Revenue Performance - The ARK franchise generated 88.4% of revenues in Q3 2025, down slightly from 88.7% in Q3 2024, and 90.3% for the nine months ended September 30, 2025, compared to 82.0% in the same period of 2024 [205]. - Net revenue for Q3 2025 was $13.8 million, a decrease from $22.5 million in Q3 2024, while net revenue for the nine months ended September 30, 2025, was $56.1 million, down from $58.3 million in the same period of 2024 [206]. - Net revenues for the three months ended September 30, 2025 decreased by $8.7 million, or 38.7%, compared to the same period in 2024, totaling $13.8 million [236]. - For the nine months ended September 30, 2025, net revenues were $56.1 million, a decrease of $2.2 million, or 3.7%, compared to the same period in 2024 [250]. User Engagement - Daily active users (DAUs) for ARK: Survival Evolved and ARK: Survival Ascended averaged 216,000 and 233,000 in Q3 2025, compared to 210,000 and 212,000 in Q3 2024 [205]. - The company sold 1.1 million units of games in Q3 2025, consistent with sales in Q3 2024, and has sold a total of 54.6 million units since January 1, 2016 [209]. - Units sold increased by 1.3 million, or 38.7%, for the nine months ended September 30, 2025, attributed to higher sales of ARK franchise titles [270]. Financial Losses - The company reported a net loss of $7.9 million for Q3 2025, compared to a net income of $0.2 million in Q3 2024, and a net loss of $26.4 million for the nine months ended September 30, 2025, compared to a net income of $0.7 million in the same period of 2024 [206]. - The income (loss) from operations for the three months ended September 30, 2025 was $(9.9) million, a decrease of $10.3 million compared to the same period in 2024 [236]. - For the three months ended September 30, 2025, EBITDA decreased by $10.2 million, or 2,038.6%, compared to the same period in 2024, primarily due to an increase in net loss of $8.1 million [279]. - For the nine months ended September 30, 2025, EBITDA decreased by $17.2 million, or 1,053.9%, compared to the same period in 2024, mainly due to an increase in net loss of $27.1 million [280]. Expenses - General and administrative expenses increased by $1.0 million, or 26.0%, for the three months ended September 30, 2025, totaling $4.8 million [240]. - Research and development expenses decreased by $0.2 million, or 4.0%, for the three months ended September 30, 2025, totaling $3.7 million [241]. - Advertising and marketing expenses increased by $0.4 million, or 78.4%, for the three months ended September 30, 2025, totaling $0.9 million [242]. - General and administrative expenses rose by $4.3 million, or 48.9%, primarily due to increased salaries and wages [255]. - Research and development expenses increased by $3.1 million, or 41.4%, driven by outsourced development and internal team expansion [256]. - Advertising and marketing expenses surged by $2.4 million, or 178.8%, due to increased presence at industry events and marketing campaigns [257]. Cash Flow and Financing - As of September 30, 2025, unrestricted cash was $12.3 million, up from $7.3 million as of December 31, 2024 [282]. - Net cash flows provided by operating activities for the nine months ended September 30, 2025 increased by $2.2 million, or 104.1%, compared to the same period in 2024 [287]. - Net cash flows used in investing activities for the nine months ended September 30, 2025 were $4.1 million, compared to none in the same period in 2024 [292]. - Net cash flows provided by financing activities for the nine months ended September 30, 2025 were $4.9 million, compared to $(6.7) million for the same period in 2024 [293]. Debt and Liabilities - The company had a net loss of $(26.4) million for the nine months ended September 30, 2025, a decrease of $27.1 million compared to a net income of $0.7 million in 2024 [289]. - As of September 30, 2025, the company had a balance of $3.0 million on its 2021 Revolving Loan, due in June 2026 [284]. - The Company amended its revolving loan agreement in June 2023, reducing the maximum balance from $9.0 million to $6.0 million, with $3.0 million outstanding as of September 30, 2025 [301]. - The Company did not meet the minimum debt service coverage ratio of 1.5 to 1.0 for the trailing twelve months ended September 30, 2025, and received a waiver for this breach [311]. - The long-term portion of the 2021 Promissory Note and 2025 Term Loan has been reclassified as a current liability due to non-compliance with debt covenants [311]. Strategic Initiatives - The company launched a short film mobile application, SaltyTV, with 67 short film dramas released by September 30, 2025, and plans for consistent new releases [223]. - The company is exploring a strategic digital asset initiative, including the potential introduction of its own proprietary stablecoin, subject to various factors [224]. - The Lost Colony Expansion Pass pre-sale exceeded expectations, selling over 306,000 units through September 30, 2025 [221]. - The new DLC map ARK: Astraeos sold 574,000 units across platforms since its release in February 2025 [217].

Financial Performance - Net revenues for Q3 2025 were $13.8 million, down from $22.5 million in Q3 2024, primarily due to an increase in deferred revenue of $10.9 million[8] - The net loss for Q3 2025 was $(7.9) million, compared to a net income of $0.2 million in Q3 2024, largely due to decreased revenues and increased expenses[12] - EBITDA for Q3 2025 was $(9.7) million, a decrease from $0.5 million in Q3 2024, primarily due to increased net loss and expenses[14] - For the three months ended September 30, 2025, Snail, Inc. reported net revenues of $13,819,527, a decrease of 38.8% compared to $22,530,372 for the same period in 2024[32] - The gross profit for the three months ended September 30, 2025, was $14,406, significantly down from $8,706,428 in the prior year, indicating a gross margin decline[32] - The total comprehensive loss for the nine months ended September 30, 2025, was $26,284,060, compared to a comprehensive income of $730,844 for the same period in 2024[32] - The company reported a net loss of $(26,375,362) for the nine months ended September 30, 2025, compared to a net income of $707,318 in the same period of 2024[35] Sales and Bookings - Total ARK sales increased by $2.2 million, driven by $2.1 million from ARK: Survival Ascended and $0.5 million from ARK: Aquatica[9] - Bookings rose 9.3% to $17.6 million compared to $16.1 million in the same period last year, attributed to sales promotions and new releases[13] - Total ARK sales for the nine months ended September 30, 2025, increased by $13.7 million compared to the same period last year[16] Deferred Revenue - As of September 30, 2025, the balance of deferred revenue was $36.4 million, with $28.8 million expected to be recognized within the next 12 to 60 months[10] - The company anticipates a stronger Q4 2025, expecting to recognize $5.8 million of deferred revenue with the launch of ARK: Lost Colony[10] - Deferred revenue increased by $10,901,655, indicating a strong demand for the company's products or services[35] Cash and Assets - As of September 30, 2025, unrestricted cash was $12.3 million, up from $7.3 million as of December 31, 2024[15] - Total current assets as of September 30, 2025, increased to $34,656,077 from $31,246,538 as of December 31, 2024, representing an increase of 7.7%[28] - Cash and cash equivalents increased to $12,284,675 as of September 30, 2025, compared to $7,303,944 as of December 31, 2024, reflecting a growth of 68.1%[28] - Cash and cash equivalents at the end of the period increased to $13,219,675 from $11,685,859, representing a growth of approximately 13.1%[36] Expenses - Operating expenses increased to $9,864,665 for the three months ended September 30, 2025, compared to $8,299,567 in the same period of 2024, reflecting a rise of 18.9%[32] - The company reported a significant increase in general and administrative expenses, which reached $4,844,261 for the three months ended September 30, 2025, up from $3,845,301 in the same period of 2024[32] - Research and development expenses for the three months ended September 30, 2025, were $3,731,441, slightly down from $3,885,926 in the prior year[32] Stockholder Information - Net income attributable to Class B common stockholders for the current period is $(6,174,656), compared to $183,835 in the previous period, reflecting a significant decline[33] - Basic and diluted loss per share attributable to Class A common stockholders is $(0.21) for the current period, down from $0.01 in the previous period[33] - The weighted-average shares used to compute income (loss) per share attributable to Class A common stockholders was 8,827,465 for the current period, compared to 8,024,369 in the previous period[33] Cash Flow Activities - Net cash provided by operating activities for the nine months ended September 30, 2025, is $4,150,392, compared to $2,033,197 for the same period in 2024, indicating an increase of approximately 104.4%[35] - Net cash used in investing activities for the nine months ended September 30, 2025, was $(4,146,992), with significant investments in software and software licenses[35] - The company reported a net cash provided by financing activities of $4,908,218, contrasting with a net cash used of $(6,684,792) in the previous period[35] Future Developments - The company is progressing towards launching a proprietary stablecoin, with multi-state regulatory approvals underway[7]

Core Insights - Snail, Inc. reported a net revenue of $13.8 million for Q3 2025, a decrease from $22.5 million in the same period last year, primarily due to an increase in deferred revenue of $10.9 million [7][10] - The company experienced a net loss of $(7.9) million compared to a net income of $0.2 million in Q3 2024, attributed to decreased revenues and increased expenses [10][14] - Bookings increased by 9.3% to $17.6 million, driven by sales promotions and the release of new titles [11][15] Financial Highlights - Net revenues for the nine months ended September 30, 2025, were $56.1 million, down from $58.3 million in the previous year [13] - Total ARK sales increased by $2.2 million year-over-year, with significant contributions from ARK: Survival Ascended and ARK: Aquatica [8] - The balance of deferred revenue as of September 30, 2025, was $36.4 million, with expectations to recognize $28.8 million of non-refundable payments in the next 12 to 60 months [9] Operational Updates - The ARK franchise continued to show strong engagement, with units sold for ARK: Survival Evolved at approximately 576,324 and ARK: Survival Ascended at approximately 499,199 for Q3 2025 [5] - The company’s mobile game, ARK: Ultimate Mobile Edition, surpassed 9 million downloads, and average daily active users reached 144,750 [5] - SaltyTV, a subsidiary, released 67 short film dramas as of September 30, 2025, indicating growth in the company's content portfolio [5] Management Commentary - The CEO highlighted that the reported top-line performance does not fully reflect the underlying growth due to deferred revenue, which is expected to provide revenue visibility in the coming quarters [4] - The company anticipates a stronger Q4 2025 aligned with the planned release of ARK: Lost Colony by year-end [4] Future Initiatives - Snail, Inc. is progressing towards launching a proprietary stablecoin, which positions the company as a pioneer in digital payments within the gaming industry [6] - The company is also working on multi-state regulatory licensing efforts to support this initiative [6]

Core Viewpoint - Snail, Inc. will hold a conference call and webcast to discuss its financial results for Q3 2025 on November 12, 2025 [1]. Group 1: Company Overview - Snail, Inc. is a leading global independent developer and publisher of interactive digital entertainment, offering a portfolio of premium games across various platforms including consoles, PCs, and mobile devices [3]. Group 2: Event Details - The conference call and webcast will take place at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) [1]. - The event will include a question-and-answer period following the presentation [2].

Core Insights - Snail Games demonstrates robust growth in its entertainment portfolio through new releases and industry recognition, highlighting its stable expansion in diversified business models [1] - The company continues to develop its core IP series, enhancing the content and interactive ecosystem of the ARK series, which is driven by community co-creation [1] - The upcoming launch of the RPG game "Echo: Airship Legends" on December 4, 2025, adds to Snail Games' impressive lineup of products [1] Game Development and Releases - Snail Games' independent publishing brand, Wandering Wizard, expands its global portfolio with unique game offerings, showcasing the creativity of international developers [2] - The fast-paced shooting game "Rebellion Engine," developed in collaboration with Argentine studio Seven Leaf Clover, is now available on Steam, blending 90s-style gunplay with intense melee combat [2] - "Above the Snow" received the "IGN Editors' Choice Award for Best Polish Game" at the 2025 Poznań Game Show, further solidifying Wandering Wizard's global influence [2] Interactive Content and Recognition - Snail Games' short drama division, Interactive Films, gains industry attention through its content platform Salty TV, with three works recognized by the International Short Drama Association [3] - "My Ex's Bestfriend" won the "Best Revenge-Driven Narrative" award, "Hollywood Heartthrob" received the "Most Charismatic Screen Presence" award, and "Faux Fiance" was honored with the "Best Destiny-Bound Narrative" award [3] - These achievements position Interactive Films as a promising emerging sector within Snail Games' diversified strategy, tapping into the rapidly growing vertical content market [3] Strategic Development - The collective achievements highlight Snail Games' strategic momentum across multiple entertainment sectors, expanding revenue sources and enhancing brand influence [4]

Core Insights - Snail, Inc. continues to show steady growth across its entertainment portfolio through new content launches and industry recognition [1] - The company is strengthening its core franchise and enhancing community engagement within its ARK ecosystem [2] - Snail's indie publishing branch, Wandering Wizard, is expanding its global portfolio with unique projects and has received industry accolades [3] - The Interactive Films division is gaining recognition for its short-form storytelling platform, Salty TV, with multiple awards for its titles [4] - Overall, these achievements reflect Snail's strategic momentum across various entertainment sectors, diversifying revenue streams and enhancing brand visibility [5] Gaming and Publishing - The 'ARK x Teenage Mutant Ninja Turtles' Cosmetic Pack collaboration emphasizes the importance of mod content for sustaining engagement with ARK: Survival Ascended [2] - The upcoming airship building RPG, Echoes of Elysium, is set to release on December 4, 2025, marking a significant addition to Snail's gaming portfolio [2] - Wandering Wizard's collaboration with Argentina-based studio Seven Leaf Clover for the launch of Rebel Engine on Steam showcases the branch's commitment to diverse gaming projects [3] Interactive Films - Salty TV's titles, including My Ex's Bestfriend, Hollywood Heartthrob, and Faux Fiance, received recognition from the International Short Drama Association, highlighting the division's potential [4] - The awards for Salty TV's titles include Best Revenge-Driven Narrative and Most Charismatic Screen Presence, indicating strong audience engagement potential [4] Strategic Momentum - The combination of efforts in gaming, publishing, and digital storytelling illustrates Snail's strategy to diversify revenue streams and strengthen brand visibility [5]

Core Insights - Interactive Films is solidifying its position in the $8 billion global short drama market with the submission of its work "Hollywood Heartthrob" for the International Short Drama Award, reflecting the increasing industry recognition of the company [1] - The short drama sector has transitioned from an exploratory phase to a mature stage with global commercial value, with the U.S. emerging as a key market [2] Company Overview - Snail, Inc. is a leading independent game developer and publisher, providing interactive digital entertainment content across multiple platforms [4] - Interactive Films, a subsidiary of Snail, Inc., aims to engage new audiences and tell stories through diverse media formats, also being the founding force behind Salty TV [5] Market Dynamics - The global market for vertical short dramas has surpassed $8 billion within just four years of its inception, with the U.S. accounting for approximately 8% of global downloads but contributing 49% of total revenue in the short drama industry [2] - Salty TV has released 67 short dramas, focusing on mobile users with a product-oriented strategy that includes subscription models and viewer engagement mechanisms [2] Strategic Goals - The submission of "Hollywood Heartthrob" to the International Short Drama Award aims to showcase cultural leadership and foster practical collaborations, positioning Salty TV as a leading platform for vertical short dramas in the U.S. [3] - Salty TV seeks to bridge the gap between rich international content supply and the growing domestic demand in the U.S. market [3]

Core Insights - Snail, Inc. is enhancing its presence in the short drama sector through its Vertical Entertainment division, Interactive Films, which has submitted the short drama "Hollywood Heartthrob" to the International Short Drama Awards, following the success of "Red Talons" [1][4] - The short drama market has grown significantly, surpassing $8 billion globally, with the U.S. emerging as a key market, accounting for 49% of global revenue in Q1 2025 despite only 8% of downloads [3] Group 1: Company Developments - Interactive Films has developed a mobile-first approach with its Salty TV platform, focusing on storytelling and a paid-access model, having released 67 short film dramas [2] - The submission of "Hollywood Heartthrob" aims to position Salty TV as a leading platform in the U.S. for short-form drama, bridging international content with domestic demand [4] Group 2: Industry Trends - The short drama sector has transitioned from experimental to commercially viable, with the U.S. market showing significant potential for growth, indicated by the disparity between downloads and spending [3] - Salty TV's participation in industry awards is intended to validate its creative quality and foster partnerships that enhance the global reach of premium short-form content [4]

Core Insights - The upcoming game "Rebellion Engine" by Snail Games has seen a significant increase in player interest, with its daily wish list additions surging over 72 times during the Steam New Product Festival [2][3] - The total wish list count for "Rebellion Engine" increased by 46% during the festival, indicating strong pre-release momentum ahead of its official launch on November 6, 2025 [2] - The collaboration with Hololive English member Hakos Baelz, who has 1.09 million subscribers on YouTube, has attracted a new audience for the game [2] Group 1 - "Rebellion Engine" showcased at TwitchCon, providing additional exposure for the game and other titles from Snail Games [3] - The event allowed content creators to preview upcoming games, enhancing the visibility of Snail Games' portfolio [3] - The collaboration with Noiz and the Twitch community is expected to strengthen player engagement and brand recognition [3] Group 2 - Snail Games' flagship series "Ark" continues to maintain strong user engagement across platforms [4] - The recent update for "Ark: Ultimate Survivor Edition" includes full backward compatibility and enhanced support for the upcoming Nintendo Switch 2, which is projected to produce 25 million units by March 2026 [4] - This update aims to provide a seamless gaming experience across current and next-gen hardware, boosting the series' market appeal [4] Group 3 - The independent game "Above the Snow" from Snail Games' Wandering Wizard division has received positive media attention and nominations for awards [5] - The game won the NYX Best City Building Game award and is nominated for the Best Narrative Award at the 2026 Taipei Game Show [5] - Snail Games is actively participating in major gaming events to showcase its products and establish strategic partnerships that align with its game themes [5]

Core Insights - Snail Games' upcoming title, Rebel Engine, has seen a remarkable increase in daily Steam wishlists, surging over 72 times compared to the pre-festival period, contributing to a 46% overall increase in total wishlists ahead of its launch on November 6, 2025 [2][3] - The game features a collaboration with Hakos Baelz, a prominent member of hololive English, which has helped attract a new audience, evidenced by the release of a music video that is gaining traction globally [2][3] - Snail Games showcased Rebel Engine at TwitchCon, enhancing visibility alongside other titles and leveraging partnerships with influencers to strengthen audience engagement [3] Franchise Performance - The ARK franchise continues to perform well, with a recent update for ARK: Ultimate Survivor Edition that includes backward compatibility and enhanced support for the Nintendo Switch 2, which is projected to have 25 million units produced by March 2026 [4] - This update aims to provide a seamless gaming experience across current and next-generation hardware, reinforcing the franchise's accessibility [4] Indie Publishing Growth - Snail's indie publishing arm, Wandering Wizard, is gaining recognition with the management simulator Above the Snow, which has won a NYX Award and is nominated for Best Narrative at the 2026 Indie Game Awards [5] - The studio is set to present Above the Snow at the Poznań Game Arena, further expanding its reach and establishing strategic partnerships that align with the game's theme [5] Overall Strategy - Snail Games is capturing increasing attention from players, creators, and critics through its diverse publishing portfolio, cross-collaborations, and global showcases, reflecting a deliberate approach to growth and long-term engagement in the interactive entertainment sector [6]