Key Highlights

● Firy will redeem the remaining $49.7 million of notes, completing retirement of $300 million.

● Exit Games repurchased Firy's entire 10.5 per cent stake for $55 million in cash.

● Second-quarter revenue rose 23 per cent to $31.0 million, with a $24.5 million loss.

● A federal court entered a $719 million disgorgement judgment in favour of a Firy subsidiary.

A debt wall comes down

Firy Inc. (NYSE:FIRY), the company formerly known as Skillz, said on 6 October 2026 that it would redeem its remaining 10.25 per cent Secured Notes due 2026, about $49.7 million in principal, on 15 October at 100 per cent of principal plus accrued interest. The company said this completes retirement of the original $300 million of notes. It financed the redemption from the sale of a stake in Exit Games and said it raised no new capital and caused no shareholder dilution.

The company changed its name from Skillz on 18 June 2026, and its Class A common stock began trading on the NYSE as FIRY on 22 June 2026, replacing SKLZ.

The Exit Games sale

On 5 October the company disclosed that Exit Games GmbH, the Hamburg-based maker of the Photon networking technology, had repurchased Firy's entire holding of about 10.5 per cent for $55 million in cash. The sale was completed on 2 October. Firy invested $50 million in July 2021, so the gross return is about 1.1 times the original cost. The company compares that with a fund-industry average, acknowledging its figure is gross and on one investment.

Chief executive Andrew Paradise said the company exited in cash and above its purchase price.

Latest reported results

The most recent reported quarter, the second quarter to 30 June 2026, showed revenue of $31.0 million, up 23 per cent from $25.2 million, and gross profit of $27.1 million. The net loss was $24.5 million, or $1.52 per share, against $17.9 million a year earlier. The adjusted EBITDA loss was $13.6 million, including $10.9 million of litigation expense; excluding litigation it was $2.7 million, down from $6.9 million.

Cash and equivalents were $164.0 million at 30 June, compared with $194.5 million at the end of 2025. RZR, the performance-marketing business, passed $10 million of quarterly revenue for the first time and recorded a fourth consecutive profitable quarter. Paying monthly active users, however, fell to 117,000 from 146,000, and the company gave no financial guidance in that release.

Litigation and capital structure

A large part of the narrative concerns Papaya Gaming. In July a federal court entered a $719 million disgorgement judgment in favour of a Firy subsidiary, plus about $10 million in fees and costs. The company said Papaya has sought a court-supervised payment arrangement in Israel and filed a Chapter 15 petition in Delaware, and that an Israeli court declined at the end of August to send Papaya's debt proposal to a creditor vote. Collection is therefore uncertain.

Management also cited about $702 million of federal and $280 million of state net operating loss carryforwards, $15 million still to be collected from the Avia Games settlement, and an owned Las Vegas building as other sources of value.

The redemption saves about $0.8 million of interest, and about $3.6 million combined with an earlier August redemption through the December maturity. Management said it expects to enter 2027 without borrowed debt, but cautioned that it may consider debt in future. It also indicated modest positive operating cash flow in 2027 and revenue more than doubling between 2025 and 2028, both management targets rather than results.

Board change and litigation funding

The board added Avenue Capital's Marc Lasry as an independent director from 1 October.

Management said it believes it has the capital to run and grow its businesses and to fund litigation if necessary, even as the $719 million Papaya judgment remains uncollected.