FIRY Reports Second Quarter 2026 Results (Form 8-K)

FIRY Reports Second Quarter 2026 Results

LAS VEGAS, August 13, 2026 -- 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."

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.