Snail Q3 2026 earnings swing to $6.7M net profit
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Snail, Inc. (SNAL) reported third-quarter 2026 revenue of $33.1 million, up 139.2% from $13.8 million a year earlier. Net income was $6.7 million, compared with a $7.9 million net loss. Bookings, which excludes the effect of revenue deferrals, rose 30.4% to $23.0 million; EBITDA was $7.2 million versus $(9.7) million. The company attributed revenue growth mainly to deferred revenue changes and higher sales of ASA and Bellwright.
For the nine months ended September 30, 2026, revenue was $80.0 million, up 42.6%, and net income was $5.8 million versus a $26.4 million loss; bookings were $71.7 million and EBITDA was $6.5 million. Unrestricted cash was $12.1 million as of September 30, 2026, versus $8.6 million as of December 31, 2025. Snail said recently released titles and the anticipated ARK: Dragontopia skyworld map in December are expected to support fourth-quarter performance; its ARK content roadmap extends through 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointQ3 revenue rose 139.2% to $33.1 million.
- Moderate pointQ3 net income was $6.7 million, versus a $7.9 million loss a year earlier.
- Moderate pointQ3 EBITDA was $7.2 million, versus $(9.7) million a year earlier.
Negative
- None.
Filing Explained
For the nine months ended September 30, the company reported
8-K Event Classification
Key Figures
Key Terms
Bookings financial
EBITDA financial
deferred revenue financial
average daily active users (“DAU”) technical
downloadable content (“DLC”) technical
Earnings Snapshot
Management expects recently released titles, together with the anticipated ARK: Dragontopia skyworld map in December, to support fourth-quarter performance.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did SNAL report for Q3 2026?
Was SNAL profitable in Q3 2026?
How does SNAL define bookings?
How much cash did SNAL generate from operations in the first nine months of 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
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)
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(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 November 12, 2026, Snail, Inc., a Delaware corporation, (the “Company”) issued a press release that included financial information for its quarter ended September 30, 2026. 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 November 12, 2026, issued by Snail, Inc. regarding its financial results for its quarter ended September 30, 2026 | |
| 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: November 12, 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 Third Quarter 2026 Financial Results
CULVER CITY, Calif., November 12, 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 third quarter ended September 30, 2026.
Third Quarter 2026 and Recent Operational Highlights
ARK Franchise Updates:
| ● | ARK: Survival Evolved (“ASE”): |
| ○ | Units sold were approximately 559,000 for the third quarter of 2026 | |
| ○ | During the third quarter of 2026, average daily active users (“DAU”) were approximately 99,000 and peak DAU was approximately 126,000 |
| ● | ARK: Survival Ascended (“ASA”): |
| ○ | Units sold were approximately 1.2 million for the third quarter of 2026 | |
| ○ | During the third quarter of 2026, average DAU was approximately 121,000 and peak DAU was approximately 184,000 | |
| ○ | Launched ARK: Genesis Part 1 Ascended, ARK: Tides of Fortune, and shadow-dropped ARK: Dragontopia | |
| ○ | Released ARK: Dragontopia content updates in July and September 2026 | |
| ○ | Released the Cerberax fantastic tame under the ARK: Fantastic Tames Season 1 Pack | |
| ○ | Released a major update for the ARK: Astraeos downloadable content (“DLC”) | |
| ○ | Upcoming tames and content releases planned for ARK: Fantastic Tames Season 1 and ARK: Dragontopia in November and December 2026 |
| ● | ARK: Ultimate Mobile Edition (“ARK Mobile”) |
| ○ | Approximately 14.5 million downloads as of September 30, 2026 | |
| ○ | During the third quarter of 2026, average DAU was approximately 134,000 |
| ● | Other ARK IPs |
| ○ | Released PixARK: Terracrypt DLC | |
| ○ | Debuted the first public demo of ARK: Survival of the Fittest during ChinaJoy 2026 |
Game Portfolio and Business Updates:
| ● | AAA Game Pipeline |
| ○ | Officially unveiled 9 Yin Sutra: Immortal at ChinaJoy 2026, revealing a new trailer and Steam page | |
| ○ | Publicly debuted 9 Yin Sutra: Wuxia at Gamescom 2026, revealing a new trailer and Steam page | |
| ○ | Showcased For The Stars at Gamescom 2026, releasing a new gameplay trailer and exclusive demos for attending media | |
| ○ | Showcased 9 Yin Sutra: Immortal and For The Stars during the IGN Fan Fest event |
| ● | Launched Honeycomb: The World Beyond across Steam, Epic Games Store, PlayStation 5, and Xbox Series X|S |
| ● | Showcased a new playable demo of Bellwright at Gamescom 2026, previewing its highly requested traversal update planned for the end of 2026 | |
| ● | Launched Stoneguard on Steam Early Access and achieved a “Mostly Positive” rating from Steam users to date | |
| ● | Launched The Fame Game II: LA Heartbreaker, receiving an “Overwhelmingly Positive” Steam rating to date with more than 500 reviews | |
| ● | Launched Dead Party on Steam | |
| ● | Released new demos for Dead Party, Whispers of West Grove, and Veil of Madness during Steam Next Fest |
Business and Operational Updates
| ● | Egofold, the Company’s subsidiary, publicly debuted the AI Ranch initiative and Non-Human PlayerTM (NHP), an AI gaming companion for consumers, at the Ai4 2026 conference | |
| ● | As of September 30, 2026, SaltyTV released 350+ short film dramas |
ARK Content Pipeline
| Title | Platforms | Type | Release Schedule | |||
| ARK Dragontopia | Steam, Xbox, PlayStation | DLC Content Update (new map) | December 2026 | |||
| ARK Maker | Steam, Xbox, PlayStation | ASA Content Creation Tool | 2027 | |||
| ARK Survival of the Fittest | Steam, Xbox, PlayStation | ASA Game Mode | 2027 | |||
| PixARK Worlds | Steam, Xbox, PlayStation, Nintendo Switch 2 | New Title | 2027 | |||
| ARK Atlantis | Steam, Xbox, PlayStation | ASA DLC | 2027 | |||
| ARK Galaxy Wars | Steam, Xbox, PlayStation | ASA DLC | 2027 | |||
| ARK Legacy of Santiago | Steam, Xbox, PlayStation | ASA DLC | 2027 |
Diversified Content Pipeline
| Title | Platforms | Type | Release Schedule | |||
| Bellwright | Steam, Xbox, Playstation | Game Content Update | 2026 | |||
| Veil of Madness | Steam | Indie Title | 2026/2027 | |||
| Whispers of West Grove | Steam | Indie Title | 2027 | |||
| Gobby Gang | Steam | Indie Title | 2027 | |||
| For The Stars | Steam | AAA Title | TBD | |||
| 9 Yin Sutra: Immortal | Steam | AAA Title | TBD | |||
| 9 Yin Sutra: Wuxia | Steam | AAA Title | TBD |
Management Commentary
“Our third quarter results reflected the continued execution of our ARK content pipeline, which extends through 2027 and remains a key driver of engagement and monetization across ASA,” said Snail CEO Hai Shi. “The release of three ASA DLCs at the beginning of the quarter provided a strong foundation for our performance, demonstrating the importance of our ongoing content strategy to expand the franchise’s reach and longevity.
“Beyond our revenue-generating ARK content, the past several months have provided valuable opportunities to showcase the breadth and progress of our broader development portfolio. We unveiled and publicly debuted our two 9 Yin Sutra titles at ChinaJoy and Gamescom, supported by new trailers and the official launch of their respective Steam pages. These milestones mark important steps in building early awareness and engagement, particularly among the IP’s established fan base in China. We also featured For The Stars at Gamescom, where we released a new gameplay trailer and offered exclusive demos to attending media, and again at IGN Fan Fest. The positive reception and continued development progress across these projects reinforce our confidence in the commercial potential of our AAA pipeline. As these highly anticipated titles continue advancing toward launch, industry events and community engagement initiatives remain important platforms to build momentum and provide players with greater visibility into our development progress.
“Looking ahead, we are encouraged by the opportunities in front of us. We expect our recently released titles, together with the anticipated ARK: Dragontopia skyworld map in December, to support fourth quarter performance. More importantly, our visibility beyond the current year remains strong. With an established ARK content roadmap extending throughout 2027 and multiple AAA titles continuing to make solid development progress toward key milestones, we believe we are well positioned to build on the momentum generated this year. Our focus remains on disciplined execution, consistent content delivery, and advancing our high-conviction development initiatives.”
Third Quarter 2026 Financial Highlights
Net revenues increased 139.2% to $33.1 million compared to $13.8 million in the same period last year. The increase was primarily due to a $13.9 million change in deferred revenue, a $4.9 million increase in ASA sales, which was primarily driven by the base game and the release of ARK: Tides of Fortune and ARK: Dragontopia, a $1.0 million increase in Bellwright sales, and a $0.4 million increase in Honeycomb: The World Beyond sales, partially offset by a decrease of $0.5 million in ASE sales, a decrease of $0.2 million in ARK Mobile sales, and a decrease of $0.2 million in SaltyTV sales.
Total units sold increased 73.3% to 2.0 million units compared to 1.1 million units in the same period last year, primarily driven by increased sales of ASA by 0.7 million units and an increase in sales of Bellwright of 0.1 million units.
Net income improved to $6.7 million compared to a net loss of $(7.9) million in the same period last year. The increase was primarily due to an increase in gross profit of $17.6 million, partially offset by an increase in the provision for income taxes of $2.0 million, an increase in total operating expenses of $0.6 million, and an increase in total other expense of $0.5 million.
Bookings increased 30.4% to $23.0 million compared to $17.6 million in the same period last year. The increase was primarily due to higher sales of ASA and Bellwright, partially offset by a decrease in bookings from ASE.
EBITDA improved to $7.2 million compared to $(9.7) million in the same period last year. The increase was primarily driven by the $14.5 million increase in net income, a decrease in interest income and interest income – related parties of $0.4 million, and an increase in the provision of income taxes of $2.0 million.
Nine Months 2026 Financial Highlights
Net revenues increased 42.6% to $80.0 million compared to $56.1 million in the same period last year. The increase was primarily due to the change in deferred revenue of $19.2 million, an increase in ASA sales of $4.8 million, which was primarily driven by the sales of the base game, ARK: Bob’s Tall Tales, ARK: Lost Colony, and the newly released ARK: Tides of Fortune and ARK: Dragontopia, an increase of $4.6 million in Bellwright sales, and an increase of $0.4 million in Honeycomb: The World Beyond sales. The increase in revenue was partially offset by a decrease in ASE revenue of $3.2 million, a decrease in ARK Mobile revenue of $1.5 million, and a decrease in SaltyTV application revenue of $0.4 million.
Total units sold increased 28.0% to 6.2 million units compared to 4.8 million units in the same period last year, primarily due to an increase in ASA sales of 1.7 million units and an increase in Bellwright sales of 0.3 million units, partially offset by a decrease in ASE sales of 0.8 million units.
Net income improved to $5.8 million compared to a net loss of $(26.4) million in the same period last year. The improvement was primarily due to an increase in revenue of $23.9 million, a decrease in the provision of income taxes of $10.4 million, and a decrease in cost of revenue of $0.3 million, partially offset by an increase in total operating expenses of $1.9 million and total other expense of $0.6 million.
Bookings increased 7.0% to $71.7 million compared to $67.0 million in the same period last year. The increase was primarily due to higher sales of ASA and Bellwright, which benefited from promotional pricing during the period, offset by ASE as the title continued to mature and consumer demand shifted toward ASA and its related downloadable content.
EBITDA improved to $6.5 million compared to $(15.6) million in the same period last year. The increase was primarily due to an increase in net income of $32.1 million, partially offset by a decrease in provision for income taxes of $10.4 million.
As of September 30, 2026, unrestricted cash was $12.1 million compared to $8.6 million as of December 31, 2025.
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 EBITDA, as a non-GAAP measure, and Bookings as a key operating metric, are useful in evaluating its operating performance. Bookings and EBITDA are non-GAAP and key operating 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. At the same time, 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (in millions) | (in millions) | |||||||||||||||
| Total net revenue | $ | 33.1 | $ | 13.8 | $ | 80.0 | $ | 56.1 | ||||||||
| Change in deferred net revenue | (10.1 | ) | 3.8 | (8.3 | ) | 10.9 | ||||||||||
| Bookings | $ | 23.0 | $ | 17.6 | $ | 71.7 | $ | 67.0 | ||||||||
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 September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (in millions) | (in millions) | |||||||||||||||
| Net income (loss) | $ | 6.7 | $ | (7.9 | ) | $ | 5.8 | $ | (26.4 | ) | ||||||
| Interest income and interest income – related parties | (0.1 | ) | (0.5 | ) | (0.2 | ) | (0.6 | ) | ||||||||
| Interest expense | 0.2 | 0.2 | 0.5 | 0.4 | ||||||||||||
| (Benefit from) provision for income taxes | 0.4 | (1.6 | ) | 0.4 | 10.8 | |||||||||||
| Depreciation expense | — | 0.1 | — | 0.2 | ||||||||||||
| EBITDA | $ | 7.2 | $ | (9.7 | ) | $ | 6.5 | $ | (15.6 | ) | ||||||
Webcast Details
The Company will host a webcast at 4:30 PM ET today to discuss its third quarter 2026 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/.
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/.
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: upcoming tames and content releases for ARK: Fantastic Tames Season 1 and ARK: Dragontopia in November and December 2026; the further development of Bellwright, including the traversal update planned for the end of 2026; the commercial potential of Snail’s AAA pipeline; Snail’s ARK content pipeline extending through 2027 and Snail’s ongoing content strategy to expand the franchise’s reach and longevity; Snail’s recently released titles, together with the anticipated ARK: Dragontopia skyworld map in December supporting fourth quarter performance; and being well positioned to build on the momentum generated this year. Any forward-looking statements included herein reflect our current views, and they involve certain risks and uncertainties, including, among others, acceptance of our titles in the marketplace and the successful development, marketing or sale of our titles and our ability to retain our key employees or maintain our Nasdaq listing. These risks should not be construed as exhaustive and should be read together with the other cautionary statement included in our Annual Report on Form 10-K for the year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it was initially made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law.
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 September 30, 2026 and December 31, 2025 (Unaudited)
| September 30, 2026 | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 12,104,332 | $ | 8,568,164 | ||||
| Restricted cash and cash equivalents | 562,000 | 187,000 | ||||||
| Accounts receivable, net of allowances for credit losses of $523,500 as of September 30, 2026 and December 31, 2025 | 7,052,196 | 12,528,347 | ||||||
| Loan and interest receivable – related party | 109,255 | 107,759 | ||||||
| Prepaid expenses – related party | 3,339,620 | 2,700,474 | ||||||
| Prepaid expenses and other current assets | 2,677,154 | 2,232,485 | ||||||
| Prepaid taxes | 611,871 | 4,734,007 | ||||||
| Total current assets | 26,456,428 | 31,058,236 | ||||||
| Restricted cash and cash equivalents, net of current portion | 1,748,000 | 1,748,000 | ||||||
| Prepaid expenses – related party, net of current portion | 5,582,500 | 8,282,974 | ||||||
| Property and equipment, net | 4,107,573 | 4,146,175 | ||||||
| Intangible assets, net | 3,763,110 | 3,827,927 | ||||||
| Intangible assets, net – related party | 4,166,667 | 4,916,667 | ||||||
| Other noncurrent assets, net | 1,130,406 | 604,793 | ||||||
| Operating lease right-of-use assets, net | 4,537,349 | 4,722,366 | ||||||
| Total assets | $ | 51,492,033 | $ | 59,307,138 | ||||
| LIABILITIES, NONCONTROLLING INTERESTS AND STOCKHOLDERS’ DEFICIT | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 5,432,378 | $ | 5,506,332 | ||||
| Accounts payable – related parties | 16,556,305 | 20,067,013 | ||||||
| Accrued expenses and other liabilities | 3,577,183 | 3,364,150 | ||||||
| Interest payable – related parties | 527,770 | 527,770 | ||||||
| Convertible notes at fair value | — | 3,842,189 | ||||||
| Current portion of long-term debt | 1,350,071 | 1,305,880 | ||||||
| Current portion of deferred revenue | 17,305,342 | 14,799,840 | ||||||
| Current portion of operating lease liabilities | 485,905 | 393,448 | ||||||
| Total current liabilities | 45,234,954 | 49,806,622 | ||||||
| Accrued expenses | 625,354 | 468,106 | ||||||
| Revolving loan | 2,500,000 | 5,000,000 | ||||||
| Long-term debt, net of current portion | 3,356,578 | 4,292,538 | ||||||
| Deferred revenue, net of current portion | 5,326,512 | 17,282,685 | ||||||
| Operating lease liabilities, net of current portion | 4,188,089 | 4,336,240 | ||||||
| Total liabilities | 61,231,487 | 81,186,191 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ Deficit: | ||||||||
| Class A common stock, $0.0001 par value, 500,000,000 shares authorized; 3,485,979 shares issued and 3,205,095 shares outstanding as of September 30, 2026, and 2,076,467 shares issued and 1,806,412 shares outstanding as of December 31, 2025 | 348 | 208 | ||||||
| Class B common stock, $0.0001 par value, 100,000,000 shares authorized; 5,749,716 shares issued and outstanding as of September 30, 2026 and December 31, 2025 | 575 | 575 | ||||||
| Additional paid-in capital | 33,341,655 | 26,926,245 | ||||||
| Accumulated other comprehensive loss | (315,197 | ) | (275,049 | ) | ||||
| Accumulated deficit | (33,587,550 | ) | (39,352,510 | ) | ||||
| Treasury stock at cost (270,055 shares as of September 30, 2026 and December 31, 2025) | (3,671,806 | ) | (3,671,806 | ) | ||||
| Total Snail, Inc. deficit | (4,231,975 | ) | (16,372,337 | ) | ||||
| Noncontrolling interests | (5,507,479 | ) | (5,506,716 | ) | ||||
| Total stockholders’ deficit | (9,739,454 | ) | (21,879,053 | ) | ||||
| Total liabilities, noncontrolling interests and stockholders’ deficit | $ | 51,492,033 | $ | 59,307,138 | ||||
Snail, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2026 and 2025 (Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues, net | $ | 33,061,435 | $ | 13,819,527 | $ | 80,032,536 | $ | 56,116,149 | ||||||||
| Cost of revenues | 15,418,013 | 13,805,121 | 43,044,890 | 43,299,471 | ||||||||||||
| Gross profit | 17,643,422 | 14,406 | 36,987,646 | 12,816,678 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | 4,911,867 | 4,844,261 | 14,537,874 | 13,283,701 | ||||||||||||
| Research and development | 4,619,542 | 3,731,441 | 13,087,364 | 10,634,595 | ||||||||||||
| Advertising and marketing | 901,768 | 884,914 | 2,585,262 | 3,711,480 | ||||||||||||
| Depreciation | 13,034 | 67,915 | 38,602 | 203,579 | ||||||||||||
| Impairment of film assets | 24,250 | 336,134 | 190,237 | 751,853 | ||||||||||||
| Total operating expenses | 10,470,461 | 9,864,665 | 30,439,339 | 28,585,208 | ||||||||||||
| Income (loss) from operations | 7,172,961 | (9,850,259 | ) | 6,548,307 | (15,768,530 | ) | ||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 55,718 | 492,088 | 155,799 | 553,966 | ||||||||||||
| Interest income – related party | 504 | 504 | 1,496 | 1,496 | ||||||||||||
| Interest expense | (188,873 | ) | (194,189 | ) | (547,044 | ) | (444,304 | ) | ||||||||
| Other (expense) income | 56,060 | 130,529 | (3,971 | ) | 192,323 | |||||||||||
| Foreign currency transaction gain (loss) | 10,436 | (8,519 | ) | 18,695 | (76,697 | ) | ||||||||||
| Total other (expense) income, net | (66,155 | ) | 420,413 | (375,025 | ) | 226,784 | ||||||||||
| Income (loss) before provision for (benefit from) income taxes | 7,106,806 | (9,429,846 | ) | 6,173,282 | (15,541,746 | ) | ||||||||||
| Provision for (benefit from) income taxes | 435,891 | (1,564,152 | ) | 409,086 | 10,833,616 | |||||||||||
| Net income (loss) | 6,670,915 | (7,865,694 | ) | 5,764,196 | (26,375,362 | ) | ||||||||||
| Net loss attributable to non-controlling interests | (88 | ) | (1,153 | ) | (763 | ) | (2,391 | ) | ||||||||
| Net income (loss) attributable to Snail, Inc. | 6,671,003 | (7,864,541 | ) | 5,764,959 | (26,372,971 | ) | ||||||||||
| Comprehensive income (loss) statement: | ||||||||||||||||
| Net income (loss) | 6,670,915 | (7,865,694 | ) | 5,764,196 | (26,375,362 | ) | ||||||||||
| Other comprehensive income (loss) related to foreign currency translation adjustments, net of tax | (19,619 | ) | 4,462 | (45,458 | ) | 68,282 | ||||||||||
| Other comprehensive income related to credit adjustments, net of tax | — | 997 | 5,310 | 23,020 | ||||||||||||
| Total comprehensive income (loss) | $ | 6,651,296 | $ | (7,860,235 | ) | $ | 5,724,048 | $ | (26,284,060 | ) | ||||||
| Net income (loss) attributable to Class A common stockholders: | ||||||||||||||||
| Basic | $ | 2,377,869 | $ | (1,847,559 | ) | $ | 1,790,950 | $ | (6,066,325 | ) | ||||||
| Diluted | $ | 2,377,869 | $ | (1,847,559 | ) | $ | 1,792,798 | $ | (6,066,325 | ) | ||||||
| Net income (loss) attributable to Class B common stockholders: | ||||||||||||||||
| Basic | $ | 4,293,134 | $ | (6,016,982 | ) | $ | 3,974,009 | $ | (20,306,646 | ) | ||||||
| Diluted | $ | 4,293,134 | $ | (6,174,656 | ) | $ | 3,974,009 | $ | (20,585,138 | ) | ||||||
| Income (loss) per share attributable to Class A common stockholders: | ||||||||||||||||
| Basic | $ | 0.75 | $ | (1.05 | ) | $ | 0.69 | $ | (3.53 | ) | ||||||
| Diluted | $ | 0.75 | $ | (1.05 | ) | $ | 0.68 | $ | (3.53 | ) | ||||||
| Income (loss) per share attributable to Class B common stockholders: | ||||||||||||||||
| Basic | $ | 0.75 | $ | (1.05 | ) | $ | 0.69 | $ | (3.53 | ) | ||||||
| Diluted | $ | 0.75 | $ | (1.07 | ) | $ | 0.69 | $ | (3.58 | ) | ||||||
| Weighted-average shares used to compute income (loss) per share attributable to Class A common stockholders: | ||||||||||||||||
| Basic | 3,184,637 | 1,765,493 | 2,591,200 | 1,717,647 | ||||||||||||
| Diluted | 3,184,637 | 1,765,493 | 2,619,768 | 1,717,647 | ||||||||||||
| Weighted-average shares used to compute income (loss) per share attributable to Class B common stockholders: | ||||||||||||||||
| Basic | 5,749,716 | 5,749,716 | 5,749,716 | 5,749,716 | ||||||||||||
| Diluted | 5,749,716 | 5,749,716 | 5,749,716 | 5,749,716 | ||||||||||||
Snail, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2026 and 2025 (Unaudited)
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | 5,764,196 | $ | (26,375,362 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Amortization – intangible assets, net | 505,070 | 190,981 | ||||||
| Amortization – intangible assets, net – related party | 750,000 | — | ||||||
| Amortization – film assets | 271,054 | 1,025,201 | ||||||
| Amortization – loan origination fees and debt discounts | 6,915 | (16,073 | ) | |||||
| Loss on change in fair value of convertible notes | 154,669 | 268,220 | ||||||
| Gain on change in fair value of warrant liabilities | (76,423 | ) | (481,825 | ) | ||||
| Depreciation – property and equipment | 38,602 | 203,579 | ||||||
| Impairment of film assets | 190,237 | 751,853 | ||||||
| Gain on remeasurement of previously held equity interest | — | (7,857 | ) | |||||
| Gain on lease termination | (1,799 | ) | — | |||||
| Stock-based compensation expense | 146,130 | 325,941 | ||||||
| Gain on sale of fixed assets | (22,200 | ) | — | |||||
| Deferred taxes, net | — | 10,808,885 | ||||||
| Changes in assets and liabilities, net of business acquisitions: | ||||||||
| Accounts receivable | 5,476,151 | 2,351,251 | ||||||
| Accounts receivable – related party | — | 3,836,866 | ||||||
| Prepaid expenses – related party | 2,061,328 | (2,692,532 | ) | |||||
| Prepaid expenses and other current assets | (444,669 | ) | 514,921 | |||||
| Prepaid taxes | 4,122,136 | 2,893,867 | ||||||
| Other noncurrent assets, net | (986,317 | ) | (1,152,434 | ) | ||||
| Accounts payable | (113,954 | ) | 581,910 | |||||
| Accounts payable – related parties | (3,510,708 | ) | (325,322 | ) | ||||
| Accrued expenses and other liabilities | 1,053,244 | 791,258 | ||||||
| Loan and interest receivable – related party | (1,496 | ) | (1,496 | ) | ||||
| Lease liabilities | 131,122 | (243,095 | ) | |||||
| Deferred revenue | (9,450,671 | ) | 10,901,655 | |||||
| Net cash provided by operating activities | 6,062,617 | 4,150,392 | ||||||
| Cash flows from investing activities: | ||||||||
| Acquisition of software | — | (290,000 | ) | |||||
| Acquisition of software licenses | (400,253 | ) | (2,989,026 | ) | ||||
| Investments in software | — | (849,138 | ) | |||||
| Net cash paid for acquisition of Matrioshka | — | (9,719 | ) | |||||
| Acquisition of fixed assets | — | (9,109 | ) | |||||
| Proceeds from sale of fixed assets | 22,200 | — | ||||||
| Net cash used in investing activities | (378,053 | ) | (4,146,992 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from at-the-market offering, net of issuance costs | 4,796,702 | — | ||||||
| Repayments on promissory note | — | (64,419 | ) | |||||
| Repayments on notes payable | (891,769 | ) | (271,658 | ) | ||||
| Repayments on convertible notes | (3,125,298 | ) | (1,414,705 | ) | ||||
| Repayments on revolving loan | (2,500,000 | ) | — | |||||
| Borrowings on term loan | — | 3,500,000 | ||||||
| Cash proceeds from exercise of warrants | — | 159,000 | ||||||
| Proceeds from issuance of convertible notes | — | 3,000,000 | ||||||
| Cash paid in lieu of fractional shares | (73 | ) | — | |||||
| Payments of loan origination fees | (7,500 | ) | — | |||||
| Net cash (used in) provided by financing activities | (1,727,938 | ) | 4,908,218 | |||||
| Effect of foreign currency translation on cash and cash equivalents | (45,458 | ) | 69,113 | |||||
| Net increase in cash and cash equivalents, and restricted cash and cash equivalents | 3,911,168 | 4,980,731 | ||||||
| Cash and cash equivalents, and restricted cash and cash equivalents – beginning of the period | 10,503,164 | 8,238,944 | ||||||
| Cash and cash equivalents, and restricted cash and cash equivalents – end of the period | $ | 14,414,332 | $ | 13,219,675 | ||||
| Supplemental disclosures of cash flow information Cash paid during the period for: | ||||||||
| Interest | $ | 443,069 | $ | 477,157 | ||||
| Income taxes | $ | 182,428 | $ | 612,007 | ||||
| Noncash transactions during the period for: | ||||||||
| Liabilities converted to equity upon exercise of warrants | $ | 606,541 | $ | 323,113 | ||||
| Acquisition of film licenses in accounts payable | $ | — | $ | 1,050 | ||||
| Acquisition of software and software licenses in accounts payable | $ | 40,000 | $ | 2,000 | ||||
| Change in fair value of notes recorded in accumulated other comprehensive income | $ | 5,310 | $ | 18,568 | ||||
| Right-of-use assets obtained in exchange for lease liability | $ | (288,229 | ) | $ | (124,214 | ) | ||
| Net assets acquired in a business combination | $ | — | $ | 5,461 | ||||
| Debt converted to equity | $ | 866,250 | $ | 231,000 | ||||