Skillz (SKLZ) AI Stock Analysis

• Market Cap: $49.10M
• Dividend Yield: N/A
• Average Volume (3M): 60.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.74
• Revenue Growth: -8.99%
• EPS Growth: -117.83%
• Country: US
• Employees: 225
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): N/A
• Shares Outstanding: 11,678,067
• 10 Day Avg. Volume: 39,871
• 30 Day Avg. Volume: 60,150
• 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: -0.63
• Enterprise Value/Revenue: -0.32
• Enterprise Value/Gross Profit: -0.37
• Enterprise Value/Ebitda: 0.47
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -2.71
• Revenue Forecast (FY): $116.30M

• Rating: 45 Neutral
• Price Target: $3.50 ▼(-36.48% Downside)
• Action: Reiterated Date: 12/31/25
• Date: Action: Reiterated 12/31/25

The score is held down primarily by weak financial performance (ongoing losses and negative cash flows) and a bearish technical backdrop (below key moving averages with negative MACD). Earnings-call improvements in revenue and paying MAUs provide some support, but are tempered by continued losses plus reporting/compliance and litigation risks; valuation is also limited by lack of profitability.

Positive Factors

Revenue and Paying MAU Growth

Sustained quarter-over-quarter and year-over-year revenue and paying MAU growth indicate improving product-market fit and monetization. Higher payor conversion and deeper monetization tend to produce durable top-line expansion and recurring revenue streams if retention and engagement persist.

High Gross Margins and Manageable Leverage

High gross margins provide structural profitability potential as revenue scales, while modest leverage limits financing strain. Together these fundamentals give the company room to invest in growth and pursue profitability without immediate balance-sheet distress.

Aarki Ad Business Momentum and Product Innovation

Rapid, AI-driven ad business growth diversifies revenue away from entry-fee commissions and leverages programmatic advertising strength. Innovation in ad products can create a durable high-margin revenue stream and cross-subsidize platform development and user acquisition.

Negative Factors

Persistent Net Losses and Negative Cash Flow

Ongoing GAAP losses and negative operating cash flow reduce financial flexibility and lengthen the path to sustainable profitability. Continued cash burn forces reliance on existing cash or external funding, which can constrain strategic investments and increase execution risk over months.

Delayed Financial Reporting and NYSE Non-compliance

Regulatory non-compliance and delayed filings signal governance and control weaknesses that can undermine investor confidence and invite regulatory scrutiny. Persistence of these issues raises delisting risk and can materially impede access to public capital when needed.

Ongoing Litigation and Fair-Play Disputes

Active legal disputes over bots and fair play threaten platform trust, developer relationships, and may lead to costly settlements or operational restrictions. Protracted litigation can divert management, create financial liabilities, and weaken the platform's long-term network effects.

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 a commission-based model, where it takes a percentage of the entry fees paid by players to participate in cash competitions. Additionally, the company earns money through advertising and sponsorships within its platform. Skillz's revenue is bolstered by partnerships with game developers, who utilize the Skillz platform to reach a broader audience and monetize their games through various competition formats. The company's unique position in the esports and skill-based gaming market allows it to capitalize on the increasing demand for competitive gaming experiences.

Skillz Financial Statement Overview

Summary

Financial statements point to ongoing stress: persistent net losses and negative operating/free cash flow. Positives include high gross margins and manageable leverage, but profitability and cash generation remain unresolved.

Income Statement

Skillz's income statement reveals a challenging financial position. The company has experienced declining revenues over the past few years, with a slight recovery in the TTM period. Gross profit margins remain high, indicating effective cost management, but net profit margins are deeply negative, reflecting significant losses. The EBIT and EBITDA margins are also negative, highlighting ongoing operational challenges.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio in the TTM period, suggesting manageable leverage. However, the return on equity is negative, indicating that the company is not generating returns for shareholders. The equity ratio is stable, but the overall financial health is impacted by consistent losses.

Cash Flow

Skillz's cash flow statement indicates negative operating and free cash flows, although there is a positive growth trend in free cash flow in the TTM period. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. The free cash flow to net income ratio is slightly above 1, suggesting some alignment between cash flow and accounting profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.53M	95.47M	152.08M	269.71M	380.15M	229.05M
Gross Profit	84.76M	82.06M	136.70M	238.99M	354.91M	216.77M
EBITDA	-66.08M	-92.78M	-96.31M	-394.80M	-194.18M	-146.03M
Net Income	-67.73M	-48.23M	-101.36M	-438.88M	-187.93M	-149.08M
Balance Sheet
Total Assets	308.23M	364.17M	395.83M	621.29M	1.02B	282.42M
Cash, Cash Equivalents and Short-Term Investments	211.80M	281.92M	302.03M	489.78M	560.39M	262.73M
Total Debt	128.30M	136.54M	136.70M	288.38M	297.01M	0.00
Total Liabilities	181.05M	192.58M	185.34M	342.89M	411.96M	225.63M
Stockholders Equity	127.18M	171.59M	210.49M	278.40M	609.16M	56.79M
Cash Flow
Free Cash Flow	-80.28M	-9.95M	-84.99M	-181.49M	-183.39M	-59.48M
Operating Cash Flow	-74.41M	-7.19M	-71.76M	-179.60M	-180.15M	-56.23M
Investing Cash Flow	-5.87M	-1.63M	168.30M	311.39M	-643.92M	-3.25M
Financing Cash Flow	-18.36M	-21.29M	-149.95M	-10.61M	802.68M	296.58M

Skillz Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.43, above the 50-day MA of 3.78, and below the 200-day MA of 6.09, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 55.73 is Neutral, 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
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GDEV	59 Neutral	$266.51M	3.94	―	18.48%	―	―
PLTK	52 Neutral	$1.08B	-7.20	119.44%	9.98%	7.49%	-60.32%
MYPS	46 Neutral	$64.31M	-3.32	-15.36%	―	-17.17%	-51.88%
SKLZ	45 Neutral	$49.10M	-1.76	-45.42%	―	-8.99%	-117.83%

Skillz Corporate Events

Skillz Shareholders Endorse Board, Auditor and Compensation

At its annual meeting of stockholders held on December 29, 2025, Skillz Inc. reported that shareholders elected all nominated directors, including CEO Andrew Paradise and other board members, with strong majorities of votes cast in favor. Stockholders also approved the retention of Deloitte & Touche LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025, and gave advisory support to the company’s executive compensation program, signaling continued shareholder confidence in Skillz’s leadership, governance, and strategic direction.

The most recent analyst rating on (SKLZ) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Skillz stock, see the SKLZ Stock Forecast page.