Firy Inc.

What they do

Firy operates through its subsidiaries, including Skillz and RZR. Skillz runs a proprietary online multi-player platform where players compete in games, hosting both third-party developer games via an SDK and first-party games the company owns and operates; services include player matching, fraud and fair play monitoring, and billing and settlement. RZR is an AI-powered demand-side platform providing data-driven user acquisition, retargeting, and advertising optimization across mobile and other digital channels.

Revenue drivers

• Skillz platform — Revenue from paid contests hosted on the multi-player platform, including third-party developer games and first-party games; the original core business.
• RZR (formerly Aarki) — Performance marketing and advertising technology services; passed $10 million in quarterly revenue for the first time in Q2 2026 and delivered its fourth consecutive profitable quarter.
• Legal recoveries — The company pursues litigation and judgments against competitors; a $719 million disgorgement judgment plus about $10 million in fees and costs was entered against Papaya Gaming, with $15 million still to be collected from the Avia Games settlement.

Recent performance

Q2 2026 revenue was $31.0 million, up 6% sequentially and 23% year over year, with gross profit of $27.1 million. Net loss was $24.5 million and Adjusted EBITDA loss was $2.7 million excluding litigation expense, improving from a $7.1 million loss in Q1 2026. Paying monthly active users were 117 thousand and ARPPU was $59.1. RZR passed $10 million in quarterly revenue for the first time. Full-year revenue fell from $380.2 million in 2021 to $92.9 million in 2024 before recovering to $104.5 million in 2025.

Strategy

Firy describes itself as a global holding company operating at the intersection of content, identity, commerce and performance marketing, with a focus on capital efficiency. It rebranded Aarki to RZR in March 2026 to reflect expanded capabilities. RZR's platform is intended to power game title growth for Skillz developers through user acquisition and monetization, and the company is expanding into emerging performance channels such as connected television. The company also continues litigation against competitors including Papaya Gaming and Voodoo over alleged bot use and false advertising.

Risks

• History of losses — The company has reported net losses every year from 2021 through 2025, including a $70.4 million net loss in 2025 and a $24.5 million net loss in Q2 2026.
• Declining core revenue — Annual revenue fell from $380.2 million in 2021 to $92.9 million in 2024, with only a partial recovery to $104.5 million in 2025.
• Litigation and collection risk — The company is pursuing judgments against competitors, including the $719 million Papaya award, but Papaya has sought a court-supervised payment arrangement in Israel and filed a Chapter 15 petition in Delaware.
• Intense competition — The 10-K cites competition from traditional and digital entertainment, larger capitalized companies, AI-driven competitors, and consolidation, plus competitors it alleges do not follow ethical fairness practices.

Outlook

Management called Q2 2026 the most consequential period in the company's recent history and described a transition from turnaround to growth. It cited approximately $702 million of federal and $280 million of state net operating loss carryforwards, $15 million still to be collected from the Avia Games settlement, an owned Las Vegas building, and a 10% interest in Exit Games as unrecognized value. The company redeemed $80 million of debt in August 2026, leaving approximately $50 million outstanding, and says it is in active dialogue on alternatives to further strengthen its capital structure.