Skillz Inc. Reports 11% Revenue Growth to $27.4 Million in Q3 2025

Skillz Inc. reported its financial results for the third quarter of 2025, revealing a revenue increase of 11% to $27.4 million, compared to $24.6 million in the same period last year. The growth was primarily driven by a significant rise in advertising revenue from its Aarki segment, which contributed $6.9 million, up from $3.1 million in the prior year. However, the Skillz segment experienced a decline in tournament services and other revenue, which fell by $1 million. Despite the revenue growth, the company reported a net loss of $17.4 million, an improvement from a loss of $21.1 million in Q3 2024.

For the nine months ending September 30, 2025, Skillz's total revenue decreased slightly by 1% to $74.5 million from $75.1 million in the previous year. This decline was attributed to a $9.5 million drop in tournament and service revenue from the Skillz segment, which was partially offset by an $8.9 million increase in advertising revenue from Aarki. The company's total costs and expenses surged by 26% to $122.2 million, largely due to increased research and development costs and a significant reduction in gains from litigation settlements, which fell from $46 million to $7.5 million.

Operationally, Skillz's user acquisition marketing expenses decreased to $12.4 million in the first nine months of 2025, down from $14.5 million in the same period of 2024. The company also reported a reduction in sales and marketing expenses, which totaled $51.8 million, down from $61.1 million. The total employee headcount as of September 30, 2025, was not disclosed, but the company has been focusing on optimizing its workforce in light of its financial performance.

In terms of liquidity, Skillz ended the quarter with $212.8 million in cash, cash equivalents, and restricted cash, a decrease from $281.9 million at the end of 2024. The company has been actively repurchasing shares, having bought back approximately 1.4 million shares for $7.7 million in the nine months ended September 30, 2025. Additionally, Skillz is navigating ongoing litigation, including a dispute with Tether, which accounted for 45% of its revenue in 2024. The outcome of this litigation could significantly impact the company's future revenue streams.

Looking ahead, Skillz remains focused on enhancing its competitive gaming platform and expanding its advertising capabilities through Aarki. The company is also working to regain compliance with the New York Stock Exchange listing requirements after receiving a notice of default due to delays in filing its financial reports. Management has expressed optimism about future growth, contingent on successful negotiations with key partners and continued investment in its technology and marketing strategies.