FIRY INC., 10-Q filed on 8/19/2026
Quarterly Report
v3.26.1
Cover - shares
 6 Months Ended
Jun. 30, 2026
Aug. 07, 2026
Entity Listings [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2026  
Document Transition Report false  
Entity File Number 001-39243  
Entity Registrant Name FIRY INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 84-4478274  
Entity Address, Address Line One 6625 Badura Ave  
Entity Address, City or Town Las Vegas  
Entity Address, State or Province NV  
Entity Address, Postal Zip Code 89118  
City Area Code 415  
Local Phone Number 762-0511  
Title of 12(b) Security Class A common stock, par value $0.0001 per share  
Trading Symbol FIRY  
Security Exchange Name NYSE  
Entity Current Reporting Status No  
Entity Interactive Data Current No  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Amendment flag false  
Central Index Key 0001801661  
Entity Fiscal Year Focus 2026  
Entity Fiscal Period Focus Q2  
Current Fiscal Year End --12-31  
Class A Common Stock    
Entity Listings [Line Items]    
Entity Common Stock, Shares Outstanding   13,192,194
Class B Common Stock    
Entity Listings [Line Items]    
Entity Common Stock, Shares Outstanding   3,430,063
v3.26.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2026
Dec. 31, 2025
Current assets:    
Cash and cash equivalents $ 163,991 $ 194,513
Accounts receivable, net of allowance for credit losses of $258 as of June 30, 2026 and December 31, 2025 18,693 14,412
Prepaid expenses and other current assets 6,283 7,553
Total current assets 188,967 216,478
Non-current assets:    
Property and equipment, net 21,020 20,776
Operating lease right-of-use assets, net 3,771 1,082
Non-marketable equity securities 52,768 52,768
Restricted cash, non-current 1,000 1,000
Other non-current assets 4,169 1,351
Total non-current assets 82,728 76,977
Total assets 271,695 293,455
Current liabilities:    
Accounts payable 5,558 9,713
Operating lease liabilities, current 837 465
Current portion of long-term debt 128,646 127,589
Other current liabilities 48,818 42,944
Total current liabilities 183,859 180,711
Non-current liabilities:    
Operating lease liabilities, non-current 3,104 665
Other non-current liabilities 264 259
Total non-current liabilities 3,368 924
Total liabilities 187,227 181,635
Commitments and contingencies (Note 8)
Stockholders’ equity:    
Preferred stock $0.0001 par value; 10.0 million shares authorized — no shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 0 0
Common stock $0.0001 par value; 31.3 million shares authorized; Class A common stock – 25.0 million shares authorized; 20.1 million and 19.3 million shares issued; 13.0 million and 12.2 million outstanding as of June 30, 2026 and December 31, 2025, respectively; Class B common stock – 6.3 million shares authorized; 3.4 million shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 1 1
Additional paid-in capital 1,252,926 1,245,462
Accumulated other comprehensive income (loss) 233 (371)
Accumulated deficit (1,127,086) (1,091,666)
Treasury stock at cost, 7.1 million and 7.1 million shares as of June 30, 2026 and December 31, 2025, respectively (41,606) (41,606)
Total stockholders’ equity 84,468 111,820
Total liabilities and stockholders’ equity $ 271,695 $ 293,455
v3.26.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2026
Dec. 31, 2025
Allowance for credit losses $ 258 $ 258
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized (in shares) 10,000,000.0 10,000,000.0
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 31,300,000 31,300,000
Treasury stock (in shares) 7,100,000 7,100,000
Class A Common Stock    
Common stock, shares authorized (in shares) 25,000,000.0 25,000,000.0
Common stock, shares issued (in shares) 20,100,000 19,300,000
Common stock, shares outstanding (in shares) 13,000,000.0 12,200,000
Class B Common Stock    
Common stock, shares authorized (in shares) 6,300,000 6,300,000
Common stock, shares issued (in shares) 3,400,000 3,400,000
Common stock, shares outstanding (in shares) 3,400,000 3,400,000
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Income Statement [Abstract]        
Revenue $ 30,992 $ 25,214 $ 60,097 $ 47,111
Costs and expenses:        
Cost of revenue 3,911 3,220 7,508 6,184
Research and development 6,888 4,840 11,951 9,658
Sales and marketing 13,592 16,431 30,875 34,436
General and administrative 28,168 16,706 47,580 35,789
Gain from litigation settlement 0 0 (7,500) (7,500)
Total costs and expenses 52,559 41,197 90,414 78,567
Loss from operations (21,567) (15,983) (30,317) (31,456)
Interest expense, net of interest income (2,424) (1,321) (4,704) (2,392)
Other (expense) income, net (388) (637) (229) (1,196)
Loss before income taxes (24,379) (17,941) (35,250) (35,044)
Provision for (benefit from) income taxes 96 (19) 170 20
Net loss $ (24,475) $ (17,922) $ (35,420) $ (35,064)
Loss per share attributable to common stockholders:        
Basic (in dollars per share) $ (1.52) $ (1.16) $ (2.22) $ (2.21)
Diluted (in dollars per share) $ (1.52) $ (1.16) $ (2.22) $ (2.21)
Weighted average shares outstanding:        
Basic (in shares) 16,074,260 15,491,239 15,953,829 15,888,064
Diluted (in shares) 16,074,260 15,491,239 15,953,829 15,888,064
Other comprehensive income:        
Foreign currency translation gain $ 1,530 $ 0 $ 604 $ 0
Total other comprehensive income 1,530 0 604 0
Total comprehensive loss $ (22,945) $ (17,922) $ (34,816) $ (35,064)
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
$ in Thousands
Total
Common stock
Additional paid-in capital
Accumulated other comprehensive loss (income)
Accumulated deficit
Treasury Stock
Beginning balance (in shares) at Dec. 31, 2024   16,736,904        
Beginning balance at Dec. 31, 2024 $ 173,036 $ 1 $ 1,226,642 $ 0 $ (1,021,258) $ (32,349)
Beginning balance (in shares) at Dec. 31, 2024           5,416,418
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net loss (17,142)       (17,142)  
Stock-based compensation 5,646   5,646      
Stock repurchased (in shares)   (845,564)       (845,564)
Shares repurchased (4,732)         $ (4,732)
Ending balance (in shares) at Mar. 31, 2025   15,891,340        
Ending balance at Mar. 31, 2025 156,808 $ 1 1,232,288 0 (1,038,400) $ (37,081)
Ending balance (in shares) at Mar. 31, 2025           6,261,982
Beginning balance (in shares) at Dec. 31, 2024   16,736,904        
Beginning balance at Dec. 31, 2024 173,036 $ 1 1,226,642 0 (1,021,258) $ (32,349)
Beginning balance (in shares) at Dec. 31, 2024           5,416,418
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net loss (35,064)          
Ending balance (in shares) at Jun. 30, 2025   15,310,227        
Ending balance at Jun. 30, 2025 140,343 $ 1 1,236,721 0 (1,056,322) $ (40,057)
Ending balance (in shares) at Jun. 30, 2025           6,847,506
Beginning balance (in shares) at Mar. 31, 2025   15,891,340        
Beginning balance at Mar. 31, 2025 156,808 $ 1 1,232,288 0 (1,038,400) $ (37,081)
Beginning balance (in shares) at Mar. 31, 2025           6,261,982
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net loss (17,922)       (17,922)  
Stock-based compensation 4,409   4,409      
Stock repurchased (in shares)   (585,524)       (585,524)
Shares repurchased (2,976)         $ (2,976)
Employee stock purchase plan (in shares)   4,411        
Employee stock purchase plan 24   24      
Ending balance (in shares) at Jun. 30, 2025   15,310,227        
Ending balance at Jun. 30, 2025 140,343 $ 1 1,236,721 0 (1,056,322) $ (40,057)
Ending balance (in shares) at Jun. 30, 2025           6,847,506
Beginning balance (in shares) at Dec. 31, 2025   15,629,912        
Beginning balance at Dec. 31, 2025 $ 111,820 $ 1 1,245,462 (371) (1,091,666) $ (41,606)
Beginning balance (in shares) at Dec. 31, 2025 7,100,000         7,114,485
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net loss $ (10,945)       (10,945)  
Stock-based compensation 2,749   2,749      
Restricted stock vesting, net of shares withheld (in shares)   235,611        
Restricted stock vesting, net of shares withheld (485)   (485)      
Foreign currency translation (926)     (926)    
Ending balance (in shares) at Mar. 31, 2026   15,865,523        
Ending balance at Mar. 31, 2026 102,213 $ 1 1,247,726 (1,297) (1,102,611) $ (41,606)
Ending balance (in shares) at Mar. 31, 2026           7,114,485
Beginning balance (in shares) at Dec. 31, 2025   15,629,912        
Beginning balance at Dec. 31, 2025 $ 111,820 $ 1 1,245,462 (371) (1,091,666) $ (41,606)
Beginning balance (in shares) at Dec. 31, 2025 7,100,000         7,114,485
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net loss $ (35,420)          
Exercise of options (in shares) 7,002          
Ending balance (in shares) at Jun. 30, 2026   16,455,911        
Ending balance at Jun. 30, 2026 $ 84,468 $ 1 1,252,926 233 (1,127,086) $ (41,606)
Ending balance (in shares) at Jun. 30, 2026 7,100,000         7,114,485
Beginning balance (in shares) at Mar. 31, 2026   15,865,523        
Beginning balance at Mar. 31, 2026 $ 102,213 $ 1 1,247,726 (1,297) (1,102,611) $ (41,606)
Beginning balance (in shares) at Mar. 31, 2026           7,114,485
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net loss (24,475)       (24,475)  
Stock-based compensation 6,975   6,975      
Restricted stock vesting, net of shares withheld (in shares)   583,386        
Restricted stock vesting, net of shares withheld (1,796)   (1,796)      
Foreign currency translation 1,530     1,530    
Exercise of options (in shares)   7,002        
Exercise of options 21   21      
Ending balance (in shares) at Jun. 30, 2026   16,455,911        
Ending balance at Jun. 30, 2026 $ 84,468 $ 1 $ 1,252,926 $ 233 $ (1,127,086) $ (41,606)
Ending balance (in shares) at Jun. 30, 2026 7,100,000         7,114,485
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Operating Activities    
Net loss $ (35,420) $ (35,064)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 1,711 361
Stock-based compensation 9,776 9,912
Accretion of unamortized debt discount and amortization of debt issuance costs 1,057 939
Non-cash lease expense 369 85
Provision for (recoveries of) bad debt 1 (8)
Changes in operating assets and liabilities:    
Accounts receivable, net (4,282) (4,080)
Prepaid expenses and other assets 1,302 9,567
Accounts payable (4,137) (1,184)
Operating lease liabilities (247) (10,658)
Other accruals and liabilities 5,218 (1,611)
Net cash used in operating activities (24,652) (31,741)
Investing Activities    
Purchases of property and equipment (82) (1,840)
Capitalization of software development costs (1,890) (1,588)
Asset acquisitions (2,240) 0
Net cash used in investing activities (4,212) (3,428)
Financing Activities    
Principal payments on finance leases obligations 0 (389)
Repurchase of common stock 0 (7,708)
Proceeds from exercise of stock options 21 0
Restricted stock vesting, net of shares withheld (2,281) 0
Net cash used in financing activities (2,260) (8,097)
Effect of exchange rates on cash and cash equivalents 602 0
Net change in cash, cash equivalents and restricted cash (30,522) (43,266)
Cash, cash equivalents and restricted cash – beginning of year 195,513 281,923
Cash, cash equivalents and restricted cash – end of period 164,991 238,657
Supplemental cash disclosures    
Cash paid for interest 6,646 6,668
Cash paid for taxes, net of refunds received 100 51
Supplemental non-cash disclosures    
Purchases of property and equipment included in accounts payable 40 55
Asset acquisition consideration included in other accruals and liabilities 610 0
Stock-based compensation capitalized in software development costs $ 0 $ 143
v3.26.1
Description of the Business and Basis of Presentation
 6 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of the Business and Basis of Presentation Description of the Business and Basis of Presentation
Business
Firy Inc. (the “Company,” “Firy,” “we,” “us,” or “our”) is a global holding company and the parent of its operating businesses, including Skillz and RZR. Firy is built to fuel business potential and operates at the intersection of content, identity, commerce and performance marketing. The Company leverages first-party data, enterprise-scale infrastructure and scalable operating systems, with a disciplined focus on capital efficiency and long-term value creation.
Skillz operates a proprietary, online-hosted, multi-player platform that enables players worldwide to compete in games (“Competitions”). The platform hosts both games developed by third-party developers and games that Skillz itself owns and operates. Skillz provides third-party developers with a software development kit (“SDK”) that they download and integrate with their existing games. The SDK serves as a data interface between Skillz, developers and players that enables Skillz to provide monetization services, including end-user registration services, player matching, fraud and fair play monitoring, and billing and settlement services. In addition to enabling third-party developers, Skillz develops, publishes, and operates its own first-party games on the platform, which represents a meaningful portion of platform activity.
In March 2026, the Company’s Aarki business rebranded as RZR. The rebrand reflects expanded capabilities and market positioning; there was no change to the entity’s legal structure or control. RZR is an artificial-intelligence-powered demand-side platform that provides data-driven user acquisition, retargeting, and advertising optimization services across mobile and other digital channels. RZR applies proprietary machine learning models to improve advertising performance for its customers.
Basis of Presentation
The Company’s condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The Company believes the disclosures made are adequate to make the information presented not misleading.
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all adjustments of a normal and recurring nature that are, in the opinion of the Company’s management, necessary for the fair presentation of the results of operations for the interim periods.
Operating results for the three and six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Reclassifications
Certain prior year amounts have been reclassified or changed to conform to the current-year presentation. Such reclassifications had no impact on previously reported net loss.
v3.26.1
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2026
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions that affect the amounts reported in these condensed consolidated financial statements and the accompanying notes. Estimates are used in several areas including, but not limited to, end-user incentives, including Bonus Cash and Ticketz accruals, indirect tax liabilities, the fair value of non-marketable securities, and the impairment of long-lived assets. The Company bases these estimates on historical experience and various other assumptions
that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities. The actual results may materially differ from these estimates.
Revenue Recognition
The Company recognizes revenue for its services in accordance with the FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). For additional information, see Note 3, “Revenue”.
Cost of Revenue
Cost of revenue primarily consists of third-party payment processing fees, server costs, amortization of developed technology, personnel expenses, direct software costs, amortization of internal use software, hosting expenses, and allocation of shared facility and other costs.
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents consist of cash, commercial paper, money market funds and U.S. government agency securities with maturities of three months or less when purchased.
Restricted cash consists of cash maintained under an agreement that legally restricts the use of such funds.
The following table provides a reconciliation of the Company’s cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets that sum to the total of the same such amount shown on the condensed consolidated statements of cash flows for the six months ended June 30, 2026:
June 30,December 31,
20262025
Cash, cash equivalents and restricted cash
Cash$20,307 $10,101 
Money market funds143,684 184,412 
Restricted cash - non-current1,000 1,000 
Total cash, cash equivalents and restricted cash$164,991 $195,513 
Concentrations of Credit Risk
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash, cash equivalents, restricted cash, and marketable securities. Although the Company deposits its cash with multiple established financial institutions, the deposits, at times, may exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company limits the amount of credit exposure to any one issuer and monitors the financial condition of the financial institutions on a regular basis.
Accounts Receivable, Net
Accounts receivable, net, primarily consist of amounts recorded for programmatic media campaigns, net of an allowance for credit losses from our advertising revenue customers of our RZR segment. The allowance for credit losses is recorded as an offset to accounts receivable and changes in such are classified as general and administrative expense in the condensed consolidated statements of operations and comprehensive loss. The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when there are specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status and makes judgments about the creditworthiness of customers based on ongoing credit evaluations. The Company also considers customer-specific information, current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss data.
The activity in our allowance for credit losses for the six months ended June 30, 2026 and 2025 is as follows:
20262025
Beginning balance for credit losses$257 $273 
Provision for bad debt1 — 
Recoveries— (8)
Ending balance for credit losses$258 $265 
Two customers of RZR accounted for approximately 29% of the accounts receivable balance as of June 30, 2026, with each customer accounting for at least 10% of the total.
Four customers of RZR accounted for approximately 46% of the accounts receivable balance as of December 31, 2025, with each customer accounting for at least 10% of the total.
Long-Lived Assets
Long-lived assets primarily consist of property and equipment with estimable useful lives subject to depreciation and amortization.
The Company owns its office building in Las Vegas, Nevada that serves as its headquarters with costs allocated to building and land components. The building is depreciated on a straight-line basis over its estimated useful life of 39 years and the land is not subject to depreciation.
Investments
The Company considers all highly liquid interest-earning investments with a maturity of three months or less at the date of purchase to be cash equivalents. The fair values of these investments approximate their carrying values. In general, investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year are classified as non-current marketable securities. Dividend and interest income are recognized when earned.
Non-marketable equity securities are investments in privately held companies without readily determinable fair values. We have accounted for these investments using the measurement alternative. Under the measurement alternative, the equity investment is initially recorded as its allocated cost, but the carrying value may be adjusted through earnings upon an impairment or when there is an observable price change involving the same or a similar investment with the same issuer. The carrying value of the Company’s investments without readily determinable fair values was $52.8 million as of June 30, 2026 and December 31, 2025, respectively, and are classified as non-marketable equity securities on the condensed consolidated balance sheets.
The Company did not record any other adjustments to the carrying value of its non-marketable equity securities accounted for under the measurement alternative and did not recognize any gains or losses related to the sale of non-marketable equity securities for the three and six months ended June 30, 2026 and 2025, respectively.
Investment Components
Investments consisted of the following as of June 30, 2026 and December 31, 2025:
As of June 30, 2026
Adjusted Cost BasisUnrealized GainsUnrealized LossesFair ValueCash and Cash EquivalentsMarketable Securities -
Current		Marketable Securities -
Non-current
Money market funds$143,684 $— $— $143,684 $143,684 $— $— 
Total investments$143,684 $— $— $143,684 $143,684 $— $— 
As of December 31, 2025
 Adjusted Cost BasisUnrealized GainsUnrealized LossesFair ValueCash and Cash EquivalentsMarketable Securities -
Current		Marketable Securities -
Non-current
Money market funds$184,412 $— $— $184,412 $184,412 $— $— 
Total investments$184,412 $— $— $184,412 $184,412 $— $— 
Advertising and Promotional Expense
Advertising and promotional expenses are included in sales and marketing expenses within the condensed consolidated statements of operations and comprehensive loss and are expensed when incurred. Advertising expenses, excluding marketing promotions related to the Company’s end-user incentive programs, were $1.5 million and $3.9 million for the three months ended June 30, 2026 and 2025, respectively and $5.1 million and $8.9 million for the six months ended June 30, 2026 and 2025, respectively.
User Acquisition
User acquisition (“UA”) marketing costs to acquire new paying users to the platform are included in sales and marketing expenses in the consolidated statements of operations and comprehensive loss. UA marketing costs were $1.3 million and $3.6 million for the three months ended June 30, 2026 and 2025, respectively, and $4.4 million and $8.1 million for the six months ended June 30, 2026 and 2025, respectively.
Interest Expense, Net of Interest Income
Interest expense, net of interest income, consisted of the following for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Interest expense, net of interest income
Interest expense$(3,859)$(3,805)$(7,703)$(7,601)
Interest income1,435 2,484 2,999 5,209 
Total interest expense, net of interest income$(2,424)$(1,321)$(4,704)$(2,392)
Indirect Tax Liabilities
The Company is subject to indirect taxes such as sales and use tax in the United States and value-added tax in certain foreign jurisdictions, respectively. Indirect tax liabilities are adjusted considering changing facts and circumstances, such as the closing of a tax examination, further interpretation of existing tax law, or new tax law. The Company recognizes changes to its estimate if it is estimable and probable that its position would not be sustainable upon examination by tax authorities. Although management believes the Company’s recorded liabilities are reasonable, no assurance can be given that the final tax outcomes of these matters will not be different from those which its liabilities are based on. To the extent that final tax outcomes of these matters are different than the amounts recorded, such differences could have a material impact on the Company’s condensed consolidated financial statements as the Company records related tax reserves as a reduction in revenue, and penalties and interest in general and administrative expenses. Indirect tax liabilities, recorded in other current liabilities, totaled $8.4 million and $12.6 million at June 30, 2026 and December 31, 2025, respectively. See Note 8, “Commitments and Contingencies” for additional information.
401(k) Plan
The Company has a 401(k) Plan that qualifies as a deferred salary arrangement under Section 401 of the Internal Revenue Code. Under the 401(k) Plan, participating employees may defer a portion of their pretax earnings and receive a matching employer contribution of up to 3% of compensation not to exceed the maximum amount allowable. The Company recognized expense under this plan of $0.1 million and $0.4 million for the three months ended June 30, 2026 and 2025, respectively and $0.2 million and $0.5 million for the six months ended June 30, 2026 and 2025, respectively.
Recently Adopted Accounting Standards and Updates
In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires public entities to disclose specific tax rate reconciliation categories, as well as income taxes paid disaggregated by jurisdiction, amongst other disclosure enhancements. ASU 2023-09 is effective for financial statements issued for annual periods beginning after December 15, 2024. The amendments in ASU 2023-09 should be applied on a prospective basis and retrospective application is permitted. The Company adopted this update in the fourth quarter of 2025 and has prospectively applied the disclosure requirement in its consolidated financial statements.
Recently Issued Accounting Pronouncements Not Yet Adopted
In November 2024, the FASB issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which requires public entities to disclose disaggregated information about certain costs and expenses in the notes to their financial statements in both annual and interim filings. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The amendments in ASU 2024-03 can be applied either prospectively or retrospectively. The Company is currently evaluating the disclosure requirements related to this accounting standard update.
In September 2025, the FASB issued ASU 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software,” which modernizes the recognition and disclosure framework for internal-use software costs, removing the previous “development stage” model and introduces a more judgment-based approach. ASU 2025-06 is effective for financial statements issued for annual periods beginning after December 15, 2027 and interim periods within those fiscal years. The amendments in ASU 2025-06 can be early adopted and should be applied using either the prospective, modified, or retrospective transition approach. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.
v3.26.1
Revenue
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
The following tables present the Company’s revenues, disaggregated by offering, geographical region, and reportable segment for the three and six months ended June 30, 2026 and 2025. Revenue by geographical region is based on the location where the game developer or advertising customer is headquartered. Revenue is recognized net of any taxes from customers (e.g., sales and other indirect taxes), which are subsequently remitted to governmental entities. For more information on revenues presented by reportable segment, see Note 12, “Segment Reporting”.
Three Months Ended June 30, 2026
SkillzRZRTotal
Revenue From Customers:
Entry Fee Revenue$20,142 $— $20,142 
Advertising Revenue— 10,349 10,349 
Other Revenue:
Subscription Service Revenue247 — 247 
Maintenance Fee Revenue382 — 382 
Total Revenue$20,771 $10,349 $31,120 
United States$19,506 $3,769 $23,275 
Other Countries1,265 6,580 7,845 
Total Revenue$20,771 $10,349 $31,120 
Elimination(1)
(128)
Consolidated$30,992 
1.Elimination of RZR intercompany revenues, which were generated within the United States.
Three Months Ended June 30, 2025
SkillzRZRTotal
Revenue From Customers:
Entry Fee Revenue$19,056 $— $19,056 
Advertising Revenue— 5,916 5,916 
Other Revenue:
Maintenance Fee Revenue309 — 309 
Total Revenue$19,365 $5,916 $25,281 
United States$18,064 $1,740 $19,804 
Other Countries1,301 4,176 5,477 
Total Revenue$19,365 $5,916 $25,281 
Elimination(1)
(67)
Consolidated$25,214 
1.Elimination of RZR intercompany revenues, which were generated within the United States.
Six Months Ended June 30, 2026
SkillzRZRTotal
Revenue From Customers:
Entry Fee Revenue$39,372 $— $39,372 
Advertising Revenue— 20,105 20,105 
Other Revenue:
Subscription Service Revenue375 — 375 
Maintenance Fee Revenue651 — 651 
Total Revenue$40,398 $20,105 $60,503 
United States$38,148 $6,723 $44,871 
Other Countries2,250 13,382 15,632 
Total Revenue$40,398 $20,105 $60,503 
Elimination(1)
(406)
Consolidated$60,097 
1.Elimination of RZR intercompany revenues, which were generated within the United States.
Six Months Ended June 30, 2025
SkillzRZRTotal
Revenue From Customers:
Entry Fee Revenue$36,208 $— $36,208 
Advertising Revenue— 10,355 10,355 
Other Revenue:
Maintenance Fee Revenue750 — 750 
Total Revenue$36,958 $10,355 $47,313 
United States$34,362 $3,264 $37,626 
Other Countries2,596 7,091 9,687 
Total Revenue$36,958 $10,355 $47,313 
Elimination(1)
(202)
Consolidated$47,111 
1.Elimination of RZR intercompany revenues, which were generated within the United States.
Revenues from Entry Fees
The Company generates revenues through its competition-based Skillz segment by providing a service to game developers for monetization of their game content. The monetization service provided by Skillz allows developers to offer multi-player competition to their end-users for the purpose of end-user retention and engagement. Skillz provides developers with a software development kit (“SDK”) they can download and integrate with their existing games. The SDK serves as a data interface between Skillz and the game developers that enables Skillz to provide monetization services to the developer. In addition to services provided to game developers, Skillz develops, publishes, and operates its own first-party games on the platform. There have been no material changes from the revenue recognition accounting policies previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025 except for the revenue recognition accounting policies related to our owned and operated games, which now represent a meaningful portion of platform activity.
Games provided by two developer partners accounted for 63% and 68% of the Company’s consolidated revenue for the three and six months ended June 30, 2026, respectively, with each developer partner accounting for at least 10% of the total.
Games provided by three developer partners accounted for 69% and 70% of the Company’s consolidated revenue for the three and six months ended June 30, 2025, respectively, with each developer partner accounting for at least 10% of the total.
End-User Incentive Programs
To drive traffic to its platform, the Company provides promotions and incentives to end-users in various forms. Evaluating whether a promotion or incentive is a payment to a customer may require significant judgment. Certain promotions and incentives, which are consideration payable to customers, are recognized as a reduction of revenue at the later of when revenue is recognized or when the Company pays or promises to pay the incentive. The Company recognized a reduction of revenue related to these end-user incentives of $3.2 million and $4.2 million for the three and six months ended June 30, 2026, respectively, and $2.0 million and $4.8 million for the three and six months ended June 30, 2025, respectively.
Promotions and incentives recorded as sales and marketing expenses are recognized when we incur the related cost. The Company recognized sales and marketing expense related to end-user incentives of $5.9 million and $13.5 million for the three and six months ended June 30, 2026, respectively, and $8.1 million and $17.6 million for the three and six months ended June 30, 2025, respectively.
From time to time, the Company issues credits or refunds to end-users who are dissatisfied with the level of service provided by the game developer. There is no contractual obligation for the Company to refund such end-users nor is there a valid expectation by game developers for the Company to issue such credits or refunds to end-users on their behalf. The Company accounts for credits or refunds, which are not recoverable from the game developer, as sales and marketing expenses when incurred.
Advertising Revenue
The Company offers a technology platform (i.e., demand-side platform, “DSP”) to source available advertising space from its network of vendors / suppliers (aka, advertising exchange partners / publishers), which uses a real-time auction process, to provide user acquisition and retargeting solutions for its customers. Revenue from advertising is recognized based on the number of impressions delivered on behalf of the customer as the performance obligation is satisfied. The Company considers itself the agent of its customer(s) based on the Company’s role in programmatically sourcing and placing advertisements on behalf of customers via a network of third-party publishers. The Company does not, at any time, take ownership of the advertising inventory being sourced and placed. Via the DSP, if the Company wins the auction and an impression is served, the customer’s advertisement is displayed on the publisher / supplier’s mobile application. There have been no material changes from the revenue recognition accounting policies previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
For performance obligations related to advertising revenue, customers are typically extended 30 day payment terms from completion of each month’s insertion order and no advertising revenue customers accounted for more than 10% of the Company’s revenue for the three and six months ended June 30, 2026 and 2025, respectively.
The Company recognizes an asset for incremental costs of obtaining a contract with the customer as long as management expects to recover these costs. Incremental costs are those that would have not been incurred if the contract did not exist. Examples of incremental costs often capitalized are sales commissions, whereas examples of costs that would not be included are internal employee salaries, standard benefits, travel costs, and other / general legal costs. Sales commissions are the only incremental contract costs the Company incurs and are paid based on collected revenue based on the recipient’s assigned accounts. As commissions are typically satisfied within one year after an executed contract, the Company applies the practical expedient to expense these costs as incurred.
Subscription Service Revenue
The Company offers a modern backend and live operations platform, which is purpose-built for scalable, live-service games. Revenue from subscription services is recognized over the term of the contract.
Maintenance Fee Revenue
When a player becomes inactive on the platform by not participating in a tournament for six consecutive months, the Company imposes a monthly maintenance fee. This fee is charged to the player and recognized as revenue by the Company beginning in the seventh month of inactivity.
v3.26.1
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases Leases
The Company is a party to various non-cancelable operating lease agreements for certain of its offices. The leases have original lease periods expiring between 2026 to 2031. Some leases include one or more options to renew. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. The lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.
The Company has elected the short-term lease recognition exemption for all leases that qualify. For leases with an initial term of 12 months or less that do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise, the Company does not recognize ROU assets or lease liabilities. Instead, lease payments for short-term leases are recognized as expense on a straight-line basis over the lease term.
The components of lease costs, lease term and the discount rate were as follows for the three and six months ended June 30, 2026 and 2025, respectively:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Finance leases
Amortization of assets under finance leases$— $— $— $— 
Interest— 6 — 17 
Total finance lease costs$— $6 $— $17 
Operating lease cost$369 $341 $526 $692 
Variable lease cost$4 $52 $27 $152 
Short-term lease rent expense$639 $704 $1,375 $1,411 
June 30,December 31,
20262025
Weighted-average remaining lease term
Operating leases4.02.3
Finance leases0.00.0
June 30,December 31,
20262025
Weighted-average discount rate
Operating leases10.5 %10.1 %
Finance leases— %— %
Supplemental cash flow information related to leases for the three and six months ended June 30, 2026 and 2025, respectively:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cash paid for amounts included in the measurement of lease liabilities:
Payments for operating leases included in cash from operating activities$242 $738 $397 $1,412 
Payments for finance leases included in cash from operating activities$— $6 $— $17 
Payments for finance leases included in cash from financing activities$— $197 $— $389 
Assets obtained in exchange for lease obligations:
Operating leases$3,090 $— $3,090 $— 
Finance leases$— $— $— $— 
The following table outlines future minimum lease payments under the Company’s non-cancellable leases as of June 30, 2026:
Operating Leases
2026$630 
20271,348 
20281,215 
2029903 
2030828 
2031255 
Total undiscounted cash flows5,179 
Less: Imputed interest(1,238)
Present value of lease liabilities$3,941 
Lease liabilities, current$837 
Lease liabilities, non-current3,104 
Present value of lease liabilities $3,941 
As of June 30, 2026, the Company does not have any operating or finance leases which have not yet commenced.
Leases Leases
The Company is a party to various non-cancelable operating lease agreements for certain of its offices. The leases have original lease periods expiring between 2026 to 2031. Some leases include one or more options to renew. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. The lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.
The Company has elected the short-term lease recognition exemption for all leases that qualify. For leases with an initial term of 12 months or less that do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise, the Company does not recognize ROU assets or lease liabilities. Instead, lease payments for short-term leases are recognized as expense on a straight-line basis over the lease term.
The components of lease costs, lease term and the discount rate were as follows for the three and six months ended June 30, 2026 and 2025, respectively:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Finance leases
Amortization of assets under finance leases$— $— $— $— 
Interest— 6 — 17 
Total finance lease costs$— $6 $— $17 
Operating lease cost$369 $341 $526 $692 
Variable lease cost$4 $52 $27 $152 
Short-term lease rent expense$639 $704 $1,375 $1,411 
June 30,December 31,
20262025
Weighted-average remaining lease term
Operating leases4.02.3
Finance leases0.00.0
June 30,December 31,
20262025
Weighted-average discount rate
Operating leases10.5 %10.1 %
Finance leases— %— %
Supplemental cash flow information related to leases for the three and six months ended June 30, 2026 and 2025, respectively:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cash paid for amounts included in the measurement of lease liabilities:
Payments for operating leases included in cash from operating activities$242 $738 $397 $1,412 
Payments for finance leases included in cash from operating activities$— $6 $— $17 
Payments for finance leases included in cash from financing activities$— $197 $— $389 
Assets obtained in exchange for lease obligations:
Operating leases$3,090 $— $3,090 $— 
Finance leases$— $— $— $— 
The following table outlines future minimum lease payments under the Company’s non-cancellable leases as of June 30, 2026:
Operating Leases
2026$630 
20271,348 
20281,215 
2029903 
2030828 
2031255 
Total undiscounted cash flows5,179 
Less: Imputed interest(1,238)
Present value of lease liabilities$3,941 
Lease liabilities, current$837 
Lease liabilities, non-current3,104 
Present value of lease liabilities $3,941 
As of June 30, 2026, the Company does not have any operating or finance leases which have not yet commenced.
v3.26.1
Balance Sheet Components
 6 Months Ended
Jun. 30, 2026
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Balance Sheet Components Balance Sheet Components
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following as of June 30, 2026 and December 31, 2025:
June 30,December 31,
20262025
Credit card processing reserve$1,000 $1,000 
Prepaid expenses3,391 5,423 
Other current assets1,892 1,130 
Prepaid expenses and other current assets$6,283 $7,553 
Property and Equipment, Net
Property and equipment consisted of the following as of June 30, 2026 and December 31, 2025:
June 30,December 31,
20262025
Land$980 $980 
Building12,880 12,831 
Capitalized internal-use software15,167 13,459 
Computer equipment and servers4,776 3,202 
Furniture and fixtures378 378 
Leasehold improvements131 122 
Construction in progress702 2,246 
Total property and equipment35,014 33,218 
Accumulated depreciation and amortization(13,994)(12,442)
Property and equipment, net$21,020 $20,776 
Property and equipment, net by geography was as follows:
June 30,December 31,
20262025
United States$20,535 $20,350 
Other countries485426 
Total$21,020 $20,776 
Asset Acquisitions
Asset acquisitions are included in other non-current assets on our condensed consolidated balance sheets and consisted of the following as of June 30, 2026 and December 31, 2025:
June 30,December 31,
20262025
Game titles$2,850 $— 
Developed technology278 — 
Total asset acquisitions3,128 — 
Accumulated amortization(154)— 
Asset acquisitions, net$2,974 $— 
Other Current Liabilities
Other current liabilities consisted of the following as of June 30, 2026 and December 31, 2025:
June 30,December 31,
20262025
Accrued publisher fees$12,443 $6,367 
End-user liability, net8,916 8,177 
Accrued compensation5,639 4,475 
Indirect tax liabilities8,371 12,635 
Accrued legal expenses7,086 2,422 
Accrued operating expenses3,368 5,787 
Accrued developer revenue share799 912 
Deferred asset acquisition consideration610 — 
Accrued interest expenses554 554 
Accrued sales and marketing expenses365 1,084 
Short-term lease obligations2 2 
Other665 529 
Other current liabilities$48,818 $42,944 
v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
As of June 30, 2026 and December 31, 2025, the recorded values of cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate their respective fair values due to the short-term nature of the instruments.
Cash and money market funds are classified within Level 1 of the fair value hierarchy.
Assets measured at fair value on a recurring basis consisted of the following as of June 30, 2026 and December 31, 2025:
Fair Value Measurements as of June 30, 2026
Level 1Level 2Level 3Total
Assets:
Cash equivalents:
Money market funds$143,684 $— $— $143,684 
Total assets$143,684 $— $— $143,684 
Fair Value Measurements as of December 31, 2025
Level 1Level 2Level 3Total
Assets:
Cash equivalents:
Money market funds$184,412 $— $— $184,412 
Total assets$184,412 $— $— $184,412 
v3.26.1
Long-Term Debt
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt
Long-term debt consisted of the following as of June 30, 2026 and December 31, 2025:
June 30,December 31,
20262025
2021 Senior Secured Notes$129,671 $129,671 
Unamortized discount and issuance costs(1,025)(2,082)
Total debt after discount and issuance costs128,646 127,589 
Current portion of long-term debt(128,646)(127,589)
Long-term debt, net$— $— 
2021 Senior Secured Notes
On December 20, 2021, the Company issued $300 million of 10.25% secured notes (the “2021 Senior Secured Notes”) in a private placement to certain institutional buyers. The 2021 Senior Secured Notes are guaranteed by the Company’s domestic restricted subsidiaries. Interest on the 2021 Senior Secured Notes is payable semiannually on June 15 and December 15 of each year, beginning on June 15, 2022. At issuance, the effective interest rate on the 2021 Senior Secured Notes was 12.14%, and maturity will be on December 15, 2026, unless repurchased or redeemed earlier.
On April 13, 2023, the Company repurchased approximately $159.8 million of its 2021 Senior Secured Notes. After giving effect to the 2023 and other previous open market repurchases, the effective interest rate on the 2021 Senior Secured Notes was 12.09%.
The 2021 Senior Secured Notes contain customary covenants restricting the Company’s ability to incur debt, incur liens, make distributions to stockholders, make certain transactions with the Company’s affiliates, together with other financial covenants and public filings of the Company’s financial statements. We were in compliance with all covenants applicable to the 2021 Senior Secured Notes as of June 30, 2026 and December 31, 2025, respectively.
Voluntary prepayments are permitted in whole, or in part, in minimum amounts as set forth in the indenture governing the 2021 Senior Secured Notes, with prior notice. Voluntary prepayments made on, or during, the twelve-month period beginning December 15, 2025 are not subject to a prepayment premium.
Debt issuance costs incurred in connection with the 2021 Senior Secured Notes are capitalized and amortized to interest expense over the five-year term using the straight-line method, which approximates the effective interest method. Debt issuance costs are included as contra-liabilities in long-term debt.
Amortization of debt issuance costs and accretion of debt discounts included in interest expense totaled $1.1 million and $0.9 million for the six months ended June 30, 2026 and 2025, respectively.
The 2021 Senior Secured Notes are classified as Level 2 financial instruments and the Company determined the fair value of the notes was $130.0 million as of June 30, 2026 based on secondary market quotes.
The following table outlines maturities of the principal related to the Company’s long-term debt as of June 30, 2026:
Amount
Maturities of borrowings
2026$129,671 
Total$129,671 
On August 14, 2026, the Company redeemed $80.0 million in aggregate principal amount of the Company’s outstanding 2021 Senior Secured Notes. Refer to Note 14, “Subsequent Events” for further discussion.
v3.26.1
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Legal Matters
The Company is a party to certain claims, suits, and proceedings which arise in the ordinary course and conduct of its business and has certain unresolved claims pending, the outcomes of which are not determinable at this time. The Company records a liability when it believes that it is probable that a loss will be incurred and the amount can be reasonably estimated. If the
Company determines that a loss is reasonably possible and the loss or range of loss can be reasonably estimated, the Company discloses the possible loss or range of loss. Given the unpredictable nature of legal proceedings, there is a reasonable possibility that an unfavorable resolution of one or more such proceedings could in the future materially affect the results of operations, cash flows, or financial position in a particular period. The Company records legal fee expenses associated with such matters when the relevant services are provided.
Skillz v. AviaGames
On February 9, 2024, a federal jury in San Jose, California issued a verdict in favor of Skillz in a patent infringement action Skillz brought against a privately-held mobile gaming company, AviaGames, on April 5, 2021 (“Patent Case”). The jury found in favor of Skillz on all issues, determining AviaGames willfully infringed Skillz’s U.S. Patent No. 9,649,564, entitled “Peer-to-Peer Wagering Platform” (the “‘564 patent”) and awarding Skillz its full damages request of $42.9 million. After the jury verdict was issued, Skillz requested certain post-trial relief, including that the Court permanently enjoin AviaGames from continuing to infringe the ‘564 patent, award Skillz its attorneys’ fees due to the exceptional nature of the case, and treble the damages awarded by the jury. In addition, Skillz, along with game developer Big Run Studios, Inc. (“Big Run”), brought a separate case against AviaGames for false advertising, copyright infringement, and violations of California’s state unfair competition law in federal court in San Francisco, California (“Unfair Competition Case”). On April 13, 2024, Skillz, Big Run, and AviaGames entered into a settlement agreement with respect to both the Patent Case and Unfair Competition Case pending against AviaGames (the “Litigation Settlement”). In exchange for dismissal of both actions and other settlement terms, AviaGames agreed to pay Skillz and Big Run a total of $80.0 million. On April 12, 2024, the Company and Big Run Studio entered into a Side Letter Agreement providing that a portion of the AviaGames settlement funds allocated to Big Run Studio be utilized to repay the outstanding principal and accrued interest under a loan and security agreement totaling $2.0 million.
During the year ended December 31, 2024, the Company and Big Run collectively received $50.0 million from AviaGames pursuant to the settlement agreement. Of the $50.0 million received, Skillz received $48.0 million, $2.0 million of which was for settlement of the amount outstanding under the loan and security agreement with Big Run. Of the $4.0 million allocated to Big Run under the Side Letter Agreement, Big Run received $2.0 million net of the settlement of the loan and security agreement. Beginning in March of 2025, AviaGames is required to pay Skillz an additional $7.5 million annually over a four-year period as royalty payments for AviaGames’ license of the ‘564 patent and its patent family; no portion of these payments are due to Big Run.
During the three months ended March 31, 2026 and 2025, the Company recorded a gain from the Litigation Settlement of $7.5 million when payment was received. Under the terms of the settlement agreement, the Company is scheduled to receive annual payments of $7.5 million each year through March 2028. Since gain contingencies are not recognized until realized, the Company recognizes amounts under the settlement as a gain when payment is received. The remaining scheduled payments of $15.0 million, consisting of $7.5 million payable in each of March 2027 and March 2028, have not been recognized in the accompanying condensed consolidated financial statements.
Skillz v. Tether Studios, et al.
On August 29, 2025, the Company received a notice (“Notice”) from Tether Studios, LLC (“Tether”) indicating that Tether is terminating all of its agreements with the Company (“Tether Agreements”), including the Company’s Developer Terms and Conditions of Service, as amended, effective as of September 1, 2025. The Company believes the termination notice for cause is invalid and that Tether breached its obligations under the Tether Agreements. Certain of the Tether Agreements restrict the removal of two games covered thereby, Solitaire Cube and 21 Blitz, from the Company’s platform for at least 18 months following termination.
Following receipt of the Notice, on September 1, 2025, the Company filed suit in the Court of Chancery of the State of Delaware, seeking injunctive and declaratory relief in relation to Tether’s breach of the Tether Agreements. On October 3, 2025, the Company filed a first amended complaint in the Court of Chancery of the State of Delaware alleging additional breaches of contract and damages. On October 10, 2025, Tether filed its answer to Skillz’s first amended complaint and also asserted counterclaims against Skillz for breach of contract, breach of the implied covenant of good faith trademark infringement, and under Delaware’s deceptive trade practices act. On March 3, 2026, Skillz filed a second amended complaint, adding Aim Games, LLC (“Aim Games”) to the complaint, which Skillz alleges is an alter ego or controlled affiliate of Tether. Skillz alleges that Aim Games impermissibly hosted monetization services for Tether’s games in violation of the Tether Agreements. Skillz asserted breach of contract claims against both Tether and Aim Games, and tortious interference claims against Aim Games. Skillz seeks equitable relief and damages arising out of its claims. The deadline to serve written discovery requests was June 17, 2026, with document production due July 30, 2026. Fact discovery is scheduled to conclude on
September 2, 2026, and expert discovery is due October 28, 2026. Trial is currently scheduled for December 2-4, 2026, but is likely to be delayed until 2027, as the parties have scheduled a court-ordered mediation for September 9, 2026. Based on the information known by the Company, any such estimated loss range is not possible to determine.
Hanna v. Paradise, et al.
In March 2024, an alleged stockholder filed a putative derivative complaint, Hanna v. Paradise, et al., No. 2024-0228-KSJM, in the Delaware Court of Chancery, purportedly on behalf of Skillz against certain of Skillz’s current and former officers, directors, and certain stockholders. The complaint alleges breaches of fiduciary duties, aiding and abetting breaches of fiduciary duties, and unjust enrichment arising out of Skillz’s March 2021 underwritten secondary public offering. The complaint asserts that certain of the director and officer defendants breached fiduciary duties to Skillz by allegedly inappropriately selling stock as part of the public offering while in possession of material, non-public information, that the stockholder defendants aided and abetted these alleged breaches of fiduciary duties, and that all defendants were unjustly enriched by their sales in the public offering. The complaint seeks unspecified damages and restitution for Skillz from the defendants and the payment of costs and attorneys’ fees. Defendants moved to dismiss the complaint on June 6, 2024. Plaintiffs responded by voluntarily dismissing 55 of the stockholder defendants but opposing the motion as to all remaining defendants. Briefing on the motion to dismiss was completed at the end of August 2024. The court heard oral arguments on the motion to dismiss on January 7, 2025. On July 3, 2025, the court issued a ruling converting defendants’ motion to dismiss on demand futility grounds to a motion for summary judgment and ordered limited discovery on the independence of a former Skillz director. The court stayed consideration of defendants’ other dismissal arguments given its ultimate ruling on the demand futility issue could moot these other dismissal arguments. On June 24, 2026, the plaintiff filed a Stipulation and Order of Voluntary Dismissal, with prejudice, dismissing the lawsuit in its entirety.
Skillz vs. Voodoo SAS, et al.
On July 1, 2024, Skillz filed suit against Voodoo SAS and two affiliate entities, Esport Newco SAS and Esport Newco US Corp. (collectively, "Voodoo") in the United States District Court for the Southern District of New York. In its complaint, Skillz asserts violations of the Lanham Act's prohibition of false advertising and New York's General Business Law § 349 based on, inter alia, Skillz’s allegations that Voodoo advertises its mobile games offered through the “Blitz Win Cash” application as “fair,” “skill-based,” and for “real players only” when in reality Voodoo is fixing the outcome of its tournaments through the use of computer algorithms or “bots.” On August 22, 2024, Skillz brought a motion for a preliminary injunction, and on September 18, 2024, Voodoo moved to dismiss the complaint or, in the alternative, to strike certain allegations. Skillz’s and Voodoo’s motions were both mooted when Skillz amended its complaint on October 2, 2024. On October 8, 2024, Skillz renewed its motion for a preliminary injunction and expedited discovery based on the amended complaint, and Voodoo moved to dismiss the amended complaint on October 16, 2024. Voodoo’s motion to dismiss is fully briefed and awaiting a decision by the court. The court denied Skillz’s motion for preliminary injunction. On July 23, 2025, the court denied Voodoo’s motion to stay discovery pending a decision on the motion to dismiss and to bifurcate proceedings to focus on damages only. The court entered an order on April 9, 2026 extending fact discovery to close on August 14, 2026 and depositions to be completed by November 20, 2026. Both parties have served written discovery requests and are proceeding with fact discovery.
Skillz vs. Papaya Gaming, Ltd., et al.
In March 2024, Skillz sued Papaya Gaming, Ltd. and Papaya Gaming, Inc. (collectively, “Papaya”) in the United States District Court for the Southern District of New York alleging false advertising under the Lanham Act and unfair business practices in connection with Papaya’s marketing of its mobile games as “fair” and “skill-based” despite Papaya’s deployment of algorithmic competitors (“bots”) in its games that win cash prizes for Papaya’s benefit. In June 2024, the court denied Papaya’s motion to dismiss Skillz’s complaint in its entirety.
In September 2024, Papaya filed amended counterclaims against Skillz alleging that Skillz also engaged in false advertising and unfair business practices for purportedly allowing bots in games on Skillz’s platform, defamation for Skillz’s alleged involvement in a non-profit organization that collected and published data related to customer complaints to state attorney generals related to Papaya’s and other companies’ alleged fraudulent bot use, and purported trademark and copyright infringement of design elements of certain games, among other things.
In March 2025, the court dismissed Papaya’s defamation counterclaims and severed Papaya’s intellectual property claims. Following the court’s rulings, Papaya voluntarily dismissed its intellectual property claims against Skillz. On October 27, 2025, the court denied Papaya’s motion for summary judgment on Skillz’s claims. The court also denied Papaya’s motion to exclude Skillz’s damages and survey experts. On November 21, 2025, the court granted Skillz’s motion for summary judgment of all of
Papaya’s remaining counterclaims and affirmative defenses. On February 12, 2026, the court granted in part and denied in part Skillz’s motion to exclude Papaya’s damages and technical experts. The court also granted in part and denied in part Papaya’s motion to exclude Skillz’s technical expert.
On April 23, 2026, a jury in the U.S. District Court for the Southern District of New York found Papaya liable for false advertising and returned awards of $420 million in actual damages, $719 million in advisory profits-based disgorgement, and $652 million in advisory cost-savings disgorgement, with the court to determine which recovery theory will apply. Post-trial motions, oppositions, and replies were filed by the court’s June 19, 2026 deadline. The court issued an opinion and order awarding $719 million in disgorgement of unjust profits, plus approximately $10.1 million in fees and costs to Skillz on July 27, 2026. A final judgment in the matter was entered on July 31, 2026. The Company intends to vigorously pursue full collection of the judgment; however, no assurance can be given as to the timing or amount of any ultimate recovery, including in light of any appeal or further proceedings.
Mitchell, et al. v. Skillz Platform Inc.
On January 21, 2026, a putative class action was filed in the Northern District of California, Kel Mitchell et al., v. Skillz Platform Inc., Case No. 4:26-cv-00674-AMO. Plaintiffs individually and on behalf of all others similarly situated, alleges that Skillz violated California’s Unfair Competition Law, New York law for Deceptive Acts and Practices, Texas’s Deceptive Trade Practices Act, made negligent misrepresentations, and is liable for unjust enrichment. Plaintiffs’ claims arise out of allegations that Skillz purportedly made misrepresentations about not using bots in competitions on Skillz’s platform, misrepresented the evenness of Skillz’s matchmaking, and made misrepresentations about a user’s ability to withdraw cash. Plaintiffs seek declaratory relief that Skillz’s conduct violates applicable state law, compensatory and economic damages, damages for mental anguish, statutory, treble, and punitive damages, restitution of the money lost by the class, interest, costs, and attorneys’ fees, and injunctive relief. Plaintiff filed a First Amended Complaint on March 31, 2026. Skillz filed a motion to dismiss the First Amended Complaint on May 12, with the matter to be heard on August 6, 2026. Based on the information known by the Company, any such estimated loss is immaterial.
Indirect Taxes
The Company is subject to indirect taxes, including sales and use tax in the United States and value-added tax in certain foreign jurisdictions. The Company had indirect tax liabilities totaling $8.4 million and $12.6 million as of June 30, 2026 and December 31, 2025, respectively, associated with indirect taxes based on currently available information and assumptions that the Company believes are reasonable based on an evaluation of relevant factors. Indirect tax liabilities are adjusted considering changing facts and circumstances, such as the closing of a tax examination, further interpretation of existing tax law, or new tax law. The Company recognizes changes to estimates if they are estimable and probable that our positions would not be sustainable upon examination by tax authorities. Although management believes our recorded liabilities are reasonable, no assurance can be given that the final tax outcomes of these matters will not be different from those which our liabilities are based on. The Company’s application of the revenue code for indirect taxes in certain jurisdictions, including those within the United States, may be challenged by tax authorities in those jurisdictions. The Company is in the process of filing self-disclosure returns in unregistered jurisdictions. Any associated assessments may result in additional tax liabilities. The Company does not currently anticipate that any such assessments will result in a material increase in the liabilities.
The Company is currently undergoing an examination in the State of Washington regarding its indirect tax liability.
v3.26.1
Share Repurchase Program
 6 Months Ended
Jun. 30, 2026
Equity [Abstract]  
Share Repurchase Program Share Repurchase Program
On August 18, 2023, the Company’s Board of Directors (the “Board”) authorized a share repurchase program (the “Share Repurchase Program”) pursuant to which the Company was authorized to repurchase, at any time or from time to time, but for a period no longer than one year from the date of authorization, shares of the Company’s Class A common stock up to an aggregate purchase price of $65.0 million. Such purchases may be made on the New York Stock Exchange or any other national securities exchange on which the common stock is then traded. The Share Repurchase Program is pursuant to a plan pursuant to Rule 10b5-1 promulgated under the Exchange Act and/or pursuant to accelerated share repurchase arrangements, tender offers, privately negotiated transactions or otherwise. On December 5, 2024, the Board re-approved the Share Repurchase Program and extended the expiration date until otherwise suspended, terminated or modified at any time for any reason by the Board. The remaining availability under the Share Repurchase Program was $23.4 million as of June 30, 2026.
There were no shares repurchased during the three and six months ended June 30, 2026, respectively, and 0.6 million and 1.4 million shares repurchased at a weighted average price of $5.08 and $5.39 per share for an aggregate value of $3.0 million and $7.7 million during the three and six months ended June 30, 2025, respectively.
v3.26.1
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
The following table summarizes stock-based compensation expense recognized for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cost of revenue$— $— $— $3 
Research and development503 250 641 499 
Sales and marketing286 690 647 1,872 
General and administrative6,230 3,422 8,488 7,538 
Total stock-based compensation expense$7,019 $4,362 $9,776 $9,912 
During the three and six months ended June 30, 2026, no stock-based compensation expense was capitalized as internally developed software and included in property and equipment, net. During the three and six months ended June 30, 2025 an immaterial amount and $0.1 million of stock-based compensation expense was capitalized as internally developed software and included in property and equipment, net, respectively.
Stock Options and Restricted Stock Units
Stock option and restricted stock activity during the six months ended June 30, 2026 is as follows (in thousands, except for share, per share, and contractual term data):
Options Outstanding
Restricted Stock Outstanding
Number of
Shares
Outstanding
Under the
Plan		Weighted-
Average
Exercise
Price		Weighted-
Average
Remaining
Contractual
Term (Years)		Aggregate
Intrinsic
Value
Number of Plan Shares Outstanding
Weighted-Average Grant Date Fair Value per Share
Balance at December 31, 2025676,704 $314.72 4.969 1,310,546 $10.51 
Granted— — 264,526 — 
Exercised or vested
(7,002)3.00 (582,663)5.57 
Cancelled, forfeited or expired
(448)12.85 (38,332)6.13 
Balance at June 30, 2026669,254 $318.19 4.46135 954,077 $10.79 
During the three months ended June 30, 2026, the Compensation Committee of the Board (the “Compensation Committee”) approved performance stock unit awards to the Company's Chief Executive Officer under the Skillz Inc. 2020 Omnibus Incentive Plan, with the number of Performance Stock Units equal to $3.0 million divided by the 90-calendar day volume-weighted average price (“VWAP”) for the Company’s Class A Common Stock as of the trading day prior to January 1, 2025 (the “Target Award”). From 0% to a maximum of 200% of the Target Award (the “Maximum Award”) may be earned based on
the achievement of stock price milestones. Each Performance Stock Unit is a notional amount that represents the right to receive one (1) share of Class A Common Stock of the Company (a “Share”), subject to the terms and conditions of the Skillz Inc. 2020 Omnibus Plan and applicable award agreement, if and when the Performance Stock Unit vests. The awards vest, if at all, in eight tranches upon the 30-trading-day VWAP for the Class A Common Stock share price equaling or exceeding specified milestones ranging from $9.00 to $19.00, subject to continued service and Compensation Committee certification.
During the three months ended June 30, 2026, the Compensation Committee also approved a long-term incentive award to the Company's Chief Executive Officer with (i) the number of Restricted Stock Units equal to $1.5 million divided by the 90-calendar day volume-weighted average price for the Company’s Class A Common Stock as of the trading day prior to January 1, 2025 (the “90-day VWAP”) and (ii) the number of Performance Stock Units equal to $1.5 million divided by the 90-day VWAP (collectively, the “Stock Units”). Each Stock Unit is a notional amount that represents the right to receive one (1) Share of Class A Common Stock of the Company, subject to the terms and conditions of the Omnibus Plan and this Agreement, if and when the Stock Unit vests. The Restricted Stock Units vest in twelve substantially equal quarterly installments measured from January 1, 2025. The Performance Stock Units are earned based on Net Gaming Revenue (50% weighting) and Adjusted EBITDA (50% weighting) measured against goals established by the Compensation Committee for each year of the performance periods ending December 31, 2026 and 2027, respectively, with payout ranging from 0% to 200% of target. In light of the performance goals being established separately for each year, each year's goals establish a separate grant date and measurement date for the related portion of the award.
v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s provision for income taxes was $0.1 million for the three months ended June 30, 2026. The Company’s benefit from income taxes was an immaterial amount for the same period in the prior year. Our effective tax rate was negative 0.39% for the three months ended June 30, 2026, as compared to 0.11% for the same period in the prior year. The effective tax rates were less than the federal statutory rate of 21% primarily due to book losses, state and foreign taxes and equity award activities, mostly offset by a full valuation allowance on our deferred tax assets.
The Company’s provision for income taxes was $0.2 million for the six months ended June 30, 2026, and an immaterial amount for the same period in the prior year. Our effective tax rate was negative 0.48% for the six months ended June 30, 2026, as compared to negative 0.06% for the same period in the prior year. The effective tax rates were less than the federal statutory rate of 21% primarily due to book losses, state and foreign taxes and equity award activities, mostly offset by a full valuation allowance on our deferred tax assets.
v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-making group (the “CODM”). Our CODM consists of the Chief Executive Officer who allocates resources and measures profitability based on our operating segments, which are managed and reviewed separately, as each represents products and services that can be sold separately to our customers. To monitor performance, the CODM regularly receives and reviews Adjusted EBITDA information for each operating segment, together with consolidated expense information. Additionally, the CODM receives estimated and forecasted expense information by operating segment. The CODM uses this information to monitor the operating efficiencies of segments and trends to monitor the overall health of each segment. The CODM evaluates operating performance and allocates resources based on Adjusted EBITDA. In particular, the CODM utilizes Adjusted EBITDA to evaluate total company performance and individual operating segment performance. In addition, the CODM utilizes Adjusted EBITDA in the evaluation of incentive compensation and the annual budget process. The CODM measures segment performance against annual budgets, forecasts and actual results. The CODM does not review information regarding total assets on a reportable segment basis.
We believe Adjusted EBITDA, a non-GAAP performance measure, is useful in evaluating the performance of its operating segments and is a similar measure reported by publicly-listed U.S. competitors, and regularly used by securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. By providing this non-GAAP measure, the Company’s management intends to provide investors with a meaningful, consistent comparison of the Company’s profitability for the periods presented. As required by the rules of the SEC, the Company has provided herein a reconciliation of Adjusted EBITDA to the most directly comparable measures under GAAP. Adjusted EBITDA is not intended to be a substitute for any U.S. GAAP financial measures and, as calculated, may not be comparable to other similarly titled financial measures of other companies in other industries or within the same industry.
A description of the Company’s two reportable segments, as determined by our CODM, is as follows:
•Skillz: Our platform enables game developers to monetize their content through multi-player competition by integrating real-money tournaments, virtual prizes, and social competition features directly into their games. The platform provides a managed backend that supports key competitive functionality, including player matching, leaderboards, anti-cheat integrity systems, and payment processing. Our scalable multi-player platform allows for real-world prizes that go beyond one-off competitive implementations and provides for a repeatable, developer-accessible system. In exchange for access to our multi-player platform and monetization services, Skillz and its developers share in the aggregate entry fees paid by end users.
•RZR: RZR is a performance marketing platform that enables advertisers to acquire, retain, and monetize users across mobile, connected television (CTV), and other digital channels. The platform utilizes proprietary machine learning and neural network-based architecture to optimize campaigns across user acquisition, retargeting, and brand performance objectives within a unified system. The platform processes large-scale data inputs in real time and applies predictive models to optimize bidding, targeting, and campaign performance across channels. While historically focused on mobile gaming, RZR now serves a broader set of industries, including consumer applications, retail, food and beverage, and entertainment.
Effective in the second quarter of 2026, the Company changed the composition of the information reviewed by the CODM to present unallocated corporate costs separately from the results of the Skillz reportable segment. The change reflects a change in the information regularly provided to and used by the CODM in assessing segment performance and allocating resources. Segment information for the prior-year periods presented has been recast to conform to the current period presentation. The change in segment presentation had no effect on the Company's condensed consolidated results of operations, financial condition or cash flows for any period presented.
The Company’s corporate operations primarily consist of executive, legal, finance and accounting, and support for our ongoing litigation matters, which are excluded from the results of our operating segments.
For the Skillz segment, end-user engagement marketing represents the cost of incentives provided to end users, such as Bonus Cash and Ticketz. Paid acquisition spend represents amounts paid to third parties to promote the Skillz platform. Headcount expenses include salaries, bonuses, contractors, travel, and burden such as employer taxes, benefits and insurance. Consulting fees represent expenses paid for professional fees. Vendor and software expenses represent fees paid for software and server costs and third-party technical support. Office and operations expenses represent rent and building maintenance. Other segment items include marketing expenses which, in turn, consists mostly of affiliate marketing and trade shows.
For the RZR segment, operating expenses include all operating expenses such as headcount, marketing, software, professional fees such as legal and rent.
For both the Skillz and RZR segments, stock-based compensation expenses are not included in operating expenses.
The following tables provide summarized information about the Company’s operations by reportable segment and a reconciliation of Adjusted EBITDA to loss before income taxes for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30,
20262025
Revenue
Skillz$20,771 $19,365 
RZR10,349 5,916 
Eliminations(1)
(128)(67)
Total Revenue$30,992 $25,214 
Adjusted EBITDA
Skillz$583 $(2,665)
RZR1,930 (62)
Corporate(2)
(16,066)(8,700)
Total Adjusted EBITDA$(13,553)$(11,427)
Items to reconcile Adjusted EBITDA to net loss before income taxes:
Interest expense, net of interest income$(2,424)$(1,321)
Stock-based compensation(7,019)(4,362)
Depreciation and amortization(995)(194)
Other (expense) income, net(388)(637)
Net loss before income taxes$(24,379)$(17,941)
1.Amounts represent the RZR revenue earned from Skillz.
2.Amounts represent certain corporate executive, legal, finance and accounting, and litigation costs.
Six Months Ended June 30,
20262025
Revenue
Skillz$40,398 $36,958 
RZR20,105 10,355 
Eliminations(1)
(406)(202)
Total Revenue$60,097 $47,111 
Adjusted EBITDA
Skillz$(3,440)$(7,670)
RZR3,794 (1,036)
Corporate(2)
(26,684)(19,977)
Total Adjusted EBITDA$(26,330)$(28,683)
Items to reconcile Adjusted EBITDA to net loss before income taxes:
Interest expense, net of interest income$(4,704)$(2,392)
Stock-based compensation(9,776)(9,912)
Depreciation and amortization(1,711)(361)
Gain from litigation settlement(3)
7,500 7,500 
Other (expense) income, net(229)(1,196)
Net loss before income taxes$(35,250)$(35,044)
1.Amounts represent the RZR revenue earned from Skillz.
2.Amounts represent certain corporate executive, legal, finance and accounting, and litigation costs.
3.Amounts represent a gain on a legal settlement recorded in connection with proceeds under terms of a settlement agreement entered into with AviaGames.
The following tables provide summarized information about the Company’s operations by reportable segment for the three and six months ended June 30, 2026 and 2025, respectively:
Three Months Ended June 30, 2026
SkillzRZR
Revenue$20,771 $10,349 
Less:
Cost of revenue2,445 1,235 
End-user engagement marketing6,885 
Paid acquisition spend1,139 
Headcount expenses5,265 5,409 
Consulting fees740 188 
Vendor and software expenses1,980 306 
Legal fees (non-litigation)81 
Litigation expense1,387 
Office and operations expense278 668 
Other segment items(1)
69 532 
Adjusted EBITDA$583 $1,930 
1.Other segment items for each segment are comprised of creative and live event marketing costs, employee event expenses and various miscellaneous expenses.
Three Months Ended June 30, 2025
SkillzRZR
Revenue$19,365 $5,916 
Less:
Cost of revenue2,098 1,052 
End-user engagement marketing8,100 
Paid acquisition spend3,347 
Headcount expenses5,371 3,980 
Consulting fees403 110 
Vendor and software expenses2,035 175 
Legal fees (non-litigation)97 
Office and operations expense660 215 
Other segment items(1)
16 349 
Adjusted EBITDA$(2,665)$(62)
1.Other segment items for each segment are comprised of creative and live event marketing costs, tax and license expenses, employee event expenses and various miscellaneous expenses.
Six Months Ended June 30, 2026
SkillzRZR
Revenue$40,398 $20,105 
Less:
Cost of revenue4,856 2,281 
End-user engagement marketing14,805 
Paid acquisition spend4,047 
Headcount expenses10,974 10,865 
Consulting fees2,166 322 
Vendor and software expenses3,111 546 
Legal fees (non-litigation)— 221 
Litigation expense1,815 
Office and operations expense1,205 1,002 
Other segment items(1)
859 1,074 
Adjusted EBITDA$(3,440)$3,794 
1.Other segment items for each segment are comprised of creative and live event marketing costs, employee event expenses and various miscellaneous expenses.
Six Months Ended June 30, 2025
SkillzRZR
Revenue$36,958 $10,355 
Less:
Cost of revenue4,076 2,028 
End-user engagement marketing16,381 
Paid acquisition spend7,078 
Headcount expenses10,435 7,533 
Consulting fees586 216 
Vendor and software expenses4,175 262 
Legal fees (non-litigation)178 
Office and operations expense1,250 429 
Other segment items(1)
647 745 
Adjusted EBITDA$(7,670)$(1,036)
1.Other segment items for each segment are comprised of creative and live event marketing costs, tax and license expenses, employee event expenses and various miscellaneous expenses.
Transactions Between Segments
Intercompany revenue was $0.1 million and $0.4 million for the three and six months ended June 30, 2026, respectively, and $0.1 million and $0.2 million for the three and six months ended June 30, 2025, respectively.
Capital Expenditures
Consolidated capital expenditures were $2.0 million and $3.4 million for the six months ended June 30, 2026 and 2025, respectively, which consisted primarily of costs related to internal-use software and costs to purchase property and equipment.
v3.26.1
Loss Per Share
 6 Months Ended
Jun. 30, 2026
Earnings Per Share [Abstract]  
Loss Per Share Loss Per Share
The Company computes loss per share of the Class A common stock and Class B common stock using the two-class method required for participating securities. Basic and diluted loss per share are the same for each class of common stock as they are entitled to the same liquidation and dividend rights. The effect of potentially dilutive common shares is reflected in diluted loss per share by application of the treasury stock method. There have been no material changes from the pertinent rights and privileges for participating securities previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
The following table sets forth the computation of basic and diluted loss per Class A common stock and Class B common stock (in thousands, except for share and per share data):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Numerator:
Net loss$(24,475)$(17,922)$(35,420)$(35,064)
Denominator:
Weighted average shares outstanding - basic and diluted
16,074,260 15,491,239 15,953,829 15,888,064 
Loss per share, basic and diluted$(1.52)$(1.16)$(2.22)$(2.21)
The following outstanding common stock equivalents were considered antidilutive, and therefore, excluded from the computation of diluted loss per share attributable to common stockholders for the periods presented (share numbers are not in thousands).
As of June 30,
20262025
Common stock warrants— 226,786 
Common stock options669,254 681,231 
Performance stock units211,243 27,075 
Restricted stock units954,077 1,937,832 
Total1,834,574 2,872,924 
v3.26.1
Subsequent Events
 6 Months Ended
Jun. 30, 2026
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
For purposes of the condensed consolidated financial statements as of June 30, 2026, the Company evaluated subsequent events for recognition and measurement purposes as of the filing date. The Company has concluded that no events or transactions have occurred that require disclosure except as follows:
Skillz v. Papaya Litigation
On July 27, 2026, a court issued an opinion and order awarding $719 million in disgorgement of unjust profits, plus approximately $10.1 million in fees and costs to the Company in respect of a false advertising lawsuit. A final judgment in the matter was entered on July 31, 2026. The Company intends to vigorously pursue full collection of the judgment; however, no assurance can be given as to the timing or amount of any ultimate recovery, including in light of any appeal or further proceedings. Refer to Note 8, “Commitments and Contingencies” for further discussion.
Partial Debt Redemption
On August 4, 2026, the Company delivered a notice of partial redemption of $80.0 million in aggregate principal amount of the Company’s outstanding 2021 Senior Secured Notes at a price of 100.00% of the principal amount of the 2021 Senior Secured Notes, plus accrued and unpaid interest, with such redemption occurring on August 14, 2026. As of August 4, 2026, there was $129.7 million aggregate principal amount of the 2021 Senior Secured Notes outstanding. UMB Bank, N.A. is serving as the trustee for the 2021 Senior Secured Notes and as the paying agent for the Redemption.

On August 14, 2026, the Company redeemed $80.0 million in aggregate principal amount of the Company’s outstanding 2021 Senior Secured Notes at a redemption price of 100.00% of the principal amount of the Senior Secured Notes, plus accrued and unpaid interest. As of August 14, 2026, after consummation of that redemption, there was $49.7 million aggregate principal amount of the Senior Secured Notes outstanding.
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2026
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.26.1
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2026
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The Company’s condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The Company believes the disclosures made are adequate to make the information presented not misleading.
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all adjustments of a normal and recurring nature that are, in the opinion of the Company’s management, necessary for the fair presentation of the results of operations for the interim periods.
Operating results for the three and six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Reclassifications
Reclassifications
Certain prior year amounts have been reclassified or changed to conform to the current-year presentation. Such reclassifications had no impact on previously reported net loss.
Use of Estimates
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions that affect the amounts reported in these condensed consolidated financial statements and the accompanying notes. Estimates are used in several areas including, but not limited to, end-user incentives, including Bonus Cash and Ticketz accruals, indirect tax liabilities, the fair value of non-marketable securities, and the impairment of long-lived assets. The Company bases these estimates on historical experience and various other assumptions
that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities. The actual results may materially differ from these estimates.
Revenue Recognition
Revenue Recognition
The Company recognizes revenue for its services in accordance with the FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). For additional information, see Note 3, “Revenue”.
Revenues from Entry Fees
The Company generates revenues through its competition-based Skillz segment by providing a service to game developers for monetization of their game content. The monetization service provided by Skillz allows developers to offer multi-player competition to their end-users for the purpose of end-user retention and engagement. Skillz provides developers with a software development kit (“SDK”) they can download and integrate with their existing games. The SDK serves as a data interface between Skillz and the game developers that enables Skillz to provide monetization services to the developer. In addition to services provided to game developers, Skillz develops, publishes, and operates its own first-party games on the platform. There have been no material changes from the revenue recognition accounting policies previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025 except for the revenue recognition accounting policies related to our owned and operated games, which now represent a meaningful portion of platform activity.
Games provided by two developer partners accounted for 63% and 68% of the Company’s consolidated revenue for the three and six months ended June 30, 2026, respectively, with each developer partner accounting for at least 10% of the total.
Games provided by three developer partners accounted for 69% and 70% of the Company’s consolidated revenue for the three and six months ended June 30, 2025, respectively, with each developer partner accounting for at least 10% of the total.
End-User Incentive Programs
To drive traffic to its platform, the Company provides promotions and incentives to end-users in various forms. Evaluating whether a promotion or incentive is a payment to a customer may require significant judgment. Certain promotions and incentives, which are consideration payable to customers, are recognized as a reduction of revenue at the later of when revenue is recognized or when the Company pays or promises to pay the incentive. The Company recognized a reduction of revenue related to these end-user incentives of $3.2 million and $4.2 million for the three and six months ended June 30, 2026, respectively, and $2.0 million and $4.8 million for the three and six months ended June 30, 2025, respectively.
Promotions and incentives recorded as sales and marketing expenses are recognized when we incur the related cost. The Company recognized sales and marketing expense related to end-user incentives of $5.9 million and $13.5 million for the three and six months ended June 30, 2026, respectively, and $8.1 million and $17.6 million for the three and six months ended June 30, 2025, respectively.
From time to time, the Company issues credits or refunds to end-users who are dissatisfied with the level of service provided by the game developer. There is no contractual obligation for the Company to refund such end-users nor is there a valid expectation by game developers for the Company to issue such credits or refunds to end-users on their behalf. The Company accounts for credits or refunds, which are not recoverable from the game developer, as sales and marketing expenses when incurred.
Advertising Revenue
The Company offers a technology platform (i.e., demand-side platform, “DSP”) to source available advertising space from its network of vendors / suppliers (aka, advertising exchange partners / publishers), which uses a real-time auction process, to provide user acquisition and retargeting solutions for its customers. Revenue from advertising is recognized based on the number of impressions delivered on behalf of the customer as the performance obligation is satisfied. The Company considers itself the agent of its customer(s) based on the Company’s role in programmatically sourcing and placing advertisements on behalf of customers via a network of third-party publishers. The Company does not, at any time, take ownership of the advertising inventory being sourced and placed. Via the DSP, if the Company wins the auction and an impression is served, the customer’s advertisement is displayed on the publisher / supplier’s mobile application. There have been no material changes from the revenue recognition accounting policies previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
For performance obligations related to advertising revenue, customers are typically extended 30 day payment terms from completion of each month’s insertion order and no advertising revenue customers accounted for more than 10% of the Company’s revenue for the three and six months ended June 30, 2026 and 2025, respectively.
The Company recognizes an asset for incremental costs of obtaining a contract with the customer as long as management expects to recover these costs. Incremental costs are those that would have not been incurred if the contract did not exist. Examples of incremental costs often capitalized are sales commissions, whereas examples of costs that would not be included are internal employee salaries, standard benefits, travel costs, and other / general legal costs. Sales commissions are the only incremental contract costs the Company incurs and are paid based on collected revenue based on the recipient’s assigned accounts. As commissions are typically satisfied within one year after an executed contract, the Company applies the practical expedient to expense these costs as incurred.
Subscription Service Revenue
The Company offers a modern backend and live operations platform, which is purpose-built for scalable, live-service games. Revenue from subscription services is recognized over the term of the contract.
Maintenance Fee Revenue
When a player becomes inactive on the platform by not participating in a tournament for six consecutive months, the Company imposes a monthly maintenance fee. This fee is charged to the player and recognized as revenue by the Company beginning in the seventh month of inactivity.
Cost of Revenue
Cost of Revenue
Cost of revenue primarily consists of third-party payment processing fees, server costs, amortization of developed technology, personnel expenses, direct software costs, amortization of internal use software, hosting expenses, and allocation of shared facility and other costs.
Cash, Cash Equivalents and Restricted Cash
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents consist of cash, commercial paper, money market funds and U.S. government agency securities with maturities of three months or less when purchased.
Concentrations of Credit Risk
Concentrations of Credit Risk
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash, cash equivalents, restricted cash, and marketable securities. Although the Company deposits its cash with multiple established financial institutions, the deposits, at times, may exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company limits the amount of credit exposure to any one issuer and monitors the financial condition of the financial institutions on a regular basis.
Accounts Receivable, Net
Accounts Receivable, Net
Accounts receivable, net, primarily consist of amounts recorded for programmatic media campaigns, net of an allowance for credit losses from our advertising revenue customers of our RZR segment. The allowance for credit losses is recorded as an offset to accounts receivable and changes in such are classified as general and administrative expense in the condensed consolidated statements of operations and comprehensive loss. The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when there are specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status and makes judgments about the creditworthiness of customers based on ongoing credit evaluations. The Company also considers customer-specific information, current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss data.
Long-Lived Assets
Long-Lived Assets
Long-lived assets primarily consist of property and equipment with estimable useful lives subject to depreciation and amortization.
Investments
Investments
The Company considers all highly liquid interest-earning investments with a maturity of three months or less at the date of purchase to be cash equivalents. The fair values of these investments approximate their carrying values. In general, investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year are classified as non-current marketable securities. Dividend and interest income are recognized when earned.
Non-marketable equity securities are investments in privately held companies without readily determinable fair values. We have accounted for these investments using the measurement alternative. Under the measurement alternative, the equity investment is initially recorded as its allocated cost, but the carrying value may be adjusted through earnings upon an impairment or when there is an observable price change involving the same or a similar investment with the same issuer. The carrying value of the Company’s investments without readily determinable fair values was $52.8 million as of June 30, 2026 and December 31, 2025, respectively, and are classified as non-marketable equity securities on the condensed consolidated balance sheets.
The Company did not record any other adjustments to the carrying value of its non-marketable equity securities accounted for under the measurement alternative and did not recognize any gains or losses related to the sale of non-marketable equity securities for the three and six months ended June 30, 2026 and 2025, respectively.
Advertising and Promotional Expense
Advertising and Promotional Expense
Advertising and promotional expenses are included in sales and marketing expenses within the condensed consolidated statements of operations and comprehensive loss and are expensed when incurred.
User Acquisition
User Acquisition
User acquisition (“UA”) marketing costs to acquire new paying users to the platform are included in sales and marketing expenses in the consolidated statements of operations and comprehensive loss.
Indirect Tax Liabilities
Indirect Tax Liabilities
The Company is subject to indirect taxes such as sales and use tax in the United States and value-added tax in certain foreign jurisdictions, respectively. Indirect tax liabilities are adjusted considering changing facts and circumstances, such as the closing of a tax examination, further interpretation of existing tax law, or new tax law. The Company recognizes changes to its estimate if it is estimable and probable that its position would not be sustainable upon examination by tax authorities. Although management believes the Company’s recorded liabilities are reasonable, no assurance can be given that the final tax outcomes of these matters will not be different from those which its liabilities are based on. To the extent that final tax outcomes of these matters are different than the amounts recorded, such differences could have a material impact on the Company’s condensed consolidated financial statements as the Company records related tax reserves as a reduction in revenue, and penalties and interest in general and administrative expenses.
401(k) Plan
401(k) Plan
The Company has a 401(k) Plan that qualifies as a deferred salary arrangement under Section 401 of the Internal Revenue Code. Under the 401(k) Plan, participating employees may defer a portion of their pretax earnings and receive a matching employer contribution of up to 3% of compensation not to exceed the maximum amount allowable.
Recently Adopted Accounting Standards and Updates and Recently Issued Accounting Pronouncements Not Yet Adopted
Recently Adopted Accounting Standards and Updates
In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires public entities to disclose specific tax rate reconciliation categories, as well as income taxes paid disaggregated by jurisdiction, amongst other disclosure enhancements. ASU 2023-09 is effective for financial statements issued for annual periods beginning after December 15, 2024. The amendments in ASU 2023-09 should be applied on a prospective basis and retrospective application is permitted. The Company adopted this update in the fourth quarter of 2025 and has prospectively applied the disclosure requirement in its consolidated financial statements.
Recently Issued Accounting Pronouncements Not Yet Adopted
In November 2024, the FASB issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which requires public entities to disclose disaggregated information about certain costs and expenses in the notes to their financial statements in both annual and interim filings. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The amendments in ASU 2024-03 can be applied either prospectively or retrospectively. The Company is currently evaluating the disclosure requirements related to this accounting standard update.
In September 2025, the FASB issued ASU 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software,” which modernizes the recognition and disclosure framework for internal-use software costs, removing the previous “development stage” model and introduces a more judgment-based approach. ASU 2025-06 is effective for financial statements issued for annual periods beginning after December 15, 2027 and interim periods within those fiscal years. The amendments in ASU 2025-06 can be early adopted and should be applied using either the prospective, modified, or retrospective transition approach. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.
v3.26.1
Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2026
Accounting Policies [Abstract]  
Schedule of Cash and Cash Equivalents
The following table provides a reconciliation of the Company’s cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets that sum to the total of the same such amount shown on the condensed consolidated statements of cash flows for the six months ended June 30, 2026:
June 30,December 31,
20262025
Cash, cash equivalents and restricted cash
Cash$20,307 $10,101 
Money market funds143,684 184,412 
Restricted cash - non-current1,000 1,000 
Total cash, cash equivalents and restricted cash$164,991 $195,513 
Schedule of Restricted Cash
The following table provides a reconciliation of the Company’s cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets that sum to the total of the same such amount shown on the condensed consolidated statements of cash flows for the six months ended June 30, 2026:
June 30,December 31,
20262025
Cash, cash equivalents and restricted cash
Cash$20,307 $10,101 
Money market funds143,684 184,412 
Restricted cash - non-current1,000 1,000 
Total cash, cash equivalents and restricted cash$164,991 $195,513 
Schedule of Valuation and Qualifying Account Activity
The activity in our allowance for credit losses for the six months ended June 30, 2026 and 2025 is as follows:
20262025
Beginning balance for credit losses$257 $273 
Provision for bad debt1 — 
Recoveries— (8)
Ending balance for credit losses$258 $265 
Schedule of Components of Investments
Investments consisted of the following as of June 30, 2026 and December 31, 2025:
As of June 30, 2026
Adjusted Cost BasisUnrealized GainsUnrealized LossesFair ValueCash and Cash EquivalentsMarketable Securities -
Current		Marketable Securities -
Non-current
Money market funds$143,684 $— $— $143,684 $143,684 $— $— 
Total investments$143,684 $— $— $143,684 $143,684 $— $— 
As of December 31, 2025
 Adjusted Cost BasisUnrealized GainsUnrealized LossesFair ValueCash and Cash EquivalentsMarketable Securities -
Current		Marketable Securities -
Non-current
Money market funds$184,412 $— $— $184,412 $184,412 $— $— 
Total investments$184,412 $— $— $184,412 $184,412 $— $— 
Schedule of Interest (Expense) Income, Net
Interest expense, net of interest income, consisted of the following for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Interest expense, net of interest income
Interest expense$(3,859)$(3,805)$(7,703)$(7,601)
Interest income1,435 2,484 2,999 5,209 
Total interest expense, net of interest income$(2,424)$(1,321)$(4,704)$(2,392)
v3.26.1
Revenue (Tables)
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following tables present the Company’s revenues, disaggregated by offering, geographical region, and reportable segment for the three and six months ended June 30, 2026 and 2025. Revenue by geographical region is based on the location where the game developer or advertising customer is headquartered. Revenue is recognized net of any taxes from customers (e.g., sales and other indirect taxes), which are subsequently remitted to governmental entities. For more information on revenues presented by reportable segment, see Note 12, “Segment Reporting”.
Three Months Ended June 30, 2026
SkillzRZRTotal
Revenue From Customers:
Entry Fee Revenue$20,142 $— $20,142 
Advertising Revenue— 10,349 10,349 
Other Revenue:
Subscription Service Revenue247 — 247 
Maintenance Fee Revenue382 — 382 
Total Revenue$20,771 $10,349 $31,120 
United States$19,506 $3,769 $23,275 
Other Countries1,265 6,580 7,845 
Total Revenue$20,771 $10,349 $31,120 
Elimination(1)
(128)
Consolidated$30,992 
1.Elimination of RZR intercompany revenues, which were generated within the United States.
Three Months Ended June 30, 2025
SkillzRZRTotal
Revenue From Customers:
Entry Fee Revenue$19,056 $— $19,056 
Advertising Revenue— 5,916 5,916 
Other Revenue:
Maintenance Fee Revenue309 — 309 
Total Revenue$19,365 $5,916 $25,281 
United States$18,064 $1,740 $19,804 
Other Countries1,301 4,176 5,477 
Total Revenue$19,365 $5,916 $25,281 
Elimination(1)
(67)
Consolidated$25,214 
1.Elimination of RZR intercompany revenues, which were generated within the United States.
Six Months Ended June 30, 2026
SkillzRZRTotal
Revenue From Customers:
Entry Fee Revenue$39,372 $— $39,372 
Advertising Revenue— 20,105 20,105 
Other Revenue:
Subscription Service Revenue375 — 375 
Maintenance Fee Revenue651 — 651 
Total Revenue$40,398 $20,105 $60,503 
United States$38,148 $6,723 $44,871 
Other Countries2,250 13,382 15,632 
Total Revenue$40,398 $20,105 $60,503 
Elimination(1)
(406)
Consolidated$60,097 
1.Elimination of RZR intercompany revenues, which were generated within the United States.
Six Months Ended June 30, 2025
SkillzRZRTotal
Revenue From Customers:
Entry Fee Revenue$36,208 $— $36,208 
Advertising Revenue— 10,355 10,355 
Other Revenue:
Maintenance Fee Revenue750 — 750 
Total Revenue$36,958 $10,355 $47,313 
United States$34,362 $3,264 $37,626 
Other Countries2,596 7,091 9,687 
Total Revenue$36,958 $10,355 $47,313 
Elimination(1)
(202)
Consolidated$47,111 
1.Elimination of RZR intercompany revenues, which were generated within the United States.
v3.26.1
Leases (Tables)
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Schedule of Lease, Cost
The components of lease costs, lease term and the discount rate were as follows for the three and six months ended June 30, 2026 and 2025, respectively:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Finance leases
Amortization of assets under finance leases$— $— $— $— 
Interest— 6 — 17 
Total finance lease costs$— $6 $— $17 
Operating lease cost$369 $341 $526 $692 
Variable lease cost$4 $52 $27 $152 
Short-term lease rent expense$639 $704 $1,375 $1,411 
June 30,December 31,
20262025
Weighted-average remaining lease term
Operating leases4.02.3
Finance leases0.00.0
June 30,December 31,
20262025
Weighted-average discount rate
Operating leases10.5 %10.1 %
Finance leases— %— %
Supplemental cash flow information related to leases for the three and six months ended June 30, 2026 and 2025, respectively:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cash paid for amounts included in the measurement of lease liabilities:
Payments for operating leases included in cash from operating activities$242 $738 $397 $1,412 
Payments for finance leases included in cash from operating activities$— $6 $— $17 
Payments for finance leases included in cash from financing activities$— $197 $— $389 
Assets obtained in exchange for lease obligations:
Operating leases$3,090 $— $3,090 $— 
Finance leases$— $— $— $— 
Schedule of Maturities of Finance Lease Liabilities
The following table outlines future minimum lease payments under the Company’s non-cancellable leases as of June 30, 2026:
Operating Leases
2026$630 
20271,348 
20281,215 
2029903 
2030828 
2031255 
Total undiscounted cash flows5,179 
Less: Imputed interest(1,238)
Present value of lease liabilities$3,941 
Lease liabilities, current$837 
Lease liabilities, non-current3,104 
Present value of lease liabilities $3,941 
Schedule of Maturities of Operating Lease Liabilities
The following table outlines future minimum lease payments under the Company’s non-cancellable leases as of June 30, 2026:
Operating Leases
2026$630 
20271,348 
20281,215 
2029903 
2030828 
2031255 
Total undiscounted cash flows5,179 
Less: Imputed interest(1,238)
Present value of lease liabilities$3,941 
Lease liabilities, current$837 
Lease liabilities, non-current3,104 
Present value of lease liabilities $3,941 
v3.26.1
Balance Sheet Components (Tables)
 6 Months Ended
Jun. 30, 2026
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following as of June 30, 2026 and December 31, 2025:
June 30,December 31,
20262025
Credit card processing reserve$1,000 $1,000 
Prepaid expenses3,391 5,423 
Other current assets1,892 1,130 
Prepaid expenses and other current assets$6,283 $7,553 
Schedule of Property and Equipment, Net
Property and equipment consisted of the following as of June 30, 2026 and December 31, 2025:
June 30,December 31,
20262025
Land$980 $980 
Building12,880 12,831 
Capitalized internal-use software15,167 13,459 
Computer equipment and servers4,776 3,202 
Furniture and fixtures378 378 
Leasehold improvements131 122 
Construction in progress702 2,246 
Total property and equipment35,014 33,218 
Accumulated depreciation and amortization(13,994)(12,442)
Property and equipment, net$21,020 $20,776 
Schedule of Property and Equipment, Net by Geographic Area
Property and equipment, net by geography was as follows:
June 30,December 31,
20262025
United States$20,535 $20,350 
Other countries485426 
Total$21,020 $20,776 
Schedule of Asset Acquisition Included in Other Non-Current Assets
Asset acquisitions are included in other non-current assets on our condensed consolidated balance sheets and consisted of the following as of June 30, 2026 and December 31, 2025:
June 30,December 31,
20262025
Game titles$2,850 $— 
Developed technology278 — 
Total asset acquisitions3,128 — 
Accumulated amortization(154)— 
Asset acquisitions, net$2,974 $— 
Schedule of Other Current Liabilities
Other current liabilities consisted of the following as of June 30, 2026 and December 31, 2025:
June 30,December 31,
20262025
Accrued publisher fees$12,443 $6,367 
End-user liability, net8,916 8,177 
Accrued compensation5,639 4,475 
Indirect tax liabilities8,371 12,635 
Accrued legal expenses7,086 2,422 
Accrued operating expenses3,368 5,787 
Accrued developer revenue share799 912 
Deferred asset acquisition consideration610 — 
Accrued interest expenses554 554 
Accrued sales and marketing expenses365 1,084 
Short-term lease obligations2 2 
Other665 529 
Other current liabilities$48,818 $42,944 
v3.26.1
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Schedule of Assets Measured at Fair Value on a Recurring Basis
Assets measured at fair value on a recurring basis consisted of the following as of June 30, 2026 and December 31, 2025:
Fair Value Measurements as of June 30, 2026
Level 1Level 2Level 3Total
Assets:
Cash equivalents:
Money market funds$143,684 $— $— $143,684 
Total assets$143,684 $— $— $143,684 
Fair Value Measurements as of December 31, 2025
Level 1Level 2Level 3Total
Assets:
Cash equivalents:
Money market funds$184,412 $— $— $184,412 
Total assets$184,412 $— $— $184,412 
v3.26.1
Long-Term Debt (Tables)
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Schedule of Components of Long-Term Debt
Long-term debt consisted of the following as of June 30, 2026 and December 31, 2025:
June 30,December 31,
20262025
2021 Senior Secured Notes$129,671 $129,671 
Unamortized discount and issuance costs(1,025)(2,082)
Total debt after discount and issuance costs128,646 127,589 
Current portion of long-term debt(128,646)(127,589)
Long-term debt, net$— $— 
Schedule of Maturities of Long-Term Debt
The following table outlines maturities of the principal related to the Company’s long-term debt as of June 30, 2026:
Amount
Maturities of borrowings
2026$129,671 
Total$129,671 
v3.26.1
Stock-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-Based Compensation Expense
The following table summarizes stock-based compensation expense recognized for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cost of revenue$— $— $— $3 
Research and development503 250 641 499 
Sales and marketing286 690 647 1,872 
General and administrative6,230 3,422 8,488 7,538 
Total stock-based compensation expense$7,019 $4,362 $9,776 $9,912 
Schedule of Stock Options and Restricted Stock Units Activity
Stock option and restricted stock activity during the six months ended June 30, 2026 is as follows (in thousands, except for share, per share, and contractual term data):
Options Outstanding
Restricted Stock Outstanding
Number of
Shares
Outstanding
Under the
Plan		Weighted-
Average
Exercise
Price		Weighted-
Average
Remaining
Contractual
Term (Years)		Aggregate
Intrinsic
Value
Number of Plan Shares Outstanding
Weighted-Average Grant Date Fair Value per Share
Balance at December 31, 2025676,704 $314.72 4.969 1,310,546 $10.51 
Granted— — 264,526 — 
Exercised or vested
(7,002)3.00 (582,663)5.57 
Cancelled, forfeited or expired
(448)12.85 (38,332)6.13 
Balance at June 30, 2026669,254 $318.19 4.46135 954,077 $10.79 
v3.26.1
Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Schedule of Segment Information
The following tables provide summarized information about the Company’s operations by reportable segment and a reconciliation of Adjusted EBITDA to loss before income taxes for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30,
20262025
Revenue
Skillz$20,771 $19,365 
RZR10,349 5,916 
Eliminations(1)
(128)(67)
Total Revenue$30,992 $25,214 
Adjusted EBITDA
Skillz$583 $(2,665)
RZR1,930 (62)
Corporate(2)
(16,066)(8,700)
Total Adjusted EBITDA$(13,553)$(11,427)
Items to reconcile Adjusted EBITDA to net loss before income taxes:
Interest expense, net of interest income$(2,424)$(1,321)
Stock-based compensation(7,019)(4,362)
Depreciation and amortization(995)(194)
Other (expense) income, net(388)(637)
Net loss before income taxes$(24,379)$(17,941)
1.Amounts represent the RZR revenue earned from Skillz.
2.Amounts represent certain corporate executive, legal, finance and accounting, and litigation costs.
Six Months Ended June 30,
20262025
Revenue
Skillz$40,398 $36,958 
RZR20,105 10,355 
Eliminations(1)
(406)(202)
Total Revenue$60,097 $47,111 
Adjusted EBITDA
Skillz$(3,440)$(7,670)
RZR3,794 (1,036)
Corporate(2)
(26,684)(19,977)
Total Adjusted EBITDA$(26,330)$(28,683)
Items to reconcile Adjusted EBITDA to net loss before income taxes:
Interest expense, net of interest income$(4,704)$(2,392)
Stock-based compensation(9,776)(9,912)
Depreciation and amortization(1,711)(361)
Gain from litigation settlement(3)
7,500 7,500 
Other (expense) income, net(229)(1,196)
Net loss before income taxes$(35,250)$(35,044)
1.Amounts represent the RZR revenue earned from Skillz.
2.Amounts represent certain corporate executive, legal, finance and accounting, and litigation costs.
3.Amounts represent a gain on a legal settlement recorded in connection with proceeds under terms of a settlement agreement entered into with AviaGames.
The following tables provide summarized information about the Company’s operations by reportable segment for the three and six months ended June 30, 2026 and 2025, respectively:
Three Months Ended June 30, 2026
SkillzRZR
Revenue$20,771 $10,349 
Less:
Cost of revenue2,445 1,235 
End-user engagement marketing6,885 
Paid acquisition spend1,139 
Headcount expenses5,265 5,409 
Consulting fees740 188 
Vendor and software expenses1,980 306 
Legal fees (non-litigation)81 
Litigation expense1,387 
Office and operations expense278 668 
Other segment items(1)
69 532 
Adjusted EBITDA$583 $1,930 
1.Other segment items for each segment are comprised of creative and live event marketing costs, employee event expenses and various miscellaneous expenses.
Three Months Ended June 30, 2025
SkillzRZR
Revenue$19,365 $5,916 
Less:
Cost of revenue2,098 1,052 
End-user engagement marketing8,100 
Paid acquisition spend3,347 
Headcount expenses5,371 3,980 
Consulting fees403 110 
Vendor and software expenses2,035 175 
Legal fees (non-litigation)97 
Office and operations expense660 215 
Other segment items(1)
16 349 
Adjusted EBITDA$(2,665)$(62)
1.Other segment items for each segment are comprised of creative and live event marketing costs, tax and license expenses, employee event expenses and various miscellaneous expenses.
Six Months Ended June 30, 2026
SkillzRZR
Revenue$40,398 $20,105 
Less:
Cost of revenue4,856 2,281 
End-user engagement marketing14,805 
Paid acquisition spend4,047 
Headcount expenses10,974 10,865 
Consulting fees2,166 322 
Vendor and software expenses3,111 546 
Legal fees (non-litigation)— 221 
Litigation expense1,815 
Office and operations expense1,205 1,002 
Other segment items(1)
859 1,074 
Adjusted EBITDA$(3,440)$3,794 
1.Other segment items for each segment are comprised of creative and live event marketing costs, employee event expenses and various miscellaneous expenses.
Six Months Ended June 30, 2025
SkillzRZR
Revenue$36,958 $10,355 
Less:
Cost of revenue4,076 2,028 
End-user engagement marketing16,381 
Paid acquisition spend7,078 
Headcount expenses10,435 7,533 
Consulting fees586 216 
Vendor and software expenses4,175 262 
Legal fees (non-litigation)178 
Office and operations expense1,250 429 
Other segment items(1)
647 745 
Adjusted EBITDA$(7,670)$(1,036)
1.Other segment items for each segment are comprised of creative and live event marketing costs, tax and license expenses, employee event expenses and various miscellaneous expenses.
v3.26.1
Loss Per Share (Tables)
 6 Months Ended
Jun. 30, 2026
Earnings Per Share [Abstract]  
Schedule of Computation of Basic and Diluted Loss Per Share
The following table sets forth the computation of basic and diluted loss per Class A common stock and Class B common stock (in thousands, except for share and per share data):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Numerator:
Net loss$(24,475)$(17,922)$(35,420)$(35,064)
Denominator:
Weighted average shares outstanding - basic and diluted
16,074,260 15,491,239 15,953,829 15,888,064 
Loss per share, basic and diluted$(1.52)$(1.16)$(2.22)$(2.21)
Schedule of Antidilutive Securities Excluded from Computation of Loss Per Share
The following outstanding common stock equivalents were considered antidilutive, and therefore, excluded from the computation of diluted loss per share attributable to common stockholders for the periods presented (share numbers are not in thousands).
As of June 30,
20262025
Common stock warrants— 226,786 
Common stock options669,254 681,231 
Performance stock units211,243 27,075 
Restricted stock units954,077 1,937,832 
Total1,834,574 2,872,924 
v3.26.1
Summary of Significant Accounting Policies - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Jun. 30, 2026
Dec. 31, 2025
Jun. 30, 2025
Dec. 31, 2024
Accounting Policies [Abstract]        
Cash $ 20,307 $ 10,101    
Money market funds 143,684 184,412    
Restricted cash - non-current 1,000 1,000    
Total cash, cash equivalents and restricted cash $ 164,991 $ 195,513 $ 238,657 $ 281,923
v3.26.1
Summary of Significant Accounting Policies - Schedule of Valuation and Qualifying Account Activity (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance for credit losses $ 257 $ 273
Provision for bad debt 1 0
Recoveries 0 (8)
Ending balance for credit losses $ 258 $ 265
v3.26.1
Summary of Significant Accounting Policies - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Dec. 31, 2025
Concentration Risk [Line Items]          
Non-marketable equity securities $ 52,768   $ 52,768   $ 52,768
Advertising costs 1,500 $ 3,900 5,100 $ 8,900  
Selling and marketing expense 1,300 3,600 4,400 8,100  
Indirect tax liabilities 8,371   $ 8,371   $ 12,635
Matching employer contribution     3.00%    
Contributions $ 100 $ 400 $ 200 $ 500  
Building          
Concentration Risk [Line Items]          
Useful life (in years) 39 years   39 years    
Two Customers | Accounts Receivable | Customer Concentration Risk          
Concentration Risk [Line Items]          
Concentration risk (as a percent)     29.00%    
Four Customers | Accounts Receivable | Customer Concentration Risk          
Concentration Risk [Line Items]          
Concentration risk (as a percent)         46.00%
v3.26.1
Investments - Schedule of Components of Investments (Details) - USD ($)
$ in Thousands
Jun. 30, 2026
Dec. 31, 2025
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost Basis $ 143,684 $ 184,412
Unrealized Gains 0 0
Unrealized Losses 0 0
Fair Value 143,684 184,412
Cash and Cash Equivalents 143,684 184,412
Marketable Securities - Current 0 0
Marketable Securities - Non-current 0 0
Money market funds    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost Basis 143,684 184,412
Unrealized Gains 0 0
Unrealized Losses 0 0
Fair Value 143,684 184,412
Cash and Cash Equivalents 143,684 184,412
Marketable Securities - Current 0 0
Marketable Securities - Non-current $ 0 $ 0
v3.26.1
Summary of Significant Accounting Policies - Schedule of Interest Income (Expense), Net (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Accounting Policies [Abstract]        
Interest expense $ (3,859) $ (3,805) $ (7,703) $ (7,601)
Interest income 1,435 2,484 2,999 5,209
Total interest expense, net of interest income $ (2,424) $ (1,321) $ (4,704) $ (2,392)
v3.26.1
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Disaggregation of Revenue [Line Items]        
Revenue $ 30,992 $ 25,214 $ 60,097 $ 47,111
Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue 31,120 25,281 60,503 47,313
Operating Segments | United States        
Disaggregation of Revenue [Line Items]        
Revenue 23,275 19,804 44,871 37,626
Operating Segments | Other Countries        
Disaggregation of Revenue [Line Items]        
Revenue 7,845 5,477 15,632 9,687
Operating Segments | Skillz        
Disaggregation of Revenue [Line Items]        
Revenue 20,771 19,365 40,398 36,958
Operating Segments | Skillz | United States        
Disaggregation of Revenue [Line Items]        
Revenue 19,506 18,064 38,148 34,362
Operating Segments | Skillz | Other Countries        
Disaggregation of Revenue [Line Items]        
Revenue 1,265 1,301 2,250 2,596
Operating Segments | RZR        
Disaggregation of Revenue [Line Items]        
Revenue 10,349 5,916 20,105 10,355
Operating Segments | RZR | United States        
Disaggregation of Revenue [Line Items]        
Revenue 3,769 1,740 6,723 3,264
Operating Segments | RZR | Other Countries        
Disaggregation of Revenue [Line Items]        
Revenue 6,580 4,176 13,382 7,091
Operating Segments | Entry Fee Revenue        
Disaggregation of Revenue [Line Items]        
Revenue 20,142 19,056 39,372 36,208
Operating Segments | Entry Fee Revenue | Skillz        
Disaggregation of Revenue [Line Items]        
Revenue 20,142 19,056 39,372 36,208
Operating Segments | Entry Fee Revenue | RZR        
Disaggregation of Revenue [Line Items]        
Revenue 0 0 0 0
Operating Segments | Advertising Revenue        
Disaggregation of Revenue [Line Items]        
Revenue 10,349 5,916 20,105 10,355
Operating Segments | Advertising Revenue | Skillz        
Disaggregation of Revenue [Line Items]        
Revenue 0 0 0 0
Operating Segments | Advertising Revenue | RZR        
Disaggregation of Revenue [Line Items]        
Revenue 10,349 5,916 20,105 10,355
Operating Segments | Subscription Service Revenue        
Disaggregation of Revenue [Line Items]        
Revenue 247   375  
Operating Segments | Subscription Service Revenue | Skillz        
Disaggregation of Revenue [Line Items]        
Revenue 247   375  
Operating Segments | Subscription Service Revenue | RZR        
Disaggregation of Revenue [Line Items]        
Revenue 0   0  
Operating Segments | Maintenance Fee Revenue        
Disaggregation of Revenue [Line Items]        
Revenue 382 309 651 750
Operating Segments | Maintenance Fee Revenue | Skillz        
Disaggregation of Revenue [Line Items]        
Revenue 382 309 651 750
Operating Segments | Maintenance Fee Revenue | RZR        
Disaggregation of Revenue [Line Items]        
Revenue 0 0 0 0
Intersegment Eliminations        
Disaggregation of Revenue [Line Items]        
Revenue $ (128) $ (67) $ (406) $ (202)
v3.26.1
Revenue - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Disaggregation of Revenue [Line Items]        
Reduction to revenue, end-user incentives $ 3.2 $ 2.0 $ 4.2 $ 4.8
Sales and marketing expense, end-user incentive $ 5.9 $ 8.1 $ 13.5 $ 17.6
Term of performance obligations     30 days  
Two Developers | Revenue | Customer Concentration Risk        
Disaggregation of Revenue [Line Items]        
Concentration risk (as a percent) 63.00%   68.00%  
Three Developers | Revenue | Customer Concentration Risk        
Disaggregation of Revenue [Line Items]        
Concentration risk (as a percent)   69.00%   70.00%
v3.26.1
Leases - Schedule of Components of Lease Costs, Lease Term, Discount Rate (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Dec. 31, 2025
Finance leases          
Amortization of assets under finance leases $ 0 $ 0 $ 0 $ 0  
Interest 0 6 0 17  
Total finance lease costs 0 6 0 17  
Operating lease cost 369 341 526 692  
Variable lease cost 4 52 27 152  
Short-term lease rent expense $ 639 $ 704 $ 1,375 $ 1,411  
Weighted-average remaining lease term          
Operating leases 4 years   4 years   2 years 3 months 18 days
Operating leases 0 years   0 years   0 years
Weighted-average discount rate          
Operating leases 10.50%   10.50%   10.10%
Finance leases 0.00%   0.00%   0.00%
v3.26.1
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Cash paid for amounts included in the measurement of lease liabilities:        
Payments for operating leases included in cash from operating activities $ 242 $ 738 $ 397 $ 1,412
Payments for finance leases included in cash from operating activities 0 6 0 17
Payments for finance leases included in cash from financing activities 0 197 0 389
Assets obtained in exchange for lease obligations:        
Operating leases 3,090 0 3,090 0
Finance leases $ 0 $ 0 $ 0 $ 0
v3.26.1
Leases - Schedule of Maturities of Operating and Finance Lease Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2026
Dec. 31, 2025
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract]    
2026 $ 630  
2027 1,348  
2028 1,215  
2029 903  
2030 828  
2031 255  
Total undiscounted cash flows 5,179  
Less: Imputed interest (1,238)  
Present value of lease liabilities 3,941  
Lease liabilities, current 837 $ 465
Lease liabilities, non-current 3,104 $ 665
Present value of lease liabilities $ 3,941  
v3.26.1
Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2026
Dec. 31, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Credit card processing reserve $ 1,000 $ 1,000
Prepaid expenses 3,391 5,423
Other current assets 1,892 1,130
Prepaid expenses and other current assets $ 6,283 $ 7,553
v3.26.1
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Jun. 30, 2026
Dec. 31, 2025
Property, Plant, and Equipment [Line Items]    
Total property and equipment $ 35,014 $ 33,218
Accumulated depreciation and amortization (13,994) (12,442)
Property and equipment, net 21,020 20,776
Land    
Property, Plant, and Equipment [Line Items]    
Property and equipment, gross 980 980
Building    
Property, Plant, and Equipment [Line Items]    
Property and equipment, gross 12,880 12,831
Capitalized internal-use software    
Property, Plant, and Equipment [Line Items]    
Property and equipment, gross 15,167 13,459
Computer equipment and servers    
Property, Plant, and Equipment [Line Items]    
Property and equipment, gross 4,776 3,202
Furniture and fixtures    
Property, Plant, and Equipment [Line Items]    
Property and equipment, gross 378 378
Leasehold improvements    
Property, Plant, and Equipment [Line Items]    
Property and equipment, gross 131 122
Construction in progress    
Property, Plant, and Equipment [Line Items]    
Property and equipment, gross $ 702 $ 2,246
v3.26.1
Balance Sheet Components - Schedule of Property and Equipment, Net by Geographic Area (Details) - USD ($)
$ in Thousands
Jun. 30, 2026
Dec. 31, 2025
Segment Reporting, Entity-Wide Information Not Provided as Part of Reportable Segment, Geographical Area, Revenue and Long-Lived Asset [Line Items]    
Total $ 21,020 $ 20,776
United States    
Segment Reporting, Entity-Wide Information Not Provided as Part of Reportable Segment, Geographical Area, Revenue and Long-Lived Asset [Line Items]    
Total 20,535 20,350
Other Countries    
Segment Reporting, Entity-Wide Information Not Provided as Part of Reportable Segment, Geographical Area, Revenue and Long-Lived Asset [Line Items]    
Total $ 485 $ 426
v3.26.1
Balance Sheet Components - Schedule of Asset Acquisition Included in Other Non-Current Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2026
Dec. 31, 2025
Intangible Asset, Finite-Lived [Line Items]    
Total asset acquisitions $ 3,128 $ 0
Accumulated amortization (154) 0
Asset acquisitions, net 2,974 0
Game titles    
Intangible Asset, Finite-Lived [Line Items]    
Total asset acquisitions 2,850 0
Developed technology    
Intangible Asset, Finite-Lived [Line Items]    
Total asset acquisitions $ 278 $ 0
v3.26.1
Balance Sheet Components - Schedule of Other Current Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2026
Dec. 31, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Accrued publisher fees $ 12,443 $ 6,367
End-user liability, net 8,916 8,177
Accrued compensation 5,639 4,475
Indirect tax liabilities 8,371 12,635
Accrued legal expenses 7,086 2,422
Accrued operating expenses 3,368 5,787
Accrued developer revenue share 799 912
Deferred asset acquisition consideration 610 0
Accrued interest expenses 554 554
Accrued sales and marketing expenses 365 1,084
Short-term lease obligations 2 2
Other 665 529
Other current liabilities $ 48,818 $ 42,944
v3.26.1
Fair Value Measurements (Details) - USD ($)
$ in Thousands
Jun. 30, 2026
Dec. 31, 2025
Assets:    
Cash and Cash Equivalents $ 143,684 $ 184,412
Total assets 143,684 184,412
Money market funds    
Assets:    
Cash and Cash Equivalents 143,684 184,412
Level 1    
Assets:    
Total assets 143,684 184,412
Level 1 | Money market funds    
Assets:    
Cash and Cash Equivalents 143,684 184,412
Level 2    
Assets:    
Total assets 0 0
Level 2 | Money market funds    
Assets:    
Cash and Cash Equivalents 0 0
Level 3    
Assets:    
Total assets 0 0
Level 3 | Money market funds    
Assets:    
Cash and Cash Equivalents $ 0 $ 0
v3.26.1
Long-Term Debt - Schedule of Components of Long-Term Debt (Details) - USD ($)
$ in Thousands
Jun. 30, 2026
Dec. 31, 2025
Debt Instrument [Line Items]    
2021 Senior Secured Notes $ 129,671  
Unamortized discount and issuance costs (1,025) $ (2,082)
Total debt after discount and issuance costs 128,646 127,589
Current portion of long-term debt (128,646) (127,589)
Long-term debt, net 0 0
Senior Secured Notes, 2021    
Debt Instrument [Line Items]    
2021 Senior Secured Notes $ 129,671 $ 129,671
v3.26.1
Long-Term Debt - Narrative (Details) - USD ($)
 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Aug. 14, 2026
Apr. 13, 2023
Dec. 20, 2021
Debt Instrument [Line Items]          
Accretion of unamortized debt discount and amortization of debt issuance costs $ 1,057,000 $ 939,000      
Senior Secured Notes, 2021 | Senior Notes          
Debt Instrument [Line Items]          
Face amount         $ 300,000,000
Interest rate         10.25%
Effective interest rate 12.09%       12.14%
Repurchase amount       $ 159,800,000  
Debt term 5 years        
Fair value $ 130,000,000.0        
Senior Secured Notes, 2021 | Senior Notes | Subsequent Event          
Debt Instrument [Line Items]          
Debt instrument, redemption, principal     $ 80,000,000.0    
v3.26.1
Long-Term Debt - Schedule of Maturities of Long-Term Debt (Details)
$ in Thousands
Jun. 30, 2026
USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]  
2026 $ 129,671
Total $ 129,671
v3.26.1
Commitments and Contingencies (Details)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jul. 27, 2026
USD ($)
Apr. 23, 2026
USD ($)
Aug. 29, 2025
game
Jul. 01, 2024
numberOfLitigationCase
Apr. 13, 2024
USD ($)
Feb. 09, 2024
USD ($)
Jun. 30, 2026
USD ($)
Mar. 31, 2026
USD ($)
Jun. 30, 2025
USD ($)
Mar. 31, 2025
USD ($)
Jun. 30, 2026
USD ($)
Jun. 30, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2025
USD ($)
Apr. 12, 2024
USD ($)
Loss Contingencies [Line Items]                              
Gain from litigation settlement             $ 0 $ 7,500 $ 0 $ 7,500 $ 7,500 $ 7,500      
Indirect tax liabilities             $ 8,371       $ 8,371     $ 12,635  
Big Run Studios | Notes Receivable                              
Loss Contingencies [Line Items]                              
Financing receivable                             $ 2,000
Skillz vs AviaGames                              
Loss Contingencies [Line Items]                              
Damages awarded           $ 42,900                  
Loss contingency, damages paid, value                         $ 48,000    
Proceeds from royalties received, annual amount expected                         $ 7,500    
Royalty payment period (in years)                         4 years    
Skillz, Big Run vs AviaGames                              
Loss Contingencies [Line Items]                              
Litigation settlement, amount awarded from other party         $ 80,000                    
Loss contingency, damages paid, value                         $ 50,000    
Skillz V. Big Run | Big Run Studios | Notes Receivable                              
Loss Contingencies [Line Items]                              
Financing receivable                         2,000    
Big Run vs AviaGames                              
Loss Contingencies [Line Items]                              
Loss contingency, damages paid, value                         4,000    
Big Run vs AviaGames | AviaGames                              
Loss Contingencies [Line Items]                              
Gain contingency, annual payments, receivable                             7,500
Gain contingency, unrecorded amount                             $ 15,000
Big Run vs AviaGames | AviaGames | Notes Receivable                              
Loss Contingencies [Line Items]                              
Financing receivable                         $ 2,000    
Skillz v. Tether Studios, et al.                              
Loss Contingencies [Line Items]                              
Loss contingency, number of games to be removed | game     2                        
Loss contingency, games removed from platform, duration     18 months                        
Skillz vs. Voodoo SAS et. al.                              
Loss Contingencies [Line Items]                              
Number of litigation cases filed | numberOfLitigationCase       2                      
Skillz vs. Papaya Gaming                              
Loss Contingencies [Line Items]                              
Damages awarded   $ 420,000                          
Loss contingency, advisory profits-based disgorgement, value   719,000                          
Loss contingency, cost-savings disgorgement, value   $ 652,000                          
Skillz vs. Papaya Gaming | Subsequent Event                              
Loss Contingencies [Line Items]                              
Damages awarded $ 719,000                            
Loss contingency, damages sought, value $ 10,100                            
v3.26.1
Share Repurchase Program (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Aug. 18, 2023
Equity, Class of Treasury Stock [Line Items]          
Authorized repurchase amount         $ 65.0
Share repurchase program, remaining authorized, amount $ 23.4   $ 23.4    
Common stock          
Equity, Class of Treasury Stock [Line Items]          
Shares repurchased (in shares) 0 600,000 0 1,400,000  
Shares repurchased, price per share (in dollars per share)   $ 5.08   $ 5.39  
Treasury stock, value, acquired, cost method   $ 3.0   $ 7.7  
v3.26.1
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total stock-based compensation expense $ 7,019 $ 4,362 $ 9,776 $ 9,912
Income Statement Location [Axis]: us-gaap:CostOfRevenue        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total stock-based compensation expense 0 0 0 3
Income Statement Location [Axis]: us-gaap:GeneralAndAdministrativeExpense        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total stock-based compensation expense 6,230 3,422 8,488 7,538
Income Statement Location [Axis]: us-gaap:ResearchAndDevelopmentExpense        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total stock-based compensation expense 503 250 641 499
Income Statement Location [Axis]: us-gaap:SellingAndMarketingExpense        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total stock-based compensation expense $ 286 $ 690 $ 647 $ 1,872
v3.26.1
Stock-Based Compensation - Narrative (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2026
USD ($)
day
tranche
$ / shares
shares
Jun. 30, 2025
USD ($)
Jun. 30, 2026
USD ($)
day
tranche
$ / shares
shares
Jun. 30, 2025
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Capitalized expense | $ $ 0 $ 0 $ 0 $ 100,000
Performance stock units | Chief Executive Officer        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Dollar amount of shares authorized, numerator | $ $ 1,500,000      
Volume-weighted average price, number of days | day 90   90  
Number of shares to be converted per unit (in shares) | shares 1   1  
Revenue, weighted percentage 50.00%   50.00%  
EBITDA, weighted percentage 50.00%   50.00%  
Performance stock units | Chief Executive Officer | 2020 Omnibus Incentive Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Dollar amount of shares authorized, numerator | $ $ 3,000,000.0      
Volume-weighted average price, number of days | day 90   90  
Number of shares to be converted per unit (in shares) | shares 1   1  
Number of tranches | tranche 8   8  
Shares vested, volume-weighted average price, number of days | day 30   30  
Performance stock units | Chief Executive Officer | Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Target percentage 0.00%   0.00%  
Performance stock units | Chief Executive Officer | Minimum | 2020 Omnibus Incentive Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Target percentage 0.00%   0.00%  
Volume-weighted average price (in dollars per share) | $ / shares $ 9.00   $ 9.00  
Performance stock units | Chief Executive Officer | Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Target percentage 200.00%   200.00%  
Performance stock units | Chief Executive Officer | Maximum | 2020 Omnibus Incentive Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Target percentage 200.00%   200.00%  
Volume-weighted average price (in dollars per share) | $ / shares $ 19.00   $ 19.00  
Restricted stock units | Chief Executive Officer        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Dollar amount of shares authorized, numerator | $ $ 1,500,000      
Volume-weighted average price, number of days | day 90   90  
v3.26.1
Stock-Based Compensation - Schedule of Stock Options and Restricted Stock Units Activity (Details)
$ / shares in Units, $ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2026
USD ($)
$ / shares
shares
Dec. 31, 2025
USD ($)
$ / shares
shares
Number of Shares Outstanding Under the Plan    
Beginning balance (in shares) | shares 676,704  
Granted (in shares) | shares 0  
Exercised/vested (in shares) | shares (7,002)  
Cancelled/forfeited/expired (in shares) | shares (448)  
Ending balance (in shares) | shares 669,254 676,704
Weighted- Average Exercise Price    
Beginning balance (in dollars per share) | $ / shares $ 314.72  
Granted (in dollars per share) | $ / shares 0  
Exercised/vested (in dollars per share) | $ / shares 3.00  
Cancelled/forfeited/expired (in dollars per share) | $ / shares 12.85  
Ending balance (in dollars per share) | $ / shares $ 318.19 $ 314.72
Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value    
Options outstanding, weighted-average remaining contractual term 4 years 5 months 15 days 4 years 11 months 15 days
Options outstanding, aggregate intrinsic value | $ $ 135 $ 9
Restricted stock units    
Number of Plan Shares Outstanding    
Beginning balance (in shares) | shares 1,310,546  
Granted (in shares) | shares 264,526  
Exercised/vested (in shares) | shares (582,663)  
Cancelled/forfeited/expired (in shares) | shares (38,332)  
Ending balance (in shares) | shares 954,077 1,310,546
Weighted-Average Grant Date Fair Value per Share    
Beginning balance (in dollars per share) | $ / shares $ 10.51  
Granted (in dollars per share) | $ / shares 0  
Exercised/vested (in dollars per share) | $ / shares 5.57  
Cancelled/forfeited/expired (in dollars per share) | $ / shares 6.13  
Ending balance (in dollars per share) | $ / shares $ 10.79 $ 10.51
v3.26.1
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Income Tax Disclosure [Abstract]        
Income tax expense (benefit) $ 96 $ (19) $ 170 $ 20
Effective tax rate (0.39%) 0.11% (0.48%) (0.06%)
v3.26.1
Segment Reporting - Narrative (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2026
USD ($)
Jun. 30, 2025
USD ($)
Jun. 30, 2026
USD ($)
segment
Jun. 30, 2025
USD ($)
Segment Reporting [Line Items]        
Number of reportable segments | segment     2  
Revenue $ (30,992) $ (25,214) $ (60,097) $ (47,111)
Payments to acquire internal-use software and property and equipment     2,000 3,400
Intersegment Eliminations        
Segment Reporting [Line Items]        
Revenue $ 128 $ 67 $ 406 $ 202
v3.26.1
Segment Reporting - Schedule of Segment Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Mar. 31, 2026
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2026
Jun. 30, 2025
Segment Reporting [Line Items]            
Total Revenue $ 30,992   $ 25,214   $ 60,097 $ 47,111
Total Adjusted EBITDA (13,553)   (11,427)   (26,330) (28,683)
Interest expense, net of interest income 2,424   1,321   4,704 2,392
Stock-based compensation         (9,776) (9,912)
Depreciation and amortization         (1,711) (361)
Gain from litigation settlement 0 $ 7,500 0 $ 7,500 7,500 7,500
Other (expense) income, net (388)   (637)   (229) (1,196)
Loss before income taxes (24,379)   (17,941)   (35,250) (35,044)
Operating Segments            
Segment Reporting [Line Items]            
Total Revenue 31,120   25,281   60,503 47,313
Interest expense, net of interest income (2,424)   (1,321)   (4,704) (2,392)
Stock-based compensation (7,019)   (4,362)   (9,776) (9,912)
Depreciation and amortization (995)   (194)   (1,711) (361)
Gain from litigation settlement         7,500 7,500
Other (expense) income, net (388)   (637)   (229) (1,196)
Operating Segments | Skillz            
Segment Reporting [Line Items]            
Total Revenue 20,771   19,365   40,398 36,958
Total Adjusted EBITDA 583   (2,665)   (3,440) (7,670)
Operating Segments | RZR            
Segment Reporting [Line Items]            
Total Revenue 10,349   5,916   20,105 10,355
Total Adjusted EBITDA 1,930   (62)   3,794 (1,036)
Elimination            
Segment Reporting [Line Items]            
Total Revenue (128)   (67)   (406) (202)
Corporate            
Segment Reporting [Line Items]            
Total Adjusted EBITDA $ (16,066)   $ (8,700)   $ (26,684) $ (19,977)
v3.26.1
Segment Reporting - Schedule of EBITDA Reconciliation (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Segment Reporting [Line Items]        
Revenue $ 30,992 $ 25,214 $ 60,097 $ 47,111
Cost of revenue 3,911 3,220 7,508 6,184
Adjusted EBITDA (13,553) (11,427) (26,330) (28,683)
Operating Segments        
Segment Reporting [Line Items]        
Revenue 31,120 25,281 60,503 47,313
Operating Segments | Skillz        
Segment Reporting [Line Items]        
Revenue 20,771 19,365 40,398 36,958
Cost of revenue 2,445 2,098 4,856 4,076
End-user engagement marketing 6,885 8,100 14,805 16,381
Paid acquisition spend 1,139 3,347 4,047 7,078
Headcount expenses 5,265 5,371 10,974 10,435
Consulting fees 740 403 2,166 586
Vendor and software expenses 1,980 2,035 3,111 4,175
Legal fees (non-litigation) 0
Litigation expense 1,387   1,815  
Office and operations expense 278 660 1,205 1,250
Other segment items(1) 69 16 859 647
Adjusted EBITDA 583 (2,665) (3,440) (7,670)
Operating Segments | RZR        
Segment Reporting [Line Items]        
Revenue 10,349 5,916 20,105 10,355
Cost of revenue 1,235 1,052 2,281 2,028
End-user engagement marketing
Paid acquisition spend
Headcount expenses 5,409 3,980 10,865 7,533
Consulting fees 188 110 322 216
Vendor and software expenses 306 175 546 262
Legal fees (non-litigation) 81 97 221 178
Litigation expense    
Office and operations expense 668 215 1,002 429
Other segment items(1) 532 349 1,074 745
Adjusted EBITDA $ 1,930 $ (62) $ 3,794 $ (1,036)
v3.26.1
Loss Per Share - Schedule of Computation of Basic and Diluted Loss Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Numerator:        
Net loss - basic $ (24,475) $ (17,922) $ (35,420) $ (35,064)
Net loss - diluted $ (24,475) $ (17,922) $ (35,420) $ (35,064)
Denominator:        
Weighted average shares outstanding - basic (in shares) 16,074,260 15,491,239 15,953,829 15,888,064
Weighted average shares outstanding - diluted (in shares) 16,074,260 15,491,239 15,953,829 15,888,064
Loss per share, basic (in dollars per share) $ (1.52) $ (1.16) $ (2.22) $ (2.21)
Loss per share, diluted (in dollars per share) $ (1.52) $ (1.16) $ (2.22) $ (2.21)
v3.26.1
Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Loss Per Share (Details) - shares
 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total (in shares) 1,834,574 2,872,924
Common stock warrants    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total (in shares) 0 226,786
Common stock options    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total (in shares) 669,254 681,231
Performance stock units    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total (in shares) 211,243 27,075
Restricted stock units    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total (in shares) 954,077 1,937,832
v3.26.1
Subsequent Events (Details) - USD ($)
$ in Thousands
Aug. 14, 2026
Aug. 04, 2026
Jul. 27, 2026
Apr. 23, 2026
Jun. 30, 2026
Dec. 31, 2025
Subsequent Event [Line Items]            
Long-term debt         $ 128,646 $ 127,589
Subsequent Event | 2021 Senior Secured Notes | Senior Notes            
Subsequent Event [Line Items]            
Debt instrument, redemption, principal $ 80,000 $ 80,000        
Debt instrument, redemption price, percentage 100.00% 100.00%        
Long-term debt $ 49,700 $ 129,700        
Skillz vs. Papaya Gaming            
Subsequent Event [Line Items]            
Damages awarded       $ 420,000    
Skillz vs. Papaya Gaming | Subsequent Event            
Subsequent Event [Line Items]            
Damages awarded     $ 719,000