Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000072
Chunk: 61

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 61
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 months ended September 30, 2025 and 2024.

Nine Months Ended September 30,2025 to 2024 Change20252024Increase/(Decrease)AmountPercentageRevenue$74,485 $75,094 $(609)(1)%Costs and expenses:Cost of revenue9,539 10,171 (632)(6)%Research and development15,102 13,638 1,464 11 %Sales and marketing51,804 61,138 (9,334)(15)%General and administrative53,269 58,419 (5,150)(9)%Gain from litigation settlement(7,500)(46,000)38,500 (84)%Total costs and expenses122,214 97,366 24,848 26 %Loss from operations(47,729)(22,272)(25,457)114 %Interest (expense) income, net(3,952)688 (4,640)(674)%Change in fair value of common stock warrant liabilities— 11 (11)(100)%Other income (expense), net(766)(78)(688)882 %Loss before income taxes(52,447)(21,651)(30,796)142 %Provision for income taxes59 142 (83)(58)%Net loss$(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.