Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000071
Chunk: 63

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 63
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 the Company and is an artificial intelligence company that delivers advertising solutions to drive revenue growth for mobile app developers. Aarki enables brands to effectively engage audiences in a privacy-first world by using billions of contextual bidding signals coupled with proprietary machine learning and behavioral models. Aarki works with advertisers globally and manages ad requests on mobile devices.

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Results of Operations 

Comparison for the three months ended June 30, 2025 and 2024.

Three Months Ended June 30,2025 to 2024 Change20252024Increase/(Decrease)AmountPercentageRevenue$25,214 $25,295 $(81)— %Costs and expenses:Cost of revenue3,220 3,346 (126)(4)%Research and development4,840 4,272 568 13 %Sales and marketing16,431 20,849 (4,418)(21)%General and administrative16,706 17,236 (530)(3)%Gain from litigation settlement— (46,000)46,000 (100)%Total costs and expenses41,197 (297)41,494 (13971)%(Loss) income from operations(15,983)25,592 (41,575)(162)%Interest (expense) income, net(1,321)334 (1,655)(496)%Change in fair value of common stock warrant liabilities— 2 (2)(100)%Other (expense) income, net(637)190 (827)(435)%(Loss) income before income taxes(17,941)26,118 (44,059)(169)%(Benefit from) provision for income taxes(19)73 (92)(126)%Net (loss) income$(17,922)$26,045 $(43,967)(169)%

Revenue

Revenue decreased by $0.1 million, or less than 0.1%, to $25.2 million in the three months ended June 30, 2025 from $25.3 million in the three months ended June 30, 2024. This was primarily due to lower tournament, services and other revenue of $3.5 million from our Skillz segment, mostly offset by higher advertising revenue of $3.4 million generated from our Aarki segment. 

Cost of Revenue

Cost of revenue decreased by $0.1 million, or 4%, to $3.2 million for the three months ended June