Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000072
Chunk: 59

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 59
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 30,2025 to 2024 Change20252024Increase/(Decrease)AmountPercentageRevenue$27,374 $24,564 $2,810 11 %Costs and expenses:Cost of revenue3,355 3,373 (18)(1)%Research and development5,444 4,742 702 15 %Sales and marketing17,368 19,294 (1,926)(10)%General and administrative17,479 18,147 (668)(4)%Total costs and expenses43,646 45,556 (1,910)(4)%Loss from operations(16,272)(20,992)4,720 22 %Interest (expense) income, net(1,560)242 (1,802)(745)%Other income (expense), net430 (333)763 229 %Loss before income taxes(17,402)(21,083)3,681 17 %Provision for income taxes40 32 8 25 %Net loss$(17,442)$(21,115)$3,673 17 %

Revenue

Revenue increased by $2.8 million, or 11%, to $27.4 million in the three months ended September 30, 2025 from $24.6 million in the three months ended September 30, 2024. This was primarily due to higher advertising revenue of $3.8 million generated by our Aarki segment, partially offset by lower tournament services and other revenue of $1.0 million from our Skillz segment. 

Cost of Revenue

Cost of revenue was relatively consistent for the three months ended September 30, 2025 and 2024. 

31

Research and Development

Research and development costs increased by $0.7 million, or 15%, to $5.4 million in the three months ended September 30, 2025 from $4.7 million in the three months ended September 30, 2024. This was primarily driven by a $1.0 million increase in research and development employee related costs, partially offset by lower server and software license expenses of $0.3 million from our Skillz segment.

Sales and Marketing

Sales and marketing costs decreased by $1.9 million, or 10%, to $17.4 million in the three months ended September 30, 2025 from $19.3 million in the three months ended September