Revenue growth remains highly erratic, swinging from a 42.9% contraction in 2024Q4 to a 53.8% expansion in 2025Q4, while operating margins remain deeply negative at -55.8% as of 2026Q1.
| Sales/Revenue | 111.19M | 104.5M | 95.47M | 152.08M | 269.71M | 380.15M | 229.05M | 119.87M | 50.78M |
| Revenue Growth % | 23.48% | 9.46% | -37.23% | -43.61% | -29.05% | 65.97% | 91.08% | 136.07% | - |
| Cost of Goods Sold | 13.68M | 13.05M | 13.4M | 15.38M | 30.72M | 25.24M | 12.28M | 5.71M | 2.11M |
| COGS % of Revenue | - | 12.49% | 14.04% | 10.11% | 11.39% | 6.64% | 5.36% | 4.77% | 4.16% |
| Gross Profit | 97.51M | 91.45M | 82.06M | 136.7M | 238.99M | 354.91M | 216.77M | 114.16M | 48.67M |
| Gross Margin % | 87.69% | 87.51% | 85.96% | 89.89% | 88.61% | 93.36% | 94.64% | 95.23% | 95.84% |
| Gross Profit Growth % | - | 11.44% | -39.97% | -42.8% | -32.66% | 63.73% | 89.88% | 134.58% | - |
| Operating Expenses | 164.41M | 162.86M | 130.41M | 250.99M | 660.35M | 648.73M | 319.96M | 138.99M | 74.21M |
| OpEx % of Revenue | - | 155.86% | 136.61% | 165.04% | 244.84% | 170.65% | 139.69% | 115.95% | 146.15% |
| Selling, General & Admin | 143.54M | 142.24M | 159.22M | 219.51M | 440.03M | 602.49M | 296.73M | 127.75M | 66.66M |
| SG&A % of Revenue | - | 136.12% | 166.78% | 144.34% | 163.15% | 158.49% | 129.55% | 106.57% | 131.29% |
| Research & Development | 20.87M | 20.62M | 17.2M | 28.15M | 52.27M | 46.23M | 23.23M | 11.24M | 7.55M |
| R&D % of Revenue | - | 19.73% | 18.01% | 18.51% | 19.38% | 12.16% | 10.14% | 9.38% | 14.86% |
| Other Operating Expenses | 0 | 0 | -46M | 3.33M | 168.05M | 0 | 0 | 0 | -45K |
| Operating Income | -66.9M | -71.42M | -48.35M | -114.29M | -421.36M | -293.81M | -103.19M | -24.83M | -25.55M |
| Operating Margin % | -60.17% | -68.35% | -50.65% | -75.15% | -156.23% | -77.29% | -45.05% | -20.71% | -50.31% |
| Operating Income Growth % | - | -47.7% | 57.69% | 72.88% | -43.41% | -184.73% | -315.62% | 2.81% | - |
| EBITDA | -64.97M | -70.04M | -46.78M | -112.33M | -403.49M | -282.15M | -101.58M | -24.12M | -25.14M |
| EBITDA Margin % | -58.44% | -67.02% | -49.01% | -73.86% | -149.6% | -74.22% | -44.35% | -20.12% | -49.51% |
| EBITDA Growth % | -66.77% | -49.7% | 58.35% | 72.16% | -43% | -177.76% | -321.2% | 4.07% | - |
| D&A (Non-Cash Add-back) | 1.93M | 1.38M | 1.57M | 1.96M | 17.87M | 11.66M | 1.61M | 711K | 404K |
| EBIT | -57.48M | -55.05M | -94.35M | -98.27M | -412.68M | -205.84M | -147.64M | -21.11M | -25.59M |
| Net Interest Income | -7.02M | -5.82M | 298K | -2.85M | -26.55M | -1.22M | -1.32M | -2.5M | -2.19M |
| Interest Income | 3.53M | 9.43M | 15.41M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 10.55M | 15.24M | 15.11M | 2.85M | 26.55M | 1.22M | 1.32M | 2.5M | 2.19M |
| Other Income/Expense | 627K | 1.12M | 183K | 13.17M | -17.86M | 86.75M | -45.77M | 1.22M | -2.23M |
| Pretax Income | -66.28M | -70.3M | -48.17M | -101.12M | -439.22M | -207.06M | -148.96M | -23.61M | -27.78M |
| Pretax Margin % | -59.61% | -67.28% | -50.46% | -66.49% | -162.85% | -54.47% | -65.04% | -19.69% | -54.71% |
| Income Tax | 146K | 108K | 61K | 239K | -345K | -19.14M | 115K | 0 | -45K |
| Effective Tax Rate % | -0.22% | -0.15% | -0.13% | -0.24% | 0.08% | 9.24% | -0.08% | 0% | 0.16% |
| Net Income | -66.42M | -70.41M | -48.23M | -101.36M | -438.88M | -187.93M | -149.08M | -23.61M | -27.78M |
| Net Margin % | -59.74% | -67.38% | -50.52% | -66.65% | -162.72% | -49.43% | -65.09% | -19.69% | -54.71% |
| Net Income Growth % | -89.79% | -45.98% | 52.42% | 76.9% | -133.54% | -26.06% | -531.56% | 15.03% | - |
| Net Income (Continuing) | -66.42M | -70.41M | -48.23M | -101.36M | -438.88M | -187.93M | -149.08M | -23.61M | -27.78M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -4.20 | -4.51 | -2.70 | -4.85 | -21.41 | -9.34 | -7.87 | -2.06 | -4.18 |
| EPS Growth % | -96.33% | -67.04% | 44.33% | 77.35% | -129.23% | -18.68% | -282.04% | 50.72% | - |
| EPS (Basic) | - | -4.51 | -2.70 | -4.85 | -21.41 | -9.77 | -7.87 | -2.06 | -4.18 |
| Diluted Shares Outstanding | 15.83M | 15.61M | 17.85M | 20.89M | 20.5M | 19.43M | 18.49M | 14.45M | 6.65M |
| Basic Shares Outstanding | 15.83M | 15.61M | 17.85M | 20.89M | 20.5M | 19.23M | 18.49M | 14.45M | 6.65M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Regulatory reclassification of gaming
According to recent quarterly filings, SKLZ's revenue growth has exhibited significant volatility, swinging from a 42.9% contraction in 2024Q4 to a 53.8% expansion in 2025Q4, suggesting that top-line performance remains highly sensitive to marketing spend cycles rather than consistent organic user demand or platform adoption.
The erratic revenue trajectory indicates a business model that relies heavily on discretionary user acquisition rather than a compounding base of loyal players. Investors should monitor whether the recent shift toward engagement-based marketing can foster sustainable growth without the historical reliance on aggressive, high-cost promotional incentives.
As reported in financial statements, SKLZ maintains a structurally high gross margin, consistently hovering around 87% to 88%, which highlights the platform's efficiency as a software intermediary that avoids the heavy capital expenditures typically associated with game development or hardware manufacturing in the gaming sector.
While these gross margins are impressive, they appear insufficient to cover the massive operating expenses required to maintain the platform's competitive position. This disconnect suggests that the company's core value proposition may be fundamentally challenged by the high cost of customer acquisition and platform maintenance.
Based on the company's reported figures, operating income remains deeply negative, with SG&A expenses frequently exceeding gross profit, demonstrating a persistent inability to achieve the necessary scale to leverage fixed costs effectively despite the platform's inherent scalability as a digital-first gaming intermediary.
The failure to scale operating income alongside gross profit suggests that the company's current cost structure is heavily weighted toward variable marketing expenses. Without a significant reduction in customer acquisition costs, the path to operational break-even appears increasingly difficult to navigate in the current competitive environment.
Data from recent SEC filings reveals that SKLZ continues to utilize stock-based compensation, with quarterly figures reaching as high as $7.4M, which complicates the assessment of true economic profitability and suggests that reported net losses may understate the actual cost of talent retention and management incentives.
The consistent issuance of equity-based awards during periods of significant net losses warrants further investigation into the company's long-term capital allocation strategy. Investors should be wary of how these non-cash expenses impact the overall quality of earnings and the potential for future shareholder dilution.
Based on historical performance, short-sellers may focus on the company's inability to reach GAAP profitability, noting that the reliance on 'Bonus Cash' incentives may artificially inflate revenue figures while masking the underlying weakness in organic, cash-generative user engagement across the platform's primary titles.
The persistent gap between gross and operating profitability suggests that the current business model may be fundamentally unsustainable without continuous capital injections. Any regulatory shift that reclassifies the platform's core offerings could lead to a rapid erosion of the existing user base and revenue streams.
Quick answers to the most common questions about buying SKLZ stock.
For fiscal year 2025, Skillz Inc. (SKLZ) reported total revenue of $104.5M. This represents a 105.8% increase compared to $50.8M in 2018.
Skillz Inc. (SKLZ) reported a net loss of $70.4M for the fiscal year ending 2025.
Skillz Inc. (SKLZ) reported an operating income of $-71.4M, resulting in an operating profit margin of -68.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Skillz Inc. (SKLZ) generated $91.4M in gross profit for the year, representing a gross profit margin of 87.5%. This demonstrates the company's core pricing power and production efficiency.