Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000070
Chunk: 59

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 59
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 $3.0 million for the three months ended March 31, 2025 from $3.5 million in the three months ended March 31, 2024. This was primarily due to a reduction in customer support costs of $0.3 million and payment processing and other costs of $0.2 million from our Skillz segment. 

29

Research and Development

Research and development costs increased by $0.2 million, or 4%, to $4.8 million in the three months ended March 31, 2025 from $4.6 million in the three months ended March 31, 2024. This was primarily associated with higher research and development employee related costs of $0.4 million, partially offset by lower professional fees of $0.2 million from our Skillz segment.

Sales and Marketing

Sales and marketing costs decreased by $3.0 million, or 14%, to $18.0 million in the three months ended March 31, 2025 from $21.0 million in the three months ended March 31, 2024. This was primarily driven by lower employee related expenses of $1.2 million, marketing expenses of $1.4 million, professional fees of $0.2 million and facilities allocations and software license costs of $0.2 million from our Skillz segment.

General and Administrative

General and administrative costs decreased by $4.0 million, or 17%, to $19.1 million in the three months ended March 31, 2025 from $23.0 million in the three months ended March 31, 2024. This was primarily related to lower employee related costs and professional fees of $3.6 million and reduced facilities allocations and marketing expenses of $0.5 million from our Skillz segment. 

Gain on Legal Settlement

       The gain on legal settlement of $7.5 million for  three months ended March 31, 2025 was related to the litigation settlement with AviaGames from our Skillz segment. Refer to Note 8, Commitments and Contingencies, of the notes to the condensed consolidated condensed financial statements for further discussion.

Interest (expense) income, net

Interest expense was $1.1 million for the three months ended March 31, 2025 compared to interest income of $0.1 million for the three months ended March 31, 2024, a net difference of $1.2 million.  This was primarily due to a