gnitio n, u se fu l l iv es o f p ro perty a n d e q uip m en t a n d d efin ite –
liv ed i n ta n gib le a sse ts , t h e e x pen sin g a n d c ap ita liz atio n o f r e se arc h a n d d ev elo pm en t c o sts f o r i n te rn al- u se s o ftw are , a ssu m ptio ns u se d i n a cco untin g f o r i n co m e t a x es, s to ck –
base d c o m pen sa tio n, t h e f a ir v alu e o f d eriv ativ e f in an cia l i n str u m en ts , t h e f a ir v alu e o f c o ntin gen t c o nsid era tio n, a n d t h e e v alu atio n o f g oodw ill a n d l o ng-liv ed a sse ts f o r
im pair m en t. T he C om pan y b elie v es t h e a cco untin g e stim ate s a re a p pro pria te a n d r e aso nab ly d ete rm in ed . D ue t o t h e i n here n t u ncerta in tie s i n m ak in g t h ese e stim ate s, a ctu al
am ounts c o uld d if fe r m ate ria lly .
Sm alle r R ep ortin g C om pan y
As o f M arc h 3 1, 2 026, t h e C om pan y q ualif ie d a s a S m alle r R ep ortin g C om pan y ( ” S R C”) a s d efin ed u nder R ule 1 2b-2 o f t h e S ecu ritie s E xch an ge A ct o f 1 934. A s a n
SR C, w e a re e lig ib le f o r a n d h av e e le cte d t o p ro vid e s c ale d d is c lo su re a cco m modatio ns i n t h is Q uarte rly R ep ort o n F orm 1 0-Q . T hese a cco m modatio ns a llo w u s t o p ro vid e
re d uced e x ecu tiv e
10
TA BLE O F C O NTE N TS
co m pen sa tio n d is c lo su re s, f e w er y ears o f a u dite d f in an cia l s ta te m en ts , a n d l e ss e x te n siv e n arra tiv e d is c lo su re s c o m pare d t o l a rg er r e p ortin g c o m pan ie s. T he C om pan y w ill
re ev alu ate i ts e lig ib ility t o q ualif y a s a n S R C a t t h e e n d o f i ts s e co nd q uarte r o f 2 026, a n d o th erw is e a s r e q uir e d .
R ecla ssif ic a tio n s
Certa in p rio r p erio d a m ounts h av e b een r e cla ssif ie d t o c o nfo rm t o t h e c u rre n t p erio d p re se n ta tio n.
S pecif ic ally , $
6.3
m illio n p re v io usly c la ssif ie d w ith in a ccru ed a n d
oth er c u rre n t l ia b ilitie s a s o f D ecem ber 3 1, 2 025 h as b een r e cla ssif ie d t o a cco unts p ay ab le t o b ette r r e fle ct t h e n atu re o f t h ose o blig atio ns a s a m ounts o w ed t o v en dors a n d
su pplie rs i n t h e o rd in ary c o urs e o f b usin ess. T hese r e cla ssif ic atio ns h ad n o e ffe ct o n p re v io usly r e p orte d t o ta l c u rre n t l ia b ilitie s, t o ta l l ia b ilitie s, o r n et l o ss.
N O TE 2 — SU M MARY O F S IG NIF IC ANT A CCO UNTIN G P O LIC IE S
Our s ig nif ic an t a cco untin g p olic ie s a n d e stim ate s r e m ain ed u nch an ged f ro m o ur 2 025 A nnual R ep ort o n F orm 1 0-K f ile d o n M arc h 1 6, 2 026 a n d a m en ded o n F orm
10-K /A f ile d o n A pril 3 , 2 026.
Recen tly I s su ed A cco untin g S ta ndard s N ot Y et A dopte d
In N ovem ber 2 024, t h e F A SB i s su ed A SU 2 024-0 3,
I n co m e S ta te m en t- R ep ortin g C om pre h en siv e I n co m e-E xp en se D is a ggre g atio n D is c lo su re s ( S ubto pic 2 20-4 0)
.
A dditio nally , i n J a n uary 2 025, t h e F A SB i s su ed A SU 2 025-0 1 t o c la rif y t h e e ffe ctiv e d ate o f A SU 2 024-0 3. T he s ta n dard p ro vid es g uid an ce t o e x pan d d is c lo su re s r e la te d t o t h e
dis a g gre g atio n o f i n co m e s ta te m en t e x pen se s. T he s ta n dard r e q uir e s, i n t h e n ote s t o t h e f in an cia l s ta te m en ts , d is c lo su re o f s p ecif ie d i n fo rm atio n a b out c erta in c o sts a n d
ex pen se s, w hic h i n clu des p urc h ase s o f i n ven to ry , e m plo yee c o m pen sa tio n, d ep re cia tio n, a n d i n ta n gib le a sse t a m ortiz atio n i n clu ded i n e ach r e le v an t e x pen se c ap tio n. T his
guid an ce i s e ffe ctiv e f o r f is c al y ears b eg in nin g a fte r D ecem ber 1 5, 2 026, a n d i n te rim p erio ds w ith in a n nual r e p ortin g p erio ds b eg in nin g a fte r D ecem ber 1 5, 2 027, o n a
re tr o sp ectiv e o r p ro sp ectiv e b asis , w ith e arly a d optio n p erm itte d . T he C om pan y i s a sse ssin g t h e g uid an ce, n otin g t h e a d optio n i m pacts d is c lo su re o nly .
In S ep te m ber 2 025, t h e F A SB i s su ed A SU 2 025-0 6,
I n ta ngib le s — G oodw ill a nd O th er — I n te rn al- U se S oftw are ( S ubto pic 3 50-4 0)
( “ A SU 2 025-0 6”), w hic h r e v is e s
th e a p pro ach t o a cco untin g f o r i n te rn al- u se s o ftw are c o sts b y e lim in atin g a ll r e fe re n ces t o t h e s ta g es o f s o ftw are d ev elo pm en t p ro je cts , t h ere b y m ak in g t h e g uid an ce a d ap ta b le t o
a v arie ty o f s o ftw are d ev elo pm en t m eth odolo gie s. A SU 2 025-0 6 w ill b e e ffe ctiv e f o r a n nual p erio ds b eg in nin g a fte r D ecem ber 1 5, 2 027, a n d i n te rim p erio ds w ith in t h ose
an nual r e p ortin g p erio ds, o n a p ro sp ectiv e, m odif ie d o r r e tr o sp ectiv e b asis , w ith e arly a d optio n p erm itte d . T he C om pan y i s c u rre n tly a sse ssin g t h e e ffe ct t h e g uid an ce w ill h av e
on t h e C om pan y’s f in an cia l c o nditio n, r e su lts o f o pera tio ns a n d c ash f lo w s.
N O TE 3 — SE G M EN T R EPO RTIN G
The C om pan y h as a g gre g ate d i ts o pera tin g s e g m en ts i n to t h e f o llo w in g
re p orta b le s e g m en ts
: p la y G AM ES a n d p la y A W ARD S, w hic h r e p re se n t o ur d if fe re n t p ro ducts
an d s e rv ic es. A d eta ile d d is c u ssio n r e g ard in g t h e p ro ducts a n d s e rv ic es f ro m w hic h e ach r e p orta b le s e g m en t d eriv es i ts r e v en ue i s i n clu ded i n o ur 2 025 A nnual R ep ort o n F orm
10-K f ile d o n M arc h 1 6, 2 026 a n d a m en ded o n F orm 1 0-K /A f ile d o n A pril 3 , 2 026.
Adju ste d E B IT D A ( ” A EB IT D A”) i s t h e C om pan y’s r e p orta b le s e g m en t G AAP m easu re , w hic h m an ag em en t u tiliz es a s t h e p rim ary p ro fit m easu re f o r i ts r e p orta b le
se g m en ts a n d u nderly in g o pera tin g s e g m en ts . A EB IT D A i s a m easu re d efin ed a s n et i n co m e ( lo ss) b efo re i n te re st, i n co m e t a x es, d ep re cia tio n a n d a m ortiz atio n, r e str u ctu rin g
an d r e la te d c o sts ( c o nsis tin g p rim arily o f s e v era n ce a n d o th er r e str u ctu rin g r e la te d c o sts ), s to ck -b ase d c o m pen sa tio n e x pen se , a n d o th er i n co m e a n d e x pen se i te m s ( in clu din g
sp ecia l i n fre q uen t i te m s, f o re ig n c u rre n cy g ain s a n d l o sse s, a n d o th er n on-c ash i te m s).
Expen se s i n clu de i n dir e ct c o sts t h at a re a llo cate d t o o pera tin g s e g m en ts b ase d o n a r e aso nab le a llo catio n m eth odolo gy, w hic h a re g en era lly r e la te d t o s a le s a n d
m ark etin g a ctiv itie s, g en era l a n d a d m in is tr a tiv e o verh ead , a n d c o sts a sso cia te d w ith a d m in is te rin g t h e p la y A W ARD S m yV IP p ro gra m i n t h e p la y G AM ES a p plic atio ns. N et
re v en ue e x clu des t r a n sa ctio ns b etw een t h e C om pan y’s o pera tin g s e g m en ts . C erta in e x pen se s i n cu rre d b y p la y A W ARD S h av e b een a llo cate d t o p la y G AM ES a t c o st. T he c h ie f
opera tin g d ecis io n m ak er d oes n ot e v alu ate o pera tin g s e g m en ts u sin g a sse t i n fo rm atio n.
11
TA BLE O F C O NTE N TS
The f o llo w in g t a b le p re se n ts t h e C om pan y’s s e g m en t i n fo rm atio n:
Three M on th s E nded M arch 3 1, 2 026
Three M on th s E nded M arch 3 1, 2 025
pla yG AM ES
pla yA W ARDS
Tota l
pla yG AM ES
pla yA W ARDS
Tota l
N et r ev en ue
Vir tu al c u rre n cy
$ 44,7 05
$ 543
$ 45,2 48
$ 50,6 92
$ 148
$ 50,8 40
Advertis in g
13,1 57
— 13,1 57
11,8 63
— 11,8 63
Oth er
— 5 5 — 6 6
57,8 62
548
58,4 10
62,5 55
154
62,7 09
Seg m en t e x p en se s
Cost o f s a le s
11,9 91
54
12,0 45
15,7 63
16
15,7 79
Pay ro ll & r e la te d
10,0 11
1,4 88
11,4 99
9,1 75
1,5 67
10,7 42
Use r a cq uis itio n
16,6 93
— 16,6 93
10,1 57
— 10,1 57
Oth er
10,4 93
498
10,9 91
9,1 51
860
10,0 11
49,1 88
2,0 40
51,2 28
44,2 46
2,4 43
46,6 89
R ep orta b le s e g m en t A EBIT D A
$ 8,6 74
$ ( 1,4 92
) $ 7,1 82
$ 18,3 09
$ ( 2,2 89
) $ 16,0 20
O th er o p era tin g e x p en se
Corp ora te a n d o th er
$ 3,6 11
$ 3,5 33
Restr u ctu rin g e x pen se s
4,6 52
1,3 35
Oth er r e co ncilin g i te m s
7 3
Sto ck -b ase d c o m pen sa tio n
2,3 84
4,2 58
Dep re cia tio n a n d a m ortiz atio n
9,8 33
9,6 32
20,4 87
18,7 61
N on -o p era tin g i n co m e ( e x p en se )
Chan ge i n f a ir v alu e o f w arra n t l ia b ilitie s
18
101
Chan ge i n f a ir v alu e o f c o ntin gen t c o nsid era tio n
2,7 80
( 325
)
In te re st i n co m e, n et
722
906
Oth er e x pen se
( 281
) ( 473
)
3,2 39
209
Loss b efo re i n co m e t a x es
( 10,0 66
) ( 2,5 32
)
In co m e t a x e x pen se
( 610
) ( 348
)
N et l o ss
$ ( 10,6 76
) $ ( 2,8 80
)
(1 )
Consis ts o f l e g al, r e n t, i n fo rm atio n t e ch nolo gy, o uts id e s e rv ic es, m ark etin g, a n d o th er g en era l a n d a d m in is tr a tiv e e x pen se s.
R eo rg an iz a tio n
On M arc h 1 0, 2 026, t h e C om pan y i n itia te d a n i n te rn al r e o rg an iz atio n p la n ( th e “ 2 026 R eo rg an iz atio n P la n ”) w hic h i s i n te n ded t o e n han ce e ffic ie n cy a n d r e d uce
opera tin g e x pen se s. T he 2 026 R eo rg an iz atio n P la n i n clu des a r e d uctio n o f t h e C om pan y’s c u rre n t t o ta l g lo bal w ork fo rc e b y a p pro xim ate ly
27
%. T he C om pan y e x pects t o i n cu r
ag gre g ate c h arg es o f a p pro xim ate ly $
4.5
m illio n t o $
7.0
m illio n i n c o nnectio n w ith t h e 2 026 R eo rg an iz atio n P la n , c o nsis tin g p rim arily o f e m plo yee
(1 )
12
TA BLE O F C O NTE N TS
tr a n sitio n c o sts , s e v era n ce p ay m en ts , e m plo yee b en efits , s to ck -b ase d c o m pen sa tio n, a n d l e ase t e rm in atio n a n d o th er f a cility -re la te d c o sts , s u bsta n tia lly a ll o f w hic h a re e x pecte d
to b e r e co gniz ed d urin g 2 026.
The f o llo w in g t a b le p re se n ts t h e c
harg es f o r t h e 2 026 R eo rg an iz atio n P la n , w hic h
is r e fle cte d i n “ R estr u ctu rin g a n d r e la te d ” i n t h e C onden se d C onso lid ate d S ta te m en ts
of O pera tio ns
:
Three M on th s E nded M arch 3 1, 2 026
pla yG AM ES
pla yA W ARDS
Corp ora te a n d O th er
Tota l
Em plo yee t e rm in atio n b en efits
$ 1,4 61
$ 261
$ 565
$ 2,2 87
Lease -re la te d c h arg es
121
68
149
338
A sse t- re la te d c h arg es
191
3 6 200
O th er
14
7 31
52
Tota l
$ 1,7 87
$ 339
$ 751
$ 2,8 77
(1 )
Lease -re la te d c h arg es p rim arily r e p re se n t a ccele ra te d a m ortiz atio n o f o pera tin g l e ase r ig ht o f u se ( ” R O U”) a sse ts d ue t o a c h an ge i n u se fu l l if e . S ee N ote 1 1—
Lea se s
f o r
fu rth er d is c u ssio n.
(2 )
Asse t- re la te d c h arg es p rim arily r e p re se n t i m pair m en t a n d l o ss o n d is p osa l o f p ro perty a n d e q uip m en t.
The f o llo w in g t a b le s u m mariz es t h e a ctiv ity r e la te d t o t h e l ia b ilitie s a sso cia te d w ith t h e C om pan y’s r e o rg an iz atio n p la n :
pla yG AM ES
pla yA W ARDS
Corp ora te a n d O th er
Tota l
Bala n ce a s o f D ecem ber 3 1, 2 025
$ — $ — $ — $ —
Reo rg an iz atio n c h arg es a n d a d ju stm en ts
1,7 87
339
751
2,8 77
N on-c ash c h arg es
( 312
) ( 71
) ( 155
) ( 538
)
Pay m en ts
( 200
) ( 37
) ( 31
) ( 268
)
Bala n ce a s o f M arc h 3 1, 2 026
$ 1,2 75
$ 231
$ 565
$ 2,0 71
pla yG AM ES G oodw ill
The C om pan y m onito rs i ts p la y G AM ES r e p ortin g u nit f o r p ote n tia l i n dic ato rs o f i m pair m en t o n a n o ngoin g b asis . D urin g t h e t h re e m onth s e n ded M arc h 3 1, 2 026, t h e
C om pan y c o nsid ere d v ario us q ualita tiv e a n d q uan tita tiv e f a cto rs , i n clu din g t r e n ds i n o pera tin g p erfo rm an ce a n d b ro ad er m ark et c o nditio ns a ffe ctin g t h e p la y G AM ES s e g m en t.
As o f t h e C om pan y’s m ost r e cen t a n nual i m pair m en t t e st p erfo rm ed o n O cto ber 1 , 2 025, t h e e stim ate d f a ir v alu es o f t h e r e p ortin g u nits e x ceed ed t h eir r e sp ectiv e
carry in g v alu es b y a r e la tiv ely n arro w a m ount. W hile t h e C om pan y c o ntin ues t o m onito r t h e p erfo rm an ce o f t h ese r e p ortin g u nits i n l ig ht o f r e cen t o pera tin g t r e n ds a n d m ark et
co nditio ns, m an ag em en t d ete rm in ed t h at
no
i m pair m en t c h arg e w as r e q uir e d a s o f M arc h 3 1, 2 026.
If a ctu al r e su lts d if fe r f ro m c u rre n t e x pecta tio ns, o r i f m an ag em en t u pdate s i ts a ssu m ptio ns o r p ro je ctio ns f o r t h ese r e p ortin g u nits , i n clu din g t h ose r e la te d t o f u tu re
cash f lo w s, t h e e stim ate d f a ir v alu es o f t h e r e p ortin g u nits m ay c h an ge, w hic h c o uld r e su lt i n i m pair m en t c h arg es i n f u tu re p erio ds.
N O TE 4 — RELA TED -P A RTY T R ANSA CTIO NS
The f o llo w in g t a b le i s a s u m mary o f b ala n ce s h eet a sse ts a n d l ia b ilitie s f ro m r e la te d p artie s:
March 3 1,
2026
Decem ber 3 1,
2025
Fin an cia l S ta te m en t L in e I te m
M ark etin g A gre em en t
$ 1,0 00
$ 1,0 00
In ta n gib le a sse ts a n d i n te rn al- u se
so ftw are , n et
The C om pan y’s r e v en ues a n d e x pen se s r e co gniz ed f ro m r e la te d p artie s w ere i m mate ria l d urin g t h e t h re e m onth s e n ded M arc h 3 1, 2 026 a n d 2 025.
(1 )
(2 )
13
TA BLE O F C O NTE N TS
M GM R eso rts I n te rn atio n al ( “ M GM ”)
MGM i s a s to ck hold er a n d t h e P re sid en t a n d C hie f E xecu tiv e O ffic er o f M GM R eso rts J a p an a ls o s e rv es o n t h e C om pan y’s B oard o f D ir e cto rs . M GM o w ned
ap pro xim ate ly
16.6
m illio n a n d
16.6
m illio n s h are s o f t h e C om pan y’s o uts ta n din g C la ss A c o m mon s to ck a s o f M arc h 3 1, 2 026 a n d D ecem ber 3 1, 2 025, r e sp ectiv ely .
In A pril 2 011, t h e C om pan y e n te re d i n to a j o in t m ark etin g a g re em en t w ith M GM ( a s a m en ded , t h e “ M ark etin g A gre em en t” ) i n e x ch an ge f o r a ssis ta n ce w ith m ark etin g
cam paig ns a n d t h e c erta in r ig hts t o u tiliz e M GM ’s l ic en se d m ark s a n d l ic en se d c o pyrig hts f o r t h e d ev elo pm en t o f c erta in o f t h e C om pan y’s s o cia l c asin o g am es. T he i n itia l
te rm o f t h e M ark etin g A gre em en t w as f o r
one y ear
f ro m t h e g o-liv e d ate o f t h e f ir s t s u ch g am e i n J u ly 2 012, w ith a u to m atic r e n ew al p ro vis io ns b ase d o n t h e g am es a ch ie v in g
sp ecif ie d p erfo rm an ce c rite ria . T he M ark etin g A gre em en t w as r e co rd ed a s a n i n defin ite -liv ed i n ta n gib le a sse t.
PLA YST U DIO S I m pact F und
Durin g t h e t h re e m onth s e n ded M arc h 3 1, 2 025, t h e C om pan y m ad e c h arita b le c o ntr ib utio ns o f $
0.3
m illio n t o t h e P L A YST U DIO S I m pact F und ( th e “ F und”), a t a x –
ex em pt p riv ate f o undatio n e sta b lis h ed b y t h e C om pan y a n d a d m in is te re d b y c erta in m em bers o f t h e C om pan y’s m an ag em en t t e am .
No
c o ntr ib utio ns w ere m ad e d urin g t h e t h re e
m onth s e n ded M arc h 3 1, 2 026. T hese i n div id uals s e rv e a s o ffic ers a n d d ir e cto rs o f t h e F und b ut r e ceiv e n o c o m pen sa tio n i n s u ch c ap acitie s. T he F und s u pports c h arita b le
cau se s s e le cte d b ase d o n i n put f ro m C om pan y e m plo yees a n d c u sto m ers . T he c o ntr ib utio ns w ere r e co rd ed i n ” G en era l a n d a d m in is tr a tiv e” i n t h e a cco m pan yin g C onden se d
C onso lid ate d S ta te m en ts o f O pera tio ns.
N O TE 5 — REC EIV ABLES, N ET
Receiv ab le s, n et c o nsis t o f t h e f o llo w in g:
March 3 1,
2026
Decem ber 3 1,
2025
Tra d e r e ceiv ab le s
$ 21,7 09
$ 22,0 29
O th er r e ceiv ab le s
1,1 78
821
A llo w an ce f o r u nco lle ctib le a m ounts
( 35
) ( 32
)
Tota l r e ceiv ab le s, n et
$ 22,8 52
$ 22,8 18
Tra d e r e ceiv ab le s g en era lly r e p re se n t a m ounts d ue t o t h e C om pan y f ro m s o cia l a n d m obile p la tf o rm o pera to rs , i n clu din g A pple , G oogle , a n d d ir e ct- to -c o nsu m er
(” D TC “) p ay m en t p ro cesso rs , i n clu din g X so lla . T ra d e r e ceiv ab le s a re r e co rd ed w hen t h e r ig ht t o c o nsid era tio n b eco m es u nco nditio nal.
C oncen tr a tio n o f C re d it R is k
The f o llo w in g t a b le s u m mariz es t h e m ajo r r e ceiv ab le s o f t h e C om pan y a s a p erc en ta g e o f t h e t o ta l t r a d e r e ceiv ab le s a s o f t h e d ate s i n dic ate d :
March 3 1,
2026
Decem ber 3 1,
2025
A pple , I n c.
36.1
% 41.1
%
G oogle , L LC
18.1
% 17.8
%
X so lla ( U SA ), I n c.
11.5
% 13.6
%
A ppL ovin C orp
10.9
% 9.9
%
As o f M arc h 3 1, 2 026 a n d D ecem ber 3 1, 2 025, t h e C om pan y d id n ot h av e a n y a d ditio nal c o unte rp artie s t h at e x ceed ed 1 0% o f t h e C om pan y’s t o ta l t r a d e r e ceiv ab le s.
14
TA BLE O F C O NTE N TS
N O TE 6 — PR EPA ID E X PE N SE S A ND O TH ER C URREN T A SSE TS
Pre p aid e x pen se s a n d o th er c u rre n t a sse ts c o nsis t o f t h e f o llo w in g:
March 3 1,
2026
Decem ber 3 1,
2025
Pre p aid e x pen se s
$ 5,7 92
5,1 60
In co m e t a x r e ceiv ab le
1,4 25
1,6 32
O th er c u rre n t a sse ts
111
226
Tota l p re p aid e x pen se s o th er c u rre n t a sse ts
$ 7,3 28
$ 7,0 18
N O TE 7 — FA IR V ALU E M EA SU REM EN T
The c arry in g v alu es o f t h e C om pan y’s c ash a n d c ash e q uiv ale n ts , r e ceiv ab le s, n et, p re p aid e x pen se s a n d o th er c u rre n t a sse ts , a n d a cco unts p ay ab le a p pro xim ate f a ir
valu e d ue t o t h eir s h ort m atu ritie s.
March 3 1, 2 026
Lev el 1
Lev el 2
Lev el 3
Tota l
Fin an cia l l ia b ilitie s:
Public W arra n ts
$ 32
— — 32
Priv ate W arra n ts
— 23
— 23
Contin gen t c o nsid era tio n
— — 5,5 28
5,5 28
Tota l f in an cia l l ia b ilitie s
$ 32
$ 23
$ 5,5 28
$ 5,5 83
Decem ber 3 1, 2 025
Lev el 1
Lev el 2
Lev el 3
Tota l
Fin an cia l l ia b ilitie s:
Public W arra n ts
$ 43
— — 43
Priv ate W arra n ts
— 31
— 31
Contin gen t c o nsid era tio n
— — 8,3 08
8,3 08
Tota l f in an cia l l ia b ilitie s
$ 43
$ 31
$ 8,3 08
$ 8,3 82
On J u ly 1 , 2 024, P L A YST U DIO S U S, L LC , a d ir e ct w holly -o w ned s u bsid ia ry o f t h e C om pan y e n te re d i n to a n a sse t p urc h as
