Here are 1-2 brief analogies to describe Skillz:

• Skillz is like DraftKings or FanDuel for skill-based mobile video games.
• Skillz is like an online poker platform (e.g., PokerStars) for competitive mobile games.

• Mobile eSports Platform: A technology platform that integrates competitive multiplayer tournaments into mobile games, allowing players to compete for real money prizes.
• Developer Monetization Tools: Provides mobile game developers with SDKs and services to implement skill-based competitions, helping them monetize their games and increase player engagement.
• Skill-Based Gaming Experience: Offers mobile gamers a fair and competitive environment to test their skills against others in tournaments with real cash prizes.

Skillz (SKLZ) primarily sells to **individuals** (B2C) rather than other companies. Its platform allows mobile game players to compete against each other for cash prizes.

The up to three categories of customers that Skillz serves are:

1. Competitive Mobile Gamers: Individuals who are looking for a more engaging and competitive gaming experience beyond traditional free-to-play mobile games. These players are drawn to the skill-based tournaments and the opportunity to win real money.

2. Casual Players Seeking Monetization: Everyday mobile game players who enjoy various genres and are interested in the added incentive of potentially earning money while playing games they enjoy. They might start with smaller stakes or free-entry tournaments.

3. Esports Enthusiasts (Mobile Segment): Players who appreciate the competitive aspect of esports and seek platforms where their gaming skill can be directly rewarded. While traditional esports often focus on PC/console, Skillz caters to this drive within the mobile gaming ecosystem.

• Amazon.com, Inc. (AMZN)

Andrew Paradise, CEO & Founder
Andrew Paradise is the CEO and Founder of Skillz. Prior to Skillz, he founded Double Picture, an ad tech firm, which he sold to MPA in 2010. He also founded AisleBuyer, a mobile self-checkout company, which he sold to Intuit in 2012. Paradise co-founded Skillz with Casey Chafkin in 2012. His professional career began in private equity and venture capital.

Gaetano Franceschi, CFO
Gaetano Franceschi joined Skillz as Chief Financial Officer in January 2024. Before Skillz, he served as the Senior Vice President and Head of Finance of Compass, a real estate technology company. His experience also includes roles as CFO of Amazon Games and CFO of AWS Data Center General Services, as well as various operational finance positions at Citi and American Express.

Casey Chafkin, Chief Strategy Officer & Co-founder
Casey Chafkin is the Chief Strategy Officer and co-founder of Skillz. He co-founded Skillz with Andrew Paradise in 2012. Prior to Skillz, he was the Vice President of Business Development for AisleBuyer, a company that was sold to Intuit in 2012.

Jason Roswig, President
Jason Roswig served as President and Chief Financial Officer of Skillz starting in August 2022, before stepping down as CFO in January 2024 to continue as President. Previously, he was a Managing Director in Blackstone's Private Equity and Portfolio Operations groups, where he oversaw the financial and operating performance of Blackstone's technology portfolio. He also worked as an Expert Associate Partner at McKinsey & Company and held finance and corporate development executive roles at General Electric Company.

Nik Patel, Interim General Counsel
Nik Patel is the Interim General Counsel at Skillz, responsible for legal, compliance, and regulatory matters. Prior to joining Skillz, he was a Senior Associate at the international law firm King & Spalding LLP, specializing in mergers and acquisitions, corporate, and securities law.

1. Declining Revenue and Lack of Sustainable Profitability: Skillz has consistently reported declining revenues, a shrinking user base, and persistent financial losses, indicating fundamental challenges in achieving sustained profitability. The company's revenues have decreased significantly from their peak, and it continues to report negative net income and cash flow from operations. This decline in its paying monthly active users (PMAU) suggests a struggle to retain and grow its core customer base.
2. Regulatory, Legal, and Compliance Issues: The company is confronting critical regulatory and legal hurdles. Skillz received a notice from the New York Stock Exchange (NYSE) regarding non-compliance with listing standards due to its failure to timely file its annual report (Form 10-K), which could lead to delisting if not resolved. Furthermore, Skillz has identified material weaknesses in its internal control over financial reporting. The company is also involved in ongoing litigation, including disputes with Papaya and Voodoo, and a lawsuit concerning the termination of agreements with Tether, which can drain resources and create uncertainty.
3. Intense Competition and Dependence on Third-Party Developers: Skillz operates in a highly competitive mobile gaming market, facing pressure from major tech companies such as Apple and Google. The business model is significantly dependent on attracting and retaining successful relationships with third-party game developers. There is also a risk that a preference among mobile players for free casual games, rather than those with cash stakes, could diminish Skillz's market potential.

The clearest emerging threat for Skillz (SKLZ) is the potential for mobile operating system developers, primarily Apple and Google, to develop and integrate their own native, real-money skill-based competitive gaming platforms directly into their respective app stores.

Skillz operates as a third-party layer, providing SDKs, matchmaking, fraud detection, and monetization services for developers building games on iOS and Android. If Apple or Google were to launch their own robust, officially sanctioned platforms for real-money skill-based gaming, they would possess immense advantages that could fundamentally disrupt Skillz's business model. These advantages include:

• Direct Access and Trust: Immediate access to billions of users and millions of developers, coupled with the inherent trust associated with the platform owners.
• Seamless Integration: Native features could offer superior performance, lower latency, and deeper integration with the operating system and payment systems.
• Cost and Terms: They could offer more attractive terms or lower fees to developers, leveraging their massive scale and ability to capture revenue from various angles within their ecosystem.
• Regulatory Leverage: Platform owners might have an easier path navigating evolving real-money gaming regulations due to their existing compliance infrastructure and relationships.

While Apple and Google have not yet launched direct Skillz competitors, they are consistently expanding their gaming initiatives (e.g., Apple Arcade, Google Play Pass, continuous enhancements to developer tools and monetization options). The real-money skill-based gaming market, validated by Skillz, represents a significant revenue opportunity for these platform owners who already control the underlying infrastructure and developer relationships. Their entry would bypass the need for a third-party platform like Skillz, potentially rendering its services redundant or uncompetitive, much like Apple's iPhone impacted Research in Motion's BlackBerry by integrating superior features directly into the platform.

Addressable Markets for Skillz's Main Products and Services

Global Mobile Gaming Market

Global Esports Market

• International Expansion: Skillz is actively expanding its geographical footprint to new markets, with a significant emphasis on India. The company has established a second corporate headquarters in Bengaluru to drive product innovation, engineering, and advanced analytics, aiming to increase its global user base.
• Diversification of Game Genres and New Product Launches: The company plans to broaden its game offerings beyond traditional competition-based mobile games to include casual, puzzle, and strategy games, aiming to attract a wider audience and enhance platform engagement. This strategy includes expanding into genres like advanced racing, synchronous fighting, and first-person shooters, exemplified by titles such as "Big Buck Hunter: Marksman". The launch of new games like "Solitaire Skillz" through its developer programs also contributes to this diversification.
• Developer Accelerator Program: Skillz has launched a $75 million Developer Accelerator program designed to support mobile game developers in bringing new skill-based titles to market. This initiative provides financial backing, operational resources, and expert guidance to foster game innovation and expand platform content, thereby driving user acquisition through new and engaging games.
• Optimizing User Acquisition and Retention: The company is focused on improving customer acquisition costs and increasing the long-term value of its players. This includes strategies to re-engage lapsed users and enhance monetization efforts. Recent reports indicate growth in paying monthly active users (PMAU) and an improved paid user conversion rate, reflecting stronger engagement and monetization across the platform.
• Growth of Aarki's Ad Tech Business with AI-driven Products: Skillz's ad technology business, Aarki, is experiencing accelerating revenue growth driven by the launch of new AI-driven products on both iOS and Android platforms. Investments in Aarki's machine and deep learning capabilities are aimed at expanding its market reach and improving returns for advertisers, contributing to overall revenue growth.

Share Repurchases

• Skillz's Board of Directors authorized a share repurchase program for up to $65 million of its Class A common stock on August 21, 2023.
• The authorized share repurchase program has a term of 12 months.

Outbound Investments

• Skillz announced a $75 million developer accelerator program aimed at driving game innovation and expanding offerings on its platform.

Capital Expenditures

• Skillz reported capital expenditures of -$5.28 million for the trailing twelve months ended June 2025.
• Annual capital expenditures were -$2.76 million in fiscal year 2024, -$13.24 million in fiscal year 2023, -$1.89 million in fiscal year 2022, and -$3.24 million in fiscal year 2021.
• These capital expenditures are primarily focused on acquiring or upgrading physical assets such as property, industrial buildings, or equipment.