Key Highlights

  • PLAYSTUDIOS shares rose 6.75% to $0.48 at last closing after announcing a 1-for-10 Reverse Stock Split effective September 30.
  • The company disclosed it bought back about 4.3 million Class A shares during the third quarter through September 24, spending $3.0 million at an average of roughly 71 cents a share.
  • The reverse split is aimed at regaining compliance with Nasdaq's $1.00 minimum bid price rule ahead of a November 2 deadline.
  • Second-quarter Revenue fell to $55.0 million from $59.3 million a year earlier, with a net loss of $13.3 million and average daily active users dropping to 1.9 million.

PLAYSTUDIOS (NASDAQ:MYPS) Penny Stock, the Las Vegas-based maker of casino-style and puzzle mobile games, rose on the Nasdaq Composite after filing an 8-K disclosing a 1-for-10 reverse stock split of both its Class A and Class B common stock, along with an update on share repurchases.

Stockholders approved the reverse split at the company's 2026 annual meeting. The effective time is 5:00 p.m. ET on September 30, 2026, with the first split-adjusted trading day set for October 1, still on Nasdaq under the ticker MYPS. Holders who would end up with a fraction of a share will receive cash instead, based on the split-adjusted closing price on September 30.

Latest Developments

A reverse split merges existing shares into fewer shares, so in a 1-for-10 split, every 10 shares an investor owns become one share, with the price per share rising roughly tenfold at the moment of the split. The investor's total stake and the company's overall value do not change because of the split itself; brokerage accounts are adjusted automatically.

PLAYSTUDIOS received a Nasdaq notice in November 2025 after its stock closed below $1.00 for 30 straight Business days. It missed its first compliance deadline in May 2026, then moved its listing to the Nasdaq Capital Market, which extended the deadline to November 2, 2026. To regain compliance, the stock generally needs to close at or above $1.00 for at least 10 consecutive business days, and a split effective September 30 fits that window.

Financial and Business Position

PLAYSTUDIOS develops and publishes mobile games including casino-style titles such as myVEGAS Slots and POP! Slots, Solitaire games, and Tetris-branded games, supported by its myVIP loyalty program with partners including MGM Resorts, cruise lines and Topgolf.

The business has been under pressure. Second-quarter 2026 revenue fell to $55.0 million from $59.3 million a year earlier, with a net loss of $13.3 million and average daily active users dropping to 1.9 million. CEO Andrew Pascal said the results reflected ongoing pressure on the company's legacy games, though direct-to-consumer revenue, where players pay the company directly rather than through app stores, more than doubled. PLAYSTUDIOS had about $102.7 million of cash at the end of June, giving it room to fund the buyback.

Stock-Market Context

The split removes near-term delisting risk if the post-split price holds above $1.00, since being Delisted from Nasdaq would push the stock to less liquid markets and could shut out some institutional holders. The buyback also shows management putting cash behind the stock, with a smaller share count meaning each remaining share represents a larger slice of future earnings.

Whether the Post-Split Price Holds

Reverse splits are not a cure-all, and stocks sometimes drift lower after a split, especially when the underlying business is shrinking. Investors will be watching the first split-adjusted Trading session on October 1, the ten-day compliance count Nasdaq requires, how much repurchase authorization remains after the disclosed buyback, and third-quarter results for signs the audience decline is slowing.