FIRY

Firy announced on Monday that it completed the sale of its 10.5% stake in Exit Games back to the company for $55M in cash. The deal closed on October 2, with Firy receiving the full proceeds and adding the cash to its balance sheet. Firy originally invested $50M in July 2021, making the sale a roughly 1.1x return on its investment. The company said the cash provides flexibility to pursue other opportunities, while noting its realized return was about 22 times the average five-year distribution multiple for 2021-vintage U.S. venture funds.

Firy Inc. expects its RZR segment revenue to nearly double year-over-year in 2026 after a court awarded the company about $730 million in its Papaya litigation. CEO Andrew Paradise said RZR exceeded $10 million in quarterly revenue for the first time and delivered its fourth consecutive quarter of profitability, while the legacy Skillz platform saw declines in paying monthly active users. The company reported second-quarter GAAP revenue of $31 million, a net loss of $24.5 million, and adjusted EBITDA loss of $13.6 million, with litigation-related expenses of nearly $11 million tied to the Papaya trial. Firy is redeeming $80 million in debt, leaving $50 million outstanding due December 15, and ended the quarter with about $164 million in cash and cash equivalents. Management said litigation proceeds are not realized in financial statements until collected and that an appeal would go to the Second Circuit.

Skillz has completed its corporate restructuring and rebranding into a technology-based holding company called Firy, which will start trading under the new symbol FIRY at the beginning of the trading day. The Las Vegas-based company's new structure will house multiple businesses, including the legacy Skillz competitive gaming platform and the RZR ad-tech operation under a broader corporate umbrella. The new identity reflects a strategic transition from a single-product mobile esports company to a diversified tech holding model that combines competitive skill gaming, AI-driven performance marketing, and future adjacent ventures. Firy's plan is centered on disciplined monetization, leveraging Las Vegas as a hub for regulated real-money entertainment, and scaling a data-rich ecosystem where tournaments, advertising, and new products feed into each other to stabilize growth and move the company closer to sustainable profitability. Shares of Firy are up more than 40% over the last six weeks.