Skillz (SKLZ) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue ranged from $25.2 million to $27.4 million, showing flat to 8% year-over-year growth, with sequential growth driven by platform enhancements and Aarki ad tech innovations.

• Paying monthly active users reached 146,000, up 18% sequentially and 20% year-over-year, the highest in seven quarters.

• Adjusted EBITDA loss improved to $10–10.4 million, a 36% sequential and 17% year-over-year improvement.

• Net loss for Q2 2025 ranged from $8.9 million to $17.9 million, impacted by the absence of prior-year litigation gains and ongoing legal costs.

• Ongoing legal disputes, platform enhancements, and a $75 million Developer Accelerator program are shaping operational priorities.

Financial highlights

• Revenue grew up to 30% sequentially and up to 8% year-over-year, with Aarki segment growth offsetting Skillz segment declines.

• Adjusted EBITDA loss improved to $10–10.4 million, and gross margin remained strong with cost of revenue down 4% year-over-year.

• Net loss for Q2 2025 ranged from $8.9 million to $17.9 million, with basic and diluted loss per share at $(1.16).

• Cash, cash equivalents, and restricted cash totaled $238–239 million at quarter end.

• Operating cash outflow for the first half of 2025 was $31.7 million.

Outlook and guidance

• Management expects continued progress toward consistent top-line growth and positive adjusted EBITDA, but revenue pressure may persist due to reduced user acquisition and engagement marketing spend.

• Liquidity is expected to be sufficient for at least one year, with future cash needs dependent on revenue growth and marketing investments.

• Improved marketing efficiency and product roadmap execution are expected to benefit monetization.