Good afternoon. I'd like to welcome you to the Skillz, Inc. Fourth Quarter and Full Year 2025 Results Call. I will now turn the conference over to your host, Joseph Jaffoni from JCIR to begin.

Thank you, operator, and good afternoon, everyone. Skillz has issued its 2025 fourth quarter and full year earnings release, which is available on the company's Investor Relations website. Let me read the safe harbor language, and then we'll get right into the call. All statements and comments made by management during this conference call other than statements of historical fact may be deemed forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Skillz cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those reflected by the forward-looking statements made during this call. For additional details on these risks and uncertainties, please see Skillz annual report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission and Skillz subsequent public filings with the SEC. Skillz undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Thank you, Joe, and good afternoon. I'll begin today's call with an overview of our fourth quarter and full year 2025 financial performance. For the fourth quarter of 2025, GAAP revenue was $30 million, up 11% from $27 million in the third quarter and up 67% from $18 million in the prior year period. Adjusted EBITDA loss was $10 million compared to a loss of $12 million in the third quarter and a loss of $17 million in the prior year period. These results marked four consecutive quarters of sequential revenue growth and two consecutive quarters of year-over-year revenue growth. For the full year 2025, GAAP revenue was $105 million, up from $93 million in 2024, which represented 13% year-over-year growth. Adjusted EBITDA loss was $51 million compared to a loss of $61 million in 2024, which represents a 16% year-over-year improvement. A key driver of 2025 was our AI ad tech segment, RZR, which was rebranded from Aarki last month. RZR delivered 146% net revenue growth year-over-year. And for the first time since its 2021 acquisition, it generated positive adjusted EBITDA for the full year 2025. In addition to the headline growth, we're encouraged by RZR's performance and momentum supported by stronger systems, deeper advertiser relationships and disciplined channel growth. Moving on to our 4 business pillars. The first pillar, enhancing the platform for player and developer engagement. On the Skillz platform, we continue to invest in new content and strengthen the developer experience. Last month, at the Annual Game Developers Conference in San Francisco, we debuted our Pro SDK product. Our Pro SDK architecture expands our development framework and provides developers with full creative control of the entire gameplay experience. It also strengthens monetization capabilities through meta game systems while leveraging the competition infrastructure and secure layer that…

Thank you, Andrew. Our fourth quarter results highlight the benefits of disciplined execution and structural improvements across both the Skillz and RZR businesses, producing stronger fundamentals and a trajectory towards profitability. Q4 2025 GAAP revenue was $30 million, up from $27 million in Q3 2025 and up from $18 million in Q4 2024, representing 11% growth quarter-over-quarter and 67% growth year-over-year. Q4 2025 research and development expenses of $6 million increased 78% year-over-year, reflecting ongoing investment in our Skillz and RZR businesses. Q4 2025 sales and marketing expenses of $19 million increased 27% year-over-year, which reflected ongoing user acquisition and engagement marketing spend. Q4 2025 general and administrative expenses of [ $18 ] million decreased 13% year-over-year, reflecting continued focus on expenses. Q4 2025 net loss of $18 million improved 27% year-over-year. Q4 adjusted EBITDA loss was $10 million, up from a loss of $12 million in Q3 2025 and up from a loss of $70 million in Q4 2024, which represented a 17% improvement quarter-over-quarter and 41% improvement year-over-year. Our balance sheet remains healthy, and we continue to manage capital prudently as we progress towards sustained profitability. We ended Q4 2025 with $195 million in cash and cash equivalents and $130 million of debt outstanding that is now classified as current. As the debt approaches maturity later this year, we continue to evaluate a range of strategic alternatives to optimize our capital structure. We are driving the business forward with focus and discipline to deliver meaningful long-term value for our shareholders and look forward to updating you further on our progress in 2026. Operator, we're now ready to open the line for questions.

[Operator Instructions] First question is from the line of Ed Alter with Jefferies.

Would love to just dig into the Skillz side of the results and the paying MAUs and GMV. It looks like kind of the direction of growth from paying users versus GMV has kind of flipped versus the last couple of quarters where paying users were up a little bit and then GMV per payer was down a bit, and that kind of flipped in the fourth quarter. I would love to hear just your thoughts on kind of what changed here? And is this kind of the trajectory going forward? Or how to think about that?

Ed, thanks for the question. Yes. As you recall, in Q4, we had one of our larger gaming developers leave the platform. So we had a little bit of a dip in our paying MAU. But you can see that we continue to increase on our GMV per paying MAU. Going forward, as we restart -- as we continue to drive better efficiencies in our UA, we're going to rescale our UA spend and continue to grow also on our paying MAU.

Okay. Great. So -- and then, yes, I guess, on the partner that you guys kind of leaving the platform. I think you guys had disclosed that in your 10-K yesterday that they were 51% of revenue last year. How is the progress going in terms of kind of moving folks from those games into -- I think you talked about some Skillz branded versions of those -- of that content. Kind of I would love to hear the -- how that rollout has gone.

Yes. We don't disclose like the transition for a variety of reasons. But basically, when the partner left the platform, there were some games that left immediately. And then the two larger games that are, call it, the majority, call it, 80-plus percent are there, and we're in the process of transitioning to our owned games.

Also, if I could just jump in, this is Andrew, and thank you for the question, Ed. The other thing that we saw in Q4 is we had a technical issue with some of our engagement and marketing technologies for our player base, and we've now addressed that. So it's kind of -- you're seeing both effects in the change in [ PMAU ] in Q4.

There are no additional questions waiting at this time. So that will conclude the conference call. Thank you for your participation. You may now disconnect your lines.