Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000072
Chunk: 7

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 2
Chunk 7
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 30, 2025 from $24.6 million in the three months ended September 30, 2024. This was primarily due to higher advertising revenue of $3.8 million generated by our Aarki segment, partially offset by lower tournament services and other revenue of $1.0 million from our Skillz segment. 

Cost of Revenue

Cost of revenue was relatively consistent for the three months ended September 30, 2025 and 2024. 

31

Research and Development

Research and development costs increased by $0.7 million, or 15%, to $5.4 million in the three months ended September 30, 2025 from $4.7 million in the three months ended September 30, 2024. This was primarily driven by a $1.0 million increase in research and development employee related costs, partially offset by lower server and software license expenses of $0.3 million from our Skillz segment.

Sales and Marketing

Sales and marketing costs decreased by $1.9 million, or 10%, to $17.4 million in the three months ended September 30, 2025 from $19.3 million in the three months ended September 30, 2024. This was primarily driven by lower marketing expenses of $1.8 million and a reduction in employee related costs of $0.3 million from our Skillz segment.

General and Administrative

General and administrative costs decreased by $0.6 million, or 3%, to $17.5 million in the three months ended September 30, 2025 from $18.1 million in the three months ended September 30, 2024. This was primarily driven by lower professional fees of $0.6 million from our Skillz segment. 

Interest (expense) income, net

Interest expense was $1.6 million for the three months ended September 30, 2025 compared to interest income of $0.2 million for the three months ended September 30, 2024. This was primarily related to lower interest income earned as the Company held less interest bearing investments in the three months ended September 30, 2025 compared to the prior year period from our Skillz segment.

Provision for income taxes

The provision for income taxes increased by $8.0 thousand to $40.0 thousand in the three months ended September 30, 2025, from $32.0 thousand in the three months ended September 30, 2024