Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000070
Chunk: 7

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 2
Chunk 7
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26,723)$9,581 36 %

Revenue

Revenue decreased by $3.3 million, or 13%, to $21.9 million in the three months ended March 31, 2025 from $25.2 million in the three months ended March 31, 2024. This was primarily due to lower tournament revenue of $5.2 million, partially offset by services and other revenue of $0.2 million from our Skillz segment. This decrease was also offset by higher advertising revenue of $1.7 million generated from our Aarki segment. 

Cost of Revenue

Cost of revenue decreased by $0.5 million, or 14%, to $3.0 million for the three months ended March 31, 2025 from $3.5 million in the three months ended March 31, 2024. This was primarily due to a reduction in customer support costs of $0.3 million and payment processing and other costs of $0.2 million from our Skillz segment. 

29

Research and Development

Research and development costs increased by $0.2 million, or 4%, to $4.8 million in the three months ended March 31, 2025 from $4.6 million in the three months ended March 31, 2024. This was primarily associated with higher research and development employee related costs of $0.4 million, partially offset by lower professional fees of $0.2 million from our Skillz segment.

Sales and Marketing

Sales and marketing costs decreased by $3.0 million, or 14%, to $18.0 million in the three months ended March 31, 2025 from $21.0 million in the three months ended March 31, 2024. This was primarily driven by lower employee related expenses of $1.2 million, marketing expenses of $1.4 million, professional fees of $0.2 million and facilities allocations and software license costs of $0.2 million from our Skillz segment.

General and Administrative

General and administrative costs decreased by $4.0 million, or 17%, to $19.1 million in the three months ended March 31, 2025 from $23.0 million in the three months ended March 31, 2024. This was primarily related to lower employee related costs and professional fees of $3.6 million and reduced facilities allocations and marketing expenses of $0.5 million from our Skillz segment.