Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000071
Chunk: 64

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 64
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 30, 2025 from $3.3 million in the three months ended June 30, 2024. This was primarily due to a reduction in customer support costs of $0.2 million, partially offset by an increase payment processing and other costs of $0.1 million from our Skillz segment.  

Research and Development

Research and development costs increased by $0.6 million, or 13%, to $4.8 million in the three months ended June 30, 2025 from $4.3 million in the three months ended June 30, 2024. This was primarily associated with higher research and development employee related costs of $1.0 million, partially offset by lower professional fees of $0.3 million from our Skillz segment.

Sales and Marketing

Sales and marketing costs decreased by $4.4 million, or 21%, to $16.4 million in the three months ended June 30, 2025 from $20.8 million in the three months ended June 30, 2024. This was primarily driven by lower marketing expenses of $3.1 million, payroll and related expenses of $0.8 million and software license costs, facilities allocation costs and professional fees of $0.4 million from our Skillz segment.

General and Administrative

General and administrative costs decreased by $0.5 million, or 3%, to $16.7 million in the three months ended June 30, 2025 from $17.2 million in the three months ended June 30, 2024. This was primarily related to lower employee related costs of 

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$1.7 million and reduced professional fees of $0.4 million, partially offset an increase in litigation and other related expenses of $1.6 million from our Skillz segment.  

Gain from litigation settlement

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

Interest (expense) income, net

Interest expense was $1.3 million for the three months ended June 30, 2025 compared to interest income of $0.3 million for the three months ended June 30, 2024. This was primarily due to lower interest income earned as the Company sold its marketable