Snail, Inc. Class A Common Stock

Net revenue for Q2 2026 was $19.7 million versus $22.2 million in the same period last year. Net loss improved to $3 million from $16.6 million, and EBITDA was a loss of $3 million versus a loss of $2.4 million. Bookings were $21.8 million compared with $27.1 million last year, and total units sold were 2 million versus 2.1 million. For the first half, net revenue increased 11% to $47 million, net loss improved to $900,000 from $18.5 million, and EBITDA loss improved to $600,000 from $5.8 million. Unrestricted cash was $13.3 million at June 30, 2026, up from $8.6 million at December 31, 2025. Management said it expects to recognize approximately $11 million from deferred revenue in Q3 related to Genesis Part 1 Ascended, plus sales from Tides of Fortune, and that the remaining revenue from phased DLC releases will be recognized through Q3 and Q4.

Peter Kang emphasized that Snail has made encouraging progress across its gaming pipeline and is moving toward a more diversified content roadmap. He pointed to ARK DLC releases, Bellwright’s console launch, and the company’s new AI initiative as evidence that Snail is broadening beyond a single franchise. His tone was optimistic and forward-looking, framing the second half of 2026 and 2027 as a period of expanding content cadence and long-term revenue diversification.

Heidy Chow said Q2 revenue was affected by timing, with ARK: Tides of Fortune and ARK: Genesis Part 1 Ascended launching in early July rather than June. She noted the reduced ARK licensing fee structure saved about $500,000 per month, or approximately $1.5 million per quarter, and said those savings are being reinvested into future games while also improving gross profit. She also said R&D investment is “closing to the end,” with no significant expense increases expected quarter over quarter, G&A expected to stay consistent, and confirmed that USDO stablecoin applications have been submitted across multiple states.

Analysts focused on the ARK licensing fee savings, deferred revenue recognition, expense run-rate, and stablecoin milestones. Management said the roughly $1.5 million quarterly licensing savings began in April and is being used to fund future development rather than fully retained as profit. On deferred revenue, management explained that Genesis 1 revenue moved into Q3 because the release slipped into early July, and that revenue from phased DLCs like Fantastic Tames and Dragontopia will continue to be recognized as content is delivered. On stablecoin, management said it is waiting for state review of submitted money transmitter applications.