Skillz Reports Q2 Revenue $27.4M, Adjusted EBITDA Loss $10.4M

Skillz reports Q2 revenue of $27.4M, exceeding one estimate of $22.8M, and an adjusted EBITDA loss of $10.4M. The company's revenue growth of 8% YoY and 20% YoY growth in paying monthly active users are highlighted. Skillz's $75M Developer Accelerator program is underway, and the company remains committed to four key pillars to generate long-term value for shareholders.

Skillz Inc. (NYSE: SKLZ), a mobile gaming platform, reported its second-quarter (Q2) 2025 financial results, showcasing significant improvements over analyst expectations. The company reported a loss of $0.58 per share, beating the Zacks Consensus Estimate of $1.34 [1]. Revenue for the quarter came in at $27.37 million, surpassing the Zacks Consensus Estimate by 20.05% [1].

Key highlights of Skillz's Q2 performance include:

- Revenue Growth: Skillz reported an 8.2% year-on-year (YoY) increase in revenue, exceeding analyst expectations by 19.9% [1]. This growth was driven by a 20.05% YoY increase in paying monthly active users (PMU) to 146,000 [1].
- Operational Improvements: The company's adjusted EBITDA loss improved by 25% to $10.39 million, compared to the previous quarter's $13.85 million [1]. This improvement was driven by a 38% margin beat, indicating better operational efficiency.
- Average Revenue Per User (ARPU): Despite the increase in PMU, ARPU declined by 9.5% to $62.80, suggesting that while more users were paying to play, the revenue generated per user decreased [1].

Skillz's $75M Developer Accelerator program is underway, and the company remains committed to four key pillars to generate long-term value for shareholders: innovation, user engagement, platform expansion, and strategic partnerships. The company's long-term growth prospects hinge on its ability to maintain and grow its user base while improving ARPU.

References:
[1] https://finance.yahoo.com/news/skillz-nyse-sklz-q2-strong-211507200.html
[2] https://www.nasdaq.com/articles/skillz-inc-sklz-reports-q2-loss-tops-revenue-estimates
[3] https://www.ainvest.com/news/skillz-q2-earnings-surpass-revenue-estimates-shares-rise-2508/