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

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 2
Chunk 12
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 quarterly report for the quarter ending September 30, 2025 helped the Company restore compliance with this requirement and completes the necessary steps in order to regain compliance with the terms of the indenture governing the Company’s senior secured notes.

Our existing liquidity resources are sufficient to continue operating activities for at least one year past the issuance date of the condensed consolidated financial statements. Our future cash requirements will depend on many factors, including our rate of revenue growth and the expansion of our sales and marketing activities. We also may invest in or acquire complementary businesses, applications or technologies.

The following table provides a summary of cash flow data (in thousands):

Nine Months Ended September 30,20252024Net cash (used in) provided by operating activities$(56,232)$12,423 Net cash used in investing activities$(4,723)$(185)Net cash used in financing activities$(8,167)$(12,823)

Net Cash (Used In) Provided By Operating Activities

Our cash flows from operating activities are significantly affected by the growth of our business primarily related to research and development, sales and marketing, and general and administrative activities. Our operating cash flows are also affected by working capital needs to support growth in personnel-related expenditures and fluctuations in accounts payable and other current assets and liabilities.

Net cash used in operating activities of $56.2 million for the nine months ended September 30, 2025 primarily reflected a net loss of $52.5 million, non-cash expenses of $14.2 million related to stock-based compensation, and net cash inflows of $19.9 million from changes in operating assets and liabilities from our Skillz and Aarki segments. During the nine months ended September 30, 2025, $7.5 million was received from the litigation settlement with AviaGames from our Skillz segment.

Net Cash Used In Investing Activities

Net cash used in investing activities of $4.7 million, for the nine months ended September 30, 2025, was primarily driven by capitalization of software development costs of $2.6 million and purchases of property and equipment of $2.1 million, respectively from our Skillz segment.

Net Cash Used In Financing Activities

Net cash used in financing activities was $8.2 million for nine months ended September 30, 2025, consisting primarily of the repurchase of common stock from our Skillz segment.

Contractual Obligations and Commitments

Our material cash requirements include the following contractual and other obligations.

Leases

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