Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000071
Chunk: 7

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 2
Chunk 7
---
,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 30, 2025 from $3.3 million in the three months ended June 30, 2024. This was primarily due to a reduction in customer support costs of $0.2 million, partially offset by an increase payment processing and other costs of $0.1 million from our Skillz segment.  

Research and Development

Research and development costs increased by $0.6 million, or 13%, to $4.8 million in the three months ended June 30, 2025 from $4.3 million in the three months ended June 30, 2024. This was primarily associated with higher research and development employee related costs of $1.0 million, partially offset by lower professional fees of $0.3 million from our Skillz segment.

Sales and Marketing

Sales and marketing costs decreased by $4.4 million, or 21%, to $16.4 million in the three months ended June 30, 2025 from $20.8 million in the three months ended June 30, 2024. This was primarily driven by lower marketing expenses of $3.1 million, payroll and related expenses of $0.8 million and software license costs, facilities allocation costs and professional fees of $0.4 million from our Skillz segment.

General and Administrative

General and administrative costs decreased by $0.5 million, or 3%, to $16.7 million in the three months ended June 30, 2025 from $17.2 million in the three months ended June 30, 2024. This was primarily related to lower employee related costs of 

32

$1.7 million and reduced professional fees of $0.4 million, partially offset an increase in litigation and other related expenses of $1.