0001801661-26-000020
SEC filingSkillz Inc. delivered revenue growth in FY2025, driven by increased advertising technology demand, but faced significantly wider operating and net losses, reflecting ongoing investment in RZR and structural challenges within the Skillz segment.
Skillz Inc. reported total revenue of $104.5 million for FY2025, representing a 12.5% increase from $92.9 million in FY2024. This growth was primarily driven by higher advertising technology revenue stemming from greater demand, particularly within the RZR segment. According to management commentary, this reflects successful scaling of its performance marketing platform. However, this growth was partially offset by lower revenue from the Skillz segment, indicating persistent challenges in the core competitive gaming platform.
The company maintained a strong gross profit of $91.4 million, up 15.1% year-over-year, resulting in a gross margin of 87.5%. This high margin is consistent with the business model where cost of revenue consists largely of variable costs, and the company does not take ownership of inventory before ad delivery. Despite this operational efficiency at the gross level, operating income deteriorated to -$63.9 million from -$46.5 million, a 37.4% worsening. This reflects significant investments in sales and marketing, which include allocations of rent, maintenance, and utilities based on headcount, as noted in management’s discussion.