FIRY

FIRY (Skillz Inc.) posted its first revenue growth in years — FY2025 revenue $104M, +12.5% — but that is the only bright spot in a wreck. Revenue has collapsed from $380M (FY2021) to ~$100M, and management tells you the recovery is a mirage: they explicitly cut UA marketing ($17.4M vs $18.4M) and warn the reduction 'has resulted in a reduction in revenue and is expected to continue to result in a reduction in revenue.' So the top line the market can see is being deliberately shrunk with no quantifiable floor. Meanwhile profitability is catastrophic — net income -$70.4M (worse than FY2024's -$46.8M), operating margin -61.2%, net margin -67.4%, ROE -63.0% — and the accumulated deficit is now -$1.09B. This is a business that has never demonstrated it can convert its gaming/ad-tech ecosystem into profit at any revenue scale.

The balance sheet is where 'avoid' hardens. Yes, there's $195M cash, but it fell 28.5% in a year and operating cash flow was -$68.9M — roughly a $69M annual burn. Long-term debt was reclassified entirely to current: $128M is now due within twelve months (long-term debt $0, current portion $128M), which is why current liabilities exploded +174.2% to $181M. Net of that debt, cash cushion is only ~$67M against a ~$69M burn rate — one year of runway before financing or dilution pressure, and this is a company that has historically diluted heavily (shares are only down because of $9.26M buybacks, an odd use of cash while burning $69M).