Second Quarter 2026 and Recent Operational Highlights
ARK Franchise Updates:
- ARK: Survival Evolved (“ASE”):
- Units sold were approximately 574,000 for the second quarter of 2026
- During the second quarter of 2026, average daily active users (“DAU”) were 105,000 and peak DAU was 131,000
- ARK: Survival Ascended (“ASA”):
- Units sold were approximately 1.2 million for the second quarter of 2026
- During the second quarter of 2026, average DAU was 120,000 and peak DAU was over 155,000
- Launched the ARK: Fantastic Tames Season 1 Pack
- Launched ARK:
Genesis Part 1 Ascended, ARK: Tides of Fortune, and shadow-dropped the ARK: Dragontopia - Revealed teaser for ARK Maker, a content creation tool designed to expand community-generated content opportunities within the ASA ecosystem
- ARK: Ultimate Mobile Edition (“ARK Mobile”):
- 13.2 million downloads as of
June 30, 2026 - During the second quarter of 2026, average DAU was 129,000
- 13.2 million downloads as of
- Other ARK IPs
- Shared new details around ARK: The Animated Series Part 2 at IGN Live
- Unveiled PixARK: Terracrypt, the largest paid DLC expansion for PixARK, planned to introduce more than 200 hours of gameplay and 80 new creatures
Game Portfolio and Business Updates:
AAA Game Pipeline - Officially unveiled 9 Yin Sutra: Immortal at ChinaJoy 2026, revealing a new trailer and Steam page
- Announced attendance at Gamescon 2026, where the Company will unveil a first look at an unannounced internally developed
AAA title, alongside ASA, For The Stars, Bellwright, and Honeycomb: The World Beyond - Released a new developer diary for For The Stars, offering an in-depth look at the game’s current development progress, new pre-alpha footage, and previously unreleased concept art
- Bellwright launched on PlayStation and Xbox
- Reached the Top 5 Paid Games list on Xbox following the console launch, demonstrating positive early engagement
- Launched Survivor Mercs 1.0 across Steam, Xbox, and PlayStation, and launched Above The Snow on Steam
Business and Operational Updates
- Egofold, the Company’s subsidiary, publicly debuted the
AI Ranch initiative and Non-Human Player™ (NHP), an AI gaming companion for consumers, at the Ai4 2026 conference - As of
June 30, 2026 , SaltyTV released 300+ short film dramas
ARK Content Pipeline
| Title | Platforms | Type | Release Schedule |
| ARK Fantastic Tames – Cerberax | Steam, Xbox, PlayStation | DLC Creature | Q3 2026 |
| ARK Fantastic Tames – Enigmasour | Steam, Xbox, PlayStation | DLC Creature | Q4 2026 |
| ARK Dragontopia (content updates) | Steam, Xbox, PlayStation | ASA DLC | Q3 & Q4 2026 |
| ARK Maker | Steam, Xbox, PlayStation | ASA Content Creation Tool | 2026 |
| ARK Survival of the Fittest | Steam, Xbox, PlayStation | ASA Game Mode | 2026 |
| PixARK: Terracrypt | Steam, Xbox, PlayStation, Nintendo Switch | PixARK DLC | 2026 |
| PixARK Worlds | Steam, Xbox, PlayStation, Nintendo Switch 2 | New Title | 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 |
| Steam | Indie Title | 2026 | |
| Honeycomb: The World Beyond | Steam | Indie Title | 2026 |
| Veil of Madness | Steam | Indie Title | 2026 |
| Steam | Indie Title | 2027 | |
| For The Stars | Steam | TBD | |
| 9 Yin Sutra: Immortal | Steam | TBD | |
| 9 Yin Sutra: Wushu | Steam | TBD |
Management Commentary
“Over the last several months, we have begun executing against the robust gaming pipeline we previously outlined, which has established a strong foundation for the second half of 2026,” said Snail CEO
“Operationally, we have made significant progress across a new developing initiative that expands beyond traditional game development and publishing. Just last week, we announced our attendance at the Ai4 2026 conference, where we unveiled the
“The outlook for the second half of 2026 remains strong as we continue to execute across multiple gaming pipelines and business opportunities. With a strong slate of ARK content through 2027, meaningful progress across three upcoming
Second Quarter 2026 Financial Highlights
Net revenues were
Total units sold were 2.0 million units compared to 2.1 million units in the same period last year, primarily driven by lower sales of ARK franchise titles of 0.2 million units, partially offset by an increase in sales of Bellwright of 0.1 million units.
Net loss improved 81.6% to
Bookings were
EBITDA was
Six Months 2026 Financial Highlights
Net revenues increased 11.1% to
Total units sold increased 13.8% to 4.2 million units compared to 3.7 million units in the same period last year. The increase was primarily due to increased sales of ARK: Survival Ascended of 1.0 million units and an increase in Bellwright of 0.2 million units; partially offset by a decrease in ARK: Survival Evolved sales of 0.7 million units.
Net loss improved 95.1% to
Bookings were
EBITDA improved 88.8% 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 | Six Months Ended | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions) | (in millions) | |||||||||||||
| Total net revenue | $ | 19.7 | $ | 22.2 | $ | 47.0 | $ | 42.3 | ||||||
| Change in deferred net revenue | 2.1 | 4.9 | 1.7 | 7.1 | ||||||||||
| Bookings | $ | 21.8 | $ | 27.1 | $ | 48.7 | $ | 49.4 | ||||||
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 | Six Months Ended | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (in millions) | (in millions) | ||||||||||||||
| Net loss | $ | (3.0 | ) | $ | (16.6 | ) | $ | (0.9 | ) | $ | (18.5 | ) | |||
| Interest income and interest income?–?related parties | (0.1 | ) | — | (0.1 | ) | (0.1 | ) | ||||||||
| Interest expense | 0.2 | 0.2 | 0.4 | 0.3 | |||||||||||
| (Benefit from) provision for income taxes | (0.1 | ) | 13.9 | — | 12.4 | ||||||||||
| Depreciation expense | — | 0.1 | — | 0.1 | |||||||||||
| EBITDA | $ | (3.0 | ) | $ | (2.4 | ) | $ | (0.6 | ) | $ | (5.8 | ) | |||
Webcast Details
The Company will host a webcast at
About Snail, Inc.
Snail, Inc. (Nasdaq: SNAL) is a leading, global independent developer and publisher of interactive digital entertainment for consumers around the world, with a premier portfolio of premium games designed for use on a variety of platforms, including consoles, PCs, and mobile devices. For more information, please visit: https://snail.com/.
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: recent game launches and the Company's broader slate of planned content establishing a strong foundation for the rest of the year; the Company's next generation of internally developed AAA titles serving as critical drivers of Snail’s long-term growth profile; the For The Stars and 9 Yin Sutra Immortal titles demonstrating meaningful development progress and growing visibility and moving through the later stages of development; the AI Ranch initiative and the development of the Non-Human Player (NHP) product; the Company's gaming pipeline being well-positioned to support the transformation of the Company's profile ;the Non-Human Player (NHP) having the potential to address key challenges casual and hardcore gamers face while creating a personalized AI companion that can help players enjoy and improve their gaming experience across multiple titles; and the outlook for the second half of 2026 remaining strong as Snail continues to execute across multiple gaming pipelines and business opportunities.
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 December 31, 2025, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it was initially made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law.
Investor Contact:
John Yi and Steven Shinmachi
Gateway Group, Inc.
949-574-3860
SNAL@gateway-grp.com
Condensed Consolidated Balance Sheets as of | |||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 13,293,820 | $ | 8,568,164 | |||
| Restricted cash and cash equivalents | 562,000 | 187,000 | |||||
| Accounts receivable, net of allowances for credit losses of | 9,345,753 | 12,528,347 | |||||
| Loan and interest receivable – related party | 108,751 | 107,759 | |||||
| Prepaid expenses – related party | 5,793,460 | 2,700,474 | |||||
| Prepaid expenses and other current assets | 1,621,428 | 2,232,485 | |||||
| Prepaid taxes | 1,047,870 | 4,734,007 | |||||
| Total current assets | 31,773,082 | 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 | 5,582,500 | 8,282,974 | |||||
| Property and equipment, net | 4,120,607 | 4,146,175 | |||||
| Intangible assets, net | 3,898,541 | 3,827,927 | |||||
| Intangible assets, net – related party | 4,416,667 | 4,916,667 | |||||
| Other noncurrent assets, net | 908,408 | 604,793 | |||||
| Operating lease right-of-use assets, net | 4,687,027 | 4,722,366 | |||||
| Total assets | $ | 57,134,832 | $ | 59,307,138 | |||
| LIABILITIES, NONCONTROLLING INTERESTS AND STOCKHOLDERS’ DEFICIT | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ | 3,926,768 | $ | 5,506,332 | |||
| Accounts payable – related parties | 18,426,220 | 20,067,013 | |||||
| Accrued expenses and other liabilities | 3,939,436 | 3,364,150 | |||||
| Interest payable – related parties | 527,770 | 527,770 | |||||
| Convertible notes at fair value | 568,499 | 3,842,189 | |||||
| Current portion of long-term debt | 1,353,296 | 1,305,880 | |||||
| Current portion of deferred revenue | 28,538,494 | 14,799,840 | |||||
| Current portion of operating lease liabilities | 472,345 | 393,448 | |||||
| Total current liabilities | 57,752,828 | 49,806,622 | |||||
| Accrued expenses | 625,354 | 468,106 | |||||
| Revolving loan | 2,500,000 | 5,000,000 | |||||
| Long-term debt, net of current portion | 3,650,745 | 4,292,538 | |||||
| Deferred revenue, net of current portion | 5,276,523 | 17,282,685 | |||||
| Operating lease liabilities, net of current portion | 4,328,864 | 4,336,240 | |||||
| Total liabilities | 74,134,314 | 81,186,191 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ Deficit: | |||||||
| Class A common stock, | 336 | 208 | |||||
| Class B common stock, | 575 | 575 | |||||
| Additional paid-in capital | 32,732,935 | 26,926,245 | |||||
| Accumulated other comprehensive loss | (295,578 | ) | (275,049 | ) | |||
| Accumulated deficit | (40,258,553 | ) | (39,352,510 | ) | |||
| (3,671,806 | ) | (3,671,806 | ) | ||||
| Total | (11,492,091 | ) | (16,372,337 | ) | |||
| Noncontrolling interests | (5,507,391 | ) | (5,506,716 | ) | |||
| Total stockholders’ deficit | (16,999,482 | ) | (21,879,053 | ) | |||
| Total liabilities, noncontrolling interests and stockholders’ deficit | $ | 57,134,832 | $ | 59,307,138 | |||
Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenues, net | $ | 19,676,448 | $ | 22,185,750 | $ | 46,971,102 | $ | 42,296,622 | |||||||
| Cost of revenues | 11,988,665 | 15,231,005 | 27,626,878 | 29,494,350 | |||||||||||
| Gross profit | 7,687,783 | 6,954,745 | 19,344,224 | 12,802,272 | |||||||||||
| Operating expenses: | |||||||||||||||
| General and administrative | 4,975,250 | 3,475,089 | 9,626,007 | 8,439,440 | |||||||||||
| Research and development | 4,453,153 | 3,293,409 | 8,467,822 | 6,903,154 | |||||||||||
| Advertising and marketing | 814,705 | 1,520,201 | 1,683,494 | 2,826,567 | |||||||||||
| Depreciation and amortization | 12,834 | 67,761 | 25,568 | 135,665 | |||||||||||
| Impairment of film assets | 96,838 | 415,719 | 165,987 | 415,719 | |||||||||||
| Total operating expenses | 10,352,780 | 8,772,179 | 19,968,878 | 18,720,545 | |||||||||||
| Loss from operations | (2,664,997 | ) | (1,817,434 | ) | (624,654 | ) | (5,918,273 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Interest income | 58,235 | 31,972 | 100,082 | 61,878 | |||||||||||
| Interest income – related party | 499 | 499 | 992 | 992 | |||||||||||
| Interest expense | (152,125 | ) | (169,286 | ) | (358,171 | ) | (250,115 | ) | |||||||
| Other (expense) income | (415,082 | ) | (707,968 | ) | (60,031 | ) | 61,794 | ||||||||
| Foreign currency transaction gain (loss) | (1,433 | ) | (31,891 | ) | 8,259 | (68,179 | ) | ||||||||
| Total other expense, net | (509,906 | ) | (876,674 | ) | (308,869 | ) | (193,630 | ) | |||||||
| Loss before provision for income taxes | (3,174,903 | ) | (2,694,108 | ) | (933,523 | ) | (6,111,903 | ) | |||||||
| Provision for (benefit from) income taxes | (133,629 | ) | 13,868,598 | (26,805 | ) | 12,397,768 | |||||||||
| Net loss | (3,041,274 | ) | (16,562,706 | ) | (906,718 | ) | (18,509,671 | ) | |||||||
| Net loss attributable to non-controlling interests | (525 | ) | (282 | ) | (675 | ) | (1,238 | ) | |||||||
| Net loss attributable to | (3,040,749 | ) | (16,562,424 | ) | (906,043 | ) | (18,508,433 | ) | |||||||
| Comprehensive loss statement: | |||||||||||||||
| Net loss | (3,041,274 | ) | (16,562,706 | ) | (906,718 | ) | (18,509,671 | ) | |||||||
| Other comprehensive income (loss) related to foreign currency translation adjustments, net of tax | 984 | 30,587 | (25,839 | ) | 63,820 | ||||||||||
| Other comprehensive income related to credit adjustments, net of tax | — | — | 5,310 | 22,023 | |||||||||||
| Total comprehensive loss | $ | (3,040,290 | ) | $ | (16,532,119 | ) | $ | (927,247 | ) | $ | (18,423,828 | ) | |||
| Net loss attributable to Class A common stockholders: | |||||||||||||||
| Basic | $ | (989,812 | ) | $ | (3,775,300 | ) | $ | (258,255 | ) | $ | (4,210,496 | ) | |||
| Diluted | $ | (989,812 | ) | $ | (3,775,300 | ) | $ | (258,255 | ) | $ | (4,216,414 | ) | |||
| Net loss attributable to Class B common stockholders: | |||||||||||||||
| Basic | $ | (2,050,937 | ) | $ | (12,787,124 | ) | $ | (647,788 | ) | $ | (14,297,937 | ) | |||
| Diluted | $ | (2,050,937 | ) | $ | (12,787,124 | ) | $ | (647,788 | ) | $ | (14,318,033 | ) | |||
| Loss per share attributable to Class A and B common stockholders: | |||||||||||||||
| Basic | $ | (0.36 | ) | $ | (2.22 | ) | $ | (0.11 | ) | $ | (2.49 | ) | |||
| Diluted | $ | (0.36 | ) | $ | (2.22 | ) | $ | (0.11 | ) | $ | (2.49 | ) | |||
| Weighted-average shares used to compute income (loss) per share attributable to Class A common stockholders: | |||||||||||||||
| Basic | 2,774,897 | 1,697,559 | 2,292,247 | 1,693,192 | |||||||||||
| Diluted | 2,774,897 | 1,697,559 | 2,292,247 | 1,693,507 | |||||||||||
| Weighted-average shares used to compute income (loss) per share attributable to Class B common stockholders: | |||||||||||||||
| Basic | 5,749,716 | 5,749,716 | 5,749,716 | 5,749,716 | |||||||||||
| Diluted | 5,749,716 | 5,749,716 | 5,749,716 | 5,749,716 | |||||||||||
Condensed Consolidated Statements of Cash Flows for the Six Months Ended | |||||||
| 2026 | 2025 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (906,718 | ) | $ | (18,509,671 | ) | |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
| Amortization – intangible assets, net | 327,756 | 79,424 | |||||
| Amortization – intangible assets, net – related party | 500,000 | — | |||||
| Amortization – film assets | 231,917 | 645,069 | |||||
| Amortization – loan origination fees and debt discounts | 4,932 | (19,504 | ) | ||||
| Loss on change in fair value of convertible notes | 121,165 | 82,180 | |||||
| Gain on change in fair value of warrant liabilities | (39,243 | ) | (91,383 | ) | |||
| Depreciation – property and equipment | 25,568 | 135,667 | |||||
| Impairment of film assets | 165,987 | 415,719 | |||||
| Gain on remeasurement of previously held equity interest | — | (7,857 | ) | ||||
| Gain on lease termination | (1,799 | ) | — | ||||
| Stock-based compensation expense | 101,130 | 280,888 | |||||
| Deferred taxes, net | — | 10,808,885 | |||||
| Changes in assets and liabilities, net of business acquisitions: | |||||||
| Accounts receivable | 3,182,594 | (7,825,905 | ) | ||||
| Accounts receivable – related party | — | 3,836,866 | |||||
| Prepaid expenses – related party | (392,512 | ) | (1,728,666 | ) | |||
| Prepaid expenses and other current assets | 611,057 | 537,799 | |||||
| Prepaid taxes | 3,686,137 | 1,161,649 | |||||
| Other noncurrent assets, net | (696,951 | ) | (1,064,165 | ) | |||
| Accounts payable | (1,636,164 | ) | (110,912 | ) | |||
| Accounts payable – related parties | (1,640,793 | ) | 1,040,862 | ||||
| Accrued expenses and other liabilities | 1,378,317 | 1,009,796 | |||||
| Loan and interest receivable – related party | (992 | ) | (992 | ) | |||
| Lease liabilities | 108,659 | (163,920 | ) | ||||
| Deferred revenue | 1,732,492 | 7,075,046 | |||||
| Net cash provided by (used in) operating activities | 6,862,539 | (2,413,125 | ) | ||||
| Cash flows from investing activities: | |||||||
| Acquisition of software | — | (290,000 | ) | ||||
| Acquisition of software licenses | (343,770 | ) | (2,008,690 | ) | |||
| Investments in software | — | (718,236 | ) | ||||
| Net cash paid for acquisition of Matrioshka | — | (9,719 | ) | ||||
| Net cash used in investing activities | (343,770 | ) | (3,026,645 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from at-the-market offering, net of issuance costs | 4,232,897 | — | |||||
| Repayments on notes payable | (594,376 | ) | — | ||||
| Repayments on convertible notes | (2,523,295 | ) | (638,753 | ) | |||
| Repayments on revolving loan | (2,500,000 | ) | (43,018 | ) | |||
| Borrowings on term loan | — | 3,500,000 | |||||
| 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 | (1,392,274 | ) | 5,977,229 | ||||
| Effect of foreign currency translation on cash and cash equivalents | (25,839 | ) | 64,023 | ||||
| Net increase in cash and cash equivalents, and restricted cash and cash equivalents | 5,100,656 | 601,482 | |||||
| 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 | $ | 15,603,820 | $ | 8,840,426 | |||
| Supplemental disclosures of cash flow information | |||||||
| Cash paid during the period for: | |||||||
| Interest | $ | 311,933 | $ | 230,318 | |||
| Income taxes | $ | 82,428 | $ | 612,007 | |||
| Noncash transactions during the period for: | |||||||
| Liabilities converted to equity upon exercise of warrants | $ | 606,541 | $ | 323,113 | |||
| Acquisition of film licenses in accounts payable | $ | 2,000 | $ | 86,069 | |||
| Acquisition of software and software licenses in accounts payable and accrued expenses | $ | 54,600 | $ | 313,282 | |||
| Change in fair value of notes recorded in accumulated other comprehensive income | $ | 5,310 | $ | 22,023 | |||
| Right-of-use assets obtained in exchange for lease liability | $ | (297,000 | ) | $ | (55,267 | ) | |
| Net assets acquired in a business combination | $ | — | $ | 5,461 | |||
| Debt converted to equity | $ | 866,250 | — | ||||
