Skillz | 8-K: FY2026 Q1 Revenue: USD 29.11 M

Revenue: As of FY2026 Q1, the actual value is USD 29.11 M.

EPS: As of FY2026 Q1, the actual value is USD -0.69.

EBIT: As of FY2026 Q1, the actual value is USD -6.47 M.

Gross Profit

Gross profit was $25.5 million for the first quarter ended March 31, 2026.

Net Loss

Net loss was -$10.9 million for Q1 2026, improving from -$17.142 million in Q1 2025. Net loss in thousands was -$10,945 for Q1 2026, compared to -$17,142 for Q1 2025.

Adjusted EBITDA Loss

Adjusted EBITDA loss was -$12.8 million for Q1 2026, an improvement from -$17.256 million in Q1 2025. Excluding litigation-related expenses, adjusted EBITDA improved 15% quarter-over-quarter on a normalized basis.

Operating Expenses

Total operating expenses (excluding cost of revenue) were $41.8 million for Q1 2026. Cost of revenue was $3,597 thousand for Q1 2026, up from $2,965 thousand in Q1 2025. Research and development expenses were $5,063 thousand for Q1 2026, compared to $4,817 thousand in Q1 2025. Sales and marketing expenses were $17,283 thousand for Q1 2026, down from $18,005 thousand in Q1 2025. General and administrative expenses were $19,412 thousand for Q1 2026, compared to $19,083 thousand in Q1 2025. Total costs and expenses were $37,855 thousand for Q1 2026, compared to $37,370 thousand in Q1 2025.

Loss from Operations

Loss from operations was -$8,750 thousand for Q1 2026, an improvement from -$15,473 thousand in Q1 2025.

Other Financial Metrics

Interest expense, net of interest income, was -$2,280 thousand for Q1 2026, compared to -$1,071 thousand in Q1 2025. Other income (expense), net, was $159 thousand for Q1 2026, compared to -$559 thousand in Q1 2025. Loss before income taxes was -$10,871 thousand for Q1 2026, compared to -$17,103 thousand in Q1 2025. Provision for income taxes was $74 thousand for Q1 2026, compared to $39 thousand in Q1 2025. Gain from litigation settlement was -$7,500 thousand for both Q1 2026 and Q1 2025. Total comprehensive loss was -$11,871 thousand for Q1 2026, compared to -$17,142 thousand for Q1 2025.

Balance Sheet Highlights

Cash and cash equivalents were $185,401 thousand as of March 31, 2026, down from $194,513 thousand as of December 31, 2025. Total assets were $287,348 thousand as of March 31, 2026, compared to $293,455 thousand as of December 31, 2025. Total liabilities were $185,135 thousand as of March 31, 2026, compared to $181,635 thousand as of December 31, 2025. Total stockholders’ equity was $102,213 thousand as of March 31, 2026, compared to $111,820 thousand as of December 31, 2025.

Cash Flow

Net cash used in operating activities was -$6,736 thousand for Q1 2026, an improvement from -$10,931 thousand in Q1 2025. Net cash used in investing activities was -$965 thousand for Q1 2026, compared to -$1,727 thousand in Q1 2025. Net cash used in financing activities was -$485 thousand for Q1 2026, compared to -$4,924 thousand in Q1 2025. Cash, cash equivalents and restricted cash at the end of the period was $186,401 thousand for Q1 2026, compared to $264,341 thousand for Q1 2025. Cash paid for interest was $0 thousand for Q1 2026, compared to $11 thousand for Q1 2025. Cash paid for taxes, net of refunds received, was $11 thousand for Q1 2026, compared to $34 thousand for Q1 2025.

Operational Metrics

Paying monthly active users (PMAUs) were 128 thousand for Q1 2026, an increase from 124 thousand in Q1 2025. Average revenue per PMAU (ARPPU) was $76.0 for Q1 2026, up from $59.1 in Q1 2025. Gross marketplace volume (GMV) was $142,088 thousand for Q1 2026, compared to $126,485 thousand in Q1 2025. Monthly active users (MAUs) were 393 thousand for Q1 2026, down from 764 thousand in Q1 2025. Average GMV per PMAU was $371.2 for Q1 2026, compared to $341.3 in Q1 2025. Average GMV per MAU was $120.7 for Q1 2026, compared to $55.2 in Q1 2025. Average revenue per MAU (ARPU) was $24.7 for Q1 2026, compared to $9.6 in Q1 2025. The PMAU to MAU ratio was 33% for Q1 2026, up from 16% in Q1 2025. Average end-user incentives per PMAU were $21 for Q1 2026, compared to $22 in Q1 2025. Average end-user incentives per MAU were $7 for Q1 2026, compared to $4 in Q1 2025.

Outlook / Guidance

Skillz Inc. is evaluating strategic alternatives to optimize its capital structure as it progresses toward sustained profitability. The company anticipates a court ruling in June on a potential award ranging from $420 million to over $1.2 billion, following a federal jury finding against Papaya Gaming for false advertising. Skillz Inc. plans to update shareholders once more information regarding the final award becomes available.