Snail, Inc. Reports Second Quarter 2025 Financial Results

Core Viewpoint - Snail, Inc. reported a transformative second quarter in 2025, marked by a strategic initiative to develop a proprietary stablecoin, alongside strong performance in its gaming portfolio, particularly the ARK franchise [7][8]. Financial Highlights - Net revenues for Q2 2025 increased to $22.2 million, up from $21.6 million in Q2 2024, driven by a $3.3 million increase in total ARK sales and $3.0 million from ARK: Survival Ascended included in a subscription program [9]. - The net loss for Q2 2025 was $(16.6) million, compared to a net income of $2.3 million in the same period last year, primarily due to increased costs and a $12.9 million valuation allowance against deferred tax assets [10]. - Bookings for Q2 2025 rose 18.5% to $27.1 million, compared to $22.9 million in Q2 2024, attributed to sales promotions and the presale of ARK: Lost Colony [11]. - EBITDA for Q2 2025 was $(2.4) million, down from $3.1 million in Q2 2024, reflecting the increased net loss and higher tax provisions [12]. Game Portfolio Updates - ARK: Survival Evolved sold approximately 1,196,583 units in Q2 2025, with an average daily active user (DAU) of 156,947 [6]. - ARK: Survival Ascended achieved approximately 807,065 units sold, with 8 million downloads via PlayStation Plus in May 2025 [6]. - ARK Mobile surpassed 6.9 million downloads, with an average DAU of 104,135 [6]. Business Updates - The company announced the establishment of Snail Coins LLC to manage its USD-backed stablecoin project and other digital asset initiatives [6]. - A Memorandum of Understanding was signed with Mega Matrix Inc. for the joint development and distribution of short dramas [6]. - The company launched its annual Steam Publisher Sale Event, which significantly boosted sales in June [8]. Management Commentary - The co-CEOs emphasized the importance of the stablecoin initiative as a strategic evolution in the business model, aligning with digital financial innovation trends [7]. - They highlighted the strong performance of the ARK franchise and the commitment to regular content updates and expansions [8].