Skillz (SKLZ) AI Stock Analysis

• Market Cap: $118.09M
• Dividend Yield: N/A
• Average Volume (3M): 75.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.97
• Revenue Growth: -18.41%
• EPS Growth: -61.67%
• Country: US
• Employees: 225
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): N/A
• Shares Outstanding: 14,438,426
• 10 Day Avg. Volume: 89,807
• 30 Day Avg. Volume: 75,432
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $15.00
• Price Target Upside: 124.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: $7.00 ▲(4.79% Upside)

Skillz's overall stock score is primarily impacted by its weak financial performance, characterized by persistent losses and negative cash flows. While the company shows some technical resilience and potential for revenue growth, the negative valuation metrics and financial risks weigh heavily on the score.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a strengthening market position and increased user engagement, suggesting potential for sustained financial improvement.

Increase in Paying Monthly Active Users

The growth in paying users reflects successful user acquisition and retention strategies, enhancing revenue potential and competitive positioning.

Platform Enhancements

Enhancements in platform features improve user experience and developer satisfaction, potentially leading to higher engagement and monetization.

Negative Factors

Persistent Losses

Ongoing losses indicate challenges in achieving profitability, which can strain resources and limit growth opportunities.

Rising Leverage

Increasing leverage may lead to higher financial risk and reduced flexibility, impacting long-term financial health and stability.

Delayed Financial Filings

Delayed filings can undermine investor confidence and may result in regulatory scrutiny, affecting the company's market credibility and operations.

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 faces significant financial challenges, marked by declining revenues and persistent losses. While the company maintains low leverage, its ability to generate cash and achieve profitability remains a concern. The company needs to focus on reversing revenue decline and improving cash flow to stabilize its financial position.

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	94.72M	95.47M	152.08M	269.71M	384.09M	230.12M
Gross Profit	81.93M	82.06M	136.70M	238.99M	359.38M	217.83M
EBITDA	-64.09M	-48.35M	-96.31M	-402.04M	-194.18M	-142.46M
Net Income	-71.40M	-48.23M	-101.36M	-438.88M	-181.38M	-122.46M
Balance Sheet
Total Assets	328.30M	364.17M	395.83M	621.29M	1.02B	282.42M
Cash, Cash Equivalents and Short-Term Investments	228.66M	281.92M	302.03M	489.78M	560.39M	262.73M
Total Debt	126.82M	136.54M	136.70M	286.86M	294.57M	0.00
Total Liabilities	187.88M	192.58M	185.34M	342.89M	399.13M	47.40M
Stockholders Equity	140.42M	171.59M	210.49M	278.40M	623.70M	235.02M
Cash Flow
Free Cash Flow	-65.86M	-9.95M	-84.99M	-181.49M	-183.39M	-59.48M
Operating Cash Flow	-60.58M	-7.19M	-71.76M	-179.60M	-180.15M	-56.23M
Investing Cash Flow	-7.28M	-1.63M	168.30M	311.39M	-643.92M	-3.25M
Financing Cash Flow	-19.90M	-21.29M	-149.95M	-10.61M	802.68M	296.58M

Skillz Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 6.68 is below the 20-day moving average (MA) of 7.32, below the 50-day MA of 7.60, and above the 200-day MA of 6.50, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 36.69 is Neutral, neither overbought nor oversold. The STOCH value of 10.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKLZ.

Skillz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLTK	―	$1.38B	15.92	―	10.90%	4.98%	-60.29%
GDEV	―	$403.67M	10.38	―	14.49%	―	―
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GMGI	―	$145.48M	-14.25	-4.94%	―	97.84%	-268.53%
MYPS	―	$117.82M	―	-12.32%	―	-13.95%	-75.02%
SKLZ	―	$118.09M	―	-40.15%	―	-18.41%	-61.67%

Skillz Corporate Events

Skillz Granted Extension by NYSE for Compliance

On April 2, 2025, Skillz Inc. received a notice from the NYSE for not complying with timely filing requirements due to the delayed submission of its 2024 Annual Report. The NYSE granted Skillz an extension until December 17, 2025, to regain compliance by completing its pending SEC filings, including the 2024 Form 10-K and subsequent quarterly reports.

The most recent analyst rating on (SKLZ) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Skillz stock, see the SKLZ Stock Forecast page.

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.

Skillz Inc. Earnings Call: Growth Amidst Challenges

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.

Skillz Inc. Delays Q2 2025 Report Filing

Skillz Inc. has filed a Form 12b-25, indicating a delay in submitting its Form 10-Q (Quarter Report) for the quarter ending June 30, 2025. The delay is primarily due to the company’s ongoing efforts to complete its year-end reporting process for 2024 and subsequent quarterly reports. Skillz anticipates filing the delayed report within five calendar days following the original due date. The company has released preliminary financial results for the relevant periods, which are subject to change upon finalization of the reports. Skillz is committed to resolving these delays and ensuring compliance, as indicated by the signature of their Chief Financial Officer, Gaetano Franceschi.

The most recent analyst rating on (SKLZ) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Skillz stock, see the SKLZ Stock Forecast page.

Skillz Inc. Reports Q2 2025 Financial Results

Skillz Inc., a leading mobile games platform, specializes in hosting competitive eSports tournaments for millions of mobile players worldwide, leveraging its patented technology to enhance player engagement and retention.