Skillz Inc. ((SKLZ)) has held its Q2 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The recent earnings call of Skillz Inc. presented a mixed bag of positive developments and ongoing challenges. While the company reported notable growth in revenue and paying monthly active users (MAU), as well as improvements in adjusted EBITDA loss and platform innovations, these were counterbalanced by significant issues such as delayed financial filings, substantial net cash usage, and legal challenges.
Revenue Growth
In the second quarter of 2025, Skillz Inc. reported a GAAP revenue of $27 million, up from $21 million in the previous quarter and $25 million in the same quarter last year. This marks a 22% quarter-over-quarter growth and a 4% year-over-year growth, highlighting the company’s ability to increase its revenue stream despite market challenges.
Increase in Paying Monthly Active Users
The company saw an 18% increase in paying monthly active users (MAU), reaching 146,000 in Q2 2025, up from 124,000 in Q1 2025 and 122,000 in Q2 2024. This 20% year-over-year growth reflects the company’s success in expanding its user base and enhancing user engagement.
Improved Adjusted EBITDA Loss
Skillz Inc. reported an adjusted EBITDA loss of $10 million for Q2 2025, an improvement from a $16 million loss in Q1 2025 and a $13 million loss in Q2 2024. This represents a 36% improvement quarter-over-quarter and a 17% improvement year-over-year, indicating progress in cost management and operational efficiency.
Launch of New Platform Features
The company introduced significant platform enhancements, including a revamped loyalty program, ACH deposit and instant withdrawal features, and the launch of Skillz Arcade. These innovations are aimed at improving user experience and increasing platform competitiveness.
Aarki Innovations
Aarki, a part of Skillz Inc., rolled out SKAN4 native privacy-centric models on iOS and enhanced deep learning capabilities on Android. These advancements are expected to expand Aarki’s market reach and enhance its service offerings.
Delayed Financial Filings
Skillz Inc. faced challenges with delayed financial filings, as it was unable to file its annual report on Form 10-K for the year ended December 31, 2024. This non-compliance with NYSE listing standards poses a risk to the company’s market standing.
Net Cash Used in Operating Activities
The company reported a net cash usage of $21 million in operating activities for Q2 2025, highlighting ongoing cash flow challenges. Despite this, Skillz ended the quarter with $239 million in cash and cash equivalents, providing a buffer for future operations.
Legal Challenges
Skillz Inc. is currently engaged in litigation against Papaya and Voodoo games concerning the alleged use of bots. This ongoing legal battle poses potential risks to the company’s business operations and reputation.
Forward-Looking Guidance
Looking ahead, Skillz Inc. remains focused on enhancing shareholder value through strategic capital deployment amidst improving cash burn metrics. The company reported a GAAP revenue of $27 million for Q2 2025, marking a 30% sequential growth from the previous quarter and an 8% increase year-over-year. Despite the challenges, the company is committed to leveraging its cash reserves and strategic initiatives to drive future growth.
In summary, Skillz Inc.’s earnings call highlighted a mix of progress and challenges. While the company demonstrated growth in key areas such as revenue and user base, it continues to face hurdles related to financial compliance and legal issues. Investors will be keenly watching how Skillz navigates these challenges while pursuing its growth strategies.