Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000072
Chunk: 62

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 62
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1 million in the nine months ended September 30, 2025 from $13.6 million in the nine months ended September 30, 2024. This was primarily associated with higher research and development employee related costs of $2.4 million, partially offset by lower server and software license expenses of $0.4 million and professional fees and facilities allocation of $0.4 million, respectively from our Skillz segment.

Sales and Marketing

Sales and marketing costs decreased by $9.3 million, or 15%, to $51.8 million in the nine months ended September 30, 2025 from $61.1 million in the nine months ended September 30, 2024. This was primarily driven by lower marketing expenses of $6.3 million, employee related expenses of $2.4 million, software, facilities, professional fees and other expenses of $0.7 million from our Skillz segment. 

General and Administrative

33

General and administrative costs decreased by $5.2 million, or 9%, to $53.3 million in the nine months ended September 30, 2025 from $58.4 million in the nine months ended September 30, 2024. This was primarily related to lower employee related costs of $6.3 million and marketing related expenses of $0.5 million, partially offset by higher other general and administrative expenses of $1.6 million from our Skillz segment.

Gain from litigation settlement

The gain from litigation settlement of $7.5 million and $46.0 million for the nine months ended September 30, 2025 and 2024, respectively, was related to the litigation settlement with AviaGames from our Skillz segment. Refer to Note 8, Commitments and Contingencies, of the notes to the condensed consolidated financial statements for further discussion.

Interest (expense) income, net

Interest expense was $4.0 million for the nine months ended September 30, 2025 compared to interest income of $0.7 million for the nine months ended September 30, 2024. This was primarily due to lower interest income earned as the Company held less interest bearing investments in the nine months ended September 30, 2025 compared to the prior year period from our Skillz segment.

Provision for income taxes

Provision for income taxes decreased by $83.0 thousand to $59.0 thousand in the nine months ended September 30, 2025, from $142