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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING
NOTE 3—SEGMENT REPORTING
The Company has aggregated its operating segments into the following reportable segments: playGAMES and playAWARDS, which represent our different products and services. A detailed discussion regarding the products and services from which each reportable segment derives its revenue is included in our 2025 Annual Report on Form 10-K filed on March 16, 2026 and amended on Form 10-K/A filed on April 3, 2026.
Adjusted EBITDA ("AEBITDA") is the Company’s reportable segment GAAP measure, which management utilizes as the primary profit measure for its reportable segments and underlying operating segments. AEBITDA is a measure defined as net income (loss) before interest, income taxes, depreciation and amortization, restructuring and related costs (consisting primarily of severance and other restructuring related costs), stock-based compensation expense, and other income and expense items (including special infrequent items, foreign currency gains and losses, and other non-cash items).
Expenses include indirect costs that are allocated to operating segments based on a reasonable allocation methodology, which are generally related to sales and marketing activities, general and administrative overhead, and costs associated with administering the playAWARDS myVIP program in the playGAMES applications. Net revenue excludes transactions between the Company's operating segments. Certain expenses incurred by playAWARDS have been allocated to playGAMES at cost. The chief operating decision maker does not evaluate operating segments using asset information.
The following table presents the Company’s segment information:
Three Months Ended June 30, 2026Three Months Ended June 30, 2025
playGAMESplayAWARDSTotalplayGAMESplayAWARDSTotal
Net revenue
Virtual currency$41,886 $781 $42,667 $47,981 $227 $48,208 
Advertising12,316 — 12,316 11,128 — 11,128 
Other— 9 9 — 2 2 
54,202 790 54,992 59,109 229 59,338 
Segment expenses
Cost of sales10,743 78 10,821 14,539 24 14,563 
Payroll & related10,071 1,279 11,350 9,079 1,453 10,532 
User acquisition11,806 — 11,806 9,066 — 9,066 
Other(1)
10,109 362 10,471 9,950 1,138 11,088 
42,729 1,719 44,448 42,634 2,615 45,249 
Reportable segment AEBITDA$11,473 $(929)$10,544 $16,475 $(2,386)$14,089 
Other operating expense
Corporate and other$3,241 $3,375 
Restructuring expenses4,789 60 
Other reconciling items— (2)
Stock-based compensation2,354 4,608 
Depreciation and amortization9,709 9,535 
20,093 17,576 
Non-operating income (expense)
Change in fair value of contingent consideration
(2,480)169 
Interest income, net634 946 
Other expense(397)(367)
(2,243)748 
Loss before income taxes(11,792)(2,739)
Income tax expense(1,482)(209)
Net loss$(13,274)$(2,948)
(1)Consists of legal, rent, information technology, outside services, marketing, and other general and administrative expenses.
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
playGAMESplayAWARDSTotalplayGAMESplayAWARDSTotal
Net revenue
Virtual currency$86,591 $1,324 $87,915 $98,673 $375 $99,048 
Advertising25,473 — 25,473 22,991 — 22,991 
Other— 14 14 — 8 8 
112,064 1,338 113,402 121,664 383 122,047 
Segment expenses
Cost of sales22,734 132 22,866 30,302 40 30,342 
Payroll & related20,082 2,767 22,849 18,254 3,020 21,274 
User acquisition28,499 — 28,499 19,223 — 19,223 
Other(1)
20,603 860 21,463 19,101 1,998 21,099 
91,918 3,759 95,677 86,880 5,058 91,938 
Reportable segment AEBITDA20,146 (2,421)17,725 34,784 (4,675)30,109 
Other operating expense
Corporate and other$6,851 $6,908 
Restructuring expenses9,441 1,395 
Other reconciling items7 1 
Stock-based compensation
4,738 8,866 
Depreciation and amortization19,542 19,167 
40,579 36,337 
Non-operating income (expense)
Change in fair value of contingent consideration
300 (156)
Interest income, net1,356 1,852 
Other expense(660)(739)
996 957 
Loss before income taxes(21,858)(5,271)
Income tax expense(2,092)(557)
Net loss$(23,950)$(5,828)
(1)Consists of legal, rent, information technology, outside services, marketing, and other general and administrative expenses.
Reorganization
On March 10, 2026, the Company initiated an internal reorganization plan (the “2026 Reorganization Plan”) which is intended to enhance efficiency and reduce operating expenses. The 2026 Reorganization Plan includes a reduction of the Company’s current total global workforce by approximately 27%. The Company expects to incur aggregate charges of approximately $4.5 million to $7.0 million in connection with the 2026 Reorganization Plan, consisting primarily of employee transition costs, severance payments, employee benefits, stock-based compensation, and lease termination and other facility-related costs, substantially all of which are expected to be recognized during 2026.
The following table presents the charges for the 2026 Reorganization Plan, which is reflected in “Restructuring and related” in the Condensed Consolidated Statements of Operations:
playGAMESplayAWARDSCorporate and OtherTotal
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, 20262,798 (7)73 2,864 
Six months ended June 30, 2026$4,585 $332 $824 $5,741 
(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 11—Leases for further discussion.
(2)Asset-related charges primarily represent impairment and loss on disposal of property and equipment.
The following table summarizes the activity related to the liabilities associated with the Company's reorganization plan:
Employee Termination BenefitsLease-Related ChargesAsset-Related ChargesOtherTotal
Balance as of December 31, 2025
$— $— $— $— $— 
Reorganization charges and adjustments4,122 887 540 192 5,741 
Non-cash charges(138)(837)(540)(30)(1,545)
Payments(1,703)(37)— (130)(1,870)
Balance as of June 30, 2026
$2,281 $13 $— $32 $2,326 
playGAMES Goodwill
The Company monitors its playGAMES reporting unit for potential indicators of impairment on an ongoing basis. During the three months ended June 30, 2026, the Company considered various qualitative and quantitative factors, including trends in operating performance and broader market conditions affecting the playGAMES segment.
As of the Company’s most recent annual impairment test performed on October 1, 2025, the estimated fair values of the reporting units exceeded their respective carrying values by a relatively narrow amount. While the Company continues to monitor the performance of these reporting units in light of recent operating trends and market conditions, management determined that no impairment charge was required as of June 30, 2026.
If actual results differ from current expectations, or if management updates its assumptions or projections for these reporting units, including those related to future cash flows, the estimated fair values of the reporting units may change, which could result in impairment charges in future periods.