Highlights

  • Firy announced plans to redeem approximately USD 49.7 million of remaining secured notes using proceeds from its investment sale.
  • Exit Games repurchased Firy's entire approximately 10.5% stake for USD 55 million in cash, completing the sale in October.
  • Second-quarter revenue rose 23% to USD 31.0 million, while the company's reported net loss widened to USD 24.5 million.
  • A USD 719 million court judgment favoured a Firy subsidiary, but collection remained uncertain amid further legal proceedings.

The sale of an investment gave Firy (NYSE:FIRY) cash to fund the planned retirement of its remaining secured notes. The company announced the redemption on 6 October 2026, after completing the sale of its Exit Games holding. The transaction supports management's goal of entering 2027 without borrowed debt, while operating losses and uncertain litigation collections remain part of the financial picture.

Exit Games Sale Generates Cash

Exit Games, the Hamburg-based developer of Photon networking technology, repurchased Firy's entire holding of approximately 10.5% for USD 55 million in cash. The sale closed on 2 October and was disclosed on 5 October.

Firy originally invested USD 50 million in July 2021. Chief executive Andrew Paradise said the company exited in cash at a value above its purchase price.

The sale is a completed transaction. It is separate from the subsequent redemption announcement, which specified a future payment date and does not itself provide confirmation that the payment occurred.

Redemption Targets the Remaining Notes

Firy said it would redeem approximately USD 49.7 million of 10.25% secured notes due in 2026 on 15 October, at 100% of principal plus accrued interest.

The company said this would complete retirement of the original USD 300 million note issue, funded without new capital or shareholder dilution. The redemption was expected to save approximately USD 0.8 million in interest, or about USD 3.6 million combined with an earlier August redemption through the December maturity.

Management expects to enter 2027 without borrowed debt but said it could consider debt in the future. The supplied material does not include a subsequent notice confirming completion of the scheduled final redemption.

Revenue Growth Accompanies a Wider Loss

For the quarter ended 30 June 2026, revenue rose 23% to USD 31.0 million from USD 25.2 million. Gross profit was USD 27.1 million.

Net loss widened to USD 24.5 million, or USD 1.52 per share, from USD 17.9 million. Adjusted EBITDA loss was USD 13.6 million, including USD 10.9 million of litigation expense. Excluding litigation, the loss was USD 2.7 million, compared with USD 6.9 million.

Cash and equivalents declined to USD 164.0 million from USD 194.5 million at the end of 2025. The RZR performance-marketing business exceeded USD 10 million in quarterly revenue and recorded a fourth consecutive profitable quarter. Paying monthly active users fell to 117,000 from 146,000.

Court Awards Remain Distinct From Collections

In July, a federal court entered a USD 719 million disgorgement judgment in favour of a Firy subsidiary, plus approximately USD 10 million in fees and costs, concerning Papaya Gaming.

Papaya sought a court-supervised payment arrangement in Israel and filed a Chapter 15 petition in Delaware. An Israeli court declined in late August to send its debt proposal to a creditor vote. Collection therefore remains uncertain.

Management also indicated targets for modest positive operating cash flow in 2027 and revenue more than doubling between 2025 and 2028. These are forward-looking objectives, distinct from the reported quarterly loss and cash balance.