Skillz Stock Earnings Reports

Q1 2026 highlights: GAAP revenue was $29M (down 3% QoQ, up 33% YoY). Adjusted EBITDA loss was $13M, driven higher by litigation expenses; excluding litigation, adjusted EBITDA improved to a $7M loss (15% QoQ improvement). Paying MAU (PMAU) was 128k (-9% QoQ, +3% YoY); management intentionally reduced user acquisition (UA) to focus on profitable, long-term players, which contributed to lower non-paying MAU but higher ARPPU and GMV growth. RZR (performance marketing) produced $2M adjusted EBITDA and continued to scale, adding advertisers and launching connected TV. Skillz completed the Beamable acquisition to provide developer tooling and integrate into a connected ecosystem (Skillz platform + RZR + Beamable). Litigation update: a jury found Papaya liable for false advertising, awarding $420M in actual damages with advisory disgorgement findings that could push total potential recovery to over $1.2B depending on the court’s disgorgement and enhancement decisions; the court will decide final amounts and ordered settlement talks. Balance sheet: $185M cash, $130M debt maturing by year-end; management is evaluating capital-structure alternatives and potential ways to secure value against any judgment. Strategic priorities for 2026: (1) strengthen demand & engagement (focus on retention / product-led growth and owned titles like Solitaire Skillz, Blackout Bingo, Dominoes Gold), (2) disciplined go-to-market with profitable UA and scaling RZR, and (3) improve platform performance and infrastructure (Pro SDK, ML/NN improvements at RZR). Management expects stabilized or improving traffic with better unit economics and continued focus on returning to sustained profitability.