Education
About Us
Working with TipRanks
Follow Us
Skillz Inc. (SKLZ)
:SKLZ
Top Page
Skillz
(NYSE:SKLZ)
Rating:58Neutral
Price Target:
$9.00
▲(3.81% Upside)
Positive Factors
Patent Settlements
Incremental settlements in patent infringement lawsuits have helped fund product development initiatives, and management believes successful litigation could lead to a significant unlock in monthly active user expansion.
User Base Growth
There has been a third consecutive quarter of stability in the paying user base with a 5% growth in overall monthly active users.
Negative Factors
EBITDA Challenges
Until Skillz delivers more material top-line growth, there is reluctance to commit to positive adjusted EBITDA in any of the next ten quarters.
Revenue Decline
Revenue and GMV are both still declining at a greater than 30% year-over-year pace.
Skillz (SKLZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$157.69M
Dividend YieldN/A
Average Volume (3M)132.63K
Price to Earnings (P/E)―
Beta (1Y)1.99
Revenue Growth-18.41%
EPS Growth-61.67%
CountryUS
Employees225
SectorCommunication Services
Sector Strength91
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-0.58
Shares Outstanding14,438,426
10 Day Avg. Volume103,216
30 Day Avg. Volume132,633
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.52
Price to Sales (P/S)0.94
P/FCF Ratio-9.02
Enterprise Value/Market Cap-0.04
Enterprise Value/Revenue-0.07
Enterprise Value/Gross Profit-0.08
Enterprise Value/Ebitda0.08
Forecast
1Y Price Target
$15.00Price Target Upside73.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Skillz Business Overview & Revenue Model
Company DescriptionSkillz 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 MoneySkillz 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 Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: 30.57%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call highlights strong revenue growth, increased paying users, and improvements in EBITDA loss, alongside significant platform and product enhancements. However, challenges include delayed financial filings and a net loss compared to the previous year's net income. Overall, the positive aspects of revenue and operational improvements outweigh the concerns, suggesting a cautious but optimistic outlook.Q2-2025 Updates
Positive Updates
Revenue Growth
Q2 GAAP revenue was $27 million, up 30% sequentially and 8% year-over-year, with a 22% quarter-over-quarter increase excluding one-time adjustments.
Increase in Paying Monthly Active Users (MAU)
Paying MAU increased to 146,000, representing an 18% growth quarter-over-quarter and 20% growth year-over-year.
Improvement in Adjusted EBITDA Loss
Adjusted EBITDA loss improved to $10 million from $16 million in Q1 2025 and $13 million in Q2 2024, showing a 36% improvement quarter-over-quarter and 17% year-over-year.
Platform Enhancements
Significant progress in enhancing player and developer engagement retention, including a revamped loyalty program and the introduction of ACH deposit and instant withdrawal.
Aarki Revenue Growth and Innovations
Aarki's revenue growth is accelerating, with new privacy-centric models on iOS and deep learning advancements on Android.
Litigation Progress
Skillz continues litigation against Papaya and Voodoo for alleged bot use, with a recent court order favoring Skillz's position.
Negative Updates
Delayed Financial Filings
The company has been unable to file its annual report for the year ended December 31, 2024, and received a notice from the NYSE for non-compliance with listing standards.
Net Loss
Q2 net loss of $9 million, comparing unfavorably to a net income of $26 million in the same quarter last year, although it improved by $3 million year-over-year excluding certain adjustments.
High General and Administrative Expenses
General and administrative expenses were 49% of Q2 revenue after excluding stock-based compensation and insurance settlements.
Company Guidance
During the Skillz Inc. Second Quarter 2025 Results Call, the company provided guidance on several key financial metrics, highlighting a Q2 GAAP revenue of $27 million, which marked a 30% sequential increase and an 8% year-over-year growth. Excluding onetime adjustments, revenue rose by 22% quarter-over-quarter and 4% year-over-year. The paying Monthly Active Users (MAU) reached 146,000, showing an 18% sequential growth and a 20% increase year-over-year. The adjusted EBITDA loss improved to $10 million, representing a 36% sequential and a 17% year-over-year improvement. The paid user conversion rate increased to 19% from 15% the previous year. Research and development expenses were $5 million, while sales and marketing expenses stood at $18 million, down 16% year-over-year. The company ended the quarter with $239 million in cash and cash equivalents and $129.7 million in total principal due on outstanding debt. These results underscore Skillz's efforts toward achieving consistent top-line growth and a path to positive adjusted EBITDA.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.45
Neutral
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.55
Neutral
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.50
Neutral
| 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
Positive
8.67
Price Trends
7.48
Positive
6.44
Positive
5.96
Positive
Market Momentum
0.40
Negative
61.63
Neutral
60.79
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 8.67 is above the 20-day moving average (MA) of 8.02, above the 50-day MA of 7.48, and above the 200-day MA of 5.96, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 61.63 is Neutral, neither overbought nor oversold. The STOCH value of 60.79 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 49 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $43.56B | 3.79 | -13.01% | 4.09% | 1.89% | -42.25% | |
58 Neutral | $157.69M | ― | -40.15% | ― | -18.41% | -61.67% | |
| ― | $111.39M | 3.07 | -22.85% | ― | ― | ― | |
64 Neutral | $227.53M | 5.85 | 26.38% | -5.57% | ― | ||
59 Neutral | $1.40B | 16.23 | -220.61% | 10.87% | 4.98% | -60.29% | |
56 Neutral | $196.67M | 494.74 | -8.87% | ― | 97.84% | -268.53% | |
52 Neutral | $127.85M | ― | -12.32% | ― | -13.95% | -75.02% |
* Communication Services Sector Average
Performance Comparison
SKLZ
Skillz
8.84
2.81
46.60%
NCTY
The9
8.94
1.74
24.17%
GMGI
Golden Matrix Group
1.28
-1.03
-44.59%
GDEV
Nexters
13.57
-10.02
-42.48%
MYPS
PLAYSTUDIOS
1.03
-0.53
-33.97%
PLTK
Playtika Holding
3.68
-3.44
-48.31%
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.