Firy Inc. (NYSE: FIRY) (“FIRY” or the “Company”), formerly Skillz Inc., today reported unaudited financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Financial Highlights (Unaudited):

  • Revenue of $31.0 million

  • Gross profit of $27.1 million

  • Net loss of $24.5 million

  • Adjusted EBITDA1 loss of $2.7 million, excluding litigation expense

  • Paying monthly active users (PMAUs)2 of 117 thousand

  • Average revenue per PMAU (ARPPU)3 of $59.1

  • Total operating expenses (which does not include cost of revenue) of $48.6 million

“Q2 2026 was, without question, the most consequential period in the Company’s recent history,” said FIRY CEO Andrew Paradise. “We completed our rebrand to FIRY and advanced the transition from turnaround to growth. Consolidated revenue of $31.0 million rose 6% sequentially and 23% year over year, led by RZR, which passed $10 million in quarterly revenue for the first time and delivered its fourth consecutive profitable quarter. In July, the court rejected each of Papaya Gaming’s post-trial challenges and entered judgment of $719 million in disgorgement of unjust profits, plus approximately $10 million in fees and costs. Papaya has since sought a court-supervised payment arrangement in Israel and filed a Chapter 15 petition in Delaware. We intend to pursue the legal rights available to the Company with respect to the Papaya judgment, and will share additional commentary on our call on Friday.”

Alex Walsh, FIRY CFO, added, “Our Q2 results demonstrated that the business is moving forward, fueled by RZR’s revenue growth and strong operating leverage. Excluding litigation expense, Adjusted EBITDA loss narrowed to $2.7 million from $7.1 million in the first quarter, a 63% sequential improvement. In August we announced the redemption of $80 million of debt, leaving approximately $50 million outstanding, and we are in active dialogue on alternatives to further strengthen our capital structure. We believe we have significant unrecognized value that should be considered, including federal net operating loss carryforwards of approximately $702 million and state net operating loss carryforwards of approximately $280 million, an additional $15 million still to be collected from the Avia Games settlement, our owned Las Vegas building, and our 10% interest in Exit Games.”

1. Adjusted EBITDA is a non-GAAP metric; for a reconciliation of each measure against its most comparable GAAP metric, please see the section titled “Use of Non-GAAP Financial Measures” in this press release.

2. “Paying Monthly Active Users” or “PMAUs” means the number of end-users who entered into a paid contest hosted on Skillz’ platform at least once in a month, averaged over each month in the period.

3. “Average Revenue per PMAU” or “ARPPU” means the average revenue in a given month divided by PMAUs in that month, averaged over the period and does not include a deduction for end-user incentives that are included in sales and marketing expense.

Investor Conference Call

FIRY will host a live conference call at 9 a.m. ET on August 14, 2026. To access the call, please register using the following link:

https://events.q4inc.com/analyst/932259116?pwd=5OMBJhd4

After registering, an email will be sent, including dial-in details and a unique conference call access code and PIN required to join the live call. Access to the live audio webcast of the discussion in listen-only mode will also be available at investors.firy.com.

A replay of the webcast will be archived on the Company’s investor relations website.

About Firy Inc.

FIRY is a global holding company built to fuel business potential. Through its growing portfolio, including Skillz, RZR and Beamable, FIRY operates at the intersection of content, identity, commerce and performance marketing. By leveraging first-party data, enterprise-scale infrastructure and scalable operating systems, FIRY enables scalable growth while maintaining a disciplined focus on capital efficiency and long-term value creation.

Use of Non-GAAP Financial Measures

In this press release, the Company includes Adjusted EBITDA, which is a non-GAAP performance measure that the Company uses to supplement its results presented in accordance with U.S. GAAP. The Company’s management believes Adjusted EBITDA is useful in evaluating its operating performance and is a similar measure reported by publicly-listed U.S. competitors, and regularly used by securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. By providing this non-GAAP measure, the Company’s management intends to provide investors with a meaningful, consistent comparison of the Company’s profitability for the periods presented. Non-GAAP operating expense is also included in this press release, which is a non-GAAP financial measure. The Company’s management believes non-GAAP operating expense is useful to investors and analysts as a supplement to its financial information prepared in accordance with GAAP for analyzing operating performance and identifying operating trends in its business. The Company uses non-GAAP operating expense internally to facilitate period-to-period comparisons and analysis in order to make operating decisions. As required by the rules of the Securities and Exchange Commission (the “SEC”), the Company has provided herein a reconciliation of Adjusted EBITDA and non-GAAP operating expense to the most directly comparable measures under GAAP. Adjusted EBITDA and non-GAAP operating expense are not intended to be substitutes for any U.S. GAAP financial measures and, as calculated, may not be comparable to other similarly titled financial measures of other companies in other industries or within the same industry.

The Company defines and calculates Adjusted EBITDA as net income (loss), excluding interest income (expense), net; change in fair value of common stock warrant liabilities; other income (expense), net; provision for (benefit from) income taxes; depreciation and amortization; stock-based compensation expense and related payroll tax expense; and certain other non-cash or non-recurring items impacting net loss from time to time, including, but not limited to charges related to impairment of goodwill and long-lived assets, litigation accruals, loss contingency accruals, gain on extinguishment of debt, gains from litigation settlements, restructuring charges and one-time nonrecurring expenses, as they are not indicative of business operations. The Company defines and calculates Adjusted EBITDA, less litigation expense as Adjusted EBITDA excluding litigation expense.

The Company defines and calculates non-GAAP operating expense as GAAP operating expense adjusted for stock-based compensation and other special items determined by management, which may include, but are not limited to acquisition-related expenses for transaction costs, certain loss contingency accruals and restructuring charges, as they are not indicative of business operations.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements.

These forward-looking statements involve significant risks and uncertainties that could cause the Company’s actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside of the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to, the ability of FIRY to: sustain profitability if FIRY’s revenue continues to decline; effectively compete in the global entertainment and gaming industries; attract and retain successful relationships with the third party developers who develop and update the games hosted on Skillz’ platform; drive brand awareness with end users; issues in the development and use of artificial intelligence and machine learning; invest in growth and development of employees; comply with laws, regulations and expectations applicable to its business, including with respect to cybersecurity and corporate governance matters; mitigate the commercial, reputational and regulatory risks to our business; remediate during fiscal year 2026 certain non-fully remediated material weaknesses in our internal controls over financial reporting. Additional factors that may cause such differences include other risks and uncertainties indicated from time to time in the Company’s SEC filings, including those under “Risk Factors” therein, which are available on the SEC’s website at www.sec.gov. Additional information will be made available in other filings that the Company makes from time to time with the SEC. In addition, any forward-looking statements contained in this press release are based on assumptions that the Company believes to be reasonable as of this date. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

Firy Inc.

Consolidated Statements of Operations and Comprehensive Loss (Unaudited)

(in thousands, except for number of shares and per share amounts)
 

​

Three Months Ended June 30,

 

Six Months Ended June 30,

​

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Revenue

$

30,992

 

 

$

25,214

 

 

$

60,097

 

 

$

47,111

 

Costs and expenses:

 

 

 

 

 

 

 

Cost of revenue

 

3,911

 

 

 

3,220

 

 

 

7,508

 

 

 

6,184

 

Research and development

 

6,888

 

 

 

4,840

 

 

 

11,951

 

 

 

9,658

 

Sales and marketing

 

13,592

 

 

 

16,431

 

 

 

30,875

 

 

 

34,436

 

General and administrative

 

28,168

 

 

 

16,706

 

 

 

47,580

 

 

 

35,789

 

Gain from litigation settlement

 

—

 

 

 

—

 

 

 

(7,500

)

 

 

(7,500

)

Total costs and expenses

 

52,559

 

 

 

41,197

 

 

 

90,414

 

 

 

78,567

 

Loss from operations

 

(21,567

)

 

 

(15,983

)

 

 

(30,317

)

 

 

(31,456

)

Interest expense, net of interest income

 

(2,424

)

 

 

(1,321

)

 

 

(4,704

)

 

 

(2,392

)

Other (expense) income, net

 

(388

)

 

 

(637

)

 

 

(229

)

 

 

(1,196

)

Loss before income taxes

 

(24,379

)

 

 

(17,941

)

 

 

(35,250

)

 

 

(35,044

)

Provision for (benefit from) income taxes

 

96

 

 

 

(19

)

 

 

170

 

 

 

20

 

Net loss

$

(24,475

)

 

$

(17,922

)

 

$

(35,420

)

 

$

(35,064

)

 

 

 

 

 

 

 

 

Loss per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic

$

(1.52

)

 

$

(1.16

)

 

$

(2.22

)

 

$

(2.21

)

Diluted

$

(1.52

)

 

$

(1.16

)

 

$

(2.22

)

 

$

(2.21

)

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

16,074,260

 

 

 

15,491,239

 

 

 

15,953,829

 

 

 

15,888,064

 

Diluted

 

16,074,260

 

 

 

15,491,239

 

 

 

15,953,829

 

 

 

15,888,064

 

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

Foreign currency translation gain

 

1,530

 

 

 

—

 

 

 

604

 

 

 

—

 

Total other comprehensive income

 

1,530

 

 

 

—

 

 

 

604

 

 

 

—

 

Total comprehensive loss

$

(22,945

)

 

$

(17,922

)

 

$

(34,816

)

 

$

(35,064

)

Firy Inc.

Consolidated Balance Sheets (Unaudited)

(in thousands, except for number of shares and par value per share amounts)
 

​

June 30,

 

December 31,

​

 

2026

 

 

 

2025

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

163,991

 

 

$

194,513

 

Accounts receivable, net of allowance for credit losses of $258 as of June 30, 2026 and December 31, 2025

 

18,693

 

 

 

14,412

 

Prepaid expenses and other current assets

 

6,283

 

 

 

7,553

 

Total current assets

 

188,967

 

 

 

216,478

 

Non-current assets:

 

 

 

Property and equipment, net

 

21,020

 

 

 

20,776

 

Operating lease right-of-use assets, net

 

3,771

 

 

 

1,082

 

Non-marketable equity securities

 

52,768

 

 

 

52,768

 

Restricted cash, non-current

 

1,000

 

 

 

1,000

 

Other non-current assets

 

4,169

 

 

 

1,351

 

Total non-current assets

 

82,728

 

 

 

76,977

 

Total assets

$

271,695

 

 

$

293,455

 

Liabilities and stockholders’ equity

​

 

​

Current liabilities:

​

 

​

Accounts payable

$

5,558

 

 

$

9,713

 

Operating lease liabilities, current

 

837

 

 

 

465

 

Current portion of long-term debt

 

128,646

 

 

 

127,589

 

Other current liabilities

 

51,862

 

 

 

42,944

 

Total current liabilities

 

186,903

 

 

 

180,711

 

Non-current liabilities:

 

 

 

Operating lease liabilities, non-current

 

3,104

 

 

 

665

 

Other non-current liabilities

 

264

 

 

 

259

 

Total non-current liabilities

 

3,368

 

 

 

924

 

Total liabilities

 

190,271

 

 

 

181,635

 

Commitments and contingencies (Note 8)

 

 

 

Stockholders’ equity:

​

 

​

Preferred stock $0.0001 par value; 10.0 million shares authorized — no shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively

 

—

 

 

 

—

 

Common stock $0.0001 par value; 31.3 million shares authorized; Class A common stock – 25.0 million shares authorized; 20.1 million and 19.3 million shares issued; 13.0 million and 12.2 million outstanding as of June 30, 2026 and December 31, 2025, respectively; Class B common stock – 6.3 million shares authorized; 3.4 million shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively

 

1

 

 

 

1

 

Additional paid-in capital

 

1,249,882

 

 

 

1,245,462

 

Accumulated other comprehensive income (loss)

 

233

 

 

 

(371

)

Accumulated deficit

 

(1,127,086

)

 

 

(1,091,666

)

Treasury stock at cost, 7.1 million and 7.1 million shares as of June 30, 2026 and December 31, 2025, respectively

 

(41,606

)

 

 

(41,606

)

Total stockholders’ equity

 

81,424

 

 

 

111,820

 

Total liabilities and stockholders’ equity

$

271,695

 

 

$

293,455

 

Firy Inc.

Consolidated Statement of Cash Flows (Unaudited)

(in thousands)
 

​

 

Six Months Ended June 30,

​

 

 

2026

 

 

 

2025

 

Operating Activities

 

 

 

 

Net loss

 

$

(35,420

)

 

$

(35,064

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

Depreciation and amortization

 

 

1,711

 

 

 

361

 

Stock-based compensation

 

 

9,776

 

 

 

9,912

 

Accretion of unamortized debt discount and amortization of debt issuance costs

 

 

1,057

 

 

 

939

 

Non-cash lease expense

 

 

369

 

 

 

85

 

Provision for (recoveries of) bad debt

 

 

1

 

 

 

(8

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable, net

 

 

(4,282

)

 

 

(4,080

)

Prepaid expenses and other assets

 

 

1,302

 

 

 

9,567

 

Accounts payable

 

 

(4,137

)

 

 

(1,184

)

Operating lease liabilities

 

 

(247

)

 

 

(10,658

)

Other accruals and liabilities

 

 

8,262

 

 

 

(1,611

)

Net cash used in operating activities

 

 

(21,608

)

 

 

(31,741

)

Investing Activities

 

 

 

 

Purchases of property and equipment

 

 

(82

)

 

 

(1,840

)

Capitalization of software development costs

 

 

(1,890

)

 

 

(1,588

)

Asset acquisitions

 

 

(2,240

)

 

 

—

 

Net cash used in investing activities

 

 

(4,212

)

 

 

(3,428

)

Financing Activities

 

 

 

 

Principal payments on finance leases obligations

 

 

—

 

 

 

(389

)

Repurchase of common stock

 

 

—

 

 

 

(7,708

)

Restricted stock vesting, net of shares withheld

 

 

(5,304

)

 

 

—

 

Net cash used in financing activities

 

 

(5,304

)

 

 

(8,097

)

Effect of exchange rates on cash and cash equivalents

 

 

602

 

 

 

—

 

Net change in cash, cash equivalents and restricted cash

 

 

(30,522

)

 

 

(43,266

)

Cash, cash equivalents and restricted cash – beginning of year

 

 

195,513

 

 

 

281,923

 

Cash, cash equivalents and restricted cash – end of period

 

$

164,991

 

 

$

238,657

 

 

 

 

 

 

Supplemental cash disclosures

 

 

 

 

Cash paid for interest

 

$

6,646

 

 

$

6,668

 

Cash paid for taxes, net of refunds received

 

$

100

 

 

$

51

 

Supplemental non-cash disclosures

 

 

 

 

Purchases of property and equipment included in accounts payable

 

$

40

 

 

$

55

 

Asset acquisition consideration included in other accruals and liabilities

 

$

610

 

 

$

—

 

Stock-based compensation capitalized in software development costs

 

$

—

 

 

$

143

 

Firy Inc.

Reconciliation of GAAP Net Loss to Adjusted EBITDA Loss (Unaudited)

(in thousands)
 

​

Three Months Ended June 30,

 

Six Months Ended June 30,

​

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Net loss

$

(24,475

)

 

$

(17,922

)

 

$

(35,420

)

 

$

(35,064

)

Interest expense, net of interest income

 

2,424

 

 

 

1,321

 

 

 

4,704

 

 

 

2,392

 

Stock-based compensation

 

7,019

 

 

 

4,362

 

 

 

9,776

 

 

 

9,912

 

Depreciation and amortization

 

995

 

 

 

194

 

 

 

1,711

 

 

 

361

 

Provision for (benefit from) income taxes

 

96

 

 

 

(19

)

 

 

170

 

 

 

20

 

Other expense (income), net

 

388

 

 

 

637

 

 

 

229

 

 

 

1,196

 

Gain from litigation settlement(1)

 

—

 

 

 

—

 

 

 

(7,500

)

 

 

(7,500

)

Adjusted EBITDA loss

$

(13,553

)

 

$

(11,427

)

 

$

(26,330

)

 

$

(28,683

)

Litigation expense

 

10,879

 

 

 

4,522

 

 

 

16,512

 

 

 

10,177

 

Adjusted EBITDA loss, less litigation expense

$

(2,674

)

 

$

(6,905

)

 

$

(9,818

)

 

$

(18,506

)
 

(1) For the six months ended June 30, 2026 and 2025, amount includes gain on litigation settlement with AviaGames.

Firy Inc.

Reconciliation of GAAP to Non-GAAP Operating Expenses (Unaudited)

(in thousands)
 

​

Three Months Ended June 30,

 

Six Months Ended June 30,

​

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Research and development

$

6,888

 

 

$

4,840

 

 

$

11,951

 

 

$

9,658

 

Less: stock-based compensation

 

(503

)

 

 

(250

)

 

 

(641

)

 

 

(499

)

Non-GAAP research and development

$

6,385

 

 

$

4,590

 

 

$

11,310

 

 

$

9,159

 

 

 

 

 

 

 

 

 

Sales and marketing

$

13,592

 

 

$

16,431

 

 

$

30,875

 

 

$

34,436

 

Less: stock-based compensation

 

(286

)

 

 

(690

)

 

 

(647

)

 

 

(1,872

)

Non-GAAP sales and marketing

$

13,306

 

 

$

15,741

 

 

$

30,228

 

 

$

32,564

 

 

 

 

 

 

 

 

 

General and administrative

$

28,168

 

 

$

16,706

 

 

$

47,580

 

 

$

35,789

 

Less: stock-based compensation

 

(6,230

)

 

 

(3,422

)

 

 

(8,488

)

 

 

(7,538

)

Non-GAAP general and administrative

$

21,938

 

 

$

13,284

 

 

$

39,092

 

 

$

28,251

 

Firy Inc.

Supplemental Financial Information (Unaudited)
 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Gross marketplace volume (“GMV”) (000s)(1)

$

135,594

 

 

$

136,590

 

 

$

277,682

 

 

$

263,075

 

Paying monthly active users (“PMAUs”) (000s)(2)

 

117

 

 

 

146

 

 

 

122

 

 

 

135

 

Monthly active users (“MAUs”) (000s)(3)

 

349

 

 

 

748

 

 

 

371

 

 

 

756

 

Average GMV per PMAU(4)

$

386.0

 

 

$

311.8

 

 

$

378.3

 

 

$

324.8

 

Average GMV per MAU(5)

$

129.6

 

 

$

60.9

 

 

$

124.9

 

 

$

58.0

 

Average revenue per PMAU (“ARPPU”)(6)

$

59.1

 

 

$

62.8

 

 

$

55.0

 

 

$

62.5

 

Average revenue per MAU (“ARPU”)(7)

$

19.9

 

 

$

12.3

 

 

$

18.2

 

 

$

11.2

 

PMAU to MAU ratio

 

34

%

 

 

19

%

 

 

33

%

 

 

18

%

Average end-user incentives, included as sales and marketing expense, per PMAU(8)

$

19

 

 

$

25

 

 

$

20

 

 

$

25

 

Average end-user incentives, included as sales and marketing expenses, per MAU(9)

$

6

 

 

$

5

 

 

$

7

 

 

$

4

 
 

(1) “Gross Marketplace Volume” or “GMV” means the total entry fees paid by users for contests hosted on Skillz’ platform. Total entry fees include entry fees paid by end-users using cash deposits, prior winnings from end-users’ accounts that have not been withdrawn, and end-user incentives used to enter paid entry fee contests.

(2) “Paying Monthly Active Users” or “PMAUs” means the number of end-users who entered into a paid contest hosted on Skillz’ platform at least once in a month, averaged over each month in the period.

(3) “Monthly Active Users” or “MAUs” means the number of playing end-users who entered into a paid or free contest hosted on Skillz’ platform at least once in a month, averaged over each month in the period.

(4) “Average GMV per PMAU” means the average GMV in a given month divided by PMAUs in that month, averaged over the period.

(5) “Average GMV per MAU” means the average GMV in a given month divided by MAUs in that month, averaged over the period.

(6) “Average Revenue per PMAU” or “ARPPU” means the average revenue in a given month divided by PMAUs in that month, averaged over the period and does not include a deduction for end-user incentives that are included in sales and marketing expense.

(7) “Average Revenue per MAU” or “ARPU” means the average revenue in a given month divided by MAUs in that month, averaged over the period and does not include a deduction for end-user incentives that are included in sales and marketing expense.

(8) Amount reflects the average end-user incentives included in sales and marketing expense in a given month divided by PMAUs in that month, averaged over the period.

(9) Amount reflects the average end-user incentives included in sales and marketing expense in a given month divided by MAUs in that month, averaged over the period.

 

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