Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000071
Chunk: 9

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 2
Chunk 9
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)(567)(34,477)6081 %Provision for income taxes20 111 (91)(82)%Net loss$(35,064)$(678)$(34,386)5072 %

Revenue

Revenue decreased by $3.4 million, or 7%, to $47.1 million in the six months ended June 30, 2025 from $50.5 million in the six months ended June 30, 2024. This was primarily due to lower tournament, services and other revenue of $8.8 million, partially offset by higher services and other revenue of $0.3 million from our Skillz segment, mostly offset by higher advertising revenue of $5.0 million generated from our Aarki segment. 

Cost of Revenue

33

Cost of revenue decreased by $0.6 million, or 9%, to $6.2 million for the six months ended June 30, 2025 from $6.8 million in the six months ended June 30, 2024. This was primarily due to a reduction in customer support costs of $0.5 million and payment processing and other costs of $0.1 million from our Skillz segment.

Research and Development

Research and development costs increased by $0.8 million, or 9%, to $9.7 million in the six months ended June 30, 2025 from $8.9 million in the six months ended June 30, 2024. This was primarily associated with higher research and development employee related costs of $1.4 million, partially offset by lower software license expenses and professional fees of $0.5 million from our Skillz segment.

Sales and Marketing

Sales and marketing costs decreased by $7.4 million, or 18%, to $34.4 million in the six months ended June 30, 2025 from $41.8 million in the six months ended June 30, 2024. This was primarily driven by lower marketing expenses of $4.5 million, payroll and related expenses of $2.1 million and software license costs, professional fees and facilities allocations of $0.8 million from our Skillz segment.

General and Administrative

General and administrative costs decreased by $4.5 million, or 11%, to $35.8 million in the six months ended June 30, 2025 from $40.3 million in the six months ended June 30, 2024. This was primarily related