Skillz Inc. reported a total revenue of $104.5 million for the fiscal year ending December 31, 2025, marking a 13% increase from $92.9 million in 2024. This growth was primarily driven by a significant rise in revenue from its RZR segment, which surged by 153% to $26.3 million, attributed to increased demand for advertising technology services. Conversely, revenue from the Skillz segment decreased by 5% to $78.2 million, largely due to reduced tournament play and lower average entry fees. The company continues to face challenges in achieving profitability, with a net loss of $70.4 million in 2025, compared to a loss of $46.8 million in the previous year.
In terms of operational metrics, Skillz reported approximately 541,853 monthly active users (MAUs) and 141,658 paying monthly active users (PMAUs) in 2025. The average gross marketplace volume (GMV) per PMAU was $319.8, while the average revenue per PMAU (ARPPU) was $61.7. The company’s engagement marketing expenses decreased to $34.0 million in 2025 from $37.0 million in 2024, reflecting a strategic shift to optimize user acquisition costs. Additionally, Skillz's employee headcount stood at 370 as of December 31, 2025, indicating a focus on maintaining a skilled workforce amid ongoing operational challenges.
Strategically, Skillz has made significant moves, including the rebranding of its performance marketing platform Aarki to RZR in March 2026, which aims to enhance its market positioning. The company is also involved in ongoing litigation with Tether regarding the termination of agreements that could impact its revenue from key games. Skillz has filed a lawsuit against Tether, asserting that the termination notice is invalid and that it seeks to protect its interests in games like Solitaire Cube and 21 Blitz, which are crucial to its revenue stream.
Looking ahead, Skillz aims to transition from a turnaround phase to sustainable growth, focusing on expanding its developer partnerships and enhancing its platform capabilities. The company is also addressing material weaknesses in its internal controls over financial reporting, which were identified in its recent filings. Management has committed to implementing remediation plans to strengthen its financial reporting processes and ensure compliance with regulatory requirements. Despite these challenges, Skillz remains optimistic about its future prospects, particularly in leveraging its unique competitive gaming platform to drive user engagement and revenue growth.
About Skillz Inc.
Skillz Inc. operates a platform that enables game developers to monetize mobile multiplayer and skill-based games through competitive contests, live tournaments, and social features. It emphasizes fair play, anti-fraud measures, and user engagement, serving a global community of developers and players. The company focuses on democratizing competitive gaming, fostering trust, and expanding the mobile gaming market with innovative technology and strategic developer partnerships.
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