Company: SKLZ
Filing Date: 2025-11-06
Form Type: 10-K
Source: 0001801661-25-000050
Chunk: 128

Company: Skillz Inc.
Filing Date: 2025-11-06
Form: 10-K
Item: Item 7
Chunk 128
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)— (3,524)Gain from litigation settlement(3)(46,000)—    Other expense (income)530 (540)Adjusted EBITDA$(60,823)$(68,828)

(1)For the year ended 2023, amount includes impairment of goodwill and long-lived assets.

(2)For the year ended 2023, amount represents the settlement of a litigation matter relating to a former employee.

(3)For the year ended 2024, amount represents a gain on legal settlement recorded in connection with proceeds received under the terms of a settlement agreement entered into with AviaGames in connection with certain bot misuse litigation. Refer to Note 10, Commitments and Contingencies, of the notes to the consolidated financial statements for further discussion.

Segment Results

We have two reportable business segments: Skillz and Aarki. We evaluate the performance of our segments based on revenue and Adjusted EBITDA to assess operational performance and identify actions required to improve profitability.

The segment measurements provided to, and evaluated by, the Chief Operating Decision Maker (“CODM”) are described in Note 17 Segment Reporting to our audited consolidated financial statements included in this Form 10-K.

Segment Results for the Years Ended December 31, 2024 and 2023

The following table provides revenue and Adjusted EBITDA on a segment basis.

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Year Ended December 31, 2024 to 2023 ChangeIncrease/(Decrease)20242023$%Skillz Segment Revenue$82,442 $139,210 (56,768)(40.8)%Aarki Segment Revenue10,876 13,233 (2,357)(17.8)%Elimination(453)(364)(89)(24.5)%Consolidated Revenue$92,865 $152,079 (59,214)(38.9)%Skillz Segment Adjusted EBITDA$(53,205)$(64,998)11,793 18.1 %Aarki Segment Adjusted EBITDA(7,618)(3,830)(3,788)(98.9)%Consolidated Adjusted EBITDA$(60,823)$(68,828)8,005 11.6 %

Skillz Segment Results

Segment Revenue of $82.4 million in 2024 decreased $56.8 million, from $139.2 million in 2023 primarily due to a decrease in player base as monthly