Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000072
Chunk: 60

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 60
---
 30, 2024. This was primarily driven by lower marketing expenses of $1.8 million and a reduction in employee related costs of $0.3 million from our Skillz segment.

General and Administrative

General and administrative costs decreased by $0.6 million, or 3%, to $17.5 million in the three months ended September 30, 2025 from $18.1 million in the three months ended September 30, 2024. This was primarily driven by lower professional fees of $0.6 million from our Skillz segment. 

Interest (expense) income, net

Interest expense was $1.6 million for the three months ended September 30, 2025 compared to interest income of $0.2 million for the three months ended September 30, 2024. This was primarily related to lower interest income earned as the Company held less interest bearing investments in the three months ended September 30, 2025 compared to the prior year period from our Skillz segment.

Provision for income taxes

The provision for income taxes increased by $8.0 thousand to $40.0 thousand in the three months ended September 30, 2025, from $32.0 thousand in the three months ended September 30, 2024. This was primarily due to a book loss, state taxes and equity award activities, mostly offset by a full valuation allowance on our deferred tax assets.

On July 4, 2025, the “One Big Beautiful Bill Act” (“OBBBA” or the “Act”) was signed into law, enacting significant changes to U.S. federal tax regulations. In accordance with Accounting Standards Codification 740 (“ASC 740”), Income Taxes, the effects of new tax legislation are required to be recognized in the period of enactment, which for the Company, a calendar-year entity, is the quarter ended September 30, 2025. The total net impact of the tax law changes on the income tax provision for the three and nine months ended September 30, 2025, was not material. A discrete adjustment of approximately $866 thousand was made to the existing deferred tax assets and deferred tax liability that were fully offset by an adjustment to the valuation allowance on our deferred tax assets.  OBBBA adjustments impacting these deferred balances relate to the restoration of bonus depreciation for qualifying assets and the inclusion of Section 174A which allows taxpayers to fully expense domestic research expenditures.

32

Results of Operations 

Comparison for the nine