Skillz Q2 2026 Earnings Report

Skillz EPS Results

• Actual EPS: -$1.52
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Skillz Revenue Results

• Actual Revenue: $30.99 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Skillz Announcement Details

• Quarter: Q2 2026
• Date: 8/13/2026
• Time: After Market Closes
• Conference Call Date: Friday, August 14, 2026
• Conference Call Time: 9:00AM ET

Skillz (NYSE:FIRY) is a mobile games platform that enables developers to build competitive, skill-based games and allows players to compete against one another in real-time contests. The company provides tools and services designed to help game studios add tournament-style gameplay, player matching, and social competition features to mobile titles.

Through its platform, Skillz hosts and powers multiplayer competitions across a range of casual game genres, with an emphasis on monetization through paid contests and in-game competition. The company has focused on reaching mobile users and game developers in the United States and other markets where skill-based gaming is permitted.

Skillz was founded in 2012 and is headquartered in Las Vegas, Nevada. The company’s management has included Andrew Paradise as co-founder and chief executive officer. Skillz has positioned itself as a technology provider for mobile competitive gaming rather than a traditional game publisher.

Skillz Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Revenue increased 23% year over year to $31 million, while adjusted EBITDA loss excluding litigation expenses improved to $2.7 million.
• Positive Sentiment: RZR surpassed $10 million in quarterly revenue for the first time, grew 75% year over year, and achieved its fourth consecutive profitable quarter. Management expects RZR revenue to nearly double year over year in 2026, supported by iOS products, connected TV, customer diversification, and operating leverage.
• Negative Sentiment: Skillz faced operational issues, with paying monthly active users down 8% and underlying revenue declining approximately 3% sequentially after excluding $1.5 million in one-time benefits. Management expects continued pressure in the third quarter but sees a path to sequential growth in Q4 after improving the product funnel and content.
• Positive Sentiment: A court upheld a roughly $730 million judgment against Papaya Gaming, and Firy intends to pursue collection through U.S. and Israeli proceedings, although any appeal and ultimate recovery remain uncertain.
• Positive Sentiment: Firy plans to redeem $80 million of debt, reducing outstanding debt to approximately $50 million and saving about $2.8 million in interest expense. The company ended the quarter with approximately $164 million in cash and is evaluating additional capital-structure options, while noting that litigation costs should decline.

Presentation

[Operator]

Morning, everyone. I'd like to welcome you to the Firy Inc. second quarter 2026 results call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. At this time, I would like to turn the conference over to your host, Richard Land from Alliance Advisors to begin.

[Richard Land, Managing Director at Alliance Advisors]

Good morning, everyone. Firy issued its 2026 second quarter earnings release yesterday after the market close, which is available on the company's investor relations website. Let me read the safe harbor language and then we'll get right into the call. All statements and comments made by management during this conference call, other than statements of historical fact, may be deemed forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Firy cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those reflected by the forward-looking statements made during the call. For additional details on these risks and uncertainties, please see Firy's annual report on Form 10-K for the year ended December 31st, 2025, as filed with the Securities and Exchange Commission, and Firy's subsequent public filings with the SEC.

[Richard Land, Managing Director at Alliance Advisors]

Firy undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Additionally, we will reference various non-GAAP financial measures and KPIs during this call. Please refer to our earnings release for an explanation of these measures and how we use them, and in the case of the non-GAAP financial measures, reconciliations to their nearest GAAP equivalents. With that, it's now my pleasure to turn the call over to Firy CEO, Andrew Paradise. Andrew, please go ahead.

[Andrew Paradise, CEO at Firy]

Thank you, Richard, and good morning, everyone. Q2 was, without question, the most consequential period in the company's recent history. Our Firy rebrand is now fully in the market. The Papaya verdict and judgment are in, and we're executing against our strategies to unlock value for our shareholders. Let me start with a review of our second quarter results. I'll then highlight three significant developments since our last call in May before moving into our operating businesses. For the second quarter, GAAP revenue was $31 million, up 6% quarter-over-quarter, and up 23% year-over-year. Adjusted EBITDA loss, excluding litigation-related expenses, was $2.7 million, a $4.5 million improvement quarter-over-quarter on a normalized basis. Including litigation-related expenses, the adjusted EBITDA loss was $13.6 million, compared to a loss of $12.8 million in the first quarter and $11.4 million in Q2 2025.

[Andrew Paradise, CEO at Firy]

We also have an update regarding our balance sheet. As announced on August 4th, we are redeeming $80 million in debt, saving the company approximately $2.8 million in interest expense before those notes' maturity date. This leaves $50 million in debt outstanding. We're evaluating options that would further strengthen our capital structure and liquidity position. As part of our June rebrand to Firy and establishment of a holding company structure, we refined how we present our results. Beginning with the second quarter, corporate operating expenses are reported separately. This gives investors a cleaner view of our businesses. This is a change in presentation only. It has no effect on our consolidated financial results, and we have recast prior periods on the same basis. Looking at our two operating segments, RZR exceeded $10 million in quarterly revenue for the first time, growing 6% quarter-over-quarter and 75% year-over-year.

[Andrew Paradise, CEO at Firy]

The second quarter was RZR's fourth consecutive quarter of profitability, with each quarter growing from the prior period. We expect RZR's profitability will continue to build through the back half of the year behind strong revenue momentum and operating leverage. For Skillz, revenue increased modestly quarter-over-quarter. This included a net $1.5 million benefit from two one-time items. Excluding these adjustments, Skillz revenue was down approximately 3% sequentially, consistent with the 8% decline in paying monthly active users. Moving on to recent key developments. First, I'd like to introduce our new CFO, Alex Walsh, who joins us on the call today. Alex officially joined the team on July 13, and he's hit the ground running. He brings an extensive track record of helping consumer-focused businesses accelerate top-line growth while driving profitability.

[Andrew Paradise, CEO at Firy]

I'm confident he'll replicate the success and contributions he delivered at his prior companies, Aristocrat Gaming, The LEGO Group, and Procter & Gamble. Several of you have already had the chance to connect with him directly. As we transition from the turnaround into our growth phase, Alex will be front and center as we engage with Wall Street in this next chapter. I also want to thank Gaetano Franceschi, our former CFO, for the steady hand he provided throughout our turnaround and for the support he's shown in bringing Alex up to speed. The second significant update is our rebrand in June to Firy. Firy is the parent company, together with its two reportable operating segments, RZR and Skillz. RZR is our high-growth, AI-powered performance advertising business, helping brands acquire and retain high-value users. Skillz is our real-money, skill-based gaming operation with more than 90 million registered users.

[Andrew Paradise, CEO at Firy]

Beamable, which we acquired in the first quarter of this year, is reported within our Skillz business, is our developer backend and live ops infrastructure business. Beamable is building infrastructure technologies for the gaming industry with Skillz as a first customer and making progress on its objectives. The rebrand reflects the structure that's already existed for some time, interconnected businesses supported by shared corporate resources. Each of our businesses shares a customer, the game developer, and serves this customer at different points in their monetization journey. More importantly, our three businesses share something rare, a compounding flywheel that operates in a way few other businesses could replicate. The third update concerns the recent court ruling in our litigation against Papaya Gaming. As you'll recall, in April, a unanimous jury in the U.S. District Court for the Southern District of New York found Papaya liable for false advertising.

[Andrew Paradise, CEO at Firy]

A few weeks ago, the presiding judge rejected all of Papaya's post-trial challenges and awarded us approximately $730 million. This is more than 70% above the original jury award and more than double the previous largest false advertising award in U.S. history. The natural question for shareholders is what happens next, and specifically, how we collect. Papaya is a private company, but public trial exhibits give the public access to their 2023 audited financials. Papaya earned $461 million in revenue and $73 million in net income and had $135 million in cash at the end of 2023. In Papaya's more recent filings with the Delaware Court, Papaya's CEO represented to the court that the company has achieved annual revenue of approximately $500 million per year, demonstrating the top line is on par with their 2023 financials. An appeal would go to the Second Circuit.

[Andrew Paradise, CEO at Firy]

Federal appellate courts affirm the majority of the civil judgments they review on the merits. We remain confident in the record and the judgment while recognizing that no appellate outcome is guaranteed. We're pursuing every avenue available to us to return value to our shareholders. As Papaya's largest creditor, we intend to assert our rights in both the Israeli and U.S. proceedings. Looking back over the past few years to today at trial, the evidence showed that Papaya advertised billions of dollars in prize pools while using bots, and over 60% of prizes were never paid out. The jury found Papaya liable and the court upheld those findings in full. Our team invented a category. Litigation is not our business. Building great products and services is. We took on these cases to defend our business and the category we created. Papaya has now stated it's no longer running bots.

[Andrew Paradise, CEO at Firy]

As our core U.S. market returns to fair competition, we expect to benefit. A reminder on where the rest of our fair play litigation stands and where it goes from here. In our litigation with AviaGames, the 2024 jury verdict translated into an $80 million settlement, of which $15 million remains outstanding, and two equal payments of $7.5 million over the next two years. Our case against Voodoo continues to move forward in the legal process. On a separate note, the trial date in our litigation with Tether Studios has been moved to 2027. Let's turn to our operating strategy. RZR is demonstrating strong performance through product-led growth. Today, the platform processes more than 6 million queries per second across more than 10 billion devices. RZR's growth is coming from two areas, increasing existing clients' share of wallet and winning new logos outright. RZR's customers are performance-based.

[Andrew Paradise, CEO at Firy]

If RZR provides an efficient return for its customers, it will capture a higher share of wallet. Additionally, we're offering our customers new high-performing products. We offer five distinct products: Android retargeting and user acquisition, iOS retargeting and user acquisition, and connected television. We've built global operations, product, and sales teams with significant experience in this category. We see an opportunity to deepen existing customer relationships and to continue expanding beyond the core gaming market customer. Gaming remains RZR's largest advertiser category at approximately 70% of Q2 revenue. This is down from roughly 80% in the prior quarter, which we believe is a clear sign that diversifying into consumer apps, retail, and entertainment is working. We expect RZR's revenue growth to nearly double year-over-year. The business has a significant structural advantage worth highlighting. We own and operate our own data servers.

[Andrew Paradise, CEO at Firy]

This enables RZR to run both retargeting and user acquisition at real scale. Our iOS products are still newer to the market and CTV just launched, so there's still a lot of untapped potential. As all of our products scale, the incremental cost to serve stays low, which is exactly the kind of operating leverage you want to see. Shifting to Skillz. The business experienced operational headwinds during the quarter. I've stepped in on an interim basis to lead the Skillz business while we actively recruit a dedicated Skillz platform CEO to support our growth efforts. We have line of sight to return the business to sequential growth in Q4. Our priorities for Skillz are aligned with long-term value creation, and we're committed to staying disciplined on costs and improving unit economics and customer lifetime value. Skillz content is now a balance of owned and operated second-party and third-party titles.

[Andrew Paradise, CEO at Firy]

Games now operated and owned by Skillz account for 40% of Q2 GMV. Before I hand things over to Alex, I want to point you to the new investor presentation we posted to our IR website as part of the June rebrand. It lays out in more detail how Firy is positioned to benefit from combining AI-driven performance marketing with gaming. That combination underpins our expectation for revenue to more than double from 2025-2028, alongside a steady build in cash generation. We expect to generate modest positive operating cash flow in 2027 and accelerate from there into 2028 and beyond. We see four clear drivers for this business, and by extension, shareholder value. First, RZR continues to scale with expanding margins and increasingly stands out. RZR's already EBITDA-positive and scaling across iOS user acquisition, retargeting, CTV, and a broadening advertiser base.

[Andrew Paradise, CEO at Firy]

Second, we're confident that we have the right playbook to drive a return to growth at Skillz. That path runs through our product, our content, and disciplined unit economics. Third, our operating structure gives us the ability to scale the overall business without a proportional increase in fixed costs. Fourth, we expect litigation expenses to decrease. While litigation has been a real expense burden to date, we believe it will deliver a strong return on investment. As it decreases, it will drive EBITDA and cash flow growth. I started the call by saying Q2 was the most consequential period in the company's recent history. What makes it pivotal is what comes next. The Papaya judgment is in hand. The economics of the business are improving. We're entering a new phase for this portfolio.

[Andrew Paradise, CEO at Firy]

Firy gives us a structure designed to compound value across the businesses we own today while creating optionality for where we go next. Over time, as we generate capital, we will allocate it to where we believe it can earn the highest returns. I founded this company in 2012 with a 100-year vision. The last few years slowed that work, but they didn't change the thesis. The business is improving, the structure is in place, and I believe this company's most interesting chapters are still ahead. With that, I'll turn the call over to our CFO, Alex Walsh, for a closer look at our second quarter results.

[Alex Walsh, CFO at Firy]

Thank you, Andrew, and good morning, everyone. I am happy to be speaking with you, and I am looking forward to working with you closely going forward. I just completed my first month at Firy, and with each day, my level of confidence increases in our ability to execute on our strategic initiatives that unlock shareholder value. Our second quarter results demonstrate the improvements we are making across the business. Q2 2026 GAAP revenue was $31 million, up from $29.1 million in Q1 of 2026, and up from $25.2 million in Q2 of 2025, representing a 6% increase quarter-over-quarter and a 23% increase year-over-year. Q2 2026 research and development expenses of $6.9 million increased 42% year-over-year, reflecting the ongoing investment in our Skillz and RZR businesses. Q2 2026 general and administrative expenses of $28.2 million increased 69% year-over-year.

[Alex Walsh, CFO at Firy]

Q2 2026 net loss of $24.5 million compared to $17.9 million in Q2 of 2025. Finally, Q2 adjusted EBITDA loss was $13.6 million compared to a loss of $12.8 million in Q1 of 2026, and a loss of $11.4 million in Q2 of 2025. Excluding litigation-related expenses, adjusted EBITDA in Q2 of 2026 improved to a loss of $2.7 million. Q2 litigation costs were elevated due to the Papaya trial, and we expect them to decrease in future periods. Litigation costs are expensed when incurred, with Q2 expenses alone nearing $11 million. Litigation proceeds are not realized in our financial statements until we collect them. We believe in our balance sheet and continue to manage capital prudently. We ended Q2 2026 with approximately $164 million in cash and cash equivalents, and we ended Q2 with $130 million in debt that matures in December of this year.

[Alex Walsh, CFO at Firy]

As Andrew highlighted, we have already announced a notice of redemption for $80 million of our debt, which will leave approximately $50 million outstanding. We are in active dialogue on a range of alternatives to further strengthen our capital structure and liquidity position.

[Alex Walsh, CFO at Firy]

Importantly, we see significant still unrecognized value on our balance sheet that I want to highlight. As disclosed in our most recent Form 10-K, we have federal net operating loss carryforwards of approximately $702 million and state net operating loss carryforwards of approximately $280 million. There remains $15 million to collect from the AviaGames settlement, of which $7.5 million is expected to be collected in the spring of 2027, followed by the final payment of $7.5 million in spring of 2028. We own our building in Las Vegas, and we have a 10% interest in a private company, Exit Games, for which we paid approximately $50 million in 2021. In closing, we continue to move this business forward, fueled by meaningful revenue growth on RZR, strong operating leverage, and disciplined execution. Operator, we are now ready to open the line for questions.

[Operator]

We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Ed Alter with Jefferies. Your line is now open. Please go ahead.

[Ed Alter, Analyst at Jefferies]

Great, thanks for the question. Good morning, everyone. Would love to just dive into the strategic shift and the rebrand and get into why now, what in the market are you seeing that gives you confidence in changing the branding now?

[Andrew Paradise, CEO at Firy]

Thanks for the question. The rebrand is really to help investors better understand that Skillz has transitioned into several businesses over the last five years. We acquired Aarki in 2021. It's now been rebranded as RZR. RZR is a very meaningful portion of the total revenue and profitability of the business now, having crossed over $10 million in net revenue in the quarter. The concept of it's more than just a rebrand. It's really to help all of the investors listening, and those who can't be here today, to understand that we've moved from one business line, skill-based gaming platform with Skillz, to actually having multiple business lines with RZR being a significant portion of our revenue currently. We do see in the future that Beamable will also become a meaningful portion of the consolidated revenue of the businesses.

[Andrew Paradise, CEO at Firy]

The thematic way that these businesses tie together is they all share the same customer today, which is the game developer, and they all service the game developer in different portions of their monetization journey, whether with RZR, 90 of the top 100 customers being game companies. So helping game companies acquire users into their games. Skillz providing unique skill-based gaming monetization. Or Beamable, which is a live ops platform, which is an industry term for an engagement marketing platform for game companies.

[Ed Alter, Analyst at Jefferies]

Great, thanks. Maybe if I can dig in on RZR a little more. Of those 90 customers that are gaming, can you just describe who those are a little more? If they are Skillz customers or broader gaming? Separately, what is your view on the overall mobile game ads market, given there has been some pretty choppy prints across the industry in both directions this quarter. I would love to hear where you stand on that.

[Andrew Paradise, CEO at Firy]

Sure. That is a great question. First part of the question, the customer base. Those 90 of the top 100 customers being game companies, these are independent from Skillz for the vast majority, if not all. They range from studios such as King, Niantic, which is now a part of Scopely, and on from there. So major game businesses that engage in user acquisition and retargeting marketing.

[Andrew Paradise, CEO at Firy]

When we look beyond this quarter and we think about advertising in the games industry, without a doubt, we have seen new devices slow down over the last five years. When you have new device slowdown, I think you can expect the market to seek equilibrium. I think we are going to see that, though, over the next few years forward, where other products are moving into the advertising ecosystem on mobile, whether it is e-commerce, healthcare, AI is a major type of customer.

[Andrew Paradise, CEO at Firy]

That equilibrium that is being achieved, it is not like mobile is going away as an advertising form. It is very much here to stay. It is a very important type of advertising when marketers think about the omni-channel world their consumer or business target is living in, and think about different ways to reach that target.

[Ed Alter, Analyst at Jefferies]

Thanks. If I could squeeze one in on Skillz. Can you talk about the paying MAU and MAU trends in the quarter and the latest update there on the declines?

[Andrew Paradise, CEO at Firy]

Sure. Yeah. Paying MAU trends, I think Alex, perhaps that would be a great question for you if you would like to jump in.

[Alex Walsh, CFO at Firy]

Sure. Yeah, so just on the spend itself with sales and marketing, it was $13.6 million, which was down from $17.3 million in Q1. About $1.5 million of that decline is lower end user incentives, which fell to $19 per paying monthly active from $21, and the balance is in paid acquisition. The reason we did not expand is a returns reason, not a cash reason. We were working through an operational issue during the quarter. Acquiring users into a funnel you are actively repairing is how you buy a cohort that does not pay you back. We chose to fix the funnel first. Note also that we did not cut spending across the board. We moved it. R&D rose to $6.9 million from $5.1 million sequentially, and it is up 42% year-over-year.

[Alex Walsh, CFO at Firy]

That is funding the retention and engagement product work that will improve the payback on every dollar of UA that we spend later. As it relates to the second half, our line of sight is to sequential growth in Q4, but that assumes product and content improvements, and we may accelerate acquisition as contribution profit supports it. We are not going to recommit to a spend number on this call, and I think the sequencing matters here. Product first, then content, then spend.

[Ed Alter, Analyst at Jefferies]

Great. Thank you.

[Alex Walsh, CFO at Firy]

Absolutely.

[Operator]

Your next question comes from the line of Bharath Nagaraj with Cantor Fitzgerald. Your line is now open. Please go ahead.

[Bharath Nagaraj, Analyst at Cantor Fitzgerald]

Thank you. Thanks for taking my questions. Just a few from me, please. With $50 million remaining in terms of debt, what are the active alternatives that you're considering? Full pay down, refinancing, partial financing, and what's the approximate timeline? Then just to follow up on the same one, with $164 million of cash and $50 million now debt remaining, what's the minimum cash balance you need to run the business comfortably, taking into consideration all the investments in the product you plan to do in the coming quarters?

[Andrew Paradise, CEO at Firy]

Thank you. That's a great question and something we are thinking very carefully about. Given the nature of the questions, I'll turn it over to Alex to talk more about how we're thinking about capital allocation.

[Alex Walsh, CFO at Firy]

Absolutely. Look, we have $50 million in debt maturing December 15th. We will pay this debt off, and right now we're in active analysis evaluating a range of alternatives that will strengthen our capital structure and our liquidity position. That may be refinancing. There are other options we are also considering at this point in time, and when we have something to share, we will certainly share it.

[Bharath Nagaraj, Analyst at Cantor Fitzgerald]

Yeah.

[Alex Walsh, CFO at Firy]

And then also asked the question about minimum cash to run the business. We would always like to have $30 million in cash as a buffer to weather operating dynamics, et cetera.

[Andrew Paradise, CEO at Firy]

If I could also just jump in to add, we do have a considerable number of assets on our balance sheet that while the market doesn't seem to be able to appreciate the value of them, there is real-world value to these assets that we currently have.

[Alex Walsh, CFO at Firy]

Yeah, that's a great point, Andrew.

[Bharath Nagaraj, Analyst at Cantor Fitzgerald]

Yeah.

[Alex Walsh, CFO at Firy]

I talked about those in the open, but just to reiterate what we have, we still have $15 million of the AviaGames settlement coming in. We own our business or own our office here in Vegas. We have nearly $1 billion of net operating losses between federal and state. We also have that 10% stake, and it's a preferred stake in a company called Exit Games.

[Bharath Nagaraj, Analyst at Cantor Fitzgerald]

Yeah. Thank you for that. Yeah, absolutely. Actually, my next question was exactly to do with that. With regards to this Exit Games position, given that you've been carrying it at cost largely, is there any path to monetization or mark to market that you need to do or any thoughts on that or color on that would be helpful?

[Andrew Paradise, CEO at Firy]

Another great question. We're evaluating the Exit Games position carefully. I'll hand off to Alex, who's been closer to that workflow.

[Alex Walsh, CFO at Firy]

Yeah, so we see our interest in Exit Games as one of the several underappreciated value propositions on our balance sheet. I mentioned that we have a preferred stake in that business. We will, to Andrew's point, actively assess how this fits in our portfolio and work with the founders of that company to determine what's in the best interest of both parties.

[Bharath Nagaraj, Analyst at Cantor Fitzgerald]

Okay. Understood. Thank you. Actually, just one other question comes to mind on the fact that you mentioned the balance sheet, something that the market hasn't fully given a value towards or attribution to it. Are you thinking about any sort of buybacks or anything like that, given that your debt is clear right now, and then you have a significant amount of cash, or do you think that investing in the business and the opportunities you're seeing within the RZR side of things and maybe even the Skillz side of things, there's more ROI there?

[Andrew Paradise, CEO at Firy]

That is another great question. The current cash on the balance sheet, we think we have meaningful ways to invest it, primarily. I am not sure, Alex, if you want to add any more color at this time about the cash on the balance sheet and how we view deployment.

[Alex Walsh, CFO at Firy]

I do not think I have too much more to add to that, Andrew. We have, again, plenty of cash to run the business, to pay off the debt in December 15th. And we have a range of strategic alternatives, again, to strengthen our capital position and our liquidity.

[Andrew Paradise, CEO at Firy]

I would perhaps add that we do have a very meaningful value event that we have not talked about as an asset, which is the litigation that we recently won against Papaya Gaming. And that is obviously a major moving part for our business right now in determining capital allocation.

[Bharath Nagaraj, Analyst at Cantor Fitzgerald]

Understood. If I may just ask one more question on the near-term trajectory, if that is all right. Just on Q3 and Q4, how should we think about the growth trajectory for RZR? And then also on the OpEx side of things, I think you mentioned you might do user acquisition ramp if ROI is good or something. But how do we think about the cadence of it in the coming quarters? Thank you. That is all for me.

[Andrew Paradise, CEO at Firy]

Yeah. We are pretty bullish on the business, both on RZR and its continued progress, as well as Skillz. I am sure Alex has some thoughts that he can give you a little more specifics on guiding revenue assumptions through the end of the year.

[Alex Walsh, CFO at Firy]

Yeah, absolutely. We mentioned on the Skillz platform, let us just start with that. We mentioned some operational issues in Q2 that were headwinds. Those will be slight headwinds into Q3, but we have a line of sight to sequential growth in Q4 on the Skillz platform. Let us shift gears to RZR. We mentioned that RZR exceeded $10 million of quarterly revenue for the first time in Q2. That was strong 75% year-over-year growth. It also delivered its fourth consecutive quarter of profitability, and each quarter has since grown sequentially. Just last year, relative to 2024, RZR grew from $11 million-$27 million of net revenue, so nearly tripling, enabled by the launch of iOS UA and 168% net retention. As we look into 2026 and beyond, iOS, it is still early.

[Alex Walsh, CFO at Firy]

CTV is not yet scaled, and the infrastructure is built, so the revenue growth comes with minimal cost increases, or said differently, strong operating leverage in this business. We have very bullish expectations for RZR and for the full year in 2026, we expect the revenue to nearly double year-over-year.

[Andrew Paradise, CEO at Firy]

If I could also add, we are really excited about the launch range.

[Operator]

Please hold while we have a technical situation. One moment, please. Ladies and gentlemen, we are currently experiencing technical difficulties. Please stand by as we resolve the issue. Thank you.

[Andrew Paradise, CEO at Firy]

Apologies if I cut out there. I...

[Operator]

Hi there, Andrew. We can hear you. We are happy to continue. Thank you for your patience, everyone.

[Andrew Paradise, CEO at Firy]

I believe we cut out when I was speaking about being really excited about RZR's growth in CTV and what we've seen so far in early results. One of the things that's particularly exciting is the partnership that we have with LG for being an exclusive gaming advertiser. When you think about the omni-channel capability for RZR between CTV and device, we see a really bright future for CTV in 2027.

[Bharath Nagaraj, Analyst at Cantor Fitzgerald]

Thanks for taking all my questions. Thank you.

[Andrew Paradise, CEO at Firy]

Welcome.

[Operator]

There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect.

Participants

Executives

• Andrew Paradise, CEO

Analysts

• Richard Land, Managing Director at Alliance Advisors
• Alex Walsh, CFO at Firy
• Ed Alter, Analyst at Jefferies
• Bharath Nagaraj, Analyst at Cantor Fitzgerald