[Management View]
Skillz reported GAAP revenue of $27 million, up 9% QoQ and 11% YoY, driven by ARPU momentum and platform stability. Paying MAU reached 155,000, up 6% QoQ and 28% YoY. The company launched its first title through the $75 million Developer Accelerator Program and saw significant growth in its Arky ad tech business.

[Outlook]
Skillz aims to file its outstanding SEC reports by December 17, 2025, and achieve NYSE compliance. The company plans to showcase additional games at the March 2026 Game Developer Conference and continue expanding its AI-driven ad tech solutions.

[Financial Performance]
- GAAP revenue: $27 million, up 9% QoQ and 11% YoY
- Paying MAU: 155,000, up 6% QoQ and 28% YoY
- Adjusted EBITDA loss: $12 million, down 3% QoQ, up 15% YoY
- Net loss: $17 million, improved 17% YoY
- R&D expenses: $5 million, up 15% YoY
- Sales & marketing expenses: $17 million, down 10% YoY
- G&A expenses: $17 million, down 4% YoY
- Cash balance: $213 million, with $129.7 million in total debt principal

[Q&A Highlights]
Question 1: Can you provide more details on the progress of the Developer Accelerator Program and its impact on future growth?
Answer: The Developer Accelerator Program has attracted strong interest, with the first title, Solitaire Skillz, showing early promise. Additional titles are in development and will be showcased at the March 2026 Game Developer Conference. These games will incorporate new technology to energize the developer community and drive future growth.

Question 2: How is the Arky ad tech business performing, and what are the future plans for this segment?
Answer: Arky's net revenue grew over 100% YoY, supported by new AI-driven product launches across iOS and Android. The company will continue to invest in Arky's machine and deep learning capabilities to expand its addressable market and improve advertiser ROI.

Question 3: What is the status of the litigation with Papaya and Voodoo Games?
Answer: The court denied Papaya's motion for summary judgment, allowing Skillz's claims to proceed to trial. The company remains firm in its position against bot fraud and is committed to protecting the industry. The litigation with Voodoo Games is also ongoing.

Question 4: Can you elaborate on the dispute with Tether and its impact on the platform?
Answer: Two of Tether's games, Solitaire Cube and 21 Blitz, will remain on the platform for up to eighteen months following termination. Skillz has the option to host paid competitions during this period. The company is focused on maintaining platform integrity and supporting developers affected by bot fraud.

[Sentiment Analysis]
Analysts were cautiously optimistic, focusing on the company's progress in legal actions and operational improvements. Management maintained a confident tone, emphasizing strategic initiatives and growth potential.

[Quarterly Comparison]
| Metric | Q3 2025 | Q2 2025 | Q3 2024 |
|-------------------------|---------|---------|---------|
| GAAP Revenue | $27M | $25M | $24M |
| Paying MAU | 155,000 | 146,000 | 121,000 |
| Adjusted EBITDA Loss | $12M | $11M | $14M |
| Net Loss | $17M | N/A | $20.5M |
| R&D Expenses | $5M | N/A | $4.35M |
| Sales & Marketing Exp. | $17M | N/A | $18.9M |
| G&A Expenses | $17M | N/A | $17.7M |
| Cash Balance | $213M | N/A | N/A |
| Total Debt Principal | $129.7M | N/A | N/A |

[Risks and Concerns]
- Non-compliance with NYSE listing standards due to delays in SEC filings
- Ongoing litigation risks with Papaya, Voodoo Games, and Tether
- Potential impact of legal disputes on platform integrity and developer relations

[Final Takeaway]
Skillz demonstrated solid revenue growth and improvements in key metrics, driven by ARPU momentum and strategic initiatives. The company is making progress in its legal battles and operational efficiency, with a focus on expanding its ad tech business and supporting developer engagement. However, compliance issues and litigation risks remain significant concerns. Investors should monitor the company's ability to resolve these challenges and sustain growth.