Social casino operator Playstudios reported a 7% year-on-year decline in Q1 2026 revenue to $58.4 million, reflecting continued challenges across the social casino sector.
The company posted a net loss of $10.7 million for the quarter, compared to a $2.9 million loss during the same period last year. Adjusted EBITDA also fell sharply to $3.6 million, with margin declining to 6.1% from 19.9% in Q1 2025.
CEO Andrew Pascal said the results reflected ongoing weakness in the company’s legacy social casino portfolio, while also highlighting progress in repositioning the business for future growth.
Playstudios is increasingly focusing on its sweepstakes-based initiative, playSWEEPS, including expansion of “The Win Zone” and the planned integration of “POP! Slots” later in Q2 2026. The company said early engagement and monetisation trends have been encouraging despite growing regulatory pressure surrounding sweepstakes gaming in several US states.
At the same time, Playstudios continues its “Renewal” restructuring programme aimed at reducing costs and improving efficiency. The initiative includes closing four studios, reducing headcount by 177 employees, and increasing investment in AI infrastructure to streamline operations. The company expects the programme to generate an additional $33 million to $39 million in savings on top of the $29 million already achieved.
Despite these cost-cutting efforts, user acquisition spending increased significantly during the quarter, rising from around $10 million to nearly $17 million, while total operating expenses climbed close to 10% year-on-year.
Playstudios said its current strategy focuses on managing its social casino portfolio carefully, preserving profitability where possible, and improving long-term product performance. The company has not issued formal financial guidance, citing the early-stage nature of its ongoing growth initiatives.
