Skillz Inc.

Q2 2026 GAAP revenue was $31 million, up from $29.1 million in Q1 2026 and $25.2 million in Q2 2025, representing 6% quarter-over-quarter growth and 23% year-over-year growth. Adjusted EBITDA loss was $13.6 million versus a loss of $12.8 million in Q1 2026 and a loss of $11.4 million in Q2 2025; excluding litigation-related expenses, adjusted EBITDA loss was $2.7 million. Net loss was $24.5 million versus $17.9 million in Q2 2025. Revenue guidance/near-term commentary: management said RZR revenue is expected to nearly double year over year in 2026, Skillz has a line of sight to sequential growth in Q4, and the company expects litigation expenses to decrease in future periods. Management also said it expects to generate modest positive operating cash flow in 2027 and accelerate from there into 2028 and beyond.

Andrew Paradise framed the quarter as the most consequential period in the company’s recent history, citing the completed rebrand, the Papaya judgment, and the shift from turnaround to growth. He emphasized that Firy now has multiple businesses tied to the same game-developer customer, with RZR already a meaningful revenue and profitability contributor and Beamable as a longer-term build. His tone was confident and strategic, repeatedly pointing to a “flywheel” across RZR, Skillz, and Beamable, plus the expectation that litigation will eventually create value rather than distract from the operating story.

Alex Walsh focused on the quarter’s financial improvements and the balance sheet. He cited Q2 revenue of $31 million, R&D expense of $6.9 million, G&A of $28.2 million, net loss of $24.5 million, and adjusted EBITDA loss of $13.6 million, noting that litigation alone cost nearly $11 million in the quarter. He said the company ended Q2 with about $164 million in cash and cash equivalents and $130 million in debt maturing in December, then reiterated the planned $80 million redemption, which would leave about $50 million outstanding. He also highlighted approximately $702 million of federal NOLs and $280 million of state NOLs, plus the remaining $15 million from the AviaGames settlement and the Exit Games stake as underappreciated balance-sheet assets.

Analysts pressed on why the rebrand happened now, and management said it was meant to reflect that Skillz has evolved into multiple businesses, with RZR now a substantial part of revenue and profitability. Questions also focused on RZR’s customer mix and the mobile game ad market; management said most of RZR’s top gaming customers are independent of Skillz and argued that mobile remains important even as the mix broadens to e-commerce, health care, AI, retail, and entertainment. On Skillz, management said Q2 had operational issues, that those issues may be slight headwinds into Q3, and that the business has a line of sight to sequential growth in Q4, while spending will be sequenced around product and content fixes first. Analysts also asked about debt paydown, minimum cash, and capital deployment; management said it will pay off the $50 million debt, wants roughly a $30 million cash buffer, and is evaluating refinancing, the Exit Games stake, and other ways to strengthen liquidity.