Skillz Inc. (SKLZ)
NYSE:SKLZ
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Skillz
(NYSE:SKLZ)
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Rating:48Neutral
Price Target:
$6.50
▲(17.97% Upside)
Action:Reiterated
Date:05/19/26
The score is held back primarily by weak financial fundamentals—large ongoing losses, negative free cash flow, and leverage—despite high gross margins and early revenue stabilization. Technicals are moderately supportive with price above key moving averages, while valuation is limited by lack of profitability. The latest earnings call adds a modest uplift on improving unit economics and RZR profitability, but is tempered by declining paying users, near-term debt maturity, and litigation-related uncertainty.
Positive Factors
Improving monetization / ARPPU
ARPPU growth shows the platform is extracting more revenue from existing players, indicating stronger cohort monetization and pricing power. Coupled with GMV growth, this durable improvement supports sustainable revenue per user even if acquisition slows, helping margin expansion if operating costs are controlled.
Negative Factors
Persistent cash burn
Sustained negative operating and free cash flow indicates the business requires ongoing financing or cash reserves to operate. Continued cash burn limits strategic optionality, increases reliance on external capital, and makes long-term plans like disciplined UA or title investments contingent on resolving structural profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving monetization / ARPPU
ARPPU growth shows the platform is extracting more revenue from existing players, indicating stronger cohort monetization and pricing power. Coupled with GMV growth, this durable improvement supports sustainable revenue per user even if acquisition slows, helping margin expansion if operating costs are controlled.
Read all positive factors
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 (SKLZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$112.53M
Dividend YieldN/A
Average Volume (3M)2.34M
Price to Earnings (P/E)―
Beta (1Y)2.29
Revenue Growth21.25%
EPS Growth-77.13%
CountryUS
Employees225
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-4.28
Shares Outstanding12,177,494
10 Day Avg. Volume565,864
30 Day Avg. Volume2,338,621
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 Cap0.50
Enterprise Value/Revenue0.51
Enterprise Value/Gross Profit0.58
Enterprise Value/Ebitda-1.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-3.44
Revenue Forecast (FY)$127.60M
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 Earnings Call Summary
Earnings Call Date:May 15, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented a mix of meaningful operational progress and material near-term risks. Positives include strong year-over-year revenue growth (+33% YoY), improved monetization (ARPU +7% QoQ), RZR profitability (adjusted EBITDA +$2M), strategic acquisitions (Beamable, Blackout Bingo, Domino's Gold), attractive user acquisition economics, and a landmark legal victory against Papaya with a potential award from $420M to >$1.2B. Offsetting these strengths are a 9% QoQ decline in paying MAUs, litigation-related expenses that widened reported adjusted EBITDA to a $13M loss, $130M of debt maturing this year (liquidity/refinancing risk), ongoing legal uncertainty regarding collectability and appeals, and the company remains unprofitable on a GAAP and adjusted basis. Overall the call emphasized disciplined execution, improving unit economics, and transformational legal and strategic milestones, while flagging near-term financial and operational risks that management is actively addressing.Positive Updates
Year-over-Year Revenue Growth with QoQ Normalization
GAAP revenue of $29.0M in Q1 2026, up 33% year over year (Q1 2025: $22M). Reported down 3% quarter over quarter, but normalizing for a Q4 2025 indirect tax accrual release, Q1 2026 revenue would be up ~2% QoQ.
Negative Updates
Paying MAU Decline and Traffic Compression
Paying MAU (PM AU) declined to 128k, down 9% quarter over quarter (though up 3% year over year). Sequential decline was driven by reduced UA spend, resulting in fewer new user cohort additions and lower non-paying MAU.
Read all updates
Q1-2026 Updates
Positive
Negative
Year-over-Year Revenue Growth with QoQ Normalization
GAAP revenue of $29.0M in Q1 2026, up 33% year over year (Q1 2025: $22M). Reported down 3% quarter over quarter, but normalizing for a Q4 2025 indirect tax accrual release, Q1 2026 revenue would be up ~2% QoQ.
Read all positive updates
Company Guidance
Management guided to continued progress toward profitability and disciplined growth, citing Q1 results of GAAP revenue $29M (‑3% QoQ, +33% YoY; +2% QoQ normalized for an indirect tax accrual release), adjusted EBITDA loss $13M (or a $7M loss excl. litigation, a 15% QoQ improvement), RZR adjusted EBITDA +$2M (third consecutive profitable quarter), paying MAU 128k (‑9% QoQ, +3% YoY) with ARPPU up 7% QoQ, net loss $11M (improved 36% YoY), R&D $5M (+5% YoY), S&M $17M (user marketing $8M, UA $3M), G&A $19M (+2% YoY), cash $185M and $130M of debt maturing this year; they expect underlying profitability to improve into Q2, PMAU/traffic to be flat-to-up with better unit economics as UA spend is scaled thoughtfully (UA costs described as the best in years), and they flagged a material legal outcome—Papaya’s jury award of $420M in actual damages with total potential recovery from $420M to over $1.2B pending disgorgement/enhancement, which the court is expected to address in June while the company pursues settlement and evaluates secured capital or appeal‑bond options.Skillz Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
40
Negative
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 | -9.58M | -84.99M | -181.49M | -183.39M |
| Operating Cash Flow | -68.93M | -7.07M | -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
Positive
5.51
Price Trends
4.62
Positive
4.23
Positive
5.58
Positive
Market Momentum
0.63
Positive
56.67
Neutral
60.87
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 5.51 is below the 20-day moving average (MA) of 7.06, above the 50-day MA of 4.62, and below the 200-day MA of 5.58, indicating a bullish trend. The MACD of 0.63 indicates Positive momentum. The RSI at 56.67 is Neutral, neither overbought nor oversold. The STOCH value of 60.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKLZ.
Skillz Risk Analysis
Skillz disclosed 48 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $290.41M | 4.86 | -64.47% | 18.48% | ― | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | $1.33B | -4.57 | 113.59% | 9.98% | 7.30% | -307.46% | |
51 Neutral | $59.74M | -1.40 | -15.65% | ― | -15.86% | -16.59% | |
48 Neutral | $112.53M | -0.94 | -55.16% | ― | 21.25% | -77.13% |
* Communication Services Sector Average
SKLZ
Skillz
7.21
0.67
10.24%
NCTY
The9
5.35
-6.20
-53.68%
GDEV
Nexters
16.00
-0.06
-0.37%
MYPS
PLAYSTUDIOS
0.47
-0.93
-66.79%
PLTK
Playtika Holding
3.49
-0.80
-18.63%
Skillz Corporate Events
Regulatory Filings and ComplianceShareholder Meetings
Skillz Sets 2026 Virtual Annual Stockholder Meeting Date
Neutral
Apr 14, 2026
Skillz Inc. has scheduled its 2026 Annual Meeting of Stockholders for June 18, 2026, to be conducted virtually via remote communication, with login, voting and question procedures to be detailed in a forthcoming definitive proxy statement filed wi...
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.