SKLZ · Firy Inc.

Skillz Inc. reported first quarter 2026 results showing revenue growth to $29.1 million from $21.9 million in the prior year, driven by stronger fundamentals in both Skillz and RZR businesses, as noted by CFO Gaetano Franceschi. Gross profit reached $25.5 million, reflecting improved margins, while total operating expenses excluding cost of revenue were $41.8 million. The GAAP net loss narrowed to $10.9 million from $17.1 million year-over-year, with diluted EPS at $(0.69) versus $(1.05). Adjusted EBITDA loss was $12.8 million, but excluding litigation-related expenses, it improved 15% quarter-over-quarter on a normalized basis, with RZR achieving its third consecutive quarter of profitability. Key operational metrics included 128 thousand PMAUs and ARPPU of $76.0. A significant non-operating highlight was the April federal jury verdict awarding $420 million in actual damages against Papaya Gaming for false advertising—the largest under the Lanham Act—with potential total awards up to over $1.2 billion pending final court determinations in June. CEO Andrew Paradise emphasized progress in improving operations and combating industry fraud. Balance sheet remains solid with $185 million in cash and equivalents as of March 31, 2026, down from $194.5 million at year-end, amid $6.7 million operating cash usage. The company is evaluating strategic alternatives to optimize its capital structure toward sustained profitability. No forward guidance was provided in the release.