Firy (FIRY) Q2 2026 earnings summary

Executive summary

• Q2 2026 marked a pivotal period with the full Firy rebrand, major litigation outcomes, and continued execution on growth strategies.

• GAAP revenue reached $31 million, up 6% quarter-over-quarter and 23% year-over-year, driven by RZR surpassing $10 million in quarterly revenue and achieving its fourth consecutive profitable quarter.

• Gross profit was $27.1 million, with a net loss of $24.5 million and an Adjusted EBITDA loss (excluding litigation expense) of $2.7 million, a 63% sequential improvement.

• Significant $730 million court judgment won against Papaya Gaming, with ongoing efforts to collect.

• The company completed its rebrand to FIRY and advanced from turnaround to growth, highlighting significant legal developments and capital structure improvements.

Financial highlights

• Q2 2026 GAAP revenue: $31 million (Q1: $29.1M; Q2 2025: $25.2M); gross profit: $27.1 million; net loss: $24.5 million.

• Adjusted EBITDA loss: $13.6 million (Q1: $12.8M; Q2 2025: $11.4M); excluding litigation, loss improved to $2.7 million.

• R&D expenses: $6.9 million, up 42% year-over-year.

• Ended Q2 with $164 million in cash and $130 million in debt (with $80 million to be redeemed, leaving $50 million outstanding).

• Gross margin for Q2: approximately 87%.

Outlook and guidance

• Expect RZR revenue to nearly double year-over-year in 2026, driven by product expansion and operating leverage.

• Skillz platform anticipates sequential growth in Q4 2026 after operational headwinds in Q2 and Q3.

• Modest positive operating cash flow expected in 2027, accelerating into 2028.

• Litigation expenses projected to decrease, supporting future EBITDA and cash flow growth.

• Management emphasized ongoing efforts to strengthen the capital structure and highlighted significant unrecognized value, including $702 million in federal and $280 million in state net operating loss carryforwards.