Loading...
01/11 16:21
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals several concerns: non-compliance with NYSE standards, ongoing litigation, delayed financial filings, and high operating losses. Despite some positive financial metrics and growth in paying MAU, these risks overshadow the positives. The Q&A session provided no additional clarity, and with no market cap data, the stock's reaction is uncertain. The risks, especially potential delisting, are significant enough to predict a negative stock price movement.
Q3 GAAP Revenue $27 million, up 9% quarter-over-quarter and 11% year-over-year, supported by continued Aarki momentum and stability of the competition platform.
Adjusted EBITDA Loss $12 million, decreased 3% quarter-over-quarter but increased 15% year-over-year, reflecting disciplined execution and structural improvements.
Paying MAU 155,000, grew 6% quarter-over-quarter and 28% year-over-year, driven by higher payor conversion rates and deeper monetization.
R&D Expenses $5 million, increased 15% year-over-year, reflecting ongoing investment in the competition platform and Aarki.
Sales and Marketing Expenses $17 million, decreased 10% year-over-year, reflecting ongoing optimization of user acquisition and engagement spend.
G&A Expenses $17 million, decreased 4% year-over-year, reflecting continued focus on expenses.
Q3 Net Loss $17 million, improved 17% year-over-year, reflecting stronger fundamentals and operational improvements.
Cash Balance $213 million, including $1 million of restricted cash, reflecting prudent capital management.
Total Debt Principal Outstanding $129.7 million, reflecting the company's financial position.
Solitaire Skillz launch: Skillz launched an owned and operated title, Solitaire Skillz, which is showing early promise. The game serves as a testing ground for new features rolled out platform-wide. It was developed in conjunction with third-party developers and is the first title from the $75 million Developer Accelerator Program.
Developer Accelerator Program: The program continues to attract strong developer interest, with additional titles in development expected to be showcased at the Game Developer Conference in March 2026. Some upcoming games will incorporate new technology to energize the developer community.
Aarki ad tech business: Aarki launched new AI-driven product offerings for iOS and Android, including privacy-forward performance marketing. These offerings are driving measurable scale and efficiency, expanding Aarki's addressable market and improving returns for advertisers.
Expansion into adjacent verticals: Skillz and Aarki are positioned to extend beyond gaming into e-commerce, interactive entertainment, and retail media, leveraging their strengths in gaming and AI-driven ad tech.
Operational efficiency: Skillz improved operational efficiency across its competition platform and Aarki businesses, leveraging resources more effectively. The company also expanded its global team, particularly in its new India office.
Cost optimization: Sales and marketing expenses decreased 10% year-over-year, and G&A expenses decreased 4% year-over-year, reflecting ongoing cost optimization efforts.
Fair play initiative: Skillz is pursuing litigation against Papaya and Voodoo games for alleged bot usage, which undermines consumer trust. The court denied Papaya's motion for summary judgment, allowing Skillz's claims to proceed to trial.
Dispute with Tether: Skillz disclosed that two of Tether's games will remain on its platform for up to 18 months post-termination, with the option to host paid competitions during this period.
Delayed Financial Filings: The company has not yet completed its financial statements for multiple periods, including the annual report for 2024 and quarterly reports for 2025. This has led to non-compliance with NYSE listing standards, posing a risk of delisting.
NYSE Compliance Issues: Skillz received a notice from the NYSE for non-compliance with listing standards. Although the company is working to regain compliance, failure to do so could result in delisting, impacting investor confidence and stock liquidity.
Litigation Risks: The company is involved in ongoing litigation against competitors Papaya and Voodoo for alleged bot fraud. While these efforts aim to protect the industry, they could result in significant legal costs and resource allocation.
Dispute with Tether: Skillz is in a dispute with Tether regarding the hosting of two games on its platform. This could impact relationships with developers and the availability of popular games.
Declining Total MAU: While paying MAU has increased, total MAU has declined modestly, reflecting a focus on engagement quality over volume. This could limit the company's ability to scale its user base.
High Operating Losses: The company reported an adjusted EBITDA loss of $12 million for Q3 2025, which, although improved year-over-year, still represents a significant financial challenge.
Economic and Seasonal Pressures: The company faces higher traffic costs and competition for consumer attention during seasonal periods, which could impact profitability.
Dependence on Aarki's Growth: The company's path to profitability heavily relies on the growth and performance of its ad tech business, Aarki. Any slowdown in Aarki's momentum could adversely affect financial outcomes.
Developer Accelerator Program: The program continues to attract strong developer interest with additional titles in development expected to be showcased at the Game Developer Conference in March 2026. Some upcoming games will incorporate new technology aimed at energizing the developer community.
Aarki Ad Tech Business: Momentum continues with accelerating revenue growth supported by new AI-driven product launches across iOS and Android. Investments in machine and deep learning capabilities will expand its addressable market and improve returns on spend for advertisers.
India Office Expansion: The company is strengthening its global team with the expansion of its new India office.
Customer Acquisition and Monetization: Focus remains on acquiring and retaining quality paying players while driving efficient monetization. Initiatives include optimizing customer acquisition costs, improving marketing efficiency, and enhancing product-level monetization and retention.
Path to Profitability: Progress continues with Aarki's expanding advertiser base and improving yield, along with improvements in the competition platform. The company is positioning for profitable scaling once traffic is expanded more broadly.
Fair Play Initiative: Efforts to address bot fraud and protect the gaming ecosystem are ongoing, with litigation against competitors and disputes with Tether being pursued. These efforts are expected to positively impact financial performance.
Long-term Growth Opportunities: The combination of a scaled competitive gaming platform and AI-powered advertising technology positions the company to capture growth opportunities in adjacent verticals such as e-commerce, interactive entertainment, and retail media.
The selected topic was not discussed during the call.
The earnings call reveals several concerns: non-compliance with NYSE standards, ongoing litigation, delayed financial filings, and high operating losses. Despite some positive financial metrics and growth in paying MAU, these risks overshadow the positives. The Q&A session provided no additional clarity, and with no market cap data, the stock's reaction is uncertain. The risks, especially potential delisting, are significant enough to predict a negative stock price movement.
Despite improvements in sequential revenue and user engagement, the year-over-year decline in revenue and ongoing adjusted EBITDA losses indicate financial challenges. The strong cash position and focus on profitability are positives, but regulatory compliance risks and litigation uncertainties pose potential negative impacts. The absence of Q&A insights limits additional sentiment analysis. Overall, the mixed financial performance and strategic initiatives suggest a neutral stock price movement in the short term.
The earnings call summary highlights several negative factors: declining revenue and margins, increased net loss, and negative cash flow. Despite optimistic guidance and strategic initiatives like the Developer Accelerator Program and litigation efforts, these financial setbacks overshadow potential positive impacts. The share buyback program is a positive note, but competitive pressures and litigation risks pose significant challenges. The Q&A section revealed ongoing lawsuits and lack of clarity in some responses, further contributing to uncertainty. Overall, the negative financial performance and external risks suggest a negative stock price movement.
The earnings call reveals several negative indicators: a significant year-over-year revenue decline, ongoing litigation and regulatory risks, and substantial debt obligations. Despite operational improvements and a strong cash position, the lack of shareholder return initiatives and continued financial losses weigh heavily. The Q&A section did not provide clarity or alleviate concerns. These factors suggest a likely negative stock price movement in the short term.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
