10-K · March 31, 2026
Skillz positions itself as a combined competitive gaming platform (Skillz) and AI-driven performance marketing business (RZR, formerly Aarki), pursuing a transition from turnaround to sustainable growth. Revenue trended…
Earnings analysis · 10-Q
SKLZ earnings analysis
Filed May 15, 2026 · Our reading of the company's report
The latest report
Skillz Inc. reported a strong Q4 2026 with revenue of $30.01 million, significantly surpassing estimates of $26 million. Gross margins improved to 89.1%, and the loss per share of $1.07 was slightly better than the…
Read full summary
Skillz Inc. reported a strong Q4 2026 with revenue of $30.01 million, significantly surpassing estimates of $26 million. Gross margins improved to 89.1%, and the loss per share of $1.07 was slightly better than the expected loss. The company is seeing positive traction from its RZR performance marketing platform, but its underlying losses and litigation risks persist.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-1.07
- Gross margin
- 89.1%
What stood out
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Revenue Surges 33% YoY
Skillz recorded a revenue of $29.1 million for Q1 2026, up 33% from $21.9 million in Q1 2025.
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RZR Segment Growth
RZR segment revenue jumped 120%, reaching $9.8 million compared to $4.4 million a year ago.
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Reduced Operating Losses
Loss from operations narrowed to $8.75 million from $15.47 million year-over-year.
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Improved Cash Flow
Net cash used in operating activities decreased by $4.2 million to $6.7 million for Q1 2026.
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Increased Gross Margin
Gross margin improved to 89.1%, up from 88.3% in Q4 2025.
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Lawsuit Settlement Impact
A court's decision granted Skillz a $420 million win in the Papaya Gaming lawsuit potentially enhancing future financial stability.
What to watch
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Continued Operating Losses
Despite improvements, Skillz reported a net loss of $10.95 million, reflecting ongoing operational challenges.
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Litigation Risks
The company is involved in ongoing litigation with Tether that could significantly impact operations if not resolved favorably.
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High Operating Expenses
Operating expenses rose to $37.9 million, limiting profitability despite revenue gains.
Management's outlook
No explicit forward guidance was provided; outlook remains cautiously optimistic.
Earlier filings 4
10-Q · December 11, 2025
Skillz reported Q3 revenue of $27.374M, up 11.4% year-over-year and ~8% sequentially, driven by growth in the Aarki advertising business. Gross margin held high at 87.7% and operating loss narrowed to $(16.272)M, but…
10-K · August 29, 2024
Skillz positions itself as the "competition layer" for mobile gaming, selling a developer SDK and platform services (Skillz) and an AI ad business (Aarki) to drive monetization and retention. The company highlights…
10-Q · May 10, 2023
Skillz reported Q1 2023 revenue of $44,383,000 (down from $91,864,000 year-over-year) and a narrowed net loss of $35,593,000 (EPS $(0.09) vs $(0.37) year-over-year). The company materially cut operating costs (total…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.