Snail (Nasdaq: SNAL) swings to 2025 loss while bookings climb to $87.8M
Rhea-AI Filing Summary
Snail, Inc. reported mixed fourth quarter and full-year 2025 results. Q4 net revenue was $25.1 million versus $26.2 million a year ago, with Bookings rising to $20.8 million from $17.0 million. Q4 net loss was $0.9 million compared with net income of $1.1 million.
For 2025, net revenue slipped to $81.2 million from $84.5 million, but Bookings grew 16.2% to $87.8 million, helped by ARK: Lost Colony, ARK: Astraeos and other ARK franchise content. Total units sold increased 32.7% to 6.3 million.
Full-year net loss widened to $27.2 million from net income of $1.8 million, driven by a $10.1 million non-cash tax expense, higher general and administrative, research and development, advertising and marketing, and impairment charges. EBITDA fell to $(16.8) million from $3.2 million. Snail ended 2025 with $8.6 million in unrestricted cash, total assets of $59.3 million, total liabilities of $81.2 million, and a stockholders’ equity deficit of $21.9 million.
Positive
- Bookings and unit growth: 2025 Bookings increased 16.2% to $87.8 million from $75.7 million, and total units sold rose 32.7% to 6.3 million, driven by ARK franchise titles and Bellwright, indicating strong underlying demand despite modest GAAP revenue decline.
- Franchise and pipeline momentum: Management highlighted a robust 2026 ARK content roadmap and progress on AAA titles such as For The Stars and Nine Yin Sutra games, aiming to broaden the portfolio and diversify future revenue streams.
Negative
- Sharp profitability deterioration: Net income of $1.8 million in 2024 turned into a $27.2 million net loss in 2025, with EBITDA falling from $3.2 million to $(16.8) million, reflecting higher operating costs, non-cash tax expense and impairments.
- Balance sheet pressure and negative equity: At December 31, 2025, total liabilities of $81.2 million exceeded total assets of $59.3 million, resulting in a stockholders’ equity deficit of $21.9 million versus positive equity of $4.2 million a year earlier.
- Rising operating expenses: General and administrative expenses increased by $5.2 million, research and development by $2.9 million, and advertising and marketing by $3.7 million in 2025, putting additional pressure on margins while many projects are still in development.
Insights
Snail grew underlying sales but swung into a large loss with negative equity.
Snail, Inc. showed solid demand metrics in 2025: Bookings rose to $87.8 million (up from $75.7 million) and units sold climbed to 6.3 million, driven mainly by the ARK franchise and newer titles like Bellwright.
However, profitability deteriorated sharply. Net income of $1.8 million in 2024 turned into a $27.2 million net loss, weighed by a $10.1 million non-cash tax expense, higher operating expenses and $1.5 million of impairments. EBITDA moved from $3.2 million to $(16.8) million.
The balance sheet weakened: total liabilities of $81.2 million exceeded assets of $59.3 million, leaving a stockholders’ equity deficit of $21.9 million. While unrestricted cash increased to $8.6 million, the negative equity and higher debt and deferred revenue make future disclosures on cash generation and funding particularly important for assessing sustainability.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification Number) |
(Address of principal executive offices) (Zip Code)
+1
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
(The Nasdaq Capital Market) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02. Results of Operations and Financial Condition.
On March 19, 2026, Snail, Inc., a Delaware corporation, (the “Company”) issued a press release that included financial information for its fiscal year ended December 31, 2025. A copy of the press release is attached as Exhibit 99.1 to this Report on Form 8-K and is incorporated herein by reference.
The information in this Item 2.02 and in the press release attached as Exhibit 99.1 to this Current Report on Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained in this Item 2.02 and in the press release attached as Exhibit 99.1 to this Current Report on Form 8-K shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |
| 99.1 | Press Release, dated March 19, 2026, issued by Snail, Inc. regarding its financial results for the fiscal year ended December 31, 2025 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SNAIL, INC. | ||
| Date: March 19, 2026 | By: | /s/ Hai Shi |
| Name: | Hai Shi | |
| Title: | Founder, Chief Executive Officer, Chief Strategy Officer and Chairman of the Board of Directors | |
Exhibit 99.1
Snail, Inc. Reports Fourth Quarter and Full Year 2025 Financial Results
CULVER CITY, Calif., March 19, 2026 (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 the fourth quarter and full year ended December 31, 2025.
Fourth Quarter 2025 and Recent Operational Highlights
ARK Franchise Updates:
| ● | ARK: Survival Evolved (“ASE”): |
| ○ | Units sold were approximately 579,248 for the fourth quarter 2025 | |
| ○ | During the fourth quarter of 2025, average daily active users (“DAU”) was 105,468 and peak DAU was 137,404 |
| ● | ARK: Survival Ascended (“ASA”): |
| ○ | Units sold were approximately 691,872 for the fourth quarter 2025 | |
| ○ | During the fourth quarter of 2025, average DAU was 91,123 and peak DAU was 147,572 | |
| ○ | Launched ARK Lost Colony DLC | |
| ○ | Launched ‘ARK x Teenage Mutant Ninja Turtles’ Cosmetic Pack in collaboration with Look North World |
| ● | ARK: Ultimate Mobile Edition (“ARK Mobile”): |
| ○ | Surpassed 10 million downloads as of December 31, 2025 | |
| ○ | During the fourth quarter of 2025, average DAU was 129,861 |
| ● | 2026 / 2027 ASA Content Roadmap |
| ○ | 2026 |
| ■ | ARK World Creator (scheduled for May 2026) | |
| ■ | ARK Bob’s True Tales – Tides of Fortune (scheduled for June 2026) | |
| ■ | ARK Genesis Part 1 (ASA remake) | |
| ■ | ARK Survival of the Fittest (“SOTF”) | |
| ■ | ARK Dragontopia (scheduled for December 2026) |
| ○ | 2027 |
| ■ | ARK Atlantis | |
| ■ | ARK Bob’s True Tales – Galaxy Wars | |
| ■ | ARK Legacy of Santiago |
Game Portfolio Updates:
| ● | 2026 Games Developers Conference (“GDC”) |
| ○ | Introduced PixARK Worlds, a new title in development that features revolutionary user-generated content designed to expand the ARK universe onto the Nintendo Switch 2 | |
| ○ | Revealed event-exclusive trailer for upcoming AAA title For The Stars | |
| ○ | Unveiled new indie title, Gobby Gang |
| ● | Bellwright surpassed 1 million downloads on Steam Early Access, announced console port plans to Xbox and PlayStation, and launched the Maiden Voyage update. Following the launch of the update, the title achieved its highest Steam concurrent user peak of the year and sold over 166,000 units in Q4 2025 | |
| ● | Launched Echoes of Elysium on Steam Early Access in partnership with Loric Games | |
| ● | Participated in the Steam Winter Sale, resulting in double digit sales multiples for ASA and Bellwright | |
| ● | Launched Rebel Engine in partnership with Seven Leaf Clover. The title demonstrated notable creator engagement, partnering with VTuber Hakos Baelz and Spanish gaming creator Joseju | |
| ● | Announced strategic collaboration with Noiz at TwitchCon to strengthen gaming portfolio visibility with streamers |
Business Updates:
| ● | Minted the first official $USDO stablecoin during the Company’s December 2025 Investor Day | |
| ● | Debuted Golden Poop, a commemorative digital meme collectible created to humorously acknowledge gaming culture and industry satire | |
| ● | As of December 31, 2025, SaltyTV released 100+ short film dramas | |
| ● | Three of SaltyTV’s titles were recognized by the International Short Drama Association: |
| ○ | My Ex’s Best Friend recognized for Best Revenge-Driven Narrative | |
| ○ | Hollywood Heartthrob recognized for Most Charismatic Screen Presence | |
| ○ | Faux Fiancé recognized for Best Destiny-Bound Narrative |
Management Commentary
“The fourth quarter provided strong visibility into the momentum we expect across the ARK franchise over the next two years. In addition to launching ARK: Lost Colony, ASA’s first standalone DLC expansion pack, we introduced robust ASA content and DLC roadmap during our December Investor Day. The 2026 slate includes the ARK SOTF remake, ARK World Creator for consoles, ARK Bob’s True Tales – Tides of Fortune, the ASA remake of ARK Genesis Part 1, and ARK: Dragontopia. Since launching in October 2023, ASA has surpassed 4 million units sold, and our expanded roadmap reflects our commitment to sustained franchise growth and increased revenue visibility through 2027.
“Beyond ARK, we are continuing to invest, advance, and scale our broader game portfolio. We are particularly encouraged by the meaningful progress made across our developing AAA games; For The Stars, Nine Yin Sutra: Immortal, and Nine Yin Sutra: Wushu. AAA games are high-budget, high-profile projects that are designed to deliver expansive worlds, cutting-edge visuals, and robust marketing campaigns that far exceed those of typical indie releases. These games, while still in development, represent Snail’s investment and expansion into other AAA games outside of ASE and ASA. These three games have represented a core pillar of our long-term investment strategy over the past few years. Being classified as an AAA game, we believe these titles offer substantial upside with an attractive profit margin profile compared to many of our other games. The progress made has been encouraging, and we are excited to continue developing and sharing updates. At the recent GDC event, we shared an event-exclusive trailer for For The Stars that provided some early insights into the gameplay and concept art.
“Across our other business units, we also made meaningful progress. We minted the first official $USDO stablecoin during the Investor Day and debuted the Golden Poop digital collectible coin. We are currently working towards a potential partnership opportunity tied to our stablecoin initiative and look forward to sharing additional information later this year. Within our short film vertical, SaltyTV has now released 100+ short film dramas, with three productions receiving recognition from the International Short Drama Association. Our Interactive Films division also expanded into narrative-driven game development in 2025, which we view as a strategic adjacency that builds on existing creative capabilities.
“We remain excited about our gaming pipeline for the next two years. ARK will continue to remain the foundational backbone of our company, while we also invest in and grow other arms of the business. Many of our projects are approaching the final stages of development, and we believe we are well-positioned to broaden our portfolio, diversify revenue streams, and drive long-term shareholder value.”
Fourth Quarter 2025 Financial Highlights
Net revenues were $25.1 million compared to $26.2 million in the same period last year. The decrease was primarily due to a decrease in deferred revenues that were recognized in 2025 of $3.5 million, partially offset by increases in ARK sales of $1.3 million and an increase in Bellwright sales of $1.2 million.
Total units sold were 1.5 million units compared to 1.3 million units in the same period last year, primarily driven by an increase in sales of ASA of 0.2 million units, an increase in Bellwright sales of 0.1 million units, partially offset by a decrease in sales of ASE and our other titles of 0.1 million units.
Net loss was $(0.9) million compared to net income of $1.1 million in the same period last year, primarily due to a decrease in gross profit of $1.7 million and an increase in operating expenses of $2.8 million, partially offset by an increase in other income (expense) of $2.0 million and benefit from income taxes of $0.5 million.
Bookings were $20.8 million compared to $17.0 million in the same period last year. The increase was primarily due to a lower portion of sales deferred in 2025. Changes in deferred revenues decreased by $4.9 million while net revenue decreased $1.1 million.
EBITDA was $(1.3) million compared to $1.6 million in the same period last year. The decrease was primarily due to an increase in operating expenses of $2.8 million.
As of December 31, 2025, unrestricted cash was $8.6 million compared to $7.3 million as of December 31, 2024.
Full Year 2025 Financial Highlights
Net revenues were $81.2 million compared to $84.5 million in the same period last year. The decrease was primarily due to a decrease in recognition of deferred revenues of $15.5 million related to the ARK franchise, decrease in Bellwright and Myth of Empires sales of $1.5 million and $1.3 million respectively, partially offset by an increase in ASA sales of $11.3 million, ARK Mobile sales of $2.4 million, and revenue generated from the SaltyTV application of $0.8 million.
Total units sold increased 32.7% to 6.3 million units compared to 4.7 million units in the same period last year, primarily driven by an increase in ARK franchise units sold by 1.7 million units, partially offset by a slight decrease in Bellwright and West Hunt sales of 0.1 million units.
Net loss was $(27.2) million compared to net income of $1.8 million in the same period last year, primarily due to a non-cash tax expense related to the full valuation of our deferred tax assets of $10.1 million, increase in general and administrative expenses of $5.2 million, increase in research and development of $2.9 million, increase in advertising and marketing of $3.7 million, and impairment expenses of $1.5 million.
Bookings increased 16.2% to $87.8 million compared to $75.7 million in the same period last year. The increase was primarily due to the increased ASA sales driven by the launch of ARK: Lost Colony, ARK: Astraeos, and ASE’s first sales event in June 2025 since the price drop in August 2023.
EBITDA was $(16.8) million compared to $3.2 million in the same period last year. The decrease was due to the increase in general and administrative expenses of $5.2 million, an increase in research and development of $2.9 million, an increase in advertising and marketing of $3.7 million and an additional $1.5 million in impairment expenses.
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. 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 December 31, | Fiscal Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (in millions) | (in millions) | |||||||||||||||
| Total net revenue | $ | 25.1 | $ | 26.2 | $ | 81.2 | $ | 84.5 | ||||||||
| Change in deferred net revenue | (4.3 | ) | (9.2 | ) | 6.6 | (8.8 | ) | |||||||||
| Bookings | $ | 20.8 | $ | 17.0 | $ | 87.8 | $ | 75.7 | ||||||||
We define EBITDA as net income (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 income (loss) to EBITDA:
Three Months Ended December 31, | Fiscal Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (in millions) | (in millions) | |||||||||||||||
| Net income (loss) | $ | (0.9 | ) | $ | 1.1 | $ | (27.2 | ) | $ | 1.8 | ||||||
| Interest income and interest income – related parties | (0.7 | ) | (0.1 | ) | (1.3 | ) | (0.3 | ) | ||||||||
| Interest expense | 0.3 | 0.1 | 0.7 | 0.7 | ||||||||||||
| Provision for (benefit from) income taxes | (0.1 | ) | 0.3 | 10.7 | 0.6 | |||||||||||
| Depreciation expense | 0.1 | 0.2 | 0.3 | 0.4 | ||||||||||||
| EBITDA | $ | (1.3 | ) | $ | 1.6 | $ | (16.8 | ) | $ | 3.2 | ||||||
Webcast Details
The Company will host a webcast at 4:30 PM ET today to discuss its fourth quarter and full year 2025 financial and operational 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: Snail’s 2026 / 2027 ASA content roadmap; plans to port Bellwright to the Xbox and Playstation consoles; Snail’s announced strategic collaboration with Noiz and its potential to strengthen the visibility of Snail’s gaming portfolio with streamers; the momentum Snail expects across the ARK franchise over the next two years and the visibility regarding the same provided by Snail’s fourth quarter; Snail’s expanded roadmap and commitment to sustained franchise growth and increased revenue visibility through 2027; Snail’s continued investment, advancement, and scaling of its broader game portfolio; progress made across the development of AAA games; the intention for AAA games to deliver expansive worlds, cutting-edge visuals, and robust marketing campaigns that far exceed those of typical indie releases; Snail’s investment and expansion into other AAA games outside of ASE and ASA and the potential for its existing AAA games to form a core pillar of its long-term investment strategy; For The Stars, Nine Yin Sutra: Immortal, and Nine Yin Sutra: Wushu offering substantial upside with an attractive profit margin profile compared to many of our other games; the occurrence and timing of a potential partnership opportunity tied to Snail’s stablecoin initiative; Snail’s interactive films division serving as a strategic adjacency and building on Snail’s existing creative capabilities; ARK remaining the foundational backbone of Snail and its gaming pipeline; Snail investing in and growing other arms of its business; Snail’s in-house projects are approaching the final stages of development; Snail being positioned to broaden its portfolio, diversify revenue streams, and drive long-term shareholder value;and assumptions underlying any of the foregoing.
Further information on risks, uncertainties and other factors that could affect Snail’s financial results and business include Snail’s ability to strengthen its gaming portfolio’s visibility; its ability to expand and grow its franchise and increase its revenue; and the risks that 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
Consolidated Balance Sheets as of December 31, 2025 and 2024
| December 31, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 8,568,164 | $ | 7,303,944 | ||||
| Restricted cash and cash equivalents | 187,000 | — | ||||||
| Accounts receivable, net of allowances for credit losses of $523,500 as of December 31, 2025 and 2024 | 12,528,347 | 9,814,822 | ||||||
| Accounts receivable – related party | — | 2,336,274 | ||||||
| Loan and interest receivable – related party | 107,759 | 105,759 | ||||||
| Prepaid expenses – related party | 2,700,474 | 2,521,291 | ||||||
| Prepaid expenses and other current assets | 2,232,485 | 1,846,024 | ||||||
| Prepaid taxes | 4,734,007 | 7,318,424 | ||||||
| Total current assets | 31,058,236 | 31,246,538 | ||||||
| Restricted cash and cash equivalents, net of current portion | 1,748,000 | 935,000 | ||||||
| Accounts receivable – related party, net of current portion | — | 1,500,592 | ||||||
| Prepaid expenses – related party, net of current portion | 8,282,974 | 9,378,594 | ||||||
| Property and equipment, net | 4,146,175 | 4,378,352 | ||||||
| Intangible assets, net | 3,827,927 | 973,914 | ||||||
| Intangible assets, net – related party | 4,916,667 | — | ||||||
| Deferred income taxes | — | 10,817,112 | ||||||
| Other noncurrent assets, net | 604,793 | 1,683,932 | ||||||
| Operating lease right-of-use assets, net | 4,722,366 | 1,279,330 | ||||||
| Total assets | $ | 59,307,138 | $ | 62,193,364 | ||||
| LIABILITIES, NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 5,506,332 | $ | 4,656,367 | ||||
| Accounts payable – related parties | 20,067,013 | 15,383,171 | ||||||
| Accrued expenses and other liabilities | 3,364,150 | 4,499,280 | ||||||
| Interest payable – related parties | 527,770 | 527,770 | ||||||
| Revolving loan | — | 3,000,000 | ||||||
| Convertible notes at fair value | 3,842,189 | — | ||||||
| Current portion of long-term debt | 1,305,880 | 2,722,548 | ||||||
| Current portion of deferred revenue | 14,799,840 | 3,947,559 | ||||||
| Current portion of operating lease liabilities | 393,448 | 1,444,385 | ||||||
| Total current liabilities | 49,806,622 | 36,181,080 | ||||||
| Accrued expenses | 468,106 | 265,251 | ||||||
| Revolving loan | 5,000,000 | — | ||||||
| Long-term debt, net of current portion | 4,292,538 | — | ||||||
| Deferred revenue, net of current portion | 17,282,685 | 21,519,888 | ||||||
| Operating lease liabilities, net of current portion | 4,336,240 | 57,983 | ||||||
| Total liabilities | 81,186,191 | 58,024,202 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ Equity (Deficit): | ||||||||
| Class A common stock, $0.0001 par value, 500,000,000 shares authorized; 10,382,336 shares issued and 9,032,061 shares outstanding as of December 31, 2025, and 9,626,070 shares issued and 8,275,795 shares outstanding as of December 31, 2024 | 1,038 | 962 | ||||||
| Class B common stock, $0.0001 par value, 100,000,000 shares authorized; 28,748,580 shares issued and outstanding as of December 31, 2025 and December 31, 2024 | 2,875 | 2,875 | ||||||
| Additional paid-in capital | 26,923,115 | 25,738,082 | ||||||
| Accumulated other comprehensive loss | (275,049 | ) | (279,457 | ) | ||||
| Accumulated deficit | (39,352,510 | ) | (12,117,385 | ) | ||||
| Treasury stock at cost (1,350,275 shares as of December 31, 2025 and 2024) | (3,671,806 | ) | (3,671,806 | ) | ||||
| Total Snail, Inc. equity (deficit) | (16,372,337 | ) | 9,673,271 | |||||
| Noncontrolling interests | (5,506,716 | ) | (5,504,109 | ) | ||||
| Total stockholders’ equity (deficit) | (21,879,053 | ) | 4,169,162 | |||||
| Total liabilities, noncontrolling interests and stockholders’ equity (deficit) | $ | 59,307,138 | $ | 62,193,364 | ||||
Snail, Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income (Loss) for the Years Ended December 31, 2025 and 2024
| Three months ended December 31, | Years ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues, net | $ | 25,109,473 | $ | 26,214,296 | $ | 81,225,622 | $ | 84,467,047 | ||||||||
| Cost of revenues | 15,495,477 | 14,866,526 | 58,794,947 | 54,236,342 | ||||||||||||
| Gross profit | 9,613,997 | 11,347,770 | 22,430,675 | 30,230,705 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | 4,808,505 | 3,943,985 | 18,092,206 | 12,867,210 | ||||||||||||
| Research and development | 3,946,074 | 4,123,964 | 14,580,668 | 11,647,293 | ||||||||||||
| Advertising and marketing | 1,525,471 | 192,235 | 5,236,951 | 1,523,398 | ||||||||||||
| Depreciation | 44,397 | 68,420 | 247,976 | 303,714 | ||||||||||||
| Impairment expenses | 784,329 | — | 1,536,182 | — | ||||||||||||
| Total operating expenses | 11,108,775 | 8,328,604 | 39,693,983 | 26,341,615 | ||||||||||||
| Income (loss) from operations | (1,494,779 | ) | 3,019,166 | (17,263,308 | ) | 3,889,090 | ||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 794,047 | 35,451 | 1,348,013 | 260,679 | ||||||||||||
| Interest income - related parties | 504 | 504 | 2,000 | 2,005 | ||||||||||||
| Interest expense | (215,784 | ) | (88,776 | ) | (660,088 | ) | (723,038 | ) | ||||||||
| Other income (expenses) | (77,272 | ) | (1,527,707 | ) | 115,051 | (981,223 | ) | |||||||||
| Foreign currency transaction (loss) gain | (13,802 | ) | 43,742 | (90,500 | ) | 11,686 | ||||||||||
| Total other income (expense), net | 487,692 | (1,536,786 | ) | 714,476 | (1,429,891 | ) | ||||||||||
| Income (loss) before benefit from income taxes | (1,007,087 | ) | 1,482,380 | (16,548,832 | ) | 2,459,199 | ||||||||||
| Provision for income taxes | (144,716 | ) | 362,623 | 10,688,900 | 632,124 | |||||||||||
| Net income (loss) | (862,371 | ) | 1,119,757 | (27,237,732 | ) | 1,827,075 | ||||||||||
| Net loss attributable to non-controlling interests | (215 | ) | (215 | ) | (2,607 | ) | (4,865 | ) | ||||||||
| Net income (loss) attributable to Snail, Inc. | (862,156 | ) | 1,119,972 | (27,235,125 | ) | 1,831,940 | ||||||||||
| Comprehensive income (loss) statement: | ||||||||||||||||
| Net income (loss) | $ | (862,371 | ) | 1,119,757 | (27,237,732 | ) | 1,827,075 | |||||||||
| Other comprehensive income (loss): | ||||||||||||||||
| Other comprehensive loss related to currency translation adjustments, net of tax | (92,250 | ) | (48,600 | ) | (23,969 | ) | (25,074 | ) | ||||||||
| Other comprehensive income related to credit adjustments, net of tax | 5,357 | — | 28,377 | — | ||||||||||||
| Total other comprehensive income (loss) | (86,893 | ) | (48,600 | ) | 4,408 | (25,074 | ) | |||||||||
| Total comprehensive income (loss) | $ | (949,264 | ) | $ | 1,071,157 | $ | (27,233,324 | ) | $ | 1,802,001 | ||||||
| Net income (loss) attributable to Class A common stockholders: | ||||||||||||||||
| Basic | $ | (205,518 | ) | $ | 248,176 | $ | (6,322,162 | ) | $ | 400,576 | ||||||
| Diluted | $ | (243,606 | ) | $ | 248,176 | $ | (6,322,162 | ) | $ | 400,576 | ||||||
| Net income (loss) attributable to Class B common stockholders: | ||||||||||||||||
| Basic | $ | (656,637 | ) | $ | 871,796 | $ | (20,912,963 | ) | $ | 1,431,364 | ||||||
| Diluted | $ | (778,330 | ) | $ | 871,796 | $ | (21,289,188 | ) | $ | 1,431,364 | ||||||
| Net income (loss) per share attributable to Class A common stockholders: | ||||||||||||||||
| Basic | $ | (0.02 | ) | $ | 0.03 | $ | (0.73 | ) | $ | 0.05 | ||||||
| Diluted | $ | (0.03 | ) | $ | 0.03 | $ | (0.73 | ) | $ | 0.05 | ||||||
| Net income (loss) per share attributable to Class B common stockholders: | ||||||||||||||||
| Basic | $ | (0.02 | ) | $ | 0.03 | $ | (0.73 | ) | $ | 0.05 | ||||||
| Diluted | $ | (0.03 | ) | $ | 0.03 | $ | (0.74 | ) | $ | 0.05 | ||||||
| Weighted-average shares used to compute income (loss) per share attributable to Class A common stockholders: | ||||||||||||||||
| Basic | 8,997,876 | 8,183,918 | 8,690,934 | 8,045,469 | ||||||||||||
| Diluted | 9,175,310 | 8,183,918 | 8,690,934 | 8,045,469 | ||||||||||||
| Weighted-average shares used to compute income (loss) per share attributable to Class B common stockholders: | ||||||||||||||||
| Basic | 28,748,580 | 28,748,580 | 28,748,580 | 28,748,580 | ||||||||||||
| Diluted | 28,748,580 | 28,748,580 | 28,748,580 | 28,748,580 | ||||||||||||
Snail, Inc. and Subsidiaries
Consolidated Statements of Cash Flows for the Years Ended December 31, 2025 and 2024
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | (27,237,732 | ) | $ | 1,827,075 | |||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
| Amortization – intangible assets, net | 311,129 | 7,804 | ||||||
| Amortization – intangible assets, net – related party | 83,333 | — | ||||||
| Amortization – film assets | 1,331,330 | — | ||||||
| Amortization – loan origination fees and debt discounts | 13,109 | 62,855 | ||||||
| Accretion – convertible notes | — | 222,628 | ||||||
| Loss on change in fair value of convertible notes | 504,658 | — | ||||||
| (Gain) loss on change in fair value of warrant liabilities | (719,925 | ) | 1,332,815 | |||||
| Depreciation – property and equipment | 247,976 | 303,714 | ||||||
| Impairment of film assets | 868,722 | — | ||||||
| Impairment of intangible assets | 667,460 | — | ||||||
| Gain on remeasurement of previously held equity interest | (7,857 | ) | — | |||||
| Stock-based compensation expense (income) | 371,496 | (890,208 | ) | |||||
| Deferred taxes, net | 10,817,741 | (569,601 | ) | |||||
| Changes in assets and liabilities, net of business acquisitions: | ||||||||
| Accounts receivable | (2,678,525 | ) | 15,319,987 | |||||
| Accounts receivable – related party | 3,836,866 | 3,663,726 | ||||||
| Prepaid expenses – related party | (1,583,563 | ) | 1,928,581 | |||||
| Prepaid expenses and other current assets | (386,461 | ) | (1,206,331 | ) | ||||
| Prepaid taxes | 2,584,417 | 2,211,331 | ||||||
| Other noncurrent assets | (1,265,874 | ) | (1,523,065 | ) | ||||
| Accounts payable | 1,106,676 | (7,183,648 | ) | |||||
| Accounts payable – related parties | 3,473,842 | (8,001,265 | ) | |||||
| Accrued expenses and other liabilities | 110,762 | 46,542 | ||||||
| Loan and interest receivable – related party | (2,000 | ) | (2,005 | ) | ||||
| Lease liabilities | (215,715 | ) | (266,800 | ) | ||||
| Deferred revenue | 6,615,079 | (8,849,259 | ) | |||||
| Net cash used in operating activities | (1,153,056 | ) | (1,565,124 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Acquisition of software | (290,000 | ) | — | |||||
| Acquisition of software licenses | (4,093,027 | ) | — | |||||
| Investments in software | (849,138 | ) | — | |||||
| Net cash paid for acquisition of Matrioshka | (9,719 | ) | — | |||||
| Acquisition of fixed assets | (15,798 | ) | — | |||||
| Net cash used in investing activities | (5,257,682 | ) | — | |||||
| Cash flows from financing activities: | ||||||||
| Repayments on promissory note | — | (89,374 | ) | |||||
| Repayments on notes payable | (624,131 | ) | (2,333,333 | ) | ||||
| Repayments on convertible notes | (2,303,527 | ) | (1,020,000 | ) | ||||
| Repayments on revolving loan | — | (3,000,000 | ) | |||||
| Borrowings on revolving loan | 2,000,000 | — | ||||||
| Borrowings on term loan | 3,500,000 | — | ||||||
| Cash proceeds from exercise of warrants | 159,000 | 220,000 | ||||||
| Proceeds on issuance of convertible notes | 6,000,000 | — | ||||||
| Payments of loan origination fees | (25,750 | ) | — | |||||
| Payments of offering costs in accounts payable | — | (262,914 | ) | |||||
| Net cash provided by (used in) financing activities | 8,705,592 | (6,485,621 | ) | |||||
| Effect of foreign currency translation on cash and cash equivalents | (30,634 | ) | (24,630 | ) | ||||
| Net increase (decrease) in cash and cash equivalents, and restricted cash and cash equivalents | 2,264,220 | (8,075,375 | ) | |||||
| Cash and cash equivalents, and restricted cash and cash equivalents – beginning of the year | 8,238,944 | 16,314,319 | ||||||
| Cash and cash equivalents, and restricted cash and cash equivalents – end of the year | $ | 10,503,164 | $ | 8,238,944 | ||||
| Supplemental disclosures of cash flow information Cash paid during the year for: | ||||||||
| Interest | $ | 617,246 | $ | 467,188 | ||||
| Income taxes | $ | (2,859,830 | ) | $ | (1,100,302 | ) | ||
| Noncash transactions during the year for: | ||||||||
| Change in fair value of notes recorded in accumulated other comprehensive income | $ | 21,297 | $ | — | ||||
| Debt converted to equity | $ | (331,500 | ) | $ | (60,000 | ) | ||
| Right-of-use assets obtained in exchange for a lease liability | $ | (4,709,564 | ) | $ | (85,588 | ) | ||
| Liabilities converted to equity upon exercise of warrants | $ | 323,113 | $ | 176,750 | ||||
| Acquisition of software in accounts payable – related parties | $ | — | $ | 290,000 | ||||
| Acquisition of software and software licenses in accounts payable and accrued expenses | $ | 130,000 | $ | 420,000 | ||||
| Net assets acquired in a business combination | $ | 5,461 | $ | — | ||||
| Acquisition of software licenses in accounts payable – related parties | $ | 1,500,000 | $ | — | ||||
| Acquisition of software license paid in prior years | $ | 2,500,000 | $ | — | ||||
FAQ
How did Snail, Inc. (SNAL) perform financially in full-year 2025?
What were Snail, Inc. (SNAL)’s fourth quarter 2025 results?
How did the ARK franchise contribute to Snail, Inc. (SNAL) in 2025?
What happened to Snail, Inc. (SNAL)’s profitability and EBITDA in 2025?
What is Snail, Inc. (SNAL)’s balance sheet position at December 31, 2025?
How is Snail, Inc. (SNAL) investing in future growth beyond ARK?
Filing Exhibits & Attachments
5 documents