Snail, Inc. Reports First Quarter 2025 Financial Results
- Net revenues increased 42.5% YoY to $20.1 million
- ARK franchise DAUs grew 16% YoY to 243,000 on Steam/Epic platforms
- ARK Mobile surpassed 4.8 million downloads
- Bookings increased 13.6% YoY to $22.2 million
- Cash position improved to $9.4 million from $7.3 million in December 2024
- Net loss widened to $1.9 million from $1.8 million YoY
- EBITDA declined to -$3.2 million from -$1.9 million YoY
- Revenue from other games decreased by $1.6 million
- Increased costs due to higher headcount, R&D, and marketing expenses
Insights
Snail shows 42.5% revenue growth to $20.1M but posts $1.9M net loss amid increased costs for expansion and development.
Snail's Q1 2025 results present a mixed financial picture with significant revenue growth counterbalanced by continued losses. The company achieved
Despite this top-line growth, Snail posted a net loss of
The revenue increase came from three main sources:
Cash position improved to
The higher expenses were attributed to increased headcount, elevated R&D spending, and expanded marketing efforts—all investments in future growth. While this explains the current losses, investors should watch carefully to see if these investments translate into sustainable profitable growth in coming quarters, especially as the company diversifies beyond gaming into entertainment content with its Mega Matrix partnership for short dramas.
CULVER CITY, Calif., May 14, 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 first quarter ended March 31, 2025.
First Quarter 2025 and Recent Operational Highlights
ARK Franchise Updates:
- ARK: Survival Evolved (“ASE”):
- Units sold were approximately 690,775 for the first quarter 2025
- Revealed teaser trailer for ARK: Aquatica, a new in-house developed downloadable content (“DLC”) expansion map for ASE
- ARK: Survival Ascended (“ASA”):
- Units sold were approximately 751,960 for the first quarter 2025
- Launched the Astraeos Map as an Official Partner DLC for ASA
- Revealed the official trailer for ARK: Lost Colony, the next DLC for ASA produced by Studio Wildcard
- ARK: Ultimate Mobile Edition (“ARK Mobile”) :
- Surpassed 4.8 million downloads as of March 31, 2025
- Launched the Ragnarok expansion map and the Extinction map
- In the three months ended March 31, 2025, average DAUs totaled 143,976
Game Portfolio Updates:
- Debuted teaser trailers for two in-house developed projects, Nine Yin Sutra: Wushu and Nine Yin Sutra: Immortal
- Launched new trailers for upcoming games: For The Stars, Honeycomb: The World Beyond, Robots at Midnight, and Echoes of Elysium
- Celebrated Bellwright’s one-year Early Access anniversary in April 2025 and introduced major update with significant content and player-requested features. Bellwright will be making its way to Xbox
- Launched The Cecil: The Journey Begins and Chasmal Fear
- Company indie publishing label, Wandering Wizards, acquired publishing rights to Whispers of West Grove
Business Updates:
- Company subsidiary Interactive Films LLC (“Interactive Films”) signed a Memorandum of Understanding (“MoU”) with Mega Matrix Inc. (“MPU”) for the joint development, production, and global distribution of short dramas
Management Commentary
Company co-Chief Executive Officer Tony Tian commented: “The first quarter saw sustained growth and strong engagement across our ARK franchise. Our ARK franchise had an increase in daily active users in the first quarter of 2025 of approximately
“Next month marks a major milestone: the 10-year anniversary of ASE. This pivotal moment for Snail Games offers an opportunity to celebrate the franchise’s legacy and community. Beyond gaming, we also signed a MoU with Mega Matrix to co-develop at least 10 short dramas. In support of this initiative, we soft-launched Salty TV, our mobile short film platform, last quarter, which currently hosts 49 short dramas. We look forward to finalizing the agreement and working closely with the MPU team to deliver high-quality entertainment content. As we look to the remainder of 2025, our focus remains on expanding global reach, investing in scalable growth, commemorating ARK’s 10-year journey, and continuing to deliver innovative experiences that engage players and audiences across multiple platforms and genres.”
First Quarter 2025 Financial Highlights
Net revenues for the three months ended March 31, 2025, increased
Net loss for the three months ended March 31, 2025, was
Bookings for the three months ended March 31, 2025, increased
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the three months ended March 31, 2025, was
As of March 31, 2025, unrestricted cash was
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.
| Three months ended March 31, | |||||||
| 2025 | 2024 | ||||||
| (in millions) | |||||||
| Total net revenue | $ | 20.1 | $ | 14.1 | |||
| Change in deferred net revenue | 2.1 | 5.5 | |||||
| Bookings | $ | 22.2 | $ | 19.6 | |||
We define EBITDA as net loss before (i) interest expense, (ii) interest income, (iii) benefit from income taxes and (iv) depreciation expense. The following table provides a reconciliation from net loss to EBITDA:
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| (in millions) | ||||||||
| Net loss | $ | (1.9 | ) | $ | (1.8 | ) | ||
| Interest income and interest income - related parties | - | (0.1 | ) | |||||
| Interest expense | 0.1 | 0.4 | ||||||
| Benefit from income taxes | (1.5 | ) | (0.5 | ) | ||||
| Depreciation expense | 0.1 | 0.1 | ||||||
| EBITDA | $ | (3.2 | ) | $ | (1.9 | ) | ||
Webcast Details
The Company will host a webcast at 4:30 PM ET today to discuss the first 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 Hamas, 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
| Snail, Inc. and Subsidiaries Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024 (Unaudited) | ||||||||
| March 31, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 9,359,116 | $ | 7,303,944 | ||||
| Accounts receivable, net of allowances for credit losses of | 9,118,269 | 9,814,822 | ||||||
| Accounts receivable - related party | 1,332,867 | 2,336,274 | ||||||
| Loan and interest receivable - related party | 106,252 | 105,759 | ||||||
| Prepaid expenses - related party | 2,536,748 | 2,521,291 | ||||||
| Prepaid expenses and other current assets | 1,468,062 | 1,846,024 | ||||||
| Prepaid taxes | 7,174,973 | 7,318,424 | ||||||
| Total current assets | 31,096,287 | 31,246,538 | ||||||
| Restricted cash and cash equivalents | 935,000 | 935,000 | ||||||
| Accounts receivable – related party, net of current portion | 592 | 1,500,592 | ||||||
| Prepaid expenses - related party, net of current portion | 9,907,669 | 9,378,594 | ||||||
| Property and equipment, net | 4,310,448 | 4,378,352 | ||||||
| Intangible assets, net | 2,159,141 | 973,914 | ||||||
| Deferred income taxes | 12,852,299 | 10,817,112 | ||||||
| Other noncurrent assets | 2,282,709 | 1,683,932 | ||||||
| Operating lease right-of-use assets, net | 953,082 | 1,279,330 | ||||||
| Total assets | $ | 64,497,227 | $ | 62,193,364 | ||||
| LIABILITIES, NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 4,241,403 | $ | 4,656,367 | ||||
| Accounts payable - related party | 15,716,600 | 15,383,171 | ||||||
| Accrued expenses and other liabilities | 2,886,414 | 4,499,280 | ||||||
| Interest payable - related parties | 527,770 | 527,770 | ||||||
| Revolving loan | 3,000,000 | 3,000,000 | ||||||
| Convertible notes at fair value | 2,854,518 | - | ||||||
| Current portion of long-term promissory note | 2,701,003 | 2,722,548 | ||||||
| Current portion of deferred revenue | 3,864,474 | 3,947,559 | ||||||
| Current portion of operating lease liabilities | 1,042,688 | 1,444,385 | ||||||
| Total current liabilities | 36,834,870 | 36,181,080 | ||||||
| Accrued expenses | 265,251 | 265,251 | ||||||
| Deferred revenue, net of current portion | 23,740,999 | 21,519,888 | ||||||
| Operating lease liabilities, net of current portion | 52,921 | 57,983 | ||||||
| Total liabilities | 60,894,041 | 58,024,202 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ Equity: | ||||||||
| Class A common stock, | 981 | 962 | ||||||
| Class B common stock, | 2,875 | 2,875 | ||||||
| Additional paid-in capital | 27,063,795 | 25,738,082 | ||||||
| Accumulated other comprehensive loss | (224,202 | ) | (279,457 | ) | ||||
| Accumulated deficit | (14,063,392 | ) | (12,117,385 | ) | ||||
| Treasury stock at cost (1,350,275 shares as of March 31, 2025 and December 31, 2024) | (3,671,806 | ) | (3,671,806 | ) | ||||
| Total Snail, Inc. equity | 9,108,251 | 9,673,271 | ||||||
| Noncontrolling interests | (5,505,065 | ) | (5,504,109 | ) | ||||
| Total stockholders’ equity | 3,603,186 | 4,169,162 | ||||||
| Total liabilities, noncontrolling interests and stockholders’ equity | $ | 64,497,227 | $ | 62,193,364 | ||||
| Snail, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2025 and 2024 (Unaudited) | ||||||||
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenues, net | $ | 20,110,872 | $ | 14,115,729 | ||||
| Cost of revenues | 14,263,345 | 12,041,698 | ||||||
| Gross profit | 5,847,527 | 2,074,031 | ||||||
| Operating expenses: | ||||||||
| General and administrative | 4,964,351 | 2,282,040 | ||||||
| Research and development | 3,609,745 | 1,776,522 | ||||||
| Advertising and marketing | 1,306,365 | 141,030 | ||||||
| Depreciation and amortization | 67,904 | 82,338 | ||||||
| Total operating expenses | 9,948,365 | 4,281,930 | ||||||
| Loss from operations | (4,100,838 | ) | (2,207,899 | ) | ||||
| Other income (expense): | ||||||||
| Interest income | 29,906 | 99,762 | ||||||
| Interest income - related parties | 493 | 499 | ||||||
| Interest expense | (80,828 | ) | (395,964 | ) | ||||
| Other income | 769,762 | 227,066 | ||||||
| Foreign currency transaction income (loss) | (36,288 | ) | 18,128 | |||||
| Total other income (expense), net | 683,045 | (50,509 | ) | |||||
| Loss before benefit from income taxes | (3,417,793 | ) | (2,258,408 | ) | ||||
| Benefit from income taxes | (1,470,830 | ) | (477,950 | ) | ||||
| Net loss | (1,946,963 | ) | (1,780,458 | ) | ||||
| Net loss attributable to non-controlling interests | (956 | ) | (1,129 | ) | ||||
| Net loss attributable to Snail, Inc. | $ | (1,946,007 | ) | $ | (1,779,329 | ) | ||
| Comprehensive loss statement: | ||||||||
| Net loss | $ | (1,946,963 | ) | $ | (1,780,458 | ) | ||
| Other comprehensive income (loss) related to foreign currency translation adjustments, net of tax | 33,232 | (19,297 | ) | |||||
| Other comprehensive income (loss) related to credit adjustments, net of tax | 22,023 | - | ||||||
| Total comprehensive loss | $ | (1,891,708 | ) | $ | (1,799,755 | ) | ||
| Net loss attributable to Class A common stockholders: | ||||||||
| Basic | $ | (441,731 | ) | $ | (385,722 | ) | ||
| Diluted | $ | (521,393 | ) | $ | (385,722 | ) | ||
| Net loss attributable to Class B common stockholders: | ||||||||
| Basic | $ | (1,504,276 | ) | $ | (1,393,607 | ) | ||
| Diluted | $ | (1,775,558 | ) | $ | (1,393,607 | ) | ||
| Loss per share attributable to Class A and B common stockholders: | ||||||||
| Basic | $ | (0.05 | ) | $ | (0.05 | ) | ||
| Diluted | $ | (0.06 | ) | $ | (0.05 | ) | ||
| Weighted-average shares used to compute loss per share attributable to Class A common stockholders: | ||||||||
| Basic | 8,442,025 | 7,957,031 | ||||||
| Diluted | 9,241,822 | 7,957,031 | ||||||
| Weighted-average shares used to compute loss per share attributable to Class B common stockholders: | ||||||||
| Basic | 28,748,580 | 28,748,580 | ||||||
| Diluted | 28,748,580 | 28,748,580 | ||||||
| Snail, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024 (Unaudited) | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (1,946,963 | ) | $ | (1,780,458 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Amortization - intangible assets, net | 35,516 | 200 | ||||||
| Amortization – film assets | 212,709 | - | ||||||
| Amortization - loan origination fees and debt discounts | (1,889 | ) | 47,729 | |||||
| Accretion – convertible notes | - | 181,754 | ||||||
| Gain on change in fair value of convertible notes | (117,105 | ) | - | |||||
| Gain on change in fair value of warrant liabilities | (639,518 | ) | - | |||||
| Depreciation and amortization - property and equipment | 67,904 | 82,338 | ||||||
| Stock-based compensation expense (income) | 843,619 | (926,875 | ) | |||||
| Deferred taxes, net | (2,041,515 | ) | (555,781 | ) | ||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 696,553 | 17,759,629 | ||||||
| Accounts receivable - related party | 2,503,407 | (1,085,213 | ) | |||||
| Prepaid expenses - related party | (544,532 | ) | (1,351,838 | ) | ||||
| Prepaid expenses and other current assets | 377,962 | (1,779,508 | ) | |||||
| Prepaid taxes | 143,451 | 70,407 | ||||||
| Other noncurrent assets | (656,562 | ) | - | |||||
| Accounts payable | (198,705 | ) | (1,938,654 | ) | ||||
| Accounts payable - related party | 623,430 | (6,143,374 | ) | |||||
| Accrued expenses and other liabilities | (650,236 | ) | (461,311 | ) | ||||
| Loan and interest receivable - related party | (493 | ) | (499 | ) | ||||
| Lease liabilities | (80,510 | ) | (64,821 | ) | ||||
| Deferred revenue | 2,138,026 | 4,723,462 | ||||||
| Net cash provided by operating activities | 764,549 | 6,777,187 | ||||||
| Cash flows from investing activities: | ||||||||
| Acquisition of software | (290,000 | ) | - | |||||
| Acquisition of software licenses | (1,412,000 | ) | - | |||||
| Investments in software | (177,002 | ) | - | |||||
| Net cash used in investing activities | (1,879,002 | ) | - | |||||
| Cash flows from financing activities: | ||||||||
| Repayments on promissory note | (21,546 | ) | (20,484 | ) | ||||
| Repayments on notes payable | - | (2,333,333 | ) | |||||
| Repayments on convertible notes | - | (269,550 | ) | |||||
| Repayments on revolving loan | - | (3,000,000 | ) | |||||
| Cash proceeds from exercise of warrants | 159,000 | - | ||||||
| Proceeds from issuance of convertible notes | 3,000,000 | - | ||||||
| Payments of capitalized offering costs | - | (262,914 | ) | |||||
| Net cash provided by (used in) financing activities | 3,137,454 | (5,886,281 | ) | |||||
| Effect of foreign currency translation on cash and cash equivalents | 32,171 | (19,186 | ) | |||||
| Net increase in cash and cash equivalents, and restricted cash and cash equivalents | 2,055,172 | 871,720 | ||||||
| Cash and cash equivalents, and restricted cash and cash equivalents - beginning of the period | 8,238,944 | 16,314,319 | ||||||
| Cash and cash equivalents, and restricted cash and cash equivalents – end of the period | $ | 10,294,116 | $ | 17,186,039 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 97,260 | $ | 171,101 | ||||
| Income taxes | $ | 184,707 | $ | 1,871 | ||||
| Noncash transactions during the period for: | ||||||||
| Debt converted to equity | $ | - | $ | (60,000 | ) | |||
| Liabilities converted to equity upon exercise of warrants | $ | 323,113 | $ | - | ||||
| Acquisition of film licenses in accounts payable | $ | 152,000 | $ | - | ||||
| Acquisition of software and software licenses in accounts payable and accrued expenses | $ | 51,741 | $ | - | ||||
| Change in fair value of notes recorded in accumulated other comprehensive income | $ | 22,023 | $ | - | ||||
FAQ
What were SNAL's Q1 2025 revenue and earnings?
How many users does ARK have on Steam and Epic platforms in Q1 2025?
What is the current cash position of Snail Inc. (SNAL)?
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What was SNAL's EBITDA in Q1 2025?
