F

PLAYSTUDIOS, Inc. — Earnings Quality Grade F

MYPS · Communication Services

Major red flags

Revenue
$235M
2025
Net Income
-$29M
2025
Gross Margin
75.6%
Free Cash Flow
$10M
01

Screening Summary

15
Passed
0
Watch
2
Failed
-3.52
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 34 days, change +1 days YoY

A2AR vs Revenue Growth

AR growth -16.1% vs revenue growth -18.8%

A3Revenue vs CFFO

Revenue -18.8%, CFFO -42.4%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

CapEx growth -27.0% vs revenue -18.8%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 57.0%. Normal

B4Gross Margin

Gross margin 75.6%, change +0.7pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO < Net Income for 3 consecutive years

Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.

C2Free Cash Flow

FCF $0.0B, FCF/NI = -0.34

C3Accruals Ratio

Accruals ratio = -18.9%. Low accruals

C4Cash vs Debt

Cash $0.1B covers debt $0.0B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.1B = 56% of equity. Over 50%

D2Leverage

Debt/EBITDA = 0.4x. Healthy

D3Soft Asset Growth

Other assets -8.5% vs revenue -18.8%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -10% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -3.52 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-3.52
-4.0 Clean-2.22 Grey-1.78 Danger0
1.033
DSRI
AR growing faster than revenue?
0.991
GMI
Gross margin declining?
0.999
AQI
Asset quality deteriorating?
0.812
SGI
Revenue growth rate
0.986
DEPI
Depreciation slowing?
1.126
SGAI
SG&A ratio changing?
-0.1892
TATA
Accruals level
0.971
LVGI
Leverage increasing?
05

Altman Z-Score

4.73
Safe Zone
0 Distress1.102.605.0+ Safe
0.3152
Liquidity
-0.2063
Cumulative profit
-0.0703
Operating efficiency
3.6312
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25