Skillz Inc. (SKLZ)
NYSE:SKLZ
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Skillz
(NYSE:SKLZ)
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Rating:45Neutral
Price Target:
$2.50
▼(-54.63% Downside)
Action:ReiteratedDate:04/02/26
The score is driven primarily by weak financial performance—continued losses and elevated 2025 cash burn—with bearish technicals reinforcing downside risk. The latest earnings call provides a partial offset via improving revenue/adjusted EBITDA trends and strong RZR performance, but concentration risk, near-term debt maturity, and litigation keep the overall score constrained.
Positive Factors
RZR outperformance
RZR’s 146% net revenue growth and first full-year positive adjusted EBITDA show successful integration of acquired ad-tech capabilities. Durable ML-driven auction and retargeting improvements can sustainably boost monetization, reduce UA spend reliance, and expand margin potential across Skillz’s platform.
Negative Factors
Revenue concentration risk
Losing a partner that generated ~51% of revenue creates pronounced concentration risk. This undermines revenue predictability and makes user metrics volatile; rebuilding scale requires securing new large partners or migrating players to owned titles, a multi-quarter execution challenge with material downside if delayed.
Read all positive and negative factors
Positive Factors
Negative Factors
RZR outperformance
RZR’s 146% net revenue growth and first full-year positive adjusted EBITDA show successful integration of acquired ad-tech capabilities. Durable ML-driven auction and retargeting improvements can sustainably boost monetization, reduce UA spend reliance, and expand margin potential across Skillz’s platform.
Read all positive factors
Skillz (SKLZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.77M
Dividend YieldN/A
Average Volume (3M)51.20K
Price to Earnings (P/E)―
Beta (1Y)1.85
Revenue Growth-8.99%
EPS Growth-117.83%
CountryUS
Employees225
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-1.07
Shares Outstanding12,170,492
10 Day Avg. Volume78,577
30 Day Avg. Volume51,200
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.60
Price to Sales (P/S)0.64
P/FCF Ratio-0.96
Enterprise Value/Market Cap-0.69
Enterprise Value/Revenue-0.26
Enterprise Value/Gross Profit-0.29
Enterprise Value/Ebitda0.50
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-2.71
Revenue Forecast (FY)$116.30M
Skillz Business Overview & Revenue Model
Company Description
Skillz Inc. operates a mobile games platform that connects players in fair, fun, and meaningful competition. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to ho...
How the Company Makes Money
Skillz primarily makes money by monetizing gameplay on its platform through entry fees paid by players to participate in competitive matches and tournaments within Skillz-enabled games. From these entry fees, Skillz generally retains a portion as ...
Skillz Key Performance Indicators (KPIs)
Any
Monthly Active Users
Measures the number of unique users engaging with Skillz's platform each month, indicating the platform's popularity and user retention capabilities.
Measures the number of unique users engaging with Skillz's platform each month, indicating the platform's popularity and user retention capabilities.
Data provided by:
The Fly
The FlySkillz Earnings Call Summary
Earnings Call Date:Mar 31, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call communicated meaningful progress: strong Q4 and full-year revenue growth, notable breakout performance from RZR (146% net revenue growth and positive full-year adjusted EBITDA), improved adjusted EBITDA trajectory and a healthy cash position. These positives are balanced against material near-term challenges including a QoQ PMAU decline driven by the exit of a large partner (a partner that previously represented ~51% of revenue), increased R&D and marketing spend, $130M of debt now classified as current with upcoming maturity, and ongoing litigation. Overall, the company presented clear operational improvements and path-to-profitability signals but faces concentration, liquidity and legal risks that require monitoring.Positive Updates
Quarterly Revenue Growth
Q4 2025 GAAP revenue of $30.0M, up 11% quarter-over-quarter (from $27M) and up 67% year-over-year (from $18M). Company reported four consecutive quarters of sequential revenue growth and two consecutive quarters of year-over-year revenue growth.
Negative Updates
Paying MAU Decline Quarter-over-Quarter
PMAU declined 9% sequentially in Q4 (from 155,000 to 141,000). Management cited the exit of a large gaming developer and a technical issue with engagement/marketing technologies (now addressed) as drivers of the QoQ decline.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Revenue Growth
Q4 2025 GAAP revenue of $30.0M, up 11% quarter-over-quarter (from $27M) and up 67% year-over-year (from $18M). Company reported four consecutive quarters of sequential revenue growth and two consecutive quarters of year-over-year revenue growth.
Read all positive updates
Company Guidance
The company’s guidance emphasized a continued “path to profitability” driven by RZR’s momentum and disciplined capital management: RZR delivered 146% net revenue growth year‑over‑year and achieved positive adjusted EBITDA for full‑year 2025, Skillz reported FY2025 GAAP revenue of $105M (up 13% YoY) with Q4 revenue of $30M (+11% QoQ, +67% YoY), Q4 adjusted EBITDA loss of $10M (improved 17% QoQ and 41% YoY) and full‑year adjusted EBITDA loss of $51M (a 16% YoY improvement from $61M), while paying monthly active users were 141k (‑9% QoQ, +28% YoY); cash stood at $195M with $130M of debt now current as it approaches maturity later this year (management is evaluating strategic alternatives), the company received a $7.5M AviaGame payment in Q1 2026 ($65M total to date) and expects two additional $7.5M payments in March 2027 and March 2028, and operationally Q4 R&D was $6M (+78% YoY), S&M $19M (+27% YoY), G&A ~$18M (‑13% YoY), and Q4 net loss was $18M (improved 27% YoY); management plans to rescale UA spend to grow PMAUs, continue efficiency gains across Skillz and RZR, and pursue litigation outcomes (trial set for April 13, 2026) that they expect to support long‑term monetization and trust.Skillz Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
44
Neutral
Cash Flow
22
Negative
| Breakdown | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 104.50M | 95.47M | 152.08M | 269.71M | 380.15M |
| Gross Profit | 91.45M | 82.06M | 136.70M | 238.99M | 354.91M |
| EBITDA | -53.67M | -92.78M | -96.31M | -394.80M | -194.18M |
| Net Income | -70.41M | -48.23M | -101.36M | -438.88M | -187.93M |
Balance Sheet | |||||
| Total Assets | 293.45M | 364.17M | 395.83M | 621.29M | 1.02B |
| Cash, Cash Equivalents and Short-Term Investments | 194.51M | 281.92M | 302.03M | 489.78M | 560.39M |
| Total Debt | 128.72M | 136.54M | 136.70M | 288.38M | 297.01M |
| Total Liabilities | 181.63M | 192.58M | 185.34M | 342.89M | 411.96M |
| Stockholders Equity | 111.82M | 171.59M | 210.49M | 278.40M | 609.16M |
Cash Flow | |||||
| Free Cash Flow | -70.33M | -9.95M | -84.99M | -181.49M | -183.39M |
| Operating Cash Flow | -68.93M | -7.19M | -71.76M | -179.60M | -180.15M |
| Investing Cash Flow | -6.14M | -1.63M | 168.30M | 311.39M | -643.92M |
| Financing Cash Flow | -10.97M | -21.29M | -149.95M | -10.61M | 802.68M |
Skillz Technical Analysis
Negative
5.51
Price Trends
3.30
Negative
4.19
Negative
5.83
Negative
Market Momentum
-0.28
Positive
34.98
Neutral
39.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKLZ, the sentiment is Negative. The current price of 5.51 is above the 20-day moving average (MA) of 2.90, above the 50-day MA of 3.30, and below the 200-day MA of 5.83, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 34.98 is Neutral, neither overbought nor oversold. The STOCH value of 39.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKLZ.
Skillz Risk Analysis
Skillz disclosed 49 risk factors in its most recent earnings report. Skillz reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Skillz Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $261.07M | 3.94 | -62.85% | 18.48% | ― | ― | |
50 Neutral | $1.21B | ― | 119.44% | 9.98% | 7.49% | -60.32% | |
49 Neutral | $58.58M | -2.86 | -15.36% | ― | -17.17% | -51.88% | |
45 Neutral | $38.77M | -0.96 | -52.48% | ― | -8.99% | -117.83% |
* Communication Services Sector Average
SKLZ
Skillz
2.49
-1.34
-34.99%
NCTY
The9
5.33
-5.12
-49.00%
GDEV
Nexters
14.40
4.99
53.03%
MYPS
PLAYSTUDIOS
0.46
-0.82
-64.38%
PLTK
Playtika Holding
3.20
-1.01
-23.92%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.