Gaming stocks experienced a disappointing week, with the Roundhill Sports Betting & iGaming ETF (NYSE: BETZ) closing lower, underperforming the broader S&P 500 Index. This downturn was largely attributed to lukewarm earnings reports from various gaming companies, which contributed to the overall decline. Notably, Skillz and Playtech Plc emerged as significant gainers during the week, while Light and Wonder and Accel Entertainment faced substantial losses.
Top Gaming Stock Gainers
Skillz (NYSE: SKLZ): +13.6%
Skillz remains one of the more unpredictable gaming stocks, frequently appearing among the week’s largest gainers or losers. After a steep decline of 21.4% in the week ending August 1, making it the poorest performer within the gaming sector, the stock rebounded with a 13.6% increase last week. This surge was primarily fueled by a better-than-expected Q2 earnings report, which propelled the stock up by 14.6% on Friday. The company reported an 8.2% year-over-year revenue increase, totaling $27.37 million, surpassing analysts’ expectations. Although SKLZ recorded an adjusted EBITDA loss of $10.4 million and a net loss of $8.9 million, it noted a 20% growth in paying active users, now at 146,000, marking a positive shift after previous declines. Skillz expressed optimism regarding its financial trajectory, stating that the latest earnings build upon the progress from the first quarter toward achieving steady revenue growth and positive adjusted EBITDA. However, due to the stock’s inherent volatility and its relatively small market capitalization of around $120 million, investors are advised to proceed with caution.
Playtech (LON: PTEC): +7.4%
Playtech enjoyed a 7.4% gain, continuing the upward trend from the prior week following its interim results and trading update. The company anticipates adjusted EBITDA for the first half of the year to reach at least €90 million, although this figure falls short of the £243.0 million (€279 million) recorded during the same period last year. Nevertheless, it exceeds analysts’ projections. The trading update highlighted strong performance in the B2B (business-to-business) sector and an unexpected boost from its associated firms. These results solidify the narrative of resilience among European gaming technology providers amidst slower consumer spending in some areas.
Electronic Arts (NYSE: EA): +6.7%
Electronic Arts sustained its positive momentum from the previous week, driven by excitement surrounding the upcoming "Battlefield 6" game. Arete Research upgraded EA’s stock from neutral to buy, establishing a target price of $192 due to the anticipated success of the new release. The company also reported earnings for the June quarter that exceeded expectations, which were disclosed on July 29.
Genius Sports (NYSE: GENI): +6.1%
Genius Sports continued its upward trajectory with a 6.1% increase, building on a prior week’s gain of 9.7% following the announcement of a strategic partnership with PMG, which represents brands like Nike and TurboTax. The company also secured exclusive betting data rights for certain competitions in European football leagues. Last week’s growth was mainly driven by favorable sentiment after the release of its Q2 earnings. Although Genius missed earnings estimates and reported a larger-than-expected loss, its revenue surged 24% year-over-year to $118.7 million, surpassing Wall Street predictions. Additionally, adjusted EBITDA rose by 64% to a record-high $34.2 million. Genius Sports also updated its 2025 guidance, projecting revenue and adjusted EBITDA growth of 26% and 57%, respectively, this year. Following the Q2 earnings announcement, several brokerages, including Macquarie and Goldman Sachs, raised their target prices, with Guggenheim setting a Street-high target of $16.
Top Gaming Stock Losers
Light & Wonder (NYSE: LNW): -16.7%
Light & Wonder emerged as the largest loser among gaming stocks, suffering a 16.7% decline last week, which turned its performance negative for the year. The company reported mixed earnings for Q2, exceeding bottom-line expectations but falling short of revenue forecasts. Monthly Active Users decreased by 4% to 5.2 million, dampening investor sentiment. Additionally, the Player Conversion Rate, indicating the percentage of paying users, dropped to 9.8%, down from 10.5% in Q2 2024. LNW announced plans to delist from Nasdaq and consolidate its public listing on the Australian Securities Exchange (ASX), with the process slated for completion by the end of November. Following the earnings announcement, JPMorgan downgraded LNW stock to neutral and reduced its target price from $108 to $95, citing concerns about the company’s capacity for organic earnings growth.
Accel Entertainment (NYSE: ACEL): -11.7%
Accel Entertainment’s shares declined significantly following its Q2 results on August 7, plummeting 15% on Wednesday and ending the week down 11.7%. While the company achieved record highs with revenue and adjusted EBITDA increases of 8.6% and 7.1%, respectively, net income fell sharply by more than 50% to just $7.3 million. The steep profit decline was partially attributed to losses linked to changes in the fair value of contingent earn-out shares. Consequently, market reactions were unfavorable, and ACEL is now up only about 3% for the year, nearing bear market territory after a nearly 17% drop from recent peaks.
Playtika Holdings (NYSE: PLTK): -11%
Playtika Holdings experienced a decline of just over 11% last week, as its Q2 earnings fell short of expectations for both revenues and net profits. Additionally, the company adjusted its 2025 revenue guidance downward by $10 million, now projecting figures between $2.70 billion and $2.75 billion. However, it maintained its adjusted EBITDA guidance, anticipating a range of $715 million to $740 million.
Other Notable Gaming Earnings
In addition to the aforementioned companies, several other gaming firms reported their quarterly earnings last week. Notably, Penn Entertainment posted strong results for Q2, with both revenue and profits exceeding estimates. Its interactive segment achieved record quarterly gaming revenue, with management expressing optimism about reaching profitability in the final quarter of the year, a trend it hopes to continue into 2026 and beyond. DraftKings also reported positive Q2 results, and during its earnings call, the company indicated plans to explore expansion into prediction markets. This development is timely, as the Commodity Futures Trading Commission (CFTC) has removed certain regulatory barriers for companies like Railbird and QCEX, potentially facilitating entry into this rapidly expanding market. Flutter reported Q2 revenues of $4.19 billion, marking a 16% increase year-over-year, slightly surpassing analysts’ expectations of $4.13 billion. The company’s adjusted EBITDA rose by 25% to $919 million, and Flutter indicated it is evaluating "potential opportunities" within prediction markets.
No coins selected
