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Skillz Inc. (SKLZ)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue of $27.4M grew 8% YoY and 22–30% QoQ (ex/including one-time effects), while net loss improved to $(8.9)M and Adjusted EBITDA loss improved to $(10.4)M; PMAU rose 18% QoQ and 20% YoY to 146K, the highest since Q3’23 .
  • Results beat S&P Global consensus: Revenue $27.37M vs $22.80M*, EPS $(0.58) vs $(1.34), and SPGI EBITDA −$6.39M vs −$13.85M, reflecting better monetization and opex discipline; company-reported Adjusted EBITDA loss was $(10.39)M .
  • Liquidity remains substantial with $228.7M cash and $10.0M restricted cash at quarter-end; operating cash outflow improved excluding settlements/insurance/debt service, supporting continued investment (Developer Accelerator, platform upgrades) .
  • Filing delays and NYSE non-compliance notice remain an overhang; Q2 results are preliminary and subject to revision, and management continues working to regain filing compliance, a key near-term stock catalyst alongside user growth momentum .

Estimates marked with * are Values retrieved from S&P Global.

What Went Well and What Went Wrong

  • What Went Well

    • User monetization and engagement: PMAU rose to 146K (+18% QoQ, +20% YoY); ARPU improved to $12.3 vs $10.4 YoY, supported by revamped loyalty, trophy, live events, and faster ACH deposits/withdrawals .
    • Top-line beat and profitability progress: Revenue $27.37M vs $22.80M* consensus; Adjusted EBITDA loss improved to $(10.39)M vs $(12.57)M YoY; CFO highlighted opex discipline and improved cash burn ex one-timers .
    • Ad-tech (Key/Arky) execution: Rolled out privacy-centric SKAN models on iOS and GPU-accelerated deep learning on Android (1B+ examples/day) to sharpen ROAS and integrate better with the platform, aiding sequential growth .

  • What Went Wrong

    • GMV and ARPPU pressure YoY: GMV fell to $136.6M from $161.7M YoY; ARPPU declined to $62.8 from $69.4 YoY, indicating spend-per-payer headwinds even as payer counts grew .
    • Ongoing losses and cash burn: GAAP net loss was $(8.9)M and operating cash outflow remained significant; Q2 operating cash outflow was $21M before management’s adjustments for settlements/insurance/debt service .
    • Reporting delays/NYSE notice: Financials remain preliminary; late 10-K/10-Q filings triggered NYSE non-compliance notice—resolution remains a near-term risk factor .

Financial Results

P&L and Liquidity (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($M)$20.37 $22.41 $27.37
Net (Loss) Income ($M)$(26.44) $(14.93) $(8.92)
Diluted EPS ($)$(1.50) $(0.92) $(0.58)
Adjusted EBITDA ($M, non-GAAP)$(18.51) $(15.06) $(10.39)
Cash & Cash Equivalents ($M)$271.92 $254.34 $228.66
Restricted Cash ($M)$10.00 $10.00 $10.00

Q2 2025 vs S&P Global Consensus

MetricConsensus*ActualSurprise
Revenue ($M)$22.80*$27.37 +$4.57M / +20%
Primary EPS ($)$(1.34)*$(0.58) +$0.76
EBITDA ($M, SPGI)$(13.85)*$(6.39)*+$7.46M

Estimates marked with * are Values retrieved from S&P Global.

Notes: Company-reported Adjusted EBITDA loss was $(10.39)M (non-GAAP); SPGI’s EBITDA may differ in definition from company Adjusted EBITDA .

KPIs (oldest → newest)

KPIQ4 2024Q1 2025Q2 2025
GMV ($000s)$127,079 $126,485 $136,590
PMAU (000s)110 124 146
MAU (000s)753 764 748
ARPPU ($)$68.1 $62.2 $62.8
ARPU ($)$9.9 $10.0 $12.3
Paying/MAU Ratio (%)15% 16% 19%
End-user incentives per PMAU ($)$26.0 $23.5 $24.6

Segment reporting: Not applicable; company reports as a single platform with ad-tech contribution discussed qualitatively .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Formal financial guidance (revenue, EPS, EBITDA)Q3 2025 / FY 2025—Not provided in press release or on the call —

Note: Company reiterated focus on positive Adjusted EBITDA but did not issue quantitative ranges; forward-looking non-GAAP reconciliations are not provided .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’24, Q1’25)Current Period (Q2’25)Trend
Developer Accelerator ($75M) / Content pipelineAnnounced $75M program; emphasized content expansion . Reiterated accelerator to broaden offerings .Program “well underway”; investing across genres; early deliverables noted .Building; early execution progress
Platform/UX improvementsFocus on product pipeline and retention .Revamped loyalty program, trophy system, live events; ACH deposit/instant withdrawal; launched Skills Arcade single app .Acceleration; tangible releases
User acquisition & monetizationOpex discipline; sequential PMAU improvement into early 2025 .PMAU +18% QoQ; UA spend reduced with higher new payers; improved marketing efficiency .Efficient growth
Ad-tech (Key/Arky, AI)Not detailed previously in press materials.iOS SKAN privacy models; Android GPU deep learning on 1B+ examples/day; real-time bid optimization; strengthens platform integration .Positive innovation
Fair play & litigationOngoing litigation noted in risk factors .SDNY order to unseal Papaya admissions re: bots cited; focus on anti-bot enforcement .Active enforcement
Reporting compliancePotential 10-K extension noted .Q2 preliminary; delayed FY24/Q1’25; NYSE notice, aiming to regain compliance within allowed window .Overhang persists

Management Commentary

  • “This quarter we delivered 8% year-over-year revenue growth… We also saw 18% quarterly sequential and 20% year-over-year growth in paying monthly active users, the highest since the third quarter of 2023” — Andrew Paradise, CEO .
  • “We enhanced our loyalty program… introduced ACH deposit and instant withdrawal… launched the first version of our Skills Arcade, a single app experience” .
  • “Q2 adjusted EBITDA loss of $10M better than a loss of $16M in Q1’25 and $13M in Q2’24… progress toward… positive adjusted EBITDA” .
  • “Keys [ad tech]… rolled out SKAN privacy-centric models… moved top-of-funnel deep learning to GPU… enabling real-time bid optimization at scale” .
  • “Our stable balance sheet… cash and restricted cash of more than $238 million as of quarter end” — Gaetano Franceschi, CFO .
  • “We are announcing preliminary results… subject to revision… working diligently to complete… filings and regain NYSE compliance” .

Q&A Highlights

  • There was no Q&A; the operator ended the session without questions. No incremental guidance or clarifications beyond prepared remarks .

Estimates Context

  • Beat across key lines versus S&P Global consensus: Revenue $27.37M vs $22.80M*; EPS $(0.58) vs $(1.34); SPGI EBITDA −$6.39M vs −$13.85M. Company’s Adjusted EBITDA loss was $(10.39)M (non-GAAP), which differs from SPGI EBITDA definition .
  • Estimate revisions likely skew upward for revenue and EBITDA given payer growth and opex discipline; however, ongoing filing delays and preliminary status may temper magnitude/timing of upward revisions .

Estimates marked with * are Values retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue/EPS beat with strong PMAU growth and improving marketing efficiency suggest operational momentum into 2H’25, despite ARPPU headwinds YoY .
  • Non-GAAP profitability is trending better; Adjusted EBITDA loss improved sequentially and YoY as opex discipline and platform enhancements take hold .
  • Liquidity remains ample ($238.7M cash + restricted) to fund the $75M Developer Accelerator and product roadmap while cash burn narrows ex one-time items .
  • Regulatory/filing overhang remains the key risk/catalyst; timely restoration of filing compliance could unlock a re-rating given improving operating KPIs .
  • AI-driven ad-tech (Key/Arky) advances could be an underappreciated lever for monetization and platform integration, potentially supporting further payer growth and ROAS .
  • Watch GMV and ARPPU trajectory; sustained payer growth with stabilization in spend-per-payer would support durable revenue expansion .
  • Near-term trading: positive reaction bias on beat/operating momentum; medium-term thesis depends on filing compliance resolution and sustaining PMAU growth with improving unit economics .