One-glance verdict
Undervalued
$6.72 our estimate vs market $0.48
Wall Street consensus: $0.50 (-92.6% lower than our fair-value estimate)
93% below our estimate, below the bear case
Fundamentals snapshot
PLAYSTUDIOS, Inc.
MYPS · NCM · Communication Services · Electronic Gaming & Multimedia
Current price
$0.48
52-week range
$0.40 - $1.01
Market cap
$57.21M
Balance sheet
Healthy
-10.62x Concerning
Net cash $97.22M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 7/10 years.
- Risk Return on equity was -20.6% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -5.2% to -8.7% over 3 years.
What this company does
PLAYSTUDIOS, Inc.
PLAYSTUDIOS creates free-to-play mobile games, like virtual slot machines and puzzle games, that let players earn points for real-world rewards like hotel stays. The company makes money when players buy in-game items to play longer and from its business partners who offer these rewards. This creates a business ecosystem (a network of connected products and services) that aims to keep players engaged by linking gaming success to real-life perks.
How the company got here
PLAYSTUDIOS was started in 2011 by entrepreneurs with experience in both the video game and Las Vegas hospitality industries. [2, 5] Their big idea was to connect free-to-play mobile games with real-world rewards, launching their first social casino game, myVEGAS Slots, in 2012. [2, 5] A key turning point was creating their loyalty program, which lets players exchange points earned in games for actual hotel stays, meals, and other perks. [2, 11] The company went public on the stock market in 2021 and has since expanded beyond casino-style games by acquiring the rights to well-known games like Tetris and the studio behind popular casual games like Solitaire and Sudoku. [1, 2, 5]
What it actually does
PLAYSTUDIOS creates and offers free games that you can play on your smartphone or on social media platforms. [4] Their collection includes casino-style games like myVEGAS Slots and POP! Slots, as well as classic puzzle and card games like Tetris, Sudoku, and Solitaire. [2, 4] What makes them unique is that as you play, you earn loyalty points that you can trade in for real-life rewards, like a free night at a hotel in Las Vegas or a discount on a cruise. [1, 2] The company makes money when players make in-app purchases (buying virtual chips or other game items with real money) and by showing advertising within its games. [1, 8]
playGAMES
This is the part of the company that actually makes and publishes the games you play. [3] It includes their social casino titles that mimic Las Vegas games, as well as their broader portfolio of casual games like puzzles and card games that appeal to a wider audience. [2, 4] This segment generates the majority of the company's revenue (the total money brought in before expenses) when players decide to spend real money inside the games to buy things like virtual chips or other advantages. [8]
playAWARDS
This segment is the company's special loyalty program that connects the games to the real world. [3, 7] Instead of making games, this division builds relationships with partner companies like MGM Resorts, Norwegian Cruise Line, and Wolfgang Puck. [14] These partners offer their real services—like hotel rooms, cruises, or meals—as prizes that players can 'buy' with the loyalty points they earn from playing. [13] This is a marketing tool for the partner brands to attract new customers, and it serves as a major incentive to keep players engaged with PLAYSTUDIOS' games. [1, 15]
What management is betting on now
The company's leadership is focused on making their core casino games more profitable while also growing their collection of casual games like Tetris to reach more players. [1, 9] A key part of their strategy is to lean into their playAWARDS program to encourage player loyalty and keep people playing longer. [1, 6] They are also investing in new ideas, such as a sweepstakes feature and new games, to create fresh growth opportunities. [9, 10] At the same time, management is working on making the company more efficient to improve its financial health. [9]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$13.95M
FY2024 Q4
$11.46M
FY2025 Q1
$3.18M
FY2025 Q2
$13.23M
FY2025 Q3
$5.35M
FY2025 Q4
$3.61M
FY2026 Q1
$3.65M
FY2026 Q2
$5.43M
Revenue
$54.99M
Net income
$-13.27M
Diluted EPS
-0.10
Operating cash flow
$5.64M
Free cash flow
$5.43M
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Sources
Revenue
$58.41M
Net income
$-10.68M
Diluted EPS
-0.08
Operating cash flow
$3.72M
Free cash flow
$3.65M
Fetching…
Sources
Revenue
$55.40M
Net income
$-13.69M
Diluted EPS
-0.12
Operating cash flow
$3.74M
Free cash flow
$3.61M
Fetching…
Sources
Revenue
$57.65M
Net income
$-9.12M
Diluted EPS
-0.07
Operating cash flow
$5.66M
Free cash flow
$5.35M
Fetching…
Sources
Revenue
$59.34M
Net income
$-2.95M
Diluted EPS
-0.02
Operating cash flow
$13.64M
Free cash flow
$13.23M
Fetching…
Sources
Revenue
$62.71M
Net income
$-2.88M
Diluted EPS
-0.02
Operating cash flow
$3.30M
Free cash flow
$3.18M
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Sources
Revenue
$67.78M
Net income
$-22.41M
Diluted EPS
-0.18
Operating cash flow
$11.62M
Free cash flow
$11.46M
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Sources
Revenue
$71.23M
Net income
$-3.10M
Diluted EPS
-0.02
Operating cash flow
$14.59M
Free cash flow
$13.95M
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Sources
Is it cheap or expensive?
Fair value $6.72 vs current price $0.48
Wall Street consensus is the average analyst price target: $0.50 (-92.6% lower than our fair-value estimate).
Our most-likely fair value is $6.72 a share — about 1,311.1% above today's price of $0.48, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $97.2M - more cash than debt. Interest coverage -10.6x.
Net debt
$-97.22M
Interest coverage
-10.62x
PLAYSTUDIOS, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
MYPS
BASELINE
PLAYSTUDIOS, Inc.
Total debt $5.45M Interest coverage -10.62x This is the baseline the peer rows are being compared against.
Total debt $37.45M Interest coverage 70.96x This peer still has a real interest-payment cushion, while MYPS does not.
Total debt $688.00K Interest coverage -83.47x Neither company has much profit cushion over interest right now.
Total debt $7.14M Interest coverage -3.59x Neither company has much profit cushion over interest right now.
Total debt $343.20M Interest coverage 0.91x This peer still has a real interest-payment cushion, while MYPS does not.
What you should know
The case for and against MYPS
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 7/10 years.
Risks
-
Return on equity was -20.6% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -5.2% to -8.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
36.75x
P/B
0.29x
P/S
0.25x
EV/EBITDA
-4.12x
PEG ratio
4.37x
Profitability
How much profit each dollar creates
Gross margin
77.9%
Operating margin
-8.7%
Net margin
-20.6%
ROE
-20.6%
ROA
-6.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.03x
Current ratio
2.99x
Quick ratio
2.88x
Total debt
$5.45M
Total cash
$102.67M
Growth
How the business has been compounding
Revenue TTM
$226.45M
Revenue 5Y CAGR
-4.9%
EPS TTM
-0.37
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$18.75M
Free CF TTM
$25.37M
FCF margin
11.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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