Group 1 - The article discusses an opportunity for investors in Skillz Inc. to join a fraud investigation led by the Schall Law Firm [1] - The investigation is focused on potential fraudulent activities related to Skillz Inc. [1] - Investors are encouraged to participate in the investigation to seek potential remedies for any losses incurred [1] Group 2 - The mention of Skillz Inc. indicates ongoing concerns regarding corporate governance and transparency within the company [1] - The involvement of a law firm suggests that there may be significant legal implications for Skillz Inc. and its management [1] - The article highlights the importance of investor awareness and action in response to potential fraud allegations [1]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud and unlawful business practices involving Skillz Inc. and its executives, following a significant drop in the company's stock price due to the termination of agreements with Tether Studios and Tether Games [1][2]. Group 1: Company Developments - On September 2, 2025, Skillz disclosed that Tether Studios and Tether Games plan to terminate all agreements with Skillz, effective September 1, 2025, which involved licensing Skillz's software for monetizing Tether's games [2]. - Skillz has filed a lawsuit against Tether to block the termination of their agreements and is disputing the reasons provided by Tether for ending the deal [2]. - Following the announcement of the termination, Skillz's stock price fell by $1.50 per share, or 17.22%, closing at $7.21 per share on September 3, 2025 [2]. Group 2: Legal Investigation - Pomerantz LLP is conducting an investigation on behalf of investors of Skillz Inc. regarding possible securities fraud or other unlawful business practices by the company and its officers [1].

Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud or unlawful business practices involving Skillz Inc. and its officers or directors [1] Group 1: Company Developments - On September 2, 2025, Skillz disclosed that Tether Studios and Tether Games plan to terminate all agreements with Skillz, effective September 1, 2025 [3] - Skillz has filed a lawsuit against Tether to block the termination of their agreements and is disputing Tether's reasons for ending the deal [3] - Following the announcement of the termination, Skillz's stock price fell by $1.50 per share, or 17.22%, closing at $7.21 per share on September 3, 2025 [4] Group 2: Legal Actions - Pomerantz LLP is advising investors of Skillz to contact them regarding the investigation into potential securities fraud [1] - The firm has a long history of handling corporate, securities, and antitrust class litigation, recovering multimillion-dollar damages for victims of securities fraud [5]

Company Performance - Skillz Inc. reported a quarterly loss of $1.12 per share, which was better than the Zacks Consensus Estimate of a loss of $1.34, representing an earnings surprise of +16.42% [1] - The company posted revenues of $27.37 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 20.05%, compared to revenues of $25.3 million a year ago [2] - Over the last four quarters, Skillz has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Stock Movement and Outlook - Skillz shares have increased by approximately 40.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.9% [3] - The future performance of Skillz's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is -$1.28 on revenues of $23.55 million, and for the current fiscal year, it is -$4.72 on revenues of $93.81 million [7] Industry Context - The Gaming industry, to which Skillz belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Skillz's stock performance [5]

Financial Data and Key Metrics Changes - Q2 GAAP revenue was $27 million, up from $21 million in Q1 2025 and $25 million in Q2 2024, reflecting a 30% sequential increase and an 8% year-over-year increase [5][16] - Excluding one-time adjustments, revenue grew 22% quarter-over-quarter and 4% year-over-year [5][16] - Q2 adjusted EBITDA loss was $10 million, an improvement from a loss of $16 million in Q1 2025 and a loss of $13 million in Q2 2024, representing a 36% improvement quarter-over-quarter and 17% year-over-year [6][18] - Q2 net loss was $9 million compared to a net income of $26 million in the same quarter last year, with an adjusted EBITDA loss improving by $3 million year-over-year [18] Business Line Data and Key Metrics Changes - Paying Monthly Active Users (MAU) reached 146,000, up from 124,000 in Q1 2025 and 122,000 in Q2 2024, indicating an 18% growth quarter-over-quarter and 20% growth year-over-year [5][16] - The paid user conversion rate increased to 19% in Q2 from 15% a year ago [17] Market Data and Key Metrics Changes - User acquisition marketing expenses in Q2 were $3 million, while engagement marketing expenses were $9 million, with total sales and marketing expenses down 16% year-over-year [17] Company Strategy and Development Direction - The company is focused on enhancing its platform to improve player and developer engagement, with significant progress made in loyalty programs and user experience [6][7] - A three-year commitment of $75 million has been made to support a developer accelerator program, aimed at encouraging game development for the platform [9] - The company is also pursuing litigation against competitors for alleged unfair practices, emphasizing its commitment to fair competition [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve positive adjusted EBITDA and highlighted the steady strides being made towards profitability [11][12] - The company believes its current valuation does not reflect the combined value of its operating platform and progress made [15] Other Important Information - The company is working to complete its financial statements for the year ended December 31, 2024, after receiving a notice from the NYSE regarding non-compliance with listing standards [3] - The company ended Q2 with $239 million in cash, providing flexibility to enhance shareholder value [19] Q&A Session Summary - No questions were registered during the Q&A session, and the call concluded without further inquiries [20]

[Skillz Preliminary Q2 2025 Results](index=1&type=section&id=Skillz%20Announces%20Preliminary%20Second%20Quarter%202025%20Results) [Financial & Operational Highlights](index=1&type=section&id=Preliminary%20Second%20Quarter%20Financial%20Update) Skillz reported revenue growth and a significant increase in Paying Monthly Active Users, reflecting progress towards its strategic goals of top-line growth and improved profitability Q2 2025 Preliminary Financial Highlights | Metric | Value | | :--- | :--- | | Revenue | $27.4 million | | Gross Profit | $24.2 million | | Net Loss | $8.9 million | | Adjusted EBITDA Loss | $10.4 million | | Paying Monthly Active Users (PMAU) | 146,000 | | Avg. Revenue Per Paying Monthly Active User (ARPPU) | $62.8 | - Revenue grew **8% year-over-year**, while Paying Monthly Active Users (PMAUs) grew **18% sequentially** and **20% year-over-year**, reaching the highest level since Q3 2023[3](index=3&type=chunk) - The company is advancing its **$75 million Developer Accelerator program** to diversify game genres and remains committed to its four key pillars for long-term shareholder value[3](index=3&type=chunk) - Management emphasized that disciplined operating expense management improved the Adjusted EBITDA loss year-over-year, and the company's cash and restricted cash balance of **over $238 million** provides significant financial flexibility[3](index=3&type=chunk) [Consolidated Statements of Operations (Preliminary & Unaudited)](index=5&type=section&id=Preliminary%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20(Loss)%20Income%20(Unaudited)) The company's Q2 2025 net loss of $8.9 million contrasts sharply with a $26.0 million net income in Q2 2024, primarily due to a one-time litigation settlement gain in the prior year Q2 Statement of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenue** | **$27,372** | **$25,295** | | Total costs and expenses | $33,953 | $(297) | | (Loss) income from operations | $(6,581) | $25,592 | | **Net (loss) income** | **$(8,919)** | **$26,045** | | Diluted (Loss) Earnings per share | $(0.58) | $1.44 | - Sales and marketing expenses decreased to **$17.5 million** in Q2 2025 from $20.8 million in Q2 2024[20](index=20&type=chunk) - The significant income from operations and net income in Q2 2024 were driven by a **$46.0 million gain from a litigation settlement**, which was not repeated in Q2 2025[20](index=20&type=chunk) [Consolidated Balance Sheets (Preliminary & Unaudited)](index=6&type=section&id=Preliminary%20Consolidated%20Balance%20Sheets%20(Unaudited)) The company's balance sheet shows a reduction in both total assets and total liabilities as of June 30, 2025, while maintaining a strong cash position of $238.7 million Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $228,657 | $271,923 | | **Total Assets** | **$328,302** | **$362,619** | | **Total Liabilities** | **$187,884** | **$200,671** | | Total stockholders' equity | $140,418 | $161,948 | [Consolidated Statements of Cash Flows (Preliminary & Unaudited)](index=7&type=section&id=Preliminary%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Net cash used in operating activities was $31.7 million for the first half of 2025, a significant shift from cash provided by operations in the prior-year period Six-Month Cash Flow Summary (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(31,709) | $23,406 | | Net cash (used in) provided by investing activities | $(3,446) | $2,210 | | Net cash used in financing activities | $(8,111) | $(11,225) | | **Net change in cash, cash equivalents and restricted cash** | **$(43,266)** | **$14,391** | | **Cash, cash equivalents and restricted cash – end of period** | **$238,657** | **$326,419** | [Reconciliation of Net Loss to Adjusted EBITDA](index=8&type=section&id=Preliminary%20Reconciliation%20of%20GAAP%20Net%20Loss%20to%20Adjusted%20EBITDA%20Loss%20(Unaudited)) The company's Adjusted EBITDA loss improved to $10.4 million in Q2 2025 from $12.6 million in Q2 2024, after adjusting for items like stock compensation and insurance recovery Reconciliation to Adjusted EBITDA Loss (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net (loss) income | $(8,919) | $26,045 | | Stock-based compensation | $4,366 | $7,433 | | Insurance recovery | $(8,367) | — | | Gain from litigation settlement | — | $(46,000) | | **Adjusted EBITDA loss** | **$(10,388)** | **$(12,572)** | [Reconciliation of GAAP to Non-GAAP Costs and Expenses](index=9&type=section&id=Preliminary%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Costs%20and%20Expenses) Non-GAAP operating expenses for Q2 2025 reflect significant year-over-year reductions in sales, marketing, and administrative costs after excluding stock-based compensation Q2 Non-GAAP Expense Reconciliation (in thousands) | Expense Category | GAAP Expense | Stock-Based Comp. | Non-GAAP Expense | | :--- | :--- | :--- | :--- | | **Q2 2025** | | | | | Research and development | $4,840 | $(250) | $4,590 | | Sales and marketing | $17,540 | $(690) | $16,850 | | General and administrative | $8,353 | $(3,426) | $4,927 | | **Q2 2024** | | | | | Research and development | $4,272 | $(182) | $4,090 | | Sales and marketing | $20,849 | $(1,787) | $19,062 | | General and administrative | $17,236 | $(5,462) | $11,774 | [Key Operating Metrics](index=10&type=section&id=Preliminary%20Supplemental%20Financial%20Information) While Paying Monthly Active Users grew 20% year-over-year in Q2 2025, a decline in Gross Marketplace Volume led to lower monetization per paying user Key Operating Metrics Comparison | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Gross marketplace volume ("GMV") (000s) | $136,590 | $161,663 | | Paying monthly active users ("PMAUs") (000s) | 146 | 122 | | Monthly active users ("MAUs") (000s) | 748 | 807 | | Average revenue per paying monthly active user ("ARPPU") | $62.8 | $69.4 | | Average revenue per monthly active user ("ARPU") | $12.3 | $10.4 | | Paying MAU to MAU ratio | 19% | 15% | [Disclosures and Other Information](index=2&type=section&id=Disclosures%20and%20Other%20Information) The company discusses its use of non-GAAP metrics, the preliminary nature of results, and its plan to address an NYSE non-compliance notice for delayed SEC filings - The company uses non-GAAP measures like Adjusted EBITDA to supplement GAAP results, believing they provide a useful evaluation of operating performance consistent with industry practice[9](index=9&type=chunk) - The reported financial results are **preliminary** and subject to change upon completion of the company's internal review and independent accounting firm's review[12](index=12&type=chunk) - Skillz received a **non-compliance notice from the NYSE** for failure to timely file its Form 10-K and has a six-month grace period to regain compliance[14](index=14&type=chunk) - The report contains forward-looking statements that are subject to significant risks and uncertainties, including competition, developer relationships, and regulatory changes[15](index=15&type=chunk)[16](index=16&type=chunk)

Core Viewpoint - Skillz Inc. (SKLZ) is anticipated to report a year-over-year decline in earnings due to lower revenues, with a consensus estimate indicating a quarterly loss of $1.34 per share, reflecting a -135.1% change from the previous year, and revenues expected to be $22.8 million, down 9.9% year-over-year [1][3]. Earnings Expectations - The stock may experience upward movement if the actual earnings exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised down by 13.84% over the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that the Most Accurate Estimate for Skillz is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -14.18%, which complicates the prediction of an earnings beat [11]. - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [9]. Historical Performance - In the last reported quarter, Skillz was expected to post a loss of $1.09 per share but actually reported a loss of -$0.92, resulting in a positive surprise of +15.60% [12]. - Over the past four quarters, Skillz has beaten consensus EPS estimates twice [13]. Industry Context - In comparison, DraftKings (DKNG) is expected to report earnings of $0.41 per share for the same quarter, indicating a year-over-year increase of +241.7%, with revenues projected at $1.42 billion, up 28.3% from the previous year [17]. - DraftKings has also seen a significant revision in its EPS estimate, down 133.8% over the last 30 days, and currently holds an Earnings ESP of -10.3% [18].

Company Overview - Skillz Inc. (SKLZ) shares increased by 10.1% to close at $7.73, with trading volume significantly higher than usual, compared to a 5.7% gain over the past four weeks [1] Strategic Initiatives - The recent stock price rally is attributed to growing investor confidence in Skillz's strategic turnaround efforts and operational focus, particularly the launch of its Accelerator program aimed at expanding beyond casual games into emerging genres [2] - The Accelerator program has garnered strong interest from developers, enhancing Skillz's position as an innovative platform in skill-based mobile gaming [2] - Skillz is also focusing on strengthening internal operations and streamlining product development and marketing, which is expected to lead to more consistent execution and broaden its market reach [2] Financial Expectations - The company is projected to report a quarterly loss of $1.34 per share, reflecting a year-over-year decline of 135.1%, with expected revenues of $22.8 million, down 9.9% from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Skillz is part of the Zacks Gaming industry, where Roblox (RBLX) experienced a 3.5% decline in the last trading session, despite a 20.3% return over the past month [4] - Roblox's consensus EPS estimate has changed by +0.8% to -$0.36, representing a year-over-year change of -12.5%, and it currently holds a Zacks Rank of 2 (Buy) [5]

分组1 - Skillz Inc. reported a quarterly loss of $0.92 per share, better than the Zacks Consensus Estimate of a loss of $1.09, and an improvement from a loss of $1.45 per share a year ago, resulting in an earnings surprise of 15.60% [1] - The company posted revenues of $22.41 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 8.01%, although this represents a decline from year-ago revenues of $25.24 million [2] - Skillz shares have increased by approximately 3% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$1.25 on revenues of $20.5 million, and for the current fiscal year, it is -$4.74 on revenues of $86.95 million [7] - The Zacks Industry Rank indicates that the Gaming industry is currently in the bottom 41% of over 250 Zacks industries, suggesting that the industry's outlook may negatively impact stock performance [8]

Financial Data and Key Metrics Changes - Revenue for Q1 was $22 million, up 21% sequentially but down 11% year over year. Excluding a $1.6 million life-to-date incentive adjustment in Q4, revenue grew 12% sequentially [18] - The net loss for the quarter was $15 million, compared to a net loss of $27 million in the prior year [19] - Adjusted EBITDA loss in Q1 was $50 million, compared to an adjusted EBITDA loss of $90 million in Q4 [19] - The company ended Q1 with $264 million in cash, including $254 million in cash and cash equivalents and $10 million in restricted cash [20] Business Line Data and Key Metrics Changes - The paid user conversion rate was 16.2% in Q1, up from 14.6% in Q4 [18] - Paying monthly active users (MAU) increased to 123,000 in Q1 from 110,000 in Q4 [14] Market Data and Key Metrics Changes - The company is actively addressing industry-wide issues related to fairness and integrity, particularly concerning the use of bots by competitors [7][8] - Ongoing litigation against companies like Papaya and Voodoo aims to protect the business interests and integrity of the industry [9][10] Company Strategy and Development Direction - The company is focused on four key pillars: enhancing the platform, up-leveling the organization, improving go-to-market strategies, and demonstrating a clear path to profitability [11] - An accelerator program was launched to drive innovation and expand offerings, with plans to deploy up to $75 million over the next three years to support at least 25 high-potential games [12][13] - The company aims to optimize customer acquisition costs (CAC) and grow lifetime value (LTV) while managing expenses [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to compete against legitimate skill-based gaming providers and emphasized the importance of building trust within the industry [8][10] - The company is committed to returning to consistent top-line growth and positive adjusted EBITDA, supported by a strong balance sheet [11][16] Other Important Information - The company is working to comply with NYSE listing standards and expects to file necessary financial reports within the granted six-month period [5][20] - The cash position includes a $7.5 million payment received from AviGames as part of a settlement, which is the first of four annual payments [20] Q&A Session Summary - No questions were registered during the Q&A session, leading to the conclusion of the call [21]