Snail, Inc. Reports Third Quarter 2025 Financial Results

CULVER CITY, Calif., Nov. 12, 2025 (GLOBE NEWSWIRE) -- Snail, Inc. (Nasdaq: SNAL) (“Snail Games” or the “Company”), a leading global independent developer and publisher of interactive digital entertainment, today announced financial results for its third quarter ended September 30, 2025.

Third Quarter 2025 and Recent Operational Highlights

ARK Franchise Updates:

Game Portfolio Updates:

Business Updates:

Management Commentary

“The third quarter continued to deliver strong ARK engagement and sales, numerous engagement opportunities across our indie portfolio, and growing traction in our SaltyTV short film drama business,” said Snail, Inc. CEO Hai Shi. “Our reported top-line performance does not fully capture the underlying growth we are experiencing due to the revenue recognition timing of deferred revenue increasing to approximately $10.9 million. However, ARK sales continued to grow year-over-year, driven by both ARK: Lost Colony pre-sale and the release of ARK: Aquatica. Bookings also continues to increase, reflecting strong demand and building backlog. Although this did not contribute to top-line results this quarter, it creates meaningful revenue visibility going forward. The majority of deferred revenue is expected to be recognized within the next 12 months, and we anticipate a stronger Q4 aligned with the planned release of ARK: Lost Colony by year end.”

“We are making steady progress toward becoming one of the first gaming companies to launch a proprietary stablecoin, advancing both the underlying infrastructure and multi-state regulatory approvals. This initiative positions Snail as a pioneer in digital payments, supported by recent regulatory developments such as the GENIUS Act. While industry-wide adoption will take time, we believe our early investments in technology and compliance lay a strong foundation for future innovation, efficiency, and leadership in integrating stablecoin technology across gaming.”

Third Quarter 2025 Financial Highlights

Net revenues were $13.8 million compared to $22.5 million in the same period last year. The decrease was primarily due to an increase in deferred revenue of $10.9 million primarily from ARK: Survival Ascended and a decrease in revenues related to Bellwright of $0.5 million.

Total ARK sales increased by $2.2 million, mainly attributed to $2.1 million from ARK: Survival Ascended and $0.5 million from the release of ARK: Aquatica, and SaltyTV sales increased $0.3 million compared to the same period last year.

As of September 30, 2025, the balance of Deferred Revenue was $36.4 million, of which $35.3 million is due to non-refundable payments. The Company is expecting to recognize $28.8 million of the non-refundable payments in the next 12 to 60 months through the platform releases of certain DLCs. With the launch of ARK Lost Colony targeting December 2025, the Company expects to recognize $5.8 million of the deferred revenue balance during the fourth quarter 2025.

Net loss was $(7.9) million compared to net income of $0.2 million in the same period last year, primarily due to decrease in net revenues of $8.7 million, an increase in general and administrative expenses of $1.0 million, advertising and marketing expenses of $0.4 million, and impairment expenses related to its film assets of $0.3 million, partially offset by a increase in income tax benefit of $1.8 million.

Bookings increased 9.3% to $17.6 million compared to $16.1 million in the same period last year. The increase was primarily driven by various sales promotions in 2025 that did not occur in 2024, specifically around ARK: Survival Evolved, the presale of ARK: Lost Colony and release of ARK: Aquatica in 2025.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was $(9.7) million compared to $0.5 million in the same period last year. The decrease was primarily due to an increase in net loss of $8.1 million and a decrease in the provision for income taxes of $1.8 million, partially offset an increase in interest income and interest income – related parties of $0.4 million.

As of September 30, 2025, unrestricted cash was $12.3 million compared to $7.3 million as of December 31, 2024.

Nine Months 2025 Financial Highlights

Net revenues were $56.1 million compared to $58.3 million in the same period last year. Total ARK sales increased $13.7 million and SaltyTV sales increased $0.6 million compared to the same period last year. The sales increase was more than offset by the increase in deferred revenue of $11.9 million primarily from ARK: Survival Ascended, a decrease in revenues related to Bellwright of $2.6 million, a decrease in Angela Games revenues of $1.2 million and a non-reoccurring Angela Games settlement of $0.6 million occurring in 2024.

Net loss was ($26.4) million compared to $0.7 million in the same period last year, primarily due to an increase in provision for income taxes of $10.5 million, increase in general and administrative expenses of $4.4 million, an increase in research and development of $3.1 million, an increase in advertising and marketing of $2.4 million, a decrease in revenue of $2.1 million, an increase in impairment of film assets of $0.8 million, an increase in cost of revenues of $3.9 million, partially offset by an increase in total other income of $0.1 million.

Bookings increased 14.3% to $67.0 million compared to $58.7 million in the same period last year. The increase was primarily driven by the releases of ARK: Survival Ascended DLC Astraeos in the first quarter of 2025, sales promotions that were the first of their kind on ARK: Survival Evolved in 2025, the release of ARK: Lost Colony to presale in 2025, and the release of ARK: Aquatica in 2025.

EBITDA was $(15.6) million compared to $1.6 million in the same period last year. The decrease was primarily due to an increase in net loss of $27.1 million, a decrease in interest expense of $0.2 million, partially offset by an increase in provision for income taxes of $10.5 million due to a valuation allowance on deferred tax assets and an increase in interest income and interest income – related parties of $0.4 million.

Use of Non-GAAP Financial Measures

In addition to the financial results determined in accordance with U.S. generally accepted accounting principles, or GAAP, Snail believes Bookings and EBITDA, as non-GAAP measures, are useful in evaluating its operating performance. Bookings and EBITDA are non-GAAP financial measures that are presented as supplemental disclosures and should not be construed as alternatives to net income (loss) or revenue as indicators of operating performance, nor as alternatives to cash flow provided by operating activities as measures of liquidity, both as determined in accordance with GAAP. Snail supplementally presents Bookings and EBITDA because they are key operating measures used by management to assess financial performance. Bookings adjusts for the impact of deferrals and, Snail believes, provides a useful indicator of sales in a given period. EBITDA adjusts for items that Snail believes do not reflect the ongoing operating performance of its business, such as certain non-cash items, unusual or infrequent items or items that change from period to period without any material relevance to its operating performance. Management believes Bookings and EBITDA are useful to investors and analysts in highlighting trends in Snail’s operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which Snail operates and capital investments.

Bookings is defined as the net amount of products and services sold digitally or physically in the period. Bookings is equal to revenues, excluding the impact from deferrals. Below is a reconciliation of total net revenue to Bookings, the closest GAAP financial measure.

We define EBITDA as net loss before (i) interest expense, (ii) interest income, (iii) provision for (benefit from) income taxes and (iv) depreciation expense. The following table provides a reconciliation from net loss to EBITDA:

Webcast Details

The Company will host a webcast at 4:30 PM ET today to discuss the third quarter 2025 financial results. Participants may access the live webcast and replay via the link here or on the Company’s investor relations website at https://investor.snail.com/.

Forward-Looking Statements

This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “may,” “predict,” “continue,” “estimate” and “potential,” or the negative of these terms or other similar expressions. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding Snail’s intent, belief or current expectations. These forward-looking statements include information about possible or assumed future results of Snail’s business, financial condition, results of operations, liquidity, plans and objectives. The statements Snail makes regarding the following matters are forward-looking by their nature: growth prospects and strategies; launching new games and additional functionality to games that are commercially successful; expectations regarding significant drivers of future growth; its ability to retain and increase its player base and develop new video games and enhance existing games; competition from companies in a number of industries, including other casual game developers and publishers and both large and small, public and private Internet companies; its ability to attract and retain a qualified management team and other team members while controlling its labor costs; its relationships with third-party platforms such as Xbox Live and Game Pass, PlayStation Network, Steam, Epic Games Store, My Nintendo Store, the Apple App Store, the Google Play Store and the Amazon Appstore; the size of addressable markets, market share and market trends; its ability to successfully enter new markets and manage international expansion; protecting and developing its brand and intellectual property portfolio; costs associated with defending intellectual property infringement and other claims; future business development, results of operations and financial condition; the ongoing conflicts involving Russia and Ukraine, and Israel and various terrorist organizations, including Hamas, Hezbollah, and Ansar Allah (Houthis), on its business and the global economy generally; actions in various countries, particularly in China and the United States, have created uncertainty with respect to tariff impacts on the costs of our merchandise and costs of development; rulings by courts or other governmental authorities; the Company’s current program to repurchase shares of its Class A common stock, including expectations regarding the timing and manner of repurchases made under this share repurchase program; its plans to pursue and successfully integrate strategic acquisitions; and assumptions underlying any of the foregoing.

Further information on risks, uncertainties and other factors that could affect Snail’s financial results are included in its filings with the Securities and Exchange Commission (the “SEC”) from time to time, including its annual reports on Form 10-K and quarterly reports on Form 10-Q filed, or to be filed, with the SEC. You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those expressed or implied in the forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on management’s beliefs and assumptions and on information currently available to Snail, and Snail does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

About Snail, Inc.

Snail, Inc. (Nasdaq: SNAL) is a leading, global independent developer and publisher of interactive digital entertainment for consumers around the world, with a premier portfolio of premium games designed for use on a variety of platforms, including consoles, PCs, and mobile devices. For more information, please visit: https://snail.com/.

Investor Contact:

John Yi and Steven Shinmachi

Gateway Group, Inc.

949-574-3860

SNAL@gateway-grp.com