PLAYSTUDIOS, Inc.

Good afternoon, everyone, and welcome to the PlayStudio second quarter 2025 earnings call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will be given at that time. As a reminder, this conference is being recorded. I would now like to turn the call over to Jason Hahn, PlayStudio's chief strategy officer and head of invest relations. Mr. Hahn, you may begin.

Thank you, operator. Good afternoon, and thank you for joining us for PlayStudio's Q2 2025 earnings call. Joining me on the call today are chairman and CEO, Andrew Paschal and our CFO, Scott Peterson. Before we begin, please note that during this call, we may make forward looking statements. These statements are based on our current expectations and are subject to risks and uncertainties that may cause actual results to differ materially. Please refer to our SEC filings for a more detailed discussion of these risks. We will also discuss certain non-GAP financial measures. These should not be considered a substitute for measures prepared in accordance with GAP. Reconciliation to comparable GAP measures can be found in our earnings release and SEC filings. With that, I'll turn it over to Andrew.

Thanks, Jason. Good afternoon, everyone. The dominant theme in Q2 and across the broader market continues to be the rapid rise of social casinos leveraging sweepstakes mechanics. This structural shift is reshaping player behavior and monetization across the category with more players gravitating towards social casino products powered by sweepstakes. This trend is pressuring traditional offerings, including our core social casino portfolio. That said, these dynamics were anticipated and they're exactly why we launched our reinvention program last year. We entered Q2 knowing the headwinds would persist and we remain focused on advancing the new initiatives that will define our next chapter. While our core business continued to soften this quarter, we're encouraged by the early signals we're seeing in areas like sweepstakes, direct to consumer purchases, and new game development. These signals validate our strategic direction and give us confidence in the path ahead. Let me walk you through some of the key updates. Let's start with our sweepstakes initiative. After just nine months since formalizing this effort, we're now live in open beta across seven states and the early signals are promising. Player retention, engagement, and monetization are all trending in the right direction. We're seeing clear evidence that our proposition resonates with players. We're taking a measured and rigorous approach to scaling focused on ensuring that when we open the product to all eligible states, the experience is fully optimized and delivers on our high standards, player expectations, and return on ad spend thresholds. We expect to be live across the full footprint of qualified US states later this year. I wanna remind everyone on the call that our strategy consists of a phased approach. We're beginning with a standalone web-based platform allowing us to build operating excellence and refine our core sweepstakes mechanics. Over time, this will evolve into a fully integrated promotional engine that drives chip sales across our social casino portfolio. In parallel, we continue to actively explore complementing our own effort with strategic acquisitions that could accelerate our momentum and position us for market leadership in the category. Let's turn to our other growth opportunity, Tetris Block Party. Development progressed steadily throughout Q2 with meaningful product improvements and early marketing tests that offer valuable insights into player engagement and acquisition efficiency. As with any new title, we're in a phase of continuous iteration, refining the gameplay, tuning the economy, and sharpening the funnel. We're currently in the mid stages of that cycle, and while there's still work to do, we're increasingly confident in the game's potential. We remain on track to develop and interact for a Q4 launch. I'd like to provide a bit more color on our overall Play Games publishing business. As I already highlighted, the casino portfolio continues to be impacted by the broader market shift towards sweepstakes products. We're seeing ongoing softness in core titles with DAU declines across the board as the primary driver. This was partially offset by stronger unit-level monetization, particularly in my economy, which was a bright spot in the quarter. We also continue to scale our -to-consumer business, which remains a standout. In Q2, -to-consumer generated 6.7 million of in-app purchase revenue, up 107% year over year and 34% sequentially, and represented .9% of total in-app purchase revenue. This momentum is driven by increased adoption and deeper engagement with our MyBIP -to-consumer offerings. And with Apple's recent policy changes giving us more flexibility to promote the channel, we see even greater opportunity to build on this momentum. Let's talk casual. Our casual portfolio also remains under pressure due to challenging market and competitive dynamics. During the quarter, we focused on product updates aimed at improving engagement and retention. We believe these enhancements will better position us to deploy user acquisition more profitably in future quarters. In the meantime, we've deliberately scaled back marketing spend to prioritize margin contribution from this portfolio, and we'll continue to evaluate our approach going forward. On the Play Awards front, Play Awards remains still our core differentiator, and we continue to invest in the platform to deepen engagement and drive long-term loyalty. In Q2, players purchased nearly 200,000 rewards with a retail value of $13 million. While rewards purchases were down compared to Q1, we're seeing encouraging signs as we focus on higher value partners and more curated strategic offerings that align with player preferences and our broader engagement goals. We also ran several promotions for the upcoming MyVIP World Tournament of Slots across our games, which were very well received by our players. We're excited about the momentum building around this high-impact franchise activation, and we believe it'll play a meaningful role in re-energizing our community in the coming quarters ahead. Lastly, I'd like to briefly touch on our balance sheet and capital allocation. Our balance sheet remains rock solid. We ended the quarter with approximately $112.9 million in cash, up from $107 million in Q1, even after deploying over $2 million to repurchase shares during the quarter. We remain debt-free with full access to our $81 million credit facility, providing us with strategic latitude to deploy capital to high-returning initiatives in quarters ahead. So with that, I'll turn the call over to Scott for some more financial highlights.