SKLZ earnings analysis
What we found in SKLZ's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Surges 33% YoY
- Skillz recorded a revenue of $29.1 million for Q1 2026, up 33% from $21.9 million in Q1 2025.
- RZR Segment Growth
- RZR segment revenue jumped 120%, reaching $9.8 million compared to $4.4 million a year ago.
- Reduced Operating Losses
- Loss from operations narrowed to $8.75 million from $15.47 million year-over-year.
- Improved Cash Flow
- Net cash used in operating activities decreased by $4.2 million to $6.7 million for Q1 2026.
- Increased Gross Margin
- Gross margin improved to 89.1%, up from 88.3% in Q4 2025.
- Lawsuit Settlement Impact
- A court's decision granted Skillz a $420 million win in the Papaya Gaming lawsuit potentially enhancing future financial stability.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Continued Operating Losses
- Despite improvements, Skillz reported a net loss of $10.95 million, reflecting ongoing operational challenges.
- Litigation Risks
- The company is involved in ongoing litigation with Tether that could significantly impact operations if not resolved favorably.
- High Operating Expenses
- Operating expenses rose to $37.9 million, limiting profitability despite revenue gains.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-1.07
- Gross margin
- 89.1%
- Segment
- Skillz: $19.7M
- Segment
- RZR: $9.8M
What they said about what is next.
No explicit forward guidance was provided; outlook remains cautiously optimistic.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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