Skillz Reports 146% YoY RZR Revenue Growth, Narrows Q4 EBITDA Loss
RZR AI ad-tech segment grew 146% net revenue year-over-year and achieved positive adjusted EBITDA for the first time since acquisition. Skillz reported a Q4 adjusted EBITDA loss of $10 million, improved from $12 million in Q3 2025 and $17 million in Q4 2024, while transitioning games after a major developer exit.
1. Financial Performance and EBITDA Improvement
Skillz delivered four consecutive quarters of sequential revenue growth and two consecutive quarters of year-over-year growth, reporting a Q4 adjusted EBITDA loss of $10 million compared with $12 million in Q3 2025 and $17 million in Q4 2024, demonstrating tightening expenses and improved margins.
2. RZR AI Ad-Tech Segment Expansion
The RZR segment drove a 146% increase in net revenue year-over-year and generated positive adjusted EBITDA for the first time since its acquisition, reflecting successful modernization of its technology stack and scaled infrastructure to support advertising efficiency.
3. User Base Transition After Major Partner Exit
A key gaming developer that accounted for over half of last year’s revenue exited the platform in Q4, causing a dip in paying monthly active users; Skillz is migrating those titles to Skillz-branded versions and optimizing user acquisition strategies to stabilize engagement and GMV per user.
4. Board Strengthening and Profitability Path
Skillz added experienced finance and gaming executives to its Board of Directors to bolster strategic planning and financial discipline, while management emphasizes disciplined UA spending and continued platform improvements to drive long-term shareholder value and profitability.