Quarterly report [Sections 13 or 15(d)]

FAIR VALUE MEASUREMENT

v3.26.3
FAIR VALUE MEASUREMENT
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT
NOTE 7—FAIR VALUE MEASUREMENT
The carrying values of the Company’s cash and cash equivalents, receivables, net, prepaid expenses and other current assets, and accounts payable approximate fair value due to their short maturities.
December 31, 2025
Level 1 Level 2 Level 3 Total
Financial liabilities:
Public Warrants $ 43  —  —  43 
Private Warrants —  31  —  31 
Contingent consideration
 —  —  8,308  8,308 
Total financial liabilities $ 43  $ 31  $ 8,308  $ 8,382 
On July 1, 2024, PLAYSTUDIOS US, LLC, a direct wholly-owned subsidiary of the Company entered into an asset purchase agreement to acquire certain tangible and intangible assets and assumed certain liabilities from Pixode Games Limited (“Pixode"), a mobile casual games publisher ("Pixode Acquisition"). The fair value of our Level 3 contingent consideration liabilities relates to the Pixode Acquisition.
On September 30, 2026, the Company determined to cease operations of Tetris Block Party, the product developed from the assets acquired in the Pixode Acquisition. In connection with this decision and the product’s financial performance, the Company reassessed the fair value of the contingent consideration liability associated with the Pixode acquisition and reduced it to zero as of September 30, 2026. This remeasurement resulted in a gain of $8.0 million and $8.3 million in the Condensed Consolidated Statements of Operations during the three and nine months ended September 30, 2026, respectively.
As of December 31, 2025, significant unobservable inputs included a discount rate of approximately 12.1% and the probability of revenue growth over the same three year period.