Skillz (SKLZ) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $27.4 million, up 11% year over year and 9% sequentially, driven by Aarki's ad tech growth and platform stability.

• Net loss for Q3 2025 was $17.4 million, an improvement from $21.1 million in Q3 2024.

• Paying MAU grew 28% year over year to 155,000, with ARPPU of $58.9, reflecting improved player conversion and monetization.

• Adjusted EBITDA loss improved to $11.8 million from $13.9 million in Q3 2024, reflecting operational efficiency.

• Cash and restricted cash stood at $213 million as of September 30, 2025, supporting investment in strategic initiatives.

Financial highlights

• Q3 2025 revenue: $27.4 million (Q2 2025: $25 million; Q3 2024: $24 million); nine months: $74.5 million (down 1% YoY).

• Q3 2025 net loss: $17.4 million; nine months: $52.5 million.

• Adjusted EBITDA loss: $11.8 million (Q2 2025: $11 million; Q3 2024: $14 million); nine months: $40.5 million.

• Ended Q3 with $213 million in cash and $129.7 million in total debt principal.

• R&D expenses: $5 million, up 15% year over year; Sales & marketing: $16.7 million, down 10% year over year; G&A: $17 million, down 3% year over year.

Outlook and guidance

• Management expects continued focus on top-line growth, positive Adjusted EBITDA, and disciplined investment for long-term shareholder value.

• Ongoing litigation with Tether, a key developer partner, poses a risk to future revenue as Tether accounted for 45% of 2024 revenue.

• Liquidity is sufficient for at least one year; future cash needs depend on revenue growth and investment decisions.

• Anticipates further platform and ad tech expansion, with new game launches and AI-driven product enhancements.