Company: SKLZ
Filing Date: 2025-11-06
Form Type: 10-K
Source: 0001801661-25-000050
Chunk: 129

Company: Skillz Inc.
Filing Date: 2025-11-06
Form: 10-K
Item: Item 7
Chunk 129
---
 active users decreased from 1.0 million in 2023 to 0.8 million in 2024.

Segment Adjusted EBITDA loss was $53.2 million in 2024 as compared to a loss of $65.0 million in 2023. The change was primarily due to lower Segment Revenue, partially offset by reduced research and development, sales and marketing and administrative costs, together with a gain settlement.

Aarki Segment Results

Segment Revenue of $10.9 million in 2024 decreased $2.4 million, from $13.2 million in 2023 primarily due to lower advertising revenue.

Segment Adjusted EBITDA loss was $7.6 million in 2024 compared to a loss of $3.8 million in 2023.  The change was  primarily due to the decline in Segment Revenue.

Liquidity and Capital Resources

As of December 31, 2024, our principal sources of liquidity were our cash and cash equivalents in the amount of $271.9 million, which are primarily invested in money market funds with maturity less than three months. 

In December 2021, the Company offered $300.0 million in aggregate principal senior secured notes due 2026 in a private offering. The notes were sold in a private placement to qualified institutional buyers. Annual interest started to accrue from December 20, 2021 at a stated rate of 10.25% and is payable semiannually on June 15 and December 15 of each year, beginning on June 15, 2022. The notes mature on December 15, 2026. We used the net proceeds from the offering for general corporate purposes. The notes contain customary covenants restricting our and certain of our subsidiaries’ ability to incur debt, incur liens, make distributions to holders of our stock, make certain transactions with our affiliates, as well as certain financial covenants specified in the indentures. After giving effect to the September 1, 2022 and the 2023 open market repurchases of our senior secured notes, as of December 31, 2024, $129.7 million of the senior secured notes remained outstanding. We were in compliance with all covenants applicable to our secured notes as of December 31, 2024 and 2023.

Other than as described below with respect to the Company’s noncompliance with certain reporting covenants under the Indenture governing its senior secured notes, the