Quarterly report [Sections 13 or 15(d)]

SEGMENT REPORTING (Tables)

v3.26.3
SEGMENT REPORTING (Tables)
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Schedule of Segment Information
The following table presents the Company’s segment information:
Three Months Ended September 30, 2026 Three Months Ended September 30, 2025
playGAMES playAWARDS Total playGAMES playAWARDS Total
Net revenue
Virtual currency $ 37,841  $ 495  $ 38,336  $ 46,123  $ 258  $ 46,381 
Advertising 10,572  —  10,572  11,257  —  11,257 
Other —  13  13  4  6  10 
48,413  508  48,921  57,384  264  57,648 
Segment expenses
Cost of sales 9,129  53  9,182  13,603  26  13,629 
Payroll & related 8,703  1,177  9,880  9,432  1,594  11,026 
User acquisition 6,070  —  6,070  9,389  —  9,389 
Other(1)
10,026  398  10,424  11,562  1,024  12,586 
33,928  1,628  35,556  43,986  2,644  46,630 
Reportable segment AEBITDA $ 14,485  $ (1,120) $ 13,365  $ 13,398  $ (2,380) $ 11,018 
Other operating expense
Corporate and other $ 3,385  $ 3,773 
Restructuring expenses 9,167  1,253 
Goodwill impairment 9,200  — 
Other reconciling items (1) 2 
Stock-based compensation 2,041  3,030 
Special infrequent
 —  1,250 
Depreciation and amortization 9,342  9,576 
33,134  18,884 
Non-operating income (expense)
Change in fair value of contingent consideration
 8,008  (1,866)
Interest income, net 775  917 
Other expense (23) (9)
8,760  (958)
Loss before income taxes (11,009) (8,824)
Income tax expense (30) (294)
Net loss $ (11,039) $ (9,118)
(1)Consists of legal, rent, information technology, outside services, marketing, and other general and administrative expenses.
Nine Months Ended September 30, 2026 Nine Months Ended September 30, 2025
playGAMES playAWARDS Total playGAMES playAWARDS Total
Net revenue
Virtual currency $ 124,432  $ 1,819  $ 126,251  $ 144,797  $ 633  $ 145,430 
Advertising 36,044  —  36,044  34,248  —  34,248 
Other —  28  28  3  14  17 
160,476  1,847  162,323  179,048  647  179,695 
Segment expenses
Cost of sales 31,863  185  32,048  43,905  66  43,971 
Payroll & related 28,785  3,944  32,729  27,686  4,614  32,300 
User acquisition 34,569  —  34,569  28,612  —  28,612 
Other(1)
30,629  1,259  31,888  30,663  3,022  33,685 
125,846  5,388  131,234  130,866  7,702  138,568 
Reportable segment AEBITDA 34,630  (3,541) 31,089  48,182  (7,055) 41,127 
Other operating expense
Corporate and other $ 10,235  $ 10,681 
Restructuring expenses 18,608  2,648 
Goodwill impairment 9,200  — 
Other reconciling items 6  3 
Stock-based compensation
 6,779  11,896 
Special infrequent
 —  1,250 
Depreciation and amortization 28,884  28,743 
73,712  55,221 
Non-operating income (expense)
Change in fair value of contingent consideration
 8,308  (2,022)
Interest income, net 2,131  2,769 
Other expense (683) (748)
9,756  (1)
Loss before income taxes (32,867) (14,095)
Income tax expense (2,122) (851)
Net loss $ (34,989) $ (14,946)
(1)Consists of legal, rent, information technology, outside services, marketing, and other general and administrative expenses.
Schedule of Reorganization Plan
The following table presents the charges incurred under the 2026 Reorganization Plan, which are included in “Restructuring and related” in the Condensed Consolidated Statements of Operations:
playGAMES playAWARDS Corporate and Other Total
Employee termination benefits
 $ 1,461  $ 261  $ 565  $ 2,287 
Lease-related charges(1)
121  68  149  338 
Asset-related charges(2)
191  3  6  200 
Other
 14  7  31  52 
Three months ended March 31, 2026 $ 1,787  $ 339  $ 751  $ 2,877 
Employee termination benefits
 1,741  —  93  1,834 
Lease-related charges(1)
635  (24) (62) 549 
Asset-related charges(2)
302  11  27  340 
Other
 120  6  15  141 
Three months ended June 30, 2026 2,798  (7) 73  2,864 
Employee termination benefits 334  9  (47) 296 
Lease-related charges(1)
(379) 2  6  (371)
Asset-related charges(2)
69  —  —  69 
Other 74  21  56  151 
Three months ended September 30, 2026 98  32  15  145 
Nine months ended September 30, 2026 $ 4,683  $ 364  $ 839  $ 5,886 
(1)Lease-related charges primarily represent accelerated amortization of operating lease right of use ("ROU") assets due to a change in useful life. See Note 12—Leases for further discussion.
(2)Asset-related charges primarily represent impairment and loss on disposal of property and equipment.
Schedule of Liabilities Associated with Reorganization Plans
The following table summarizes the activity related to the liabilities associated with the Company's 2026 Reorganization Plan:
Employee Termination Benefits Lease-Related Charges Asset-Related Charges Other Total
Balance as of December 31, 2025
 $ —  $ —  $ —  $ —  $ — 
Reorganization charges and adjustments 4,418  517  611  342  5,888 
Non-cash charges (138) (239) (611) (30) (1,018)
Payments (4,208) (266) —  (146) (4,620)
Balance as of September 30, 2026
 $ 72  $ 12  $ —  $ 166  $ 250