Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000071
Chunk: 12

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 2
Chunk 12
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 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 our 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 $31.7 million for the six months ended June 30, 2025 primarily reflects a net loss of $35.1 million non-cash expenses of $9.9 million related to stock-based compensation, and net cash outflows of $7.9 million from changes in operating assets and liabilities from our Skillz and Aarki segments. During the six months ended September 30, 2025, $7.5 million was received from the litigation settlement with AviaGames from our Skillz segment.

Net Cash (Used In) Provided By Investing Activities

Net cash used in investing activities of $3.4 million for the six months ended June 30, 2025 was primarily driven by capitalization of software development costs of $1.6 million and purchases of property and equipment of $1.8 million from our Skillz segment.

Net Cash Used In Financing Activities

Net cash used in financing activities was $8.1 million for six months ended June 30, 2025, consisting primarily of the repurchase of common stock from our Skillz segment.

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Contractual Obligations and Commitments

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

Leases

We have operating lease arrangements for office space, and finance lease agreements for certain network equipment. As of June 30, 2025, we had lease payment obligations of $0.3 million, of which $0.3 million is payable within 12 months. 

Long-Term Debt

The Company’s long-term debt consists of the 2021 Senior Secured Notes. The total principal amount of $129.7 million, gross of discount and issuance costs of $3.1 million, is due on December 15, 2026.

Off-Balance Sheet Arrangements

We did not have during the periods presented, and we do not currently have, any off-balance sheet financing arrangements or any relationships with unconsolidated entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities, that were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

Critical Accounting Policies and Estimates

See