Firy Inc 10-Q for FY2026 Q2

Firy Inc. (FIRY)

10-Q 2026-08-19 For: 2026-06-30

Added on August 19, 2026

About this 10-Q

Firy Inc filed this 10-Q on August 19, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $30.99M; up 22.9% from $25.21M a year earlier
Net loss: $24.48M; compared with a net loss of $17.92M a year earlier
Diluted EPS: -$1.52; compared with -$1.16 a year earlier

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Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.0001 per share	FIRY	New York Stock Exchange


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐


			Page

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)			1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			29
Item 3. Quantitative and Qualitative Disclosures About Market Risk			35
Item 4. Controls and Procedures			36

PART II - OTHER INFORMATION

Item 1. Legal Proceedings			38
Item 1A. Risk Factors			38
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			38
Item 3. Defaults Upon Senior Securities			38
Item 4. Mine Safety Disclosures			38
Item 5. Other Information			38
Item 6. Exhibits			38
Signatures			39


	June 30,		December 31,
	2026		2025
Assets
Current assets:
Cash and cash equivalents	$	163,991	$	194,513
Accounts receivable, net of allowance for credit losses of $258 as of June 30, 2026 and December 31, 2025	18,693		14,412
Prepaid expenses and other current assets	6,283		7,553
Total current assets	188,967		216,478
Non-current assets:
Property and equipment, net	21,020		20,776
Operating lease right-of-use assets, net	3,771		1,082
Non-marketable equity securities	52,768		52,768
Restricted cash, non-current	1,000		1,000
Other non-current assets	4,169		1,351
Total non-current assets	82,728		76,977
Total assets	$	271,695	$	293,455
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	5,558	$	9,713
Operating lease liabilities, current	837		465
Current portion of long-term debt	128,646		127,589
Other current liabilities	48,818		42,944
Total current liabilities	183,859		180,711
Non-current liabilities:
Operating lease liabilities, non-current	3,104		665
Other non-current liabilities	264		259
Total non-current liabilities	3,368		924
Total liabilities	187,227		181,635
Commitments and contingencies (Note 8)
Stockholders’ equity:
Preferred stock $0.0001 par value; 10.0 million shares authorized — no shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	—		—
Common stock $0.0001 par value; 31.3 million shares authorized; Class A common stock – 25.0 million shares authorized; 20.1 million and 19.3 million shares issued; 13.0 million and 12.2 million outstanding as of June 30, 2026 and December 31, 2025, respectively; Class B common stock – 6.3 million shares authorized; 3.4 million shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	1		1
Additional paid-in capital	1,252,926		1,245,462
Accumulated other comprehensive income (loss)	233		(371)
Accumulated deficit	(1,127,086)		(1,091,666)
Treasury stock at cost, 7.1 million and 7.1 million shares as of June 30, 2026 and December 31, 2025, respectively	(41,606)		(41,606)
Total stockholders’ equity	84,468		111,820
Total liabilities and stockholders’ equity	$	271,695	$	293,455


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Revenue	$	30,992	$	25,214	$	60,097	$	47,111
Costs and expenses:
Cost of revenue	3,911		3,220		7,508		6,184
Research and development	6,888		4,840		11,951		9,658
Sales and marketing	13,592		16,431		30,875		34,436
General and administrative	28,168		16,706		47,580		35,789
Gain from litigation settlement	—		—		(7,500)		(7,500)
Total costs and expenses	52,559		41,197		90,414		78,567
Loss from operations	(21,567)		(15,983)		(30,317)		(31,456)
Interest expense, net of interest income	(2,424)		(1,321)		(4,704)		(2,392)
Other (expense) income, net	(388)		(637)		(229)		(1,196)
Loss before income taxes	(24,379)		(17,941)		(35,250)		(35,044)
Provision for (benefit from) income taxes	96		(19)		170		20
Net loss	$	(24,475)	$	(17,922)	$	(35,420)	$	(35,064)

Loss per share attributable to common stockholders:
Basic	$	(1.52)	$	(1.16)	$	(2.22)	$	(2.21)
Diluted	$	(1.52)	$	(1.16)	$	(2.22)	$	(2.21)
Weighted average shares outstanding:
Basic	16,074,260		15,491,239		15,953,829		15,888,064
Diluted	16,074,260		15,491,239		15,953,829		15,888,064

Other comprehensive income:
Foreign currency translation gain	1,530		—		604		—
Total other comprehensive income	1,530		—		604		—
Total comprehensive loss	$	(22,945)	$	(17,922)	$	(34,816)	$	(35,064)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Common stock		Additional paid-in capital			Accumulated other comprehensive loss (income)		Accumulated deficit		Treasury Stock			Total stockholders’ equity
		Shares			Amount							Shares			Amount

Balance at January 1, 2026		15,629,912	$	1		$	1,245,462	$	(371)	$	(1,091,666)	7,114,485	$	(41,606)		$	111,820
Net loss		—	—			—		—		(10,945)		—	—			(10,945)
Stock-based compensation		—	—			2,749		—		—		—	—			2,749
Restricted stock vesting, net of shares withheld		235,611	—			(485)		—		—		—	—			(485)
Foreign currency translation		—	—			—		(926)		—		—	—			(926)
Balance at March 31, 2026		15,865,523	$	1		$	1,247,726	$	(1,297)	$	(1,102,611)	7,114,485	(41,606)			$	102,213
Net loss		—	—			—		—		(24,475)		—	—			(24,475)
Stock-based compensation		—	—			6,975		—		—		—	—			6,975
Exercise of options		7,002	—			21		—		—		—	—			21
Restricted stock vesting, net of shares withheld		583,386	—			(1,796)		—		—		—	—			(1,796)
Foreign currency translation		—	—			—		1,530		—		—	—			1,530
Balance at June 30, 2026		16,455,911	$	1		$	1,252,926	$	233	$	(1,127,086)	7,114,485	(41,606)			$	84,468

Balance at January 1, 2025		16,736,904	$	1		$	1,226,642	$	—	$	(1,021,258)	5,416,418	$	(32,349)		$	173,036
Net loss		—	—			—		—		(17,142)		—	—			(17,142)
Stock-based compensation		—	—			5,646		—		—		—	—			5,646
Shares repurchased		(845,564)	—			—		—		—		845,564	(4,732)			(4,732)
Balance at March 31, 2025		15,891,340	$	1		$	1,232,288	$	—	$	(1,038,400)	6,261,982	(37,081)			$	156,808
Net loss		—	—			—		—		(17,922)		—	—			(17,922)
Stock-based compensation		—	—			4,409		—		—		—	—			4,409
Employee stock purchase plan		4,411	—			24		—		—		—	—			24
Shares repurchased		(585,524)	—			—		—		—		585,524	(2,976)			(2,976)
Balance at June 30, 2025		15,310,227	$	1		$	1,236,721	$	—	$	(1,056,322)	6,847,506	(40,057)			$	140,343


	2026		2025
Beginning balance for credit losses	$	257	$	273
Provision for bad debt	1		—
Recoveries	—		(8)
Ending balance for credit losses	$	258	$	265


	As of June 30, 2026
	Adjusted Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities - Current		Marketable Securities - Non-current
Money market funds	$	143,684	$	—	$	—	$	143,684	$	143,684	$	—	$	—
Total investments	$	143,684	$	—	$	—	$	143,684	$	143,684	$	—	$	—


	As of December 31, 2025
	Adjusted Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities - Current		Marketable Securities - Non-current
Money market funds	$	184,412	$	—	$	—	$	184,412	$	184,412	$	—	$	—
Total investments	$	184,412	$	—	$	—	$	184,412	$	184,412	$	—	$	—


	Three Months Ended June 30, 2026
	Skillz		RZR		Total
Revenue From Customers:
Entry Fee Revenue	$	20,142	$	—	$	20,142
Advertising Revenue	—		10,349		10,349

Other Revenue:
Subscription Service Revenue	247		—		247
Maintenance Fee Revenue	382		—		382
Total Revenue	$	20,771	$	10,349	$	31,120

United States	$	19,506	$	3,769	$	23,275
Other Countries	1,265		6,580		7,845
Total Revenue	$	20,771	$	10,349	$	31,120

Elimination(1)					(128)
Consolidated					$	30,992


	Three Months Ended June 30, 2025
	Skillz		RZR		Total
Revenue From Customers:
Entry Fee Revenue	$	19,056	$	—	$	19,056
Advertising Revenue	—		5,916		5,916

Other Revenue:
Maintenance Fee Revenue	309		—		309
Total Revenue	$	19,365	$	5,916	$	25,281

United States	$	18,064	$	1,740	$	19,804
Other Countries	1,301		4,176		5,477
Total Revenue	$	19,365	$	5,916	$	25,281

Elimination(1)					(67)
Consolidated					$	25,214


	Six Months Ended June 30, 2026
	Skillz		RZR		Total
Revenue From Customers:
Entry Fee Revenue	$	39,372	$	—	$	39,372
Advertising Revenue	—		20,105		20,105

Other Revenue:
Subscription Service Revenue	375		—		375
Maintenance Fee Revenue	651		—		651
Total Revenue	$	40,398	$	20,105	$	60,503

United States	$	38,148	$	6,723	$	44,871
Other Countries	2,250		13,382		15,632
Total Revenue	$	40,398	$	20,105	$	60,503

Elimination(1)					(406)
Consolidated					$	60,097


	Six Months Ended June 30, 2025
	Skillz		RZR		Total
Revenue From Customers:
Entry Fee Revenue	$	36,208	$	—	$	36,208
Advertising Revenue	—		10,355		10,355

Other Revenue:
Maintenance Fee Revenue	750		—		750
Total Revenue	$	36,958	$	10,355	$	47,313

United States	$	34,362	$	3,264	$	37,626
Other Countries	2,596		7,091		9,687
Total Revenue	$	36,958	$	10,355	$	47,313

Elimination(1)					(202)
Consolidated					$	47,111


	Six Months Ended June 30,
	2026		2025
Operating Activities
Net loss	$	(35,420)	$	(35,064)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,711		361
Stock-based compensation	9,776		9,912
Accretion of unamortized debt discount and amortization of debt issuance costs	1,057		939
Non-cash lease expense	369		85
Provision for (recoveries of) bad debt	1		(8)
Changes in operating assets and liabilities:
Accounts receivable, net	(4,282)		(4,080)
Prepaid expenses and other assets	1,302		9,567
Accounts payable	(4,137)		(1,184)
Operating lease liabilities	(247)		(10,658)
Other accruals and liabilities	5,218		(1,611)
Net cash used in operating activities	(24,652)		(31,741)
Investing Activities
Purchases of property and equipment	(82)		(1,840)
Capitalization of software development costs	(1,890)		(1,588)
Asset acquisitions	(2,240)		—
Net cash used in investing activities	(4,212)		(3,428)
Financing Activities
Principal payments on finance leases obligations	—		(389)
Repurchase of common stock	—		(7,708)
Proceeds from exercise of stock options	21		—
Restricted stock vesting, net of shares withheld	(2,281)		—
Net cash used in financing activities	(2,260)		(8,097)
Effect of exchange rates on cash and cash equivalents	602		—
Net change in cash, cash equivalents and restricted cash	(30,522)		(43,266)
Cash, cash equivalents and restricted cash – beginning of year	195,513		281,923
Cash, cash equivalents and restricted cash – end of period	$	164,991	$	238,657

Supplemental cash disclosures
Cash paid for interest	$	6,646	$	6,668
Cash paid for taxes, net of refunds received	$	100	$	51
Supplemental non-cash disclosures
Purchases of property and equipment included in accounts payable	$	40	$	55
Asset acquisition consideration included in other accruals and liabilities	$	610	$	—


	Operating Leases
2026	$	630
2027	1,348
2028	1,215
2029	903
2030	828
2031	255
Total undiscounted cash flows	5,179
Less: Imputed interest	(1,238)
Present value of lease liabilities	$	3,941

Lease liabilities, current	$	837
Lease liabilities, non-current	3,104
Present value of lease liabilities	$	3,941


	June 30,		December 31,
	2026		2025
Land	$	980	$	980
Building	12,880		12,831
Capitalized internal-use software	15,167		13,459
Computer equipment and servers	4,776		3,202
Furniture and fixtures	378		378
Leasehold improvements	131		122
Construction in progress	702		2,246
Total property and equipment	35,014		33,218
Accumulated depreciation and amortization	(13,994)		(12,442)
Property and equipment, net	$	21,020	$	20,776


	June 30,		December 31,
	2026		2025
Game titles	$	2,850	$	—
Developed technology	278		—
Total asset acquisitions	3,128		—
Accumulated amortization	(154)		—
Asset acquisitions, net	$	2,974	$	—


	Fair Value Measurements as of June 30, 2026
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	143,684	$	—	$	—	$	143,684
Total assets	$	143,684	$	—	$	—	$	143,684


	Fair Value Measurements as of December 31, 2025
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	184,412	$	—	$	—	$	184,412
Total assets	$	184,412	$	—	$	—	$	184,412


	Options Outstanding					Restricted Stock Outstanding
	Number of Shares Outstanding Under the Plan	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value	Number of Plan Shares Outstanding	Weighted-Average Grant Date Fair Value per Share
Balance at December 31, 2025	676,704	$	314.72	4.96	9	1,310,546	$	10.51
Granted	—	—				264,526	—
Exercised or vested	(7,002)	3.00				(582,663)	5.57
Cancelled, forfeited or expired	(448)	12.85				(38,332)	6.13
Balance at June 30, 2026	669,254	$	318.19	4.46	135	954,077	$	10.79


	As of June 30,
	2026	2025
Common stock warrants	—	226,786
Common stock options	669,254	681,231
Performance stock units	211,243	27,075
Restricted stock units	954,077	1,937,832
Total	1,834,574	2,872,924


	Three Months Ended June 30,				2026 to 2025 Change
	2026		2025		Increase/(Decrease)
					Amount		Percentage
Revenue	$	30,992	$	25,214	$	5,778	23	%
Costs and expenses:
Cost of revenue	3,911		3,220		691		21	%
Research and development	6,888		4,840		2,048		42	%
Sales and marketing	13,592		16,431		(2,839)		(17)	%
General and administrative	28,168		16,706		11,462		69	%
Total costs and expenses	52,559		41,197		11,362		28	%
Loss from operations	(21,567)		(15,983)		(5,584)		(35)	%
Interest expense, net of interest income	(2,424)		(1,321)		(1,103)		(83)	%
Other (expense) income, net	(388)		(637)		249		39	%
Loss before income taxes	(24,379)		(17,941)		(6,438)		(36)	%
Provision for (benefit from) income taxes	96		(19)		115		605	%
Net loss	$	(24,475)	$	(17,922)	$	(6,553)	(37)	%


	FIRY INC.

	By:	/s/ Todd A. Valli
Date: August 19, 2026	Name:	Todd A. Valli
	Title:	Chief Accounting Officer and Duly Authorized Officer


			1.			I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 of Firy Inc.;


			2.			Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


			3.			Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


			4.			The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


			a.			Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


			b.			Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


			c.			Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


			d.			Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


			a.			All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and


			b.			Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


			/s/ Andrew Paradise
			Andrew Paradise
			Chief Executive Officer and Chairman
			(Principal Executive Officer)


			/s/ Robert Walsh
			Robert Walsh
			Chief Financial Officer
			(Principal Financial Officer)