Skillz (SKLZ) AI Stock Analysis

• Market Cap: $68.29M
• Dividend Yield: N/A
• Average Volume (3M): 65.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: -8.99%
• EPS Growth: -117.83%
• Country: US
• Employees: 225
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -1.14
• Shares Outstanding: 11,678,067
• 10 Day Avg. Volume: 51,456
• 30 Day Avg. Volume: 65,724
• 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: 0.57
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 0.81
• Enterprise Value/Ebitda: -1.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -3.59
• Revenue Forecast (FY): $116.65M

• Rating: 45 Neutral
• Price Target: $4.00 ▼(-27.40% Downside)

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 Growth

Sustained revenue growth indicates strong market demand and effective monetization strategies, enhancing long-term business viability.

Increase in Paying MAU

Growth in paying users reflects improved customer engagement and monetization, crucial for long-term revenue stability.

Aarki's Performance

Aarki's strong performance and AI-driven innovations enhance competitive advantage and diversify revenue streams.

Negative Factors

Ongoing Litigation

Litigation risks can erode player trust and developer relations, potentially impacting long-term revenue and growth.

Delayed Financial Reporting

Delayed reporting and NYSE non-compliance may undermine investor confidence and lead to regulatory challenges.

Adjusted EBITDA Loss

Persistent EBITDA losses highlight ongoing operational inefficiencies, challenging the path to profitability and cash flow 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 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

Skillz faces significant financial challenges, with persistent losses, declining equity, and negative cash flows. Despite a strong gross profit margin, the company struggles to achieve net profitability and positive cash flow. Increasing leverage and negative return on equity further highlight financial risks.

Income Statement

Skillz has faced declining revenues over the past few years, with a slight uptick in the TTM period. The company maintains a high gross profit margin, indicating efficient cost management relative to revenue. However, persistent negative net profit margins and EBIT margins highlight ongoing profitability challenges, with significant losses impacting overall financial health.

Balance Sheet

The debt-to-equity ratio has increased over time, indicating rising leverage, though it remains below 1.0 in the TTM period. The return on equity is negative, reflecting ongoing losses and a lack of shareholder returns. The equity ratio has decreased, suggesting a decline in financial stability and increased reliance on debt financing.

Cash Flow

Skillz's cash flow situation is concerning, with negative operating and free cash flows. The free cash flow to net income ratio is positive, indicating some alignment between cash flow and accounting profits, but the high free cash flow growth rate in the TTM period is due to a low base effect. The company struggles to generate sufficient cash from operations to cover its losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.75M	95.47M	152.08M	269.71M	380.15M	229.05M
Gross Profit	48.17M	82.06M	136.70M	238.99M	354.91M	216.77M
EBITDA	-23.05M	-92.78M	-96.31M	-394.80M	-194.18M	-146.03M
Net Income	-26.36M	-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	180.00K	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: Neutral
• 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 Neutral. The current price of 5.51 is above the 20-day moving average (MA) of 4.51, above the 50-day MA of 5.21, and below the 200-day MA of 6.38, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 27.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SKLZ.

Skillz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLTK	66 Neutral	$1.32B	15.18	―	9.98%	7.49%	-60.32%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GMGI	57 Neutral	$87.82M	-15.41	-4.94%	―	53.06%	-196.63%
GDEV	55 Neutral	$300.63M	7.73	―	18.48%	―	―
MYPS	46 Neutral	$78.20M	-2.08	-14.82%	―	-17.17%	-51.88%
SKLZ	45 Neutral	$68.29M	-0.93	-48.34%	―	-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.