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.