Snail, Inc. SEC 10-Q Report

Snail, Inc., a leading developer and publisher in the digital entertainment industry, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant financial and operational metrics, reflecting the company's performance and strategic initiatives over the past three months.

Financial Highlights

Revenues, net: Snail, Inc. reported net revenues of $42.3 million, marking an increase from $35.7 million in the same period last year. This growth was driven by higher sales across multiple platforms.

Gross Profit: The company's gross profit rose to $12.8 million, up from $10.2 million, indicating improved cost management and higher sales volume.

Income (loss) from operations: Snail, Inc. experienced a loss from operations amounting to $(5.9) million, compared to an income of $0.5 million in the previous year. This was primarily due to increased operating expenses.

Net income (loss): The net loss for the quarter was $(18.5) million, a significant decrease from a net income of $0.5 million in the same period last year. This decline was impacted by higher provisions for income taxes and operating expenses.

Basic EPS: The basic earnings per share (EPS) was $(0.50), compared to $0.01 in the previous year, reflecting the net loss attributable to common stockholders.

Business Highlights

Revenue Segments: The company reported revenue from various platforms, with console sales contributing $9.49 million, PC sales $10.03 million, and mobile sales $2.04 million for the three months ended June 30, 2025. This indicates a strong performance in the PC segment compared to the previous year.

Geographical Performance: The United States remains the largest market for Snail, Inc., generating $19.52 million in revenue for the three months ended June 30, 2025, showing consistent demand in the domestic market. International sales contributed $2.67 million, reflecting stable performance abroad.

Product Line Performance: The company's digital sales channel was the most significant contributor, with $19.52 million in revenue for the three months ended June 30, 2025, highlighting the importance of digital distribution in the company's business model.

New Product Launches: Snail, Inc. has been actively involved in developing new downloadable content (DLC) for its ARK franchise, which is expected to drive future revenue growth as these products are released.

Future Outlook: The company anticipates recognizing $24.9 million in deferred revenue over the next 12 to 60 months, primarily from platform releases of certain DLCs, indicating a strong pipeline of upcoming content that could enhance future revenue streams.

SEC Filing: Snail, Inc. [ SNAL ] - 10-Q - Aug. 19, 2025