Skillz's Q2 2025: Contradictions in Financial Compliance, Revenue Growth, and Retention Strategies

Financial Filings and Compliance, Revenue Growth and Financial Performance, Churn and Retention Strategy are the key contradictions discussed in Skillz's latest 2025Q2 earnings call.



Revenue and Paying MAU Growth:
- Skillz Inc. reported GAAP revenue of $27 million for Q2 2025, up 30% sequentially and 8% year-over-year. Paying MAU reached 146,000, up 18% sequentially and 20% year-over-year.
- The growth was driven by new platform launches, effective marketing, and improved user acquisition costs.

Improved Financial Performance:
- Skillz reported an adjusted EBITDA loss of $10 million for Q2 2025, showing a 36% sequential and 17% year-over-year improvement.
- This improvement was attributed to increased revenue, improved operational efficiency, and reduced user acquisition costs.

Platform and Product Innovations:
- Skillz introduced several platform enhancements, including an improved loyalty program, ACH deposit and instant withdrawal, and the launch of Skillz Arcade.
- These innovations were implemented to boost player engagement, retention, and overall user experience, contributing to revenue growth.

AI-Powered Ad Tech Growth:
- Aarki, Skillz's AI-powered ad tech business, delivered two key innovations, expanding its addressable market and strengthening integration with the Skillz competition platform.
- The growth in Aarki's revenue was driven by advancements in SKAN4 native privacy-centric models and GPU-accelerated training on Android.