Skillz (SKLZ) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $29.1 million, up 33% year-over-year, driven by both Skillz and RZR segments.

• Net loss narrowed to $10.9 million from $17.1 million year-over-year, reflecting improved operating results and a $7.5 million litigation settlement gain.

• Adjusted EBITDA loss was $12.8 million, improving 15% quarter-over-quarter excluding litigation expenses.

• Paying MAU was 128,000, down 9% sequentially but up 3% year-over-year; ARPU increased 7% quarter-over-quarter.

• Strategic focus on high-value, long-term users and disciplined user acquisition spend.

Financial highlights

• Q1 2026 GAAP revenue: $29.1 million, up from $21.9 million year-over-year.

• Adjusted EBITDA loss: $12.8 million, improved from $17.3 million year-over-year; excluding litigation expenses, loss improved to $7.1 million.

• Net loss: $10.9 million, improved from $17.1 million year-over-year.

• Ended Q1 with $185.4 million in cash and $129.7 million in debt maturing by year-end.

• No shares repurchased in Q1 2026; $23.4 million remains under the repurchase program.

Outlook and guidance

• Management expects a court ruling on the Papaya litigation award in June, with potential proceeds between $420 million and $1.2 billion.

• Focus remains on improving operating fundamentals and progressing toward sustained profitability.

• Management expects existing liquidity to be sufficient for operations; future cash needs depend on revenue growth, marketing spend, and acquisitions.

• Anticipate PMAU and traffic to stabilize or increase with improving unit economics.

• Evaluating alternatives to secure capital against the Papaya judgment.