Skillz (SKLZ) Q4 2025 earnings summary

Executive summary

• Q4 2025 GAAP revenue reached $30 million, up 11% sequentially and 67% year-over-year, marking four consecutive quarters of sequential revenue growth and a return to year-over-year growth in the second half of 2025.

• Full-year 2025 GAAP revenue was $105 million, a 13% increase from 2024.

• RZR (formerly Aarki) segment delivered 146% net revenue growth year-over-year and achieved positive adjusted EBITDA for the first time since acquisition, contributing to overall profitability improvements.

• Adjusted EBITDA loss improved to $10 million in Q4 and $51 million for the year, reflecting operational progress.

• Focused on integrating platform capabilities to scale engagement, monetization, and long-term value.

Financial highlights

• Q4 2025 revenue: $30 million; gross profit: $26.5 million; net loss: $17.9 million; adjusted EBITDA loss: $10 million.

• Full-year 2025 revenue: $104.5 million; gross profit: $91.4 million; net loss: $70.4 million; adjusted EBITDA loss: $50.5 million.

• Q4 adjusted EBITDA loss improved 17% quarter-over-quarter and 41% year-over-year.

• Ended Q4 2025 with $195 million in cash and $130 million in current debt.

• Q4 R&D expenses rose 78% year-over-year to $6 million; sales and marketing expenses increased 27% to $19 million.

Outlook and guidance

• Focus remains on scaling both Skillz and RZR platforms, driving operational efficiency, and progressing toward profitability.

• Evaluating strategic alternatives to optimize capital structure as debt matures later in 2026.

• Continued investment in product innovation and disciplined marketing spend.