Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000070
Chunk: 45

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 45
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 8 Commitments and Contingencies) and a third competitor for unfair business practices and their use of ‘bots’. Office and operations expenses represent rent and building maintenance. Other segment items include marketing expenses which, in turn, consists mostly affiliate marketing, state and corporate fees, fines and penalties and trade shows.  For both the Skillz and Aarki segments, stock-based compensation expenses are not included in operating expenses.For the Aarki Segment, operating expenses include all operating expenses such as headcount, marketing, software, professional fees such as legal, audit and tax compliance and rent.The CODM evaluates the performance of the Company’s segments based on Segment Revenue and Segment Adjusted EBITDA. Segment Adjusted EBITDA is indicative of operational performance and is monitored by the CODM to evaluate past performance and identify actions required to improve profitability. The CODM does not review information regarding total assets on a reportable segment basis.

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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)

The following tables provide summarized information about the Company’s operations by reportable segment and a reconciliation of Segment Adjusted EBITDA to Net loss in the three months ended March 31, 2025 and 2024.Three Months Ended March 31,20252024RevenueSkillz Segment$17,592 $22,417 Aarki Segment4,439 2,865 Elimination(134)(47)Total Revenue$21,897 $25,235 Segment Adjusted EBITDASkillz Segment$(16,283)$(15,691)Aarki Segment(973)(2,045)Total Segment Adjusted EBITDA$(17,256)$(17,736)Items to reconcile Segment Adjusted EBITDA to Net loss:Interest (expense) income, net$(1,071)$112 Stock-based compensation(5,550)(8,740)Change in fair value of warrant liability— 9 Provision for income taxes(39)(38)Depreciation and amortization(167)(395)Gain from litigation settlement7,500 — Other income, net(559)65 Net loss$(17,142)$(26,723)

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TABLE OF CONTENTSSKILLZ INC.NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited, amounts in tables