Skillz (NYSE:SKLZ) reported fourth-quarter and full-year 2025 results that management said reflected continued progress toward profitability, driven in part by accelerating growth in its AI ad tech segment, RZR, formerly known as Aarki.
Quarterly and full-year results show revenue growth and narrowing losses
For the fourth quarter of 2025, Skillz reported GAAP revenue of $30 million, up from $27 million in the third quarter and $18 million in the prior-year period. The company’s adjusted EBITDA loss was $10 million, improving from a $12 million loss in Q3 and a $17 million loss a year earlier.
For full-year 2025, Skillz reported GAAP revenue of $105 million, up from $93 million in 2024, representing 13% year-over-year growth. Adjusted EBITDA loss improved to $51 million from $61 million in 2024, which management said represented a 16% year-over-year improvement.
RZR rebrand and performance marketing momentum
In prepared remarks, management highlighted RZR as a key growth driver in 2025. The segment, which was rebranded from Aarki “last month,” delivered 146% net revenue growth year-over-year, and, for the first time since Skillz acquired the business in 2021, generated positive adjusted EBITDA for full-year 2025.
The company attributed the momentum to “stronger systems, deeper advertiser relationships, and disciplined channel growth.” Management also said it has spent the past two years modernizing RZR’s technology stack and scaling infrastructure, positioning it as “a scaled performance marketing platform.”
Skillz said RZR is increasing machine learning training capacity and improving “auction-level intelligence,” building on data models introduced in the second quarter of 2025. The company also said RZR is expanding its retargeting and user acquisition share while improving performance across channels. Management noted that RZR’s revenue growth is being driven by both existing and new customers, and that machine learning enhancements and campaign optimization contributed to margin expansion.
Platform updates, organization changes, and player metrics
Skillz outlined initiatives across what it described as four business pillars, including platform enhancements and organizational changes. On the core Skillz platform, the company said it continues to invest in content and developer tools. Management highlighted the debut of its “Pro SDK” at the Game Developers Conference in San Francisco, describing it as an architecture that expands the company’s development framework and provides developers “full creative control of the entire gameplay experience,” while also strengthening monetization through meta-game systems and leveraging Skillz’s competition and security infrastructure.
In its go-to-market discussion, Skillz reported paying monthly active users (PMAU) of 141,000, down from 155,000 in the third quarter but up from 110,000 in the prior-year period, representing 28% year-over-year growth.
During the Q&A, Jefferies equity research analyst Ed Alter asked about the shift between paying users and monetization trends. CFO Gaetano Franceschi said that in Q4, “one of our larger gaming developers” left the platform, contributing to the decline in paying MAU, while the company continued to increase “GMV per paying MAU.” Franceschi said that as Skillz drives better efficiencies in user acquisition, it plans to “rescale our UA spend and continue to grow also on our PMAU.”
Alter also referenced a disclosure in Skillz’s 10-K that the departing partner represented 51% of revenue last year, and asked how the transition to Skillz-branded versions of that content was progressing. Franceschi said the company does not disclose details of the transition, adding that when the partner left, some games departed immediately, while “the two larger games that are… the majority, call it 80%+, are there,” and Skillz is “in the process of transitioning to our own games.”
CEO Andrew Paradise also added that the company experienced a technical issue affecting some engagement and marketing technologies for its player base in Q4, and said the issue has been addressed. Paradise said investors were “seeing both effects in the change in PMAU in Q4.”
On the organizational front, management said operational efficiency continues to improve across both Skillz and RZR, and announced additions to its board of directors: Gary Vecchiarelli, president and CFO of CleanSpark, and Shannon Demus, CFO of the Americas at Light & Wonder. Skillz also said Jeff Shouger, former CFO of Niantic, joined the company’s board advisory group.
Expenses, net loss, and balance sheet
Franceschi said the fourth quarter “highlight[s] the benefits of disciplined execution and structural improvements across both the Skillz and RZR businesses.” He detailed several expense line items for Q4 2025:
- Research and development: $6 million, up 78% year-over-year
- Sales and marketing: $19 million, up 27% year-over-year
- General and administrative: $80 million, down 13% year-over-year
Skillz reported a Q4 2025 net loss of $18 million, which Franceschi said improved 27% year-over-year. Adjusted EBITDA loss improved both sequentially and year-over-year, which the company quantified as a 17% improvement quarter-over-quarter and a 41% improvement year-over-year.
On liquidity, the company ended Q4 2025 with $195 million in cash and cash equivalents and $130 million of debt outstanding, which Franceschi said is now classified as current. With the debt approaching maturity later in 2026, Skillz said it is evaluating “a range of strategic alternatives to optimize our capital structure.”
Fair play litigation update and settlement payments
Management also provided an update on its “fair play initiative,” reiterating that it is pursuing litigation against Papaya Gaming and Voodoo over alleged use of bots. The company said the Papaya trial is set for April 13, 2026 in the Southern District of New York.
Skillz also referenced its 2024 settlement with AviaGames. Management said the annual $7.5 million payment was received in the first quarter of 2026, bringing total payments received from AviaGames to $65 million to date. The company said it expects two additional $7.5 million payments in March 2027 and March 2028.
In closing remarks, management said 2025 was “a meaningful year of progress,” citing stabilized operations, improved discipline, and expanded technology foundations across Skillz and RZR. The company said it is focused on combining competitive skill gaming with AI-driven performance marketing to build an ecosystem designed to scale “engagement, data, and monetization with discipline.”
About Skillz (NYSE:SKLZ)
Skillz Inc (NYSE: SKLZ) operates a mobile e-sports platform that connects game developers, advertisers and players through skill-based competition. By integrating its software development kit into a variety of casual and midcore mobile titles, the company enables in-app tournaments and head-to-head matches in which users compete for virtual or cash prizes. Skillz’s marketplace also offers real-time leaderboards, live events and social features designed to enhance player engagement and retention.
The company’s core offering includes developer tools and analytics that help game studios monetize through entry fees, in-game purchases and ad revenue sharing.
