As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the gaming solutions industry, including PlayStudios (NASDAQ: MYPS) and its peers.

Gaming solution companies operate in a dynamic and evolving market, and the digital transformation of the gaming industry presents significant opportunities for innovation and growth, whether it be immersive slot machine terminals or mobile sports betting. However, the gaming solution industry is not without its challenges. Regulatory compliance is a crucial consideration as companies must navigate a complex and often fragmented regulatory landscape across different jurisdictions. Changes in regulations can impact product offerings, operational practices, and market access, requiring companies to maintain flexibility and adaptability in their business strategies. Additionally, the competitive nature of the industry necessitates continuous investment in research and development to stay ahead of competitors and meet evolving consumer demands.

The 7 gaming solutions stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 2.2%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.6% since the latest earnings results.

PlayStudios (NASDAQ: MYPS)

Founded by a team of former gaming industry executives, PlayStudios (NASDAQ: MYPS) offers free-to-play digital casino games.

PlayStudios reported revenues of $59.34 million, down 18.3% year on year. This print fell short of analysts’ expectations by 2.8%. Overall, it was a mixed quarter for the company with full-year revenue guidance beating analysts’ expectations.

Andrew Pascal, Chairman and Chief Executive Officer of PLAYSTUDIOS, commented, “While our core business continues to navigate meaningful market headwinds, we remain focused and energized by the progress we're making across our strategic priorities. We're seeing growing traction in our direct-to-consumer channel, promising early momentum in our sweepstakes initiative, and continued progress on the development of Tetris Block Party. Together, these efforts validate our direction and reinforce our confidence in the future. As we work to stabilize the business, we're also building the capabilities we believe will fuel the next phase of growth in the quarters ahead.”

PlayStudios scored the highest full-year guidance raise but had the slowest revenue growth of the whole group. The company reported 2.35 million monthly active users, down 27.1% year on year. Still, the market seems discontent with the results. The stock is down 25.7% since reporting and currently trades at $0.96.

Read our full report on PlayStudios here, it’s free for active Edge members.

Best Q2: Rush Street Interactive (NYSE: RSI)

Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE: RSI) is an operator of digital gaming platforms.

Rush Street Interactive reported revenues of $269.2 million, up 22.2% year on year, outperforming analysts’ expectations by 7.6%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Rush Street Interactive pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 25.7% since reporting. It currently trades at $20.16.

Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: Light & Wonder (NASDAQ: LNW)

With names as crazy as Ultimate Fire Link Power 4 for its products, Light & Wonder (NASDAQ: LNW) is a gaming company supplying the casino industry with slot machines, table games, and digital games.

Light & Wonder reported revenues of $809 million, down 1.1% year on year, falling short of analysts’ expectations by 4.4%. It was a softer quarter.

Light & Wonder delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.3% since the results and currently trades at $79.80.

Read our full analysis of Light & Wonder’s results here.

Inspired (NASDAQ: INSE)

Specializing in digital casino gaming, Inspired (NASDAQ: INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.

Inspired reported revenues of $80.3 million, up 7.4% year on year. This print surpassed analysts’ expectations by 6.8%. Aside from that, it was a slower quarter as it produced a significant miss of analysts’ adjusted operating income and EPS estimates.

The stock is down 8.6% since reporting and currently trades at $8.06.

Read our full, actionable report on Inspired here, it’s free for active Edge members.

Churchill Downs (NASDAQ: CHDN)

Famous for hosting the Kentucky Derby, Churchill Downs (NASDAQ: CHDN) operates a horse racing, online wagering, and gaming entertainment business in the United States.

Churchill Downs reported revenues of $934.4 million, up 4.9% year on year. This result beat analysts’ expectations by 1.4%. Zooming out, it was a mixed quarter as it also logged a narrow beat of analysts’ revenue estimates.

The stock is down 19.4% since reporting and currently trades at $88.06.

Read our full, actionable report on Churchill Downs here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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