Playstudios to record $3 million to $3.5 million impairment charge after ending The Win Zone

Playstudios, Inc., a company listed on NASDAQ under the ticker MYPS, announced on September 18, 2026, that it will take a pre-tax impairment charge of $3.0 million to $3.5 million due to discontinuing its sweepstakes product, The Win Zone. This decision was made public through a recent filing with the Securities and Exchange Commission (SEC). In response to the news, the company's stock price dropped by approximately 8%, reaching $0.44 per share and reducing the company's market capitalization to $53 million.

InvestingPro analysts have assessed the stock as potentially undervalued at its current trading level, suggesting it is trading below its Fair Value estimate. The company's board of directors determined that the cessation of The Win Zone constituted an impairment indicator for the third quarter of 2026. Following a thorough review of the situation, Playstudios concluded that the carrying value of The Win Zone's assets was not recoverable, and that a decrease in the useful life of these assets was warranted.

The primary driver of this impairment charge is the capitalization of internal-use software linked to The Win Zone. Management anticipates completing the assessment of the impairment charges and evaluating their potential impact on the company's income tax expense before submitting its Form 10-Q for the period ending September 30, 2026.