Snail(SNAL) - 2025 Q3 - Quarterly Results

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]