Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000072
Chunk: 27

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 27
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800 6,338 — 10,138 Total Revenue$66,629 $8,533 $(68)$75,094 

10

TABLE OF CONTENTSSKILLZ INC.NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited, amounts in tables are in thousands, unless otherwise noted)

Revenues from Entry FeesThe Company generates substantially all its revenues through its competition-based Skillz segment by providing a service to game developers for monetization of their game content. The monetization service provided by Skillz allows developers to offer multi-player competition to their end-users for the purpose of end-user retention and engagement. Skillz provides developers with a software development kit (“SDK”) they can download and integrate with their existing games. The SDK serves as a data interface between Skillz and the game developers that enables Skillz to provide monetization services to the developer.Games provided by three developer partners accounted for 66% and 69% of the Company’s consolidated revenue for three and nine months ended September 30, 2025, respectively. Games provided by three developer partners accounted for 78% and 79% of the Company’s consolidated revenue for three and nine months ended September 30, 2024, respectively. End-User Incentive ProgramsTo drive traffic to the platform, the Company provides promotions and incentives to end-users in various forms. Evaluating whether a promotion or incentive is a payment to a customer may require significant judgment. Promotions and incentives, which are consideration payable to customers, are recognized as a reduction of revenue at the later of when revenue is recognized or when the Company pays or promises to pay the incentive. Promotions and incentives recorded as sales and marketing expenses are recognized when we incur the related cost. For the three and nine months ended September 30, 2025, the Company recognized a reduction of revenue of $0.5 million and $5.3 million, respectively, related to these end-user incentives. For the three and nine months ended September 30, 2024, the Company recognized a reduction of revenue of $3.2 million and $9.3 million, respectively, related to these end-user incentives. For the three and nine months ended September 30, 2025, the Company recognized sales and marketing expense of $8.6 million and $26.2 million, respectively, related to these end-user incentives. For the three and nine months ended September 30, 2024, the Company recognized