Free cash flow remains consistently negative, reaching a low margin of -116.4% in 2024Q4, while the company continues to prioritize share repurchases despite ongoing operational cash burn.
| Cash from Operations | -64.58M | -68.93M | -7.07M | -71.76M | -179.6M | -180.15M | -56.23M | -21.94M | -16.95M |
| Operating CF Margin % | - | -65.96% | -7.41% | -47.18% | -66.59% | -47.39% | -24.55% | -18.3% | -33.38% |
| Operating CF Growth % | -224.51% | -874.37% | 90.14% | 60.05% | 0.31% | -220.38% | -156.33% | -29.44% | - |
| Net Income | -66.42M | -70.41M | -46.79M | -101.36M | -438.88M | -187.93M | -149.08M | -23.61M | -27.78M |
| Depreciation & Amortization | 1.93M | 1.38M | 1.67M | 1.96M | 17.87M | 11.66M | 1.61M | 711K | 404K |
| Stock-Based Compensation | 16.67M | 19.58M | 30.02M | 43.69M | 108.2M | 60.33M | 23.76M | 1.24M | 6.68M |
| Deferred Taxes | 0 | 0 | 0 | 0 | -698K | -19.38M | 0 | 0 | 45K |
| Other Non-Cash Items | 2.86M | 2.23M | 1.93M | -9.03M | 166.33M | -87.14M | 48.64M | -1.51M | 1.29M |
| Working Capital Changes | -30.79M | -21.7M | 6.11M | -7.03M | -32.43M | 42.29M | 18.84M | 1.23M | 2.42M |
| Change in Receivables | -11.8M | -9.51M | 831K | 1.24M | 5.59M | 931K | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -222K | 411K | 7.02M | 16K | -17.22M | 6.26M | 10.73M | -54K | 1.85M |
| Cash from Investing | -5.52M | -6.14M | -1.63M | 168.3M | 311.39M | -643.92M | -3.25M | -3.22M | -867K |
| Capital Expenditures | 845K | -1.4M | -2.76M | -13.24M | -1.89M | -3.24M | -3.25M | -3.22M | -867K |
| CapEx % of Revenue | 0.76% | 1.34% | 2.89% | 8.7% | 0.7% | 0.85% | 1.42% | 2.69% | 1.71% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | -83.99M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -6.36M | -4.73M | 0 | -2M | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -6.54M | -10.97M | -21.29M | -149.95M | -10.61M | 802.68M | 296.58M | 31.17M | 33.33M |
| Debt Issued (Net) | -270K | -462K | -502K | -1.1M | -2.61M | 279.31M | -10M | 6.06M | 14.92M |
| Equity Issued (Net) | -5.78M | -10.51M | -19.35M | -13M | 1.31M | 402.14M | 74.07M | 24.91M | 18.22M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -4.53M | -9.26M | -19.35M | -13M | 0 | 0 | -1.34M | 0 | 0 |
| Other Financing | -485K | 0 | -1.44M | -135.85M | -9.3M | 121.23M | 232.51M | 197K | 192K |
| Net Change in Cash | -77.94M | -86.41M | -30.11M | -53.41M | 121.18M | -21.4M | 237.1M | 6.01M | 15.52M |
| Free Cash Flow | -64.76M | -70.33M | -9.58M | -84.99M | -181.49M | -183.39M | -59.48M | -25.16M | -17.82M |
| FCF Margin % | -58.24% | -67.3% | -10.04% | -55.89% | -67.29% | -48.24% | -25.97% | -20.99% | -35.08% |
| FCF Growth % | -273.67% | -633.9% | 88.73% | 53.17% | 1.04% | -208.33% | -136.4% | -41.23% | - |
| FCF per Share | -4.09 | -4.51 | -0.54 | -4.07 | -8.85 | -9.44 | -3.22 | -1.74 | -2.68 |
| FCF Conversion (FCF/Net Income) | 0.97x | 0.98x | 0.15x | 0.71x | 0.41x | 0.96x | 0.38x | 0.93x | 0.61x |
| Interest Paid | 6.6M | 13.29M | 13.39M | 18.33M | 30.33M | 180K | 815K | 269K | 0 |
| Taxes Paid | 98K | 151K | 183K | 400K | 0 | 0 | 0 | 0 | 0 |
Regulatory reclassification of gaming
As reported in financial statements, the relationship between net income and operating cash flow remains inconsistent, with OCF/NI ratios fluctuating wildly from 0.16 to 2.35, indicating that reported earnings are frequently decoupled from the actual cash-generative capacity of the underlying platform's transactional business model.
The extreme volatility in the conversion ratio suggests that accounting accruals and non-cash adjustments, such as stock-based compensation, play an outsized role in the company's financial reporting. Investors should monitor whether this divergence reflects genuine operational timing differences or a persistent reliance on non-cash incentives to mask underlying cash burn.
Based on recent SEC filings, Skillz has struggled to maintain positive free cash flow, with margins reaching a low of -116.4% in 2024Q4, underscoring a business model that continues to consume capital at a rate that significantly outpaces its ability to generate organic cash from operations.
The trajectory of FCF remains deeply negative, with only a single quarter of positive performance in the provided data set. This trend suggests that the company's current scale is insufficient to cover its operating expenses, necessitating a fundamental shift in user acquisition strategy to achieve sustainable cash flow.
According to quarterly data, working capital changes have been highly erratic, swinging from a $12.8M inflow in 2024Q1 to a $17.1M outflow in 2025Q2, which highlights the platform's sensitivity to timing differences in developer payouts and user entry fee collections.
These swings in working capital suggest that the company's cash position is highly susceptible to the timing of platform activity and developer settlements. Such instability complicates cash flow forecasting and may indicate that the company lacks a stable, predictable cycle for managing its short-term liquidity requirements.
As indicated by financial disclosures, Skillz has continued to engage in share repurchases despite consistent operating cash outflows, with cumulative buybacks totaling millions of dollars across the observed periods, a strategy that appears to prioritize equity support over the preservation of the company's remaining cash runway.
The decision to allocate scarce cash to share repurchases while the core business remains cash-flow negative warrants further investigation by stakeholders. This deployment strategy may suggest a management focus on supporting the stock price that potentially conflicts with the need to fund long-term operational pivots or platform development.
Data from recent filings reveals that stock-based compensation has consistently added back millions to the cash flow statement, with quarterly figures reaching $8.7M, effectively obscuring the true economic cost of talent retention and the extent of the company's ongoing cash-generative challenges.
By treating SBC as a non-cash add-back, the reported operating cash flow figures may present a more favorable picture than the company's actual cash position would otherwise suggest. Investors should adjust for these expenses to understand the true magnitude of the capital required to sustain the current organizational structure.
Quick answers to the most common questions about buying SKLZ stock.
Skillz Inc. (SKLZ) generated $-68.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Skillz Inc. (SKLZ) reported negative free cash flow of $70.3M in 2025, indicating capital requirements exceeded cash from operations.
Skillz Inc. (SKLZ) spent $1.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Skillz Inc. (SKLZ) spent $9.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.