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
- 11.9 million downloads as of
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”)
- Released new developer diary, offering an in-depth look at the upcoming
- 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 | |
| ARK Tides of Fortune | Steam, Xbox, PlayStation | ASA DLC | |
| ARK | Steam, Xbox, PlayStation | ASA DLC Remake | |
| ARK Dragontopia | Steam, Xbox, PlayStation | ASA DLC | |
| 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 | Steam, Xbox, PlayStation | ASA DLC | 2027 |
Diversified Content Pipeline
| Title | Platforms | Type | Release Schedule |
| Bellwright | Steam, Xbox, PlayStation | 1.0 Launch | 2026 |
| Steam | Indie Title | 2026 | |
| Steam | Indie Title | 2026 | |
| Stoneguard | Steam | Indie Title | 2026 |
| For The Stars | Steam | TBD | |
| Nine Yin Sutra: Immortal | Steam | TBD | |
| Nine Yin Sutra: Wushu | Steam | TBD |
Management Commentary
“We exited 2025 with tailwinds that positioned Snail for stronger and more stable growth and results,” said Company CEO
“Beyond ARK, Snail Games continues to execute on its strategy to eventually become a fully integrated game developer and publisher. Our upcoming
“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
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
Bookings increased 21.1% to
EBITDA increased 173.3% to
As of
Use of Non-GAAP Financial Measures
In addition to the financial results determined in accordance with
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 | ||||||||
| 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 | ||||||||
| 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
About
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
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
Investor Contact:
949-574-3860
SNAL@gateway-grp.com
Condensed Consolidated Balance Sheets as of | ||||||||
| 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 | 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, | 1,041 | 1,038 | ||||||
| Class B common stock, | 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 | ) | ||||
| (3,671,806 | ) | (3,671,806 | ) | |||||
| (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 | ||||
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three months Ended | ||||||||
| Three months ended | ||||||||
| 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 | $ | 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 | ||||||
Condensed Consolidated Statements of Cash Flows for the Three Months Ended | ||||||||
| 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 | ||||
