Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000072
Chunk: 9

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 2
Chunk 9
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 income taxes59 142 (83)(58)%Net loss$(52,506)$(21,793)$(30,713)141 %

Revenue

Revenue decreased by $0.6 million, or 1%, to $74.5 million in the nine months ended September 30, 2025 from $75.1 million in the nine months ended September 30, 2024. This was primarily due to lower tournament, services and other revenue of $9.5 million from our Skillz segment, mostly offset by higher advertising revenue of $8.9 million generated from our Aarki segment. 

Cost of Revenue

Cost of revenue decreased by $0.6 million, or 6%, to $9.5 million for the nine months ended September 30, 2025 from $10.2 million in the nine months ended September 30, 2024. This was primarily due to a reduction of customer support personnel costs of $0.8 million, partially offset by server and other costs of $0.2 million from our Skillz segment. 

Research and Development

Research and development costs increased by $1.5 million, or 11%, to $15.1 million in the nine months ended September 30, 2025 from $13.6 million in the nine months ended September 30, 2024. This was primarily associated with higher research and development employee related costs of $2.4 million, partially offset by lower server and software license expenses of $0.4 million and professional fees and facilities allocation of $0.4 million, respectively from our Skillz segment.

Sales and Marketing

Sales and marketing costs decreased by $9.3 million, or 15%, to $51.8 million in the nine months ended September 30, 2025 from $61.1 million in the nine months ended September 30, 2024. This was primarily driven by lower marketing expenses of $6.3 million, employee related expenses of $2.4 million, software, facilities, professional fees and other expenses of $0.7 million from our Skillz segment. 

General and Administrative

33

General and administrative costs decreased by $5.2 million, or 9%, to $53.3 million in the nine months ended September 30, 2025 from $58.4 million in the nine months ended September 30, 2024. This was primarily related to lower employee related costs of $6.3 million