Skillz Inc.SKLZ

Skillz Inc. Earnings Per Share Disclosure

10-KFiled Nov 6, 20251 min read
Net Loss Per Share
The Company computes net loss per share of the Class A common stock and Class B common stock using the two-class method required for participating securities. Basic and diluted loss per share are the same for each class of common stock as they are entitled to the same liquidation and dividend rights. The effect of potentially dilutive common shares is reflected in diluted loss per share by application of the treasury stock method. The following table sets forth the computation of basic and diluted loss per Class A common stock and Class B common stock (in thousands, except for share and per share data).
Year Ended December 31,
20242023
Numerator:
Net loss - basic and diluted$(46,790)$(101,360)
Denominator:
Weighted average common shares outstanding – basic and diluted17,845,771 20,893,085 
Net loss per share attributable to common stockholders – basic$(2.62)$(4.85)

The following outstanding common stock equivalents were considered antidilutive; and therefore, excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented (share numbers are not in thousands):
Year Ended December 31,
Number of Securities Outstanding20242023
Common stock warrants226,786 226,786 
Common stock options681,729 701,833 
Performance stock units669,339 688,373 
Restricted stock units1,769,947 2,497,773 
Total3,347,801 4,114,765 

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance