As the Q3 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 slower Q3. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 2.1% on average since the latest earnings results.

Weakest Q3: 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 $57.65 million, down 19.1% year on year. This print fell short of analysts’ expectations by 3%. Overall, it was a disappointing quarter for the company with a miss of analysts’ daily active users estimates and a significant miss of analysts’ adjusted operating income estimates.

PlayStudios delivered the slowest revenue growth of the whole group. The company reported 2.21 million monthly active users, down 25.3% year on year. Unsurprisingly, the stock is down 20.5% since reporting and currently trades at $0.72.

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

Best Q3: 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 $277.9 million, up 19.7% year on year, outperforming analysts’ expectations by 4.3%. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.

Rush Street Interactive delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.1% since reporting. It currently trades at $17.28.

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.

DraftKings (NASDAQ: DKNG)

Getting its start in daily fantasy sports, DraftKings (NASDAQ: DKNG) is a digital sports entertainment and gaming company.

DraftKings reported revenues of $1.14 billion, up 4.4% year on year, falling short of analysts’ expectations by 5.6%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

DraftKings delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 6.6% since the results and currently trades at $29.80.

Read our full analysis of DraftKings’s results here.

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 $683 million, up 8.7% year on year. This result topped analysts’ expectations by 1.2%. Zooming out, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.

The stock is up 3.5% since reporting and currently trades at $99.83.

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

Accel Entertainment (NYSE: ACEL)

Established in Illinois, Accel Entertainment (NYSE: ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Accel Entertainment reported revenues of $329.7 million, up 9.1% year on year. This print beat analysts’ expectations by 0.5%. More broadly, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

The stock is up 3.7% since reporting and currently trades at $10.29.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.