Snail, Inc. (SNAL) swings to Q1 2026 profit as revenue and bookings surge

Filing Impact

(High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Snail, Inc. reported a strong turnaround for the first quarter ended March 31, 2026, with net revenues rising 35.7% to $27.3 million and total units sold up 42.6% to 2.2 million. Growth was driven mainly by ARK franchise titles and Bellwright, along with higher deferred revenue recognition.

The company posted net income of $2.1 million, compared with a net loss of $1.9 million a year earlier, and EBITDA improved to $2.4 million from a loss of $3.2 million. Bookings increased 21.1% to $26.9 million, and cash and cash equivalents grew to $14.3 million as of March 31, 2026.

Management highlighted a robust ARK and diversified content pipeline, including multiple DLCs and new titles slated for 2026–2027, and indicated expectations for year-over-year growth in Q2 supported by upcoming ARK releases and recognition of approximately $11 million in deferred revenue upon the release of Genesis Part 1.

Insights

Snail delivers a sharp Q1 swing to profitability with strong ARK-driven growth.

Snail, Inc. posted net revenues of $27.3 million, up 35.7% year over year, with total units sold rising 42.6% to 2.2 million. The ARK franchise and Bellwright were the main contributors, supported by stronger promotional activity and prior DLC releases.

Profitability improved markedly: net income reached $2.1 million versus a prior net loss of $1.9 million, and EBITDA moved to $2.4 million from a loss of $3.2 million. Bookings grew 21.1% to $26.9 million, while cash and cash equivalents increased to $14.3 million as of March 31, 2026, despite debt repayments.

Management points to Q2 year-over-year growth driven by new ARK DLCs and expects about $11 million of deferred revenue to be recognized upon the Genesis Part 1 release. Execution on the ARK roadmap and eventual launches of AAA projects like For the Stars and Nine Yin Sutra titles will be key for diversifying revenue beyond ARK.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Net revenues: $27.3 million Net income: $2.1 million EBITDA: $2.4 million +5 more

8 metrics

Net revenues $27.3 million Three months ended March 31, 2026; up 35.7% year over year

Net income $2.1 million Q1 2026 vs net loss of $1.9 million in Q1 2025

EBITDA $2.4 million Q1 2026 vs $(3.2) million in Q1 2025

Bookings $26.9 million Three months ended March 31, 2026; up 21.1% year over year

Total units sold 2.2 million units Q1 2026; up 42.6% from 1.5 million units in Q1 2025

Cash and cash equivalents $14.26 million Balance sheet as of March 31, 2026

Deferred revenue current portion $14.53 million Current portion of deferred revenue as of March 31, 2026

Expected deferred revenue recognition $11 million Deferred revenue backlog expected upon Genesis Part 1 release

Key Terms

Bookings, EBITDA, deferred revenue, non-GAAP financial measures, +2 more

6 terms

Bookings financial

"Bookings increased 21.1% to 26.9 million compared to 22.2 million in the same period last year."

"Bookings" refer to the total value of new sales or agreements a company secures during a specific period. It shows how much business the company has signed up for, even if the products or services haven't been delivered yet. This figure helps investors understand the company's future growth potential.

EBITDA financial

"EBITDA increased 173.3% to 2.4 million compared to (3.2) million in the same period last year."

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

deferred revenue financial

"Approximately 11 million from our deferred revenue backlog is expected to be recognized upon the release of Genesis Part 1."

Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.

non-GAAP financial measures financial

"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."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

operating cash flow financial

"Net cash provided by operating activities 10,207,831 for the three months ended March 31, 2026."

Operating cash flow is the amount of money a company earns from its main business activities, like selling products or services. It shows how well the company can generate cash to pay bills, invest in growth, or return money to shareholders. This figure helps investors understand if the company’s core operations are healthy and sustainable.

ASA DLC technical

"ARK Tides of Fortune Steam, Xbox, PlayStation ASA DLC June 2026."

Offering Details

earnings_snapshot

Offering

Offering Type earnings_snapshot

Understanding 8-K Material Events →

05/13/2026 - 04:05 PM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 13, 2026

Snail, Inc.

(Exact name of registrant as specified in its charter)

Delaware

001-41556

88-4146991

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification Number)

12049 Jefferson Blvd

Culver City, CA 90230

(Address of principal executive offices) (Zip Code)

+1 (310) 988-0643

(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

Class A Common Stock, $0.0001 par value per share

SNAL

The Nasdaq Stock Market LLC

(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 May 13, 2026, Snail, Inc., a Delaware corporation, (the “Company”) issued a press release that included financial information for its quarter ended March 31, 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 May 13, 2026, issued by Snail, Inc. regarding its financial results for its quarter ended March 31, 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: May 13, 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 First Quarter 2026 Financial Results

CULVER CITY, Calif., May 13, 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 first quarter ended March 31, 2026.

First Quarter 2026 and Recent Operational Highlights

ARK Franchise Updates:

●

ARK: Survival Evolved (“ASE”):

	○	Units sold were approximately 573,000 for the first quarter of 2026

	○	During the first quarter of 2026, average daily active users (“DAU”) was 117,000 and peak DAU was 143,000

●

ARK: Survival Ascended (“ASA”):

	○	Units sold were approximately 1.4 million for the first quarter of 2026

	○	During the first quarter of 2026, average DAU was 127,000 and peak DAU was 188,000

●

ARK: Ultimate Mobile Edition (“ARK Mobile”):

	○	11.9 million downloads as of March 31, 2026

	○	During the first quarter of 2026, average DAU was 141,000

Game Portfolio and Business Updates:

●

For The Stars

	○	Released new developer diary, offering an in-depth look at the upcoming AAA title’s current development progress, including new pre-alpha footage and previously unreleased concept art

	○	Revealed event-exclusive trailer during 2026 Games Developers Conference (“GDC”)

	●	Introduced PixARK Worlds, a new title in development that features revolutionary user-generated content designed to further expand the ARK universe on Steam, Xbox, PlayStation, and the Nintendo Switch 2

	●	Bellwright

○

Surpassed 1 million downloads on Steam Early Access, announced console port plans to Xbox and PlayStation, and launched the Maiden Voyage update.

	●	Launched Echoes of Elysium on Steam Early Access in partnership with Loric Games

	●	Launched Survivor Merc’s 1.0 version across Steam, Xbox, and PlayStation

	●	Launched Above the Snow on Steam

	●	Announced publishing agreement for co-op party action title Dead Party

	●	Unveiled new upcoming indie title, Gobby Gang, at 2026 GDC

	●	As of March 31, 2026, SaltyTV released 250+ short film dramas

ARK Content Pipeline

Title	Platforms	Type	Release Schedule
ARK Fantastic Tames Season 1 Pack	Steam, Xbox, PlayStation	DLC Creatures	May 2026

ARK Tides of Fortune	Steam, Xbox, PlayStation	ASA DLC	June 2026

ARK Genesis Part 1 (ASA Remake)	Steam, Xbox, PlayStation	ASA DLC Remake	June 2026

ARK Dragontopia	Steam, Xbox, PlayStation	ASA DLC	December 2026

ARK World Creators	Steam, Xbox, PlayStation	ASA Content Creation Tool	2026

ARK Survival of the Fittest	Steam, Xbox, PlayStation	ASA Game Mode	2026

PixARK Worlds	Steam, Xbox, PlayStation, Nintendo Switch 2	New Title	2026/2027

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	1.0 Launch	2026

Dead Party	Steam	Indie Title	2026

Gobby Gang	Steam	Indie Title	2026

Stoneguard	Steam	Indie Title	2026

For The Stars	Steam	AAA Title	TBD

Nine Yin Sutra: Immortal	Steam	AAA Title	TBD

Nine Yin Sutra: Wushu	Steam	AAA Title	TBD

Management Commentary

“We exited 2025 with tailwinds that positioned Snail for stronger and more stable growth and results,” said Company CEO Hai Shi. “Momentum from the ASA pipeline we announced in December, the launch of ARK Lost Colony DLC, and the subsequent Steam Winter Sale event supported net revenue growth and a return to net income positive. Looking ahead, we aim to deliver year-over-year growth in Q2, driven by several upcoming ARK content releases. We have a Fantastic Tames Season 1 Expansion Pack coming in May 2026, and ARK Tides of Fortune to launch alongside the remake of Genesis Part 1 coming to ASA in June 2026 to provide a foundation for the quarter to build on. Approximately $11 million from our deferred revenue backlog is expected to be recognized upon the release of Genesis Part 1.

“Beyond ARK, Snail Games continues to execute on its strategy to eventually become a fully integrated game developer and publisher. Our upcoming AAA titles represent an important step toward building new franchises with the potential for multi-year to multi-decade game lifespans that can complement the scale of ASE and ASA. As previously disclosed, these projects have entered their final phases of development, and the eventual launch of these games position us to meaningfully diversify our revenue mix beyond ARK. With multiple gaming events and planned updates throughout the year, we look forward to sharing additional information on For the Stars, Nine Yin Sutra: Immortal, and Nine Yin Sutra: Wushu.

“The next 12-18 months will serve as an inflection period for Snail Games as we work to advance our ARK pipeline and deliver on the investments we have made across our broader pipeline. Over time, our ambition is for Snail Games to be recognized not only for ARK, but as a developer and publisher of multiple renown IPs and titles. We remain focused on unlocking the value of our pipeline and delivering results.”

First Quarter 2026 Financial Highlights

Net revenues increased 35.7% to $27.3 million compared to $20.1 million in the same period last year. The increase was primarily due to an increase of $4.2 million and $2.1 million in revenue related to ASA and Bellwright, respectively, and a $2.5 million increase in deferred revenue recognized during the period, offset by a decrease in revenue from ARK Mobile and ASE of $1.6 million.

Total units sold increased 42.6% to 2.2 million units compared to 1.5 million units in the same period last year, primarily driven by an increase in sales of ARK franchise IPs of 0.5 million units and Bellwright of 0.2 million units.

Net income increased 210% to $2.1 million compared to a net loss of $1.9 million in the same period last year. The increase was primarily due to an increase in net revenue of $7.2 million and a decrease in total operating expenses of $0.3 million partially offset by an increase in provision for income taxes of $1.6 million, an increase in cost of revenues of $1.4 million and a decrease in total other income, net of $0.5 million.

Bookings increased 21.1% to $26.9 million compared to $22.2 million in the same period last year. The increase was primarily due to better sales promotions in 2026 compared to 2025, tailwind momentum from the December 2025 ARK: Lost Colony DLC release, and Bellwright’s highly regarded content update in late 2025.

EBITDA increased 173.3% to $2.4 million compared to $(3.2) million in the same period last year. The increase was primarily due to an increase in net income of $4.1 million and a decrease in the benefit from income taxes of $1.6 million.

As of December 31, 2025, unrestricted cash was $14.3 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 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 March 31,
	2026			2025
	(in millions)
Total net revenue	$	27.3		$	20.1
Change in deferred net revenue		(0.4	)		2.1
Bookings	$	26.9		$	22.2

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 March 31,
	2026		2025
	(in millions)
Net income (loss)	$	2.1	$	(1.9	)
Interest expense		0.2		0.1
Income tax (benefit) provision		0.1		(1.5	)
Depreciation expense		—		0.1
EBITDA	$	2.4	$	(3.2	)

Webcast Details

The Company will host a webcast at 4:30 PM ET today to discuss its first 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: exiting 2025 with tailwinds that position the Company for stronger and more stable growth and results; delivering year-over-year growth in Q2 driven by several upcoming ARK content releases; releasing Fantastic Tames Season 1 Expansion Pack in May 2026 and ARK Tides of Fortune alongside the remake of Genesis Part 1 coming to ASA in June 2026 providing a foundation for the quarter to build on; recognizing approximately $11 million of deferred revenue backlog upon the release of Genesis Part 1; continuing to execute on the Company’s strategy to become a fully integrated game developer and publisher; the upcoming AAA titles representing an important step toward building new franchises with the potential for multi-year to multi-decade game lifespans that can complement the scale of ASE and ASA; the eventual launch of the upcoming games positioning the Company to meaningfully diversify our revenue mix beyond ARK; sharing additional information on For the Stars, Nine Yin Sutra: Immortal, and Nine Yin Sutra: Wushu; the next 12-18 months being an inflection period for the Company as it advances its ARK pipeline and delivers on the investments it has have made across its broader pipeline; the Company being recognized not only for ARK, but as a developer and publisher of multiple renown IPs and titles; and remaining focused on unlocking the value of the Company pipeline and delivering results.

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 March 31, 2026 and December 31, 2025 (Unaudited)

	March 31, 2026			December 31, 2025

ASSETS

Current Assets:
Cash and cash equivalents	$	14,259,168		$	8,568,164
Restricted cash and cash equivalents		187,000			187,000
Accounts receivable, net of allowances for credit losses of $523,500 as of March 31, 2026 and December 31, 2025		9,206,357			12,528,347
Loan and interest receivable – related party		108,252			107,759
Prepaid expenses – related party		2,647,267			2,700,474
Prepaid expenses and other current assets		1,485,655			2,232,485
Prepaid taxes		904,099			4,734,007
Total current assets		28,797,798			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		8,229,767			8,282,974
Property and equipment, net		4,133,441			4,146,175
Intangible assets, net		3,848,124			3,827,927
Intangible assets, net – related party		4,666,667			4,916,667
Other noncurrent assets, net		836,060			604,793
Operating lease right-of-use assets, net		4,581,907			4,722,366
Total assets	$	56,841,764		$	59,307,138

LIABILITIES, NONCONTROLLING INTERESTS AND STOCKHOLDERS’ DEFICIT

Current Liabilities:
Accounts payable	$	3,907,540		$	5,506,332
Accounts payable – related parties		21,648,949			20,067,013
Accrued expenses and other liabilities		3,267,643			3,364,150
Interest payable – related parties		527,770			527,770
Convertible notes at fair value		2,382,255			3,842,189
Current portion of long-term debt		1,329,123			1,305,880
Current portion of deferred revenue		14,533,507			14,799,840
Current portion of operating lease liabilities		441,316			393,448
Total current liabilities		48,038,103			49,806,622

Accrued expenses		625,354			468,106
Revolving loan		2,500,000			5,000,000
Long-term debt, net of current portion		3,974,176			4,292,538
Deferred revenue, net of current portion		17,190,514			17,282,685
Operating lease liabilities, net of current portion		4,234,747			4,336,240
Total liabilities		76,562,894			81,186,191

Commitments and contingencies

Stockholders’ Deficit:
Class A common stock, $0.0001 par value, 500,000,000 shares authorized; 10,415,669 shares issued and 9,065,394 shares outstanding as of March 31, 2026, and 10,382,336 shares issued and 9,032,061 shares outstanding as of December 31, 2025		1,041			1,038
Class B common stock, $0.0001 par value, 100,000,000 shares authorized; 28,748,580 shares issued and outstanding as of March 31, 2026 and December 31, 2025		2,875			2,875

Additional paid-in capital		26,967,992			26,923,115
Accumulated other comprehensive loss		(296,562	)		(275,049	)
Accumulated deficit		(37,217,804	)		(39,352,510	)
Treasury stock at cost (1,350,275 shares as of March 31, 2026 and December 31, 2025)		(3,671,806	)		(3,671,806	)
Total Snail, Inc. deficit		(14,214,264	)		(16,372,337	)
Noncontrolling interests		(5,506,866	)		(5,506,716	)
Total stockholders’ deficit		(19,721,130	)		(21,879,053	)
Total liabilities, noncontrolling interests and stockholders’ deficit	$	56,841,764		$	59,307,138

Snail, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three months Ended March 31, 2026 and 2025 (Unaudited)

	Three months ended March 31,
	2026			2025

Revenues, net	$	27,294,654		$	20,110,872
Cost of revenues		15,638,213			14,263,345

Gross profit		11,656,441			5,847,527

Operating expenses:
General and administrative		4,650,757			4,964,351
Research and development		4,014,669			3,609,745
Advertising and marketing		868,789			1,306,365
Depreciation		12,734			67,904
Impairment expenses		69,149			—
Total operating expenses		9,616,098			9,948,365

Income (loss) from operations		2,040,343			(4,100,838	)

Other income (expense):
Interest income		41,847			29,906
Interest income – related parties		493			493
Interest expense		(206,046	)		(80,828	)
Other income		355,051			769,762
Foreign currency transaction gain (loss)		9,692			(36,288	)
Total other income, net		201,037			683,045

Income (loss) before provision for (benefit from) income taxes		2,241,380			(3,417,793	)

Provision for (benefit from) income taxes		106,824			(1,470,830	)

Net income (loss)		2,134,556			(1,946,963	)

Net loss attributable to non-controlling interests		(150	)		(956	)

Net income (loss) attributable to Snail, Inc.	$	2,134,706		$	(1,946,007	)

Comprehensive income (loss) statement:

Net income (loss)	$	2,134,556		$	(1,946,963	)

Other comprehensive income (loss) related to foreign currency translation adjustments, net of tax		(26,823	)		33,232
Other comprehensive income related to credit adjustments, net of tax		5,310			22,023

Total comprehensive income (loss)	$	2,113,043		$	(1,891,708	)

Net income (loss) attributable to Class A common stockholders:
Basic	$	510,510		$	(441,731	)
Diluted	$	510,843		$	(521,393	)

Net income (loss) attributable to Class B common stockholders:

Basic	$	1,624,196		$	(1,504,276	)
Diluted	$	1,624,196		$	(1,775,558	)

Income (loss) per share attributable to Class A common stockholders:
Basic	$	0.06		$	(0.05	)
Diluted	$	0.05		$	(0.06	)

Income (loss) per share attributable to Class B common stockholders:
Basic	$	0.06		$	(0.05	)
Diluted	$	0.06		$	(0.06	)

Weighted-average shares used to compute income (loss) per share attributable to Class A common stockholders:
Basic		9,036,135			8,442,025
Diluted		9,529,396			9,241,822

Weighted-average shares used to compute income (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, 2026 and 2025 (Unaudited)

	2026			2025

Cash flows from operating activities:
Net income (loss)	$	2,134,556		$	(1,946,963	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization – intangible assets, net		150,442			35,516
Amortization – intangible assets, net – related party		250,000			—
Amortization – film assets		140,709			212,709
Amortization – loan origination fees and debt discounts		2,949			(1,889	)
(Gain) loss on change in fair value of convertible notes		70,760			(117,105	)
Gain on change in fair value of warrant liabilities		(410,658	)		(639,518	)
Depreciation – property and equipment		12,734			67,904
Impairment of film assets		69,149			—
Stock-based compensation expenses		44,880			843,619
Deferred taxes, net		—			(2,041,515	)

Changes in assets and liabilities:
Accounts receivable		3,321,990			696,553
Accounts receivable – related party		—			2,503,407
Prepaid expenses – related party		106,414			(544,532	)
Prepaid expenses and other current assets		746,830			377,962
Prepaid taxes		3,829,908			143,451
Other noncurrent assets		(422,573	)		(656,562	)
Accounts payable		(1,621,431	)		(198,705	)
Accounts payable – related parties		1,581,936			623,430	)
Accrued expenses and other liabilities		471,399			(650,236	)
Loan and interest receivable – related party		(493	)		(493	)
Lease liabilities		86,834			(80,510	)
Deferred revenue		(358,504	)		2,138,026
Net cash provided by operating activities		10,207,831			764,549

Cash flows from investing activities:
Acquisition of software		—			(290,000	)
Acquisition of software licenses		(162,000	)		(1,412,000	)
Investments in software		—			(177,002	)
Net cash used in investing activities		(162,000	)		(1,879,002	)

Cash flows from financing activities:
Repayments on promissory note		—			(21,546	)
Repayments on notes payable		(295,119	)		—
Repayments on convertible notes		(1,525,384	)		—
Repayments on revolving loan		(2,500,000	)		—
Cash proceeds from exercise of warrants		—			159,000
Proceeds from issuance of convertible notes		—			3,000,000
Payments of loan origination fees		(7,500	)		—
Net cash provided by (used in) financing activities		(4,328,003	)		3,137,454

Effect of foreign currency translation on cash and cash equivalents		(26,824	)		32,171

Net increase in cash and cash equivalents, and restricted cash and cash equivalents		5,691,004			2,055,172

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	$	16,194,168		$	10,294,116

Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest	$	228,053		$	97,260
Income taxes	$	—		$	184,707
Noncash transactions during the period for:
Liabilities converted to equity upon exercise of warrants	$	—		$	323,113
Acquisition of film licenses in accounts payable	$	14,000		$	152,000
Acquisition of software and software licenses in accounts payable and accrued expenses	$	(8,639	)	$	51,741
Change in fair value of notes recorded in accumulated other comprehensive income	$	5,310		$	22,023

Source: View Original Filing on SEC EDGAR

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Snail, Inc. (SNAL) swings to Q1 2026 profit as revenue and bookings surge

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