Skillz (SKLZ) AI Stock Analysis

• Market Cap: $128.97M
• Dividend Yield: N/A
• Average Volume (3M): 83.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.94
• Revenue Growth: -18.41%
• EPS Growth: -61.67%
• Country: US
• Employees: 225
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.58
• Shares Outstanding: 14,438,426
• 10 Day Avg. Volume: 69,616
• 30 Day Avg. Volume: 83,664
• PEG Ratio: 0.04
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.94
• P/FCF Ratio: -9.02
• Enterprise Value/Market Cap: -0.05
• Enterprise Value/Revenue: -0.07
• Enterprise Value/Gross Profit: -0.08
• Enterprise Value/Ebitda: 0.08
• 1Y Price Target: $15.00
• Price Target Upside: 107.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: $7.50 ▲(3.73% Upside)

Skillz's overall stock score reflects significant financial challenges, including declining revenues and persistent losses, which weigh heavily on its valuation. While the earnings call provided some optimism with revenue growth and improved EBITDA, technical indicators suggest bearish momentum. The stock's negative P/E ratio and lack of dividend yield further contribute to a cautious outlook.

Positive Factors

Revenue Growth

Skillz's revenue growth indicates expanding market presence and improved monetization, suggesting potential for sustained top-line expansion.

Increase in Paying Users

The increase in paying users highlights enhanced user engagement and conversion, which can drive long-term revenue stability.

Platform Enhancements

Platform enhancements improve user experience and developer satisfaction, potentially boosting retention and competitive advantage.

Negative Factors

Declining Revenue Trend

The declining revenue trend raises concerns about market competitiveness and long-term growth prospects, impacting financial health.

Persistent Losses

Ongoing losses indicate challenges in achieving profitability, which could strain resources and limit strategic investments.

Cash Flow Challenges

Negative cash flow suggests inefficiencies in operations and potential liquidity constraints, affecting long-term financial stability.

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 host tournaments and provide competitive gaming activity to end-users worldwide. It also hosts casual esports tournaments to a range of mobile players. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is headquartered in San Francisco, California.

How the Company Makes Money

Skillz generates revenue primarily through entry fees from players participating in competitive gaming tournaments on its platform. The company takes a percentage of the entry fees as its revenue share, while the remaining portion is used for player prizes and game developer incentives. Skillz partners with game developers, offering them a share of the revenue in exchange for integrating Skillz's competitive gaming features into their games. Additionally, Skillz may generate revenue through advertising and promotional partnerships, leveraging its platform's user base to offer marketing opportunities for brands.

Skillz Financial Statement Overview

Summary

Skillz's financial performance is challenged, with declining revenues and persistent losses. The income statement shows poor profitability, the balance sheet indicates moderate stability with low leverage, and the cash flow statement reveals liquidity issues. Overall, the financial health is concerning, necessitating improvements in revenue and cash flow.

Income Statement

Skillz's income statement shows significant challenges with profitability. The TTM (Trailing-Twelve-Months) gross profit margin is strong at about 86%, indicating efficient cost management relative to revenue. However, the net profit margin is deeply negative, reflecting persistent losses in operations. Revenue has been declining over recent periods, with a notable drop from $384 million in 2021 to $93 million TTM, highlighting a concerning trend in growth.

Balance Sheet

The balance sheet indicates moderate stability with a debt-to-equity ratio of approximately 0.07 TTM, showing low leverage. However, the equity ratio has been decreasing, with stockholders' equity declining alongside total assets, raising concerns about asset utilization and financial health. The return on equity is negative due to ongoing losses, underscoring profitability challenges.

Cash Flow

Skillz's cash flow statement reveals struggles with cash generation. The free cash flow is negative, and the free cash flow to net income ratio is unfavorable, showing inefficiencies in converting revenue into cash. Operating cash flow is also negative, which along with declining free cash flow growth, signals potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	92.64M	95.47M	152.08M	269.71M	384.09M	230.12M
Gross Profit	79.73M	82.06M	136.70M	238.99M	359.38M	217.83M
EBITDA	-80.34M	-48.35M	-96.31M	-402.04M	-194.18M	-142.46M
Net Income	-36.44M	-48.23M	-101.36M	-438.88M	-181.38M	-122.46M
Balance Sheet
Total Assets	346.97M	364.17M	395.83M	621.29M	1.02B	282.42M
Cash, Cash Equivalents and Short-Term Investments	254.34M	281.92M	302.03M	489.78M	560.39M	262.73M
Total Debt	10.52M	136.54M	136.70M	286.86M	294.57M	0.00
Total Liabilities	189.74M	192.58M	185.34M	342.89M	399.13M	47.40M
Stockholders Equity	157.23M	171.59M	210.49M	278.40M	623.70M	235.02M
Cash Flow
Free Cash Flow	-15.97M	-9.95M	-84.99M	-181.49M	-183.39M	-59.48M
Operating Cash Flow	-11.83M	-7.19M	-71.76M	-179.60M	-180.15M	-56.23M
Investing Cash Flow	-3.69M	-1.63M	168.30M	311.39M	-643.92M	-3.25M
Financing Cash Flow	-20.74M	-21.29M	-149.95M	-10.61M	802.68M	296.58M

Skillz Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.23
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKLZ, the sentiment is Positive. The current price of 7.23 is below the 20-day moving average (MA) of 7.88, below the 50-day MA of 7.76, and above the 200-day MA of 6.15, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 59.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKLZ.

Skillz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GDEV	72 Outperform	302.99M	7.79	-25.15%	19.81%	-5.57%	0.00%
PLTK	59 Neutral	1.30B	15.57	-98.41%	11.56%	4.98%	-60.29%
GMGI	56 Neutral	132.51M	-13.14	0.00%	―	97.84%	-268.53%
MYPS	51 Neutral	119.35M	-3.80	-12.78%	―	-13.95%	-75.02%
SKLZ	50 Neutral	$128.97M	―	-40.15%	―	-18.41%	-61.67%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Skillz Corporate Events

Skillz Files Lawsuit Over Tether Agreement Termination

On August 29, 2025, Skillz Inc. received a termination notice from Tether Studios, LLC and Tether Games, Inc., indicating the end of their agreements effective September 1, 2025, which Skillz disputes as invalid. Following this, Skillz filed a lawsuit on September 1, 2025, seeking legal relief against Tether’s alleged breach, while also contesting the grounds for termination, which could impact its business operations.

The most recent analyst rating on (SKLZ) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Skillz stock, see the SKLZ Stock Forecast page.