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Sep 30
Skillz Q3 2025 Earnings Report
Skillz reported preliminary financial results for the third quarter ended September 30, 2025.
Key Takeaways
Skillz delivered continued progress towards top-line growth and positive Adjusted EBITDA in Q3 2025, with revenue increasing 11% year-over-year and 9% sequentially. The company also saw a significant 28% year-over-year growth in paying monthly active users, reflecting stronger engagement and monetization across its platform.
Revenue for Q3 2025 was $27.4 million, showing 11% year-over-year and 9% sequential growth.
Paying Monthly Active Users (PMAU) reached 155,000, an increase of 28% year-over-year and 6% quarter-over-quarter.
Gross profit stood at $24.0 million, contributing to improved financial health.
Adjusted EBITDA loss improved to $11.8 million, compared to a loss of $13.9 million in Q3 2024, indicating better expense management.
Skillz
Skillz
Forward Guidance
Skillz is focused on delivering consistent top-line growth and positive Adjusted EBITDA, leveraging its platform business and accelerating growth from its ad tech engine, Aarki. The company aims to combine strengths in gaming and AI-driven ad-tech to expand into adjacent verticals.
Positive Outlook
- Continued execution in the platform business is expected to drive growth.
- Accelerating growth from the ad tech engine, Aarki, is a key driver.
- Combining strengths in gaming and AI-driven ad-tech is anticipated to create a powerful foundation.
- Expansion into adjacent verticals beyond gaming where performance marketing and content converge is a strategic goal.
- Focus on expense management and operational efficiency is expected to continue improving Adjusted EBITDA and maintaining a healthy balance sheet.
Challenges Ahead
- The company is in the process of completing its unaudited interim financial statements for Q3 2025, and actual results may differ from preliminary figures.
- Skillz has delayed filings for its 2024 Form 10-K and Q1 and Q2 2025 Form 10-Qs, leading to non-compliance with NYSE listing standards.
- The NYSE has granted an extension until December 17, 2025, for the company to become current with its SEC filings, but continued listing is subject to ongoing reassessment.
- The company is working to remediate certain not-fully remediated material weaknesses in internal controls over financial reporting during 2025.
- Ongoing litigation with Voodoo SAS, Papaya Gaming, and Tether Studios, LLC and Tether Games, Inc. poses commercial, reputational, and regulatory risks.