Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000070
Chunk: 46

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 46
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 are in thousands, unless otherwise noted)

The following tables provide summarized information about the Company’s operations used by the CODM by reportable segment for the three months ended March 31, 2025 and 2024, respectively.Three Months Ended March 31, 2025Skillz SegmentAarki SegmentRevenue$17,592 $4,439 Less:Cost of Revenue1,840 976 End User Engagement Marketing8,280 Paid Acquisition Spend3,731 Headcount expenses7,015 Consulting fees1,143 Vendor/Software Expenses3,698 Legal fees (non-litigation)526 Litigation expenses5,655 Office and operations expense1,626 Aarki operating expenses4,436 All other operating expenses361 Total Operating Expenses33,875 5,412 Segment Adjusted EBITDA$(16,283)$(973)Three Months Ended March 31, 2024Skillz SegmentAarki SegmentRevenue$22,417 $2,865 Less:Cost of Revenue2,043 858 End User Engagement Marketing8,886 Paid Acquisition Spend4,689 Headcount expenses9,156 Consulting fees1,497 Vendor/Software Expenses3,448 Legal fees (non-litigation)5,837 Office and operations expense676 Aarki operating expenses4,052 All other operating expenses1,876 Total Operating Expenses38,108 4,910 Segment Adjusted EBITDA$(15,691)$(2,045)Transactions Between SegmentsIntercompany revenue was $134.0 thousand and $47.0 thousand for the three months ended March 31, 2025 and 2024, respectively.

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

Aarki and Skillz are party to an agreement whereby Aarki will reimburse Skillz for shared services on a monthly basis. The amount paid for the three months ended  March 31, 2025 and 2024 were not material.Capital ExpendituresConsolidated capital expenditures were $1.7 million and $0.5 million in the three months ended March 31, 2025 and 2024, respectively. Capital expenditures in 2025 consisted primarily of costs related capitalized costs to develop internal