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NEW YORK - Skillz Inc. (NYSE: SKLZ), a mobile gaming platform currently trading at $3.83, has been notified by the New York Stock Exchange (NYSE) of non-compliance with listing standards due to a delay in filing its annual report. According to InvestingPro data, the company maintains a weak financial health score of 1.49, though it holds more cash than debt on its balance sheet. The notice, received on April 2, 2025, indicates that the company failed to submit its Form 10-K for the fiscal year ended December 31, 2024, within the required timeframe.
The NYSE requires listed companies to adhere to timely filing criteria as part of its continued listing requirements. Skillz's inability to file the report on time has triggered a six-month period, starting from March 17, 2025, for the company to regain compliance by submitting the overdue document. Depending on the circumstances, the exchange may grant an extension of up to six additional months for compliance. However, the NYSE may also initiate delisting procedures at any point if it deems necessary.
Skillz previously disclosed in a Form 12b-25 filed on March 17, 2025, that it needed additional time to complete its year-end reporting process. Despite efforts and significant resources dedicated to finalizing these procedures, the company was unable to meet the extended April 1, 2025 deadline. Skillz is actively working to complete the necessary work to file the Form 10-K and expects to do so within the six-month period provided by the NYSE, although there is no guarantee.
This delay in filing has not immediately affected the trading of Skillz's common stock on the NYSE, though the stock has declined 42% over the past year and currently trades at just 0.36 times book value. The company, recognized for its patented technology that enables social competition in mobile games, continues to host billions of casual eSports tournaments for mobile players worldwide, maintaining impressive gross profit margins of 86%. InvestingPro analysis suggests the stock may be undervalued at current levels.
Skillz's situation underscores the importance of timely financial disclosures as a key aspect of maintaining trust with investors and adhering to market regulations. The company has stated its commitment to completing the filing as soon as possible to comply with NYSE listing standards and regulatory obligations. With revenue of $95.47 million in the last twelve months and analysts anticipating challenges ahead, investors seeking deeper insights can access comprehensive analysis through InvestingPro, which offers 14 additional exclusive tips and detailed financial metrics for Skillz.
The information in this article is based on a press release statement from Skillz Inc.
In other recent news, Skillz Inc. reported its fourth-quarter earnings, revealing a revenue of $20.4 million, which fell short of the analyst consensus of $20.37 million and marked a notable decrease from the $46.9 million reported in the same quarter last year. The company experienced a net loss of $26.4 million, or -$1.50 per share, aligning with analyst expectations for the loss per share. Skillz's adjusted EBITDA loss widened to $18.5 million, and the number of paying monthly active users (PMAU) decreased to 110,000 from 268,000 in the previous year. Despite this decline, the average revenue per paying monthly active user (ARPPU) increased to $68.1 from $62.5 year-over-year. For the full year 2024, Skillz reported revenue of $95.5 million and a net loss of $48.2 million. The company concluded the year with $281.9 million in cash, cash equivalents, and restricted cash, and a total outstanding debt of $129.7 million. These developments come as Skillz continues to focus on strategic initiatives aimed at achieving consistent top-line growth and positive adjusted EBITDA.
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