Firy (FIRY) Q2 2026 Earnings Report

The call presents a mix of meaningful strategic and operational positives — notably strong RZR growth and profitability, a significant legal judgment in the company's favor, a solid cash position, and corporate restructuring that clarifies assets — alongside material near-term headwinds including large litigation expenses, higher G&A and R&D, a wider GAAP net loss, and operational weakness at Skillz. Management communicated clear pathways to improve Skillz, reduce litigation expense impact over time, and deploy capital prudently, but several financial and execution risks remain in the short term.

Management guided that Q2 GAAP revenue was $31.0M (up 6% QoQ, 23% YoY) and reiterated that RZR—now >$10M of quarterly revenue—grew 6% QoQ and 75% YoY, processed >6M queries/sec across >10B devices, achieved four consecutive profitable quarters (168% net retention; grew from $11M to $27M last year) and is expected to nearly double revenue year‑over‑year with profitability building through H2 (CTV and iOS upside). At the corporate level they expect consolidated revenue to more than double from 2025 to 2028, modest positive operating cash flow in 2027 with acceleration in 2028, and declining litigation expenses (Q2 litigation costs neared $11M; Papaya judgment ≈ $730M, collectible only when realized). Balance‑sheet guidance: cash ≈ $164M, redeemed $80M of debt leaving ~$50M outstanding due Dec. 15 (to be paid/refinanced), federal NOLs ≈ $702M and state NOLs ≈ $280M, plus $15M remaining AviaGames proceeds (two $7.5M payments in spring ’27 and ’28). Skillz was guided to face slight Q3 headwinds but has a line‑of‑sight to sequential growth in Q4 (paying MAU down ~8%; Skillz revenue excluding $1.5M of one‑time items down ~3% QoQ).