NEW YORK, May 19, 2026, 17:05 (EDT)
- Skillz closed up 18.2% at $7.80 on Tuesday, with the stock ranging from $6.46 to $8.05.
- Management held its first-quarter earnings call after the close, following results released on May 15.
- A June court decision on the Papaya Gaming award remains the main swing factor.
Skillz Inc. shares jumped 18.2% on Tuesday, closing at $7.80, as investors circled back to a volatile small-cap gaming stock whose near-term story is now tied as much to litigation as to earnings. The stock’s market value stood near $120 million at the close.
The timing is not incidental. Skillz scheduled its first-quarter earnings call for 4:30 p.m. ET, just after regular NYSE trading ended, giving holders a fresh read on management’s plans after Friday’s results and before a court decision expected in June.
That June decision is the hard catalyst. In its latest quarterly filing, Skillz said a federal jury in New York found Papaya Gaming liable for false advertising and ordered $420 million in damages; the jury also gave advisory figures of $719 million in profits-based disgorgement and $652 million in cost-savings disgorgement. Disgorgement means making a defendant give up profits or savings linked to the conduct at issue.
The numbers are large next to Skillz itself. The $420 million damages figure alone is about 3.5 times the company’s closing market value on Tuesday, before any questions around court approval, collection, taxes or appeals.
Skillz reported first-quarter revenue of $29.1 million, gross profit of $25.5 million and a net loss of $10.9 million. Its adjusted EBITDA loss was $12.8 million; adjusted EBITDA means earnings before interest, taxes, depreciation and amortization, with company-selected adjustments that can strip out some costs.
Chief Executive Andrew Paradise said Skillz “made progress in both” operating improvement and efforts to stop fraud in its industry. Chief Financial Officer Gaetano Franceschi said the quarter showed “stronger fundamentals” across Skillz and RZR, the company’s advertising-technology business. Skillz
The filing showed first-quarter revenue rose 33% from a year earlier. RZR revenue more than doubled to $9.8 million, while Skillz platform revenue rose 12% to $19.7 million, helped by higher average entry fees but partly offset by lower tournament play.
The competitive context is narrow but important. Papaya is the private mobile-gaming rival at the center of the current case, and Skillz has previously fought rival AviaGames in litigation over mobile games; Reuters reported in 2024 that Skillz and AviaGames moved to settle a patent suit after a separate jury award.
But the legal award is not cash in the bank. The court still must decide which damages or disgorgement theory to accept, and Skillz continues to post losses; it also had $129.7 million of senior secured notes outstanding as of March 31, with maturity due Dec. 15, 2026. The company said its disclosure controls were not effective because of material weaknesses in internal control over financial reporting.
Another overhang sits in the operating business. Skillz disclosed a dispute with Tether, a developer behind Solitaire Cube and 21 Blitz, and warned that removal of those games before suitable replacements are found could materially hurt the platform business.
For now, the trade is clean but risky: a money-losing company with a small equity value, a fresh revenue rebound, and a court award that could reshape the balance sheet if it survives the next legal steps. Tuesday’s gain says investors are still willing to price that optionality. It does not say the outcome is settled.
