Skillz Inc Earnings Recaps
Q1 2026
May 20, 2026
Shares rallied 18.2% after Skillz’s Q1 report, driven by a landmark $420 million legal verdict against Papaya Gaming supporting fair competition and underlying operational improvements evidenced by reduced adjusted EBITDA loss excluding litigation expenses.
Key takeaways
- Q1 revenue declined 3% sequentially to $29 million but was up 33% year-over-year.
- Adjusted EBITDA loss increased to $13 million due to higher litigation costs; excluding these expenses, adjusted EBITDA loss improved 15% sequentially to $7 million.
- Paying monthly active users (PMAU) dropped 9% quarter-over-quarter to 128,000, partly from reduced user acquisition spend, though retention and average revenue per paying user increased.
- The jury awarded Skillz $420 million in actual damages against competitor Papaya for false advertising and deceptive practices, with potential total recovery exceeding $1.2 billion after possible enhancements.
- Management is pursuing settlement discussions and exploring capital strategies to monetize the judgment, while continuing initiatives to improve demand, platform performance, and marketing efficiency.
Q3 2025
Nov 6, 2025
Skillz reported a solid Q3 2025, with GAAP revenue of $27 million reflecting a 9% quarter-over-quarter growth and a continued focus on profitability amidst operational improvements.
Key takeaways
- GAAP revenue grew 9% quarter-over-quarter and 11% year-over-year, bolstered by the stability of the competition platform and Aarki's momentum.
- Adjusted EBITDA loss narrowed to $12 million, representing a 3% decrease quarter-over-quarter and a 15% improvement year-over-year.
- Paying Monthly Active Users (MAU) increased by 6% quarter-over-quarter and 28% year-over-year, driven by improved payor conversion rates and monetization strategies.
- The launch of the new title, Solitaire Skillz, via the Developer Accelerator Program marks a significant milestone, with potential for enhanced player engagement and developer collaboration.
- Aarki's ad tech business saw revenue growth exceeding 100% year-over-year, indicating successful AI-driven product initiatives and expanding market reach.