LAS VEGAS--(BUSINESS WIRE)--August 07, 2025-- 

Skillz Inc. $(SKLZ)$ ("Skillz" or the "Company"), the leading mobile games platform provider bringing fair competition to players worldwide, today reported unaudited preliminary financial results for the second quarter ended June 30, 2025.

Preliminary Second Quarter Financial Update (Unaudited):

   --  Revenue of $27.4 million. 
 
   --  Gross profit of $24.2 million. 
 
   --  Net loss of $8.9 million. 
 
   --  Adjusted EBITDA1 loss of $10.4 million. 
 
   --  Paying monthly active users $(PMAU)$2 of 146,000. 
 
   --  Average Revenue Per Paying Monthly Active User (ARPPU)3 of $62.8. 
 
   --  Total costs and expenses excluding cost of revenue of $30.7 million. 

"Skillz's second quarter results build on the first quarter's progress towards our goal of delivering consistent top line growth and positive Adjusted EBITDA. This quarter we delivered 8% year-over-year revenue growth," said Andrew Paradise, Chief Executive Officer of Skillz. "We also saw 18% quarterly sequential and 20% year-over-year growth in paying monthly active users, the highest since the third quarter of 2023, reflecting our efforts to improve player engagement and retention. With our $75 million Developer Accelerator developer program well underway, we are identifying and investing in a variety of genres to broaden the scope of our offerings. Additionally, we remain committed to delivering across the four key pillars that we believe will generate significant long-term value for our shareholders."

Gaetano Franceschi, Chief Financial Officer of Skillz, added, "Our focus on disciplined operating expense management continues to drive year-over-year improvements in our Adjusted EBITDA loss. Our stable balance sheet, which included cash and restricted cash of more than $238 million as of quarter end, provides significant financial flexibility to continue investing in our strategic initiatives that we expect will help generate profitable revenue growth."

 
____________________ 
1. Adjusted EBITDA is a non-GAAP metric; for a reconciliation of each measure 
against its most comparable GAAP metric, please see the section titled "Use of 
Non-GAAP Financial Measures" in this press release. 
2. "Paying Monthly Active Users" or "PMAUs" means the number of end-users who 
entered into a paid contest hosted on Skillz's platform at least once in a 
month, averaged over each month in the period. 
3. "Average Revenue Per Paying Monthly Active User" or "ARPPU" means the 
average revenue in a given month divided by Paying MAUs in that month, 
averaged over the period and does not include a deduction for end-user 
incentives that are included in sales and marketing expense. 
 

Investor Conference Call

Skillz will host a live conference call at 4:30 p.m. ET today. To listen in to the audio-only webcast, please use the following link: https://events.q4inc.com/attendee/673089436. If you would like to participate and ask questions during the call, please register here: https://www.netroadshow.com/events/login/LE9zwo3gnEDwBoMHfPJRcil9pGrLrbUfVbA. After registering, you will receive an email with dial-in details along with a unique access code and PIN required to join the live call.

A replay of the webcast will be archived on the Company's investor relations website. An audio replay of the conference call will be available through Thursday, August 14, 2025, and can be accessed by dialing (866) 813-9403 (US) or (929) 458-6194 (international) and entering the passcode 258281.

About Skillz Inc.

Skillz is the leading mobile games platform dedicated to bringing out the best in everyone through competition. The Skillz platform helps developers create multi-million dollar franchises by enabling social competition in their games. Leveraging its patented technology, Skillz hosts billions of casual eSports tournaments for millions of mobile players worldwide, with the goal of building the home of competition for all. Skillz has earned recognition as one of Fast Company's Best Workplaces for Innovators, CNBC's Disruptor 50, Forbes' Next Billion-Dollar Startups, Fast Company's Most Innovative Companies, and the number-one fastest-growing company in America on the Inc. 5000. www.skillz.com

Use of Non-GAAP Financial Measures

In this press release, the Company includes Adjusted EBITDA loss, which is a non-GAAP performance measure that the Company uses to supplement its results presented in accordance with U.S. GAAP. The Company's management believes Adjusted EBITDA is useful in evaluating its operating performance and is a similar measure reported by publicly-listed U.S. competitors, and regularly used by securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. By providing this non-GAAP measure, the Company's management intends to provide investors with a meaningful, consistent comparison of the Company's profitability for the periods presented. Non-GAAP operating expense is also included in this press release, which is a non-GAAP financial measure. The Company's management believes non-GAAP operating expenses are useful to investors and analysts as a supplement to its financial information prepared in accordance with GAAP for analyzing operating performance and identifying operating trends in its business. The Company uses non-GAAP operating expenses internally to facilitate period-to-period comparisons and analysis in order to make operating decisions. As required by the rules of the SEC, the Company has provided herein a reconciliation of Adjusted EBITDA loss and non-GAAP operating expenses to the most directly comparable measures under GAAP. Adjusted EBITDA loss and non-GAAP operating expense are not intended to be substitutes for any U.S. GAAP financial measures and, as calculated, may not be comparable to other similarly titled financial measures of other companies in other industries or within the same industry.

The Company defines and calculates Adjusted EBITDA as net income (loss) before interest income (expense), net; (benefit from) provision for income taxes; depreciation and amortization, and other income (expense), net; as further adjusted for stock-based compensation and other special items determined by management, including, but not limited to, change in fair value of common stock warrant liabilities, impairment charges, loss contingency accruals, gain from litigation settlements, insurance recoveries and other one-time nonrecurring expenses. The Company defines and calculates non-GAAP operating expense as GAAP operating expenses adjusted for stock-based compensation, one-time transaction expenses and other special items determined by management, including, but not limited to certain loss contingency accruals and restructuring charges, as they are not indicative of business operations.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis as it is unable to provide a meaningful calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking U.S. GAAP financial measures that have not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. Forward-looking non-GAAP financial measures provided without the most directly comparable U.S. GAAP financial measures may vary materially from the corresponding U.S. GAAP financial measures.

Preliminary Results, Delayed 10-K and 10-Q Extension

The Company is in the process of completing its unaudited interim financial statement and other disclosures for the fiscal quarter ended June 30, 2025. Accordingly, we are announcing preliminary results for the second quarter of 2025, which are based on currently available information and are subject to revision as management completes its internal review. Actual results may differ from these preliminary financial results and other financial information due to the completion of our internal procedures, review by our independent public accounting firm, final adjustments and other developments that may arise between now and the time the results are finalized. In the event the Company determines it will not file its Quarterly Report on Form 10-Q by the prescribed deadline, it will file an extension on Form 12b-25 with the Securities and Exchange Commission (the "SEC").

In addition, the Company is still in the process of completing its financial statements and other disclosures for the fiscal year ended December 31, 2024 and quarter ended March 31, 2025. The Company previously filed a Form 12b-25 with the SEC for an extension of its Annual Report on Form 10-K for the year ended December 31, 2024 (the "Form 10-K") on March 17, 2025 and a Form 12b-25 with the SEC for an extension of its quarterly report on Form 10-Q for the quarter ended March 31, 2025 (the Form 10-Q) on May 13, 2025. As a result of the delayed filing of the Form 10-K, the Company announced on April 8, 2025, that it had received a notice (the "Notice") from the New York Stock Exchange ("NYSE") that the Company was not in compliance with Section 802.01E of the NYSE Listed Company Manual because of its failure to timely file the Form 10-K. The Notice has no immediate effect on the listing of the Company's common stock on the NYSE. The Notice informed the Company that, under NYSE rules, the Company has six months from March 17, 2025 to regain compliance with the NYSE listing standards by filing the Form 10-K with the SEC. The Company is working diligently to complete the necessary work to file the Form 10-K as soon as practicable and currently expects to file the Form 10-K within the six-month period granted by the NYSE Notice, and intends to take all necessary steps to achieve compliance with applicable NYSE listing standards as soon as practicable. Because our financial statements and other disclosures for the year ended December 31, 2024 are still

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