Skillz (SKLZ) Q1 2026 earnings summary

Executive summary

• Revenue grew 33% year-over-year to $29.1 million, driven by strong performance in 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.

• RZR (formerly Aarki) rebranded in March 2026, expanding its market positioning and capabilities.

• Jury verdict in April 2026 awarded $420 million in damages to Skillz in litigation against Papaya Gaming; court decision on final award pending, with potential proceeds up to $1.2 billion.

Financial highlights

• Revenue: $29.1 million, up from $21.9 million year-over-year.

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

• Adjusted EBITDA loss: $12.8 million, improved from $17.3 million year-over-year.

• Gross profit was $25.5 million, with gross margin of 87.6%.

• Cash and cash equivalents: $185.4 million as of March 31, 2026.

Outlook and guidance

• Management expects existing liquidity to be sufficient for short- and long-term operations.

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

• Future cash requirements depend on revenue growth, marketing spend, and potential acquisitions.

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