📊 SKLZ Key Takeaways
Is Skillz Inc. (SKLZ) a Good Investment?
Skillz exhibits severe operational distress with accelerating losses (-$10.9M net income on $29.1M revenue) and negative operating cash flow despite modest revenue growth. While the company maintains a substantial cash buffer of $185.4M, the 1.25x debt-to-equity ratio and $128.1M debt load are unsustainable given negative interest coverage of -2.3x and inability to generate positive cash from operations.
Skillz Inc. Key Strengths (SKLZ)
- Strong cash position of $185.4M provides operational runway
- Revenue growth of 12.5% YoY demonstrates market demand for platform
- Asset-light business model evidenced by minimal CapEx of $363K
SKLZ Stock Risks: Skillz Inc. Investment Risks
- Rapidly deteriorating profitability with net income down 50.5% YoY and EPS down 72.1% YoY
- Negative operating cash flow of -$6.7M and free cash flow of -$7.1M indicate burn despite revenue generation
- High leverage with $128.1M debt unable to be serviced from operations (negative -2.3x interest coverage ratio)
- Undisclosed gross margin raises transparency concerns and suggests significant margin pressure
- Operating margin of -30.1% indicates structural profitability challenges
Key Metrics to Watch
- Operating cash flow trend and path to positive OCF
- Gross margin disclosure and margin expansion trajectory
- Timeline to EBITDA positivity and operating profitability
- Debt paydown schedule and covenant compliance
Skillz Inc. (SKLZ) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Skillz Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
SKLZ Profit Margin, ROE & Profitability Analysis
SKLZ vs Technology Sector: How Skillz Inc. Compares
How Skillz Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Skillz Inc. Stock Overvalued? SKLZ Valuation Analysis 2026
Based on fundamental analysis, Skillz Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Skillz Inc. Balance Sheet: SKLZ Debt, Cash & Liquidity
SKLZ Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Skillz Inc.'s revenue has declined by 73% over the 5-year period, indicating business contraction. The most recent EPS of $-2.62 indicates the company is currently unprofitable.
SKLZ Revenue Growth, EPS Growth & YoY Performance
SKLZ Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $21.9M | -$10.9M | $-0.69 |
| Q3 2025 | $24.6M | -$17.1M | $-1.14 |
| Q2 2025 | $25.2M | -$678.0K | $-0.04 |
| Q1 2025 | $21.9M | -$17.1M | $-1.05 |
| Q3 2024 | $24.6M | -$16.7M | $-1.20 |
| Q2 2024 | $25.3M | -$678.0K | $-0.04 |
| Q1 2024 | $25.2M | -$26.7M | $-1.45 |
| Q3 2023 | $36.4M | -$16.7M | $-0.79 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Skillz Inc. Dividends, Buybacks & Capital Allocation
SKLZ SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Skillz Inc. (CIK: 0001801661)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SKLZ
What is the AI rating for SKLZ?
Skillz Inc. (SKLZ) has an AI grade of C with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SKLZ's key strengths?
Claude: Strong cash position of $185.4M provides operational runway. Revenue growth of 12.5% YoY demonstrates market demand for platform.
What are the risks of investing in SKLZ?
Claude: Rapidly deteriorating profitability with net income down 50.5% YoY and EPS down 72.1% YoY. Negative operating cash flow of -$6.7M and free cash flow of -$7.1M indicate burn despite revenue generation.
What is SKLZ's revenue and growth?
Skillz Inc. reported revenue of $29.1M.
Does SKLZ pay dividends?
Skillz Inc. does not currently pay dividends.
Where can I find SKLZ SEC filings?
Official SEC filings for Skillz Inc. (CIK: 0001801661) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SKLZ's EPS?
Skillz Inc. has a diluted EPS of $-0.69.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SKLZ's fundamental grade?
Based on our AI fundamental analysis in May 2026, Skillz Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SKLZ stock overvalued or undervalued?
Valuation metrics for SKLZ: ROE of -10.7% (sector avg: 22%), net margin of -37.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is SKLZ's AI grade for 2026?
Our dual AI analysis gives Skillz Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SKLZ's free cash flow?
Skillz Inc.'s operating cash flow is $-6.7M, with capital expenditures of $363.0K. FCF margin is -24.4%.
How does SKLZ compare to other Technology stocks?
Vs Technology sector averages: Net margin -37.6% (avg: 18%), ROE -10.7% (avg: 22%), current ratio 1.13 (avg: 2.5).