MYPS: Reverse Split Path Will Support Future Listing Compliance

Analysts have reduced their fair value estimate for PLAYSTUDIOS from $1.75 to $0.50, citing a lower assumed P/E multiple, slightly softer discount rate and revenue expectations, and a modestly higher profit margin outlook.

What’s in the News for PLAYSTUDIOS

• PLAYSTUDIOS has scheduled its annual meeting of stockholders for July 10, 2026, and is asking investors to vote on an amendment to its Certificate of Incorporation that would allow the Board to implement a reverse stock split of Class A and Class B common stock at a ratio between 1-for-10 and 1-for-30, at its discretion, within 12 months following the meeting. (Source: Key Developments)
• The company previously received a notice from the Nasdaq Listing Qualifications Department stating that PLAYSTUDIOS was not in compliance with Nasdaq Listing Rule 5450(a)(1) because its Class A common stock closing bid price was below US$1.00 for 30 consecutive business days. (Source: Key Developments)
• PLAYSTUDIOS applied on April 7, 2026, to transfer the listing of its securities from the Nasdaq Global Market to the Nasdaq Capital Market and requested an additional 180 day period to meet the minimum bid price requirement. (Source: Key Developments)
• Nasdaq staff approved the transfer to the Nasdaq Capital Market, effective May 6, 2026, and granted PLAYSTUDIOS a second 180 day compliance period, expiring November 2, 2026, to regain compliance by having a closing bid price of at least US$1.00 for 10 consecutive business days, with a reverse stock split identified by the company as one potential option to address the issue. (Source: Key Developments)
• If PLAYSTUDIOS does not regain compliance by November 2, 2026, or does not meet the terms of the extension, Nasdaq staff may issue a notice that the securities are subject to delisting. The company could appeal this decision to a Nasdaq Hearings Panel, although there is no assurance of success. (Source: Key Developments)

Valuation Changes for PLAYSTUDIOS

• Fair Value: Reduced from $1.75 to $0.50, a large cut in the analyst fair value estimate for PLAYSTUDIOS.
• Discount Rate: Adjusted slightly lower from 9.23% to 8.90%, reflecting a modest change in the rate used to discount future cash flows.
• Revenue Growth: The assumed annual revenue change moved from a decline of 2.60% to a smaller decline of 2.39%, indicating a slightly less negative outlook for reported dollar revenue trends.
• Net Profit Margin: Updated from 10.26% to 11.10%, implying a moderately higher expected dollar earnings margin over time.
• Future P/E: Lowered significantly from 10.34x to 3.71x, indicating a much lower earnings multiple applied in the new valuation framework.