Firy (FIRY) Q1 2025 earnings summary

Executive summary

• Preliminary Q1 2025 results reported, with revenue between $21.9 million and $22.4 million and net loss narrowing to between $14.9 million and $17.1 million, reflecting cost reductions and a $7.5 million gain from a litigation settlement.

• Adjusted EBITDA loss improved significantly, ranging from $15 million to $17.3 million, supported by disciplined expense management.

• Paying monthly active users (PMAU) increased sequentially to as high as 124,000, with conversion rates rising and ARPPU reaching $62.2.

• Four-pillar strategy and $75 million Accelerator Program launched to enhance platform, optimize organization, and drive profitability.

• Company operates two segments: Skillz (competitive gaming) and Aarki (AI-driven advertising).

Financial highlights

• Q1 2025 revenue was reported between $21.9 million and $22.4 million, up 21% sequentially but down up to 13% year-over-year, mainly due to lower tournament revenue.

• Net loss improved to between $14.9 million and $17.1 million from $26.7 million prior year.

• Adjusted EBITDA loss narrowed to between $15 million and $17.3 million, a significant improvement from Q4 2024 and prior year.

• Ended Q1 with $264.3 million in cash and equivalents, including $7.5 million from Avia Games settlement.

• Gross margin improved due to lower cost of revenue and litigation gain.

Outlook and guidance

• Management remains focused on returning to consistent top-line growth and achieving positive adjusted EBITDA, with continued investment in product pipeline and developer partnerships.

• Revenue pressure expected to persist due to reduced user acquisition and engagement marketing spend.

• Liquidity is sufficient for at least one year; future cash needs depend on revenue growth and marketing expansion.