Skillz Inc. Class A Common Stock (SKLZ)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital, generate cash, and trade at a discount to conservatively estimated value. Skillz fails most of those tests. It operates a mobile game platform with real-money tournaments and performance marketing, but in fiscal Q1 2026 (the quarter labeled 2026-Q1), revenue was $29.1 million and net income was negative $10.9 million, a -37.61% margin. Trailing free cash flow was negative $70.1 million, and FairStock's FCF yield calculation is -34.9% on the $200.9 million market cap, so the company consumes cash rather than produces it. FairStock calculations show ROE of -49.58% and ROCE of -12.50%. The balance sheet has debt, with D/E of 1.26, and FairStock's Altman Z-Score of -4.70 suggests financial distress. FairStock's Piotroski F-Score of 2/9 confirms weak fundamentals. There is no obvious moat I can underwrite from these figures. The supplied data show 68.88% revenue growth and 28.38% profit growth, but the period is not named, so I cannot treat that as a filed, period-specific anchor; without positive cash flow, it is not the kind of growth Graham would pay up for. At the 2026-07-17 close of $8.30, FairStock's P/B calculation is 1.27 times book, but book value is not much comfort when returns are deeply negative and cash is burning. At that same close, FairStock's P/E calculation is -2.00, so earnings provide no valuation anchor. Beta of 4.58 and 52-week range of $2.23-$20.00 show extreme volatility. FairStock Score 57/100 may look middling, but the underlying losses, leverage, and cash burn leave little margin of safety. I would need to see a path to positive free cash flow and durable competitive advantage before calling this a sound value proposition.

In plain English: The company runs a mobile game platform with real-money tournaments and performance marketing. The business looks weak today: in its latest reported quarter it had revenue but still lost money, and it burns cash. The stock price is hard to judge as cheap or expensive because there are no profits; the numbers show heavy losses and debt.

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Data as of 2026-07-17 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer