Loading...
01/11 03:32
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents mixed signals. The company reported a net loss, increased operational costs, and challenges with product performance, which are negative indicators. However, there are positive elements like revenue growth and strategic partnerships. The stablecoin initiative introduces regulatory risks and potential shareholder dilution. Overall, the financial strain and uncertainties outweigh the positives, leading to a negative outlook for the stock price over the next two weeks.
Net Revenue $22.2 million, a year-over-year increase from $21.6 million. The increase was primarily due to an increase in total ARK sales of $3.3 million, $3 million recognized for the inclusion of ARK: Survival Ascended in the platform subscription program, an increase in sales of the ARK Mobile of $600,000 driven by the release of ARK: Ultimate Mobile Edition, and an increase in revenues related to other games of $400,000. These increases were partially offset by an increase in deferred revenue of $3.7 million and a decrease in revenue related to Bellwright of $3 million.
Net Loss Negative $16.6 million compared to net income of $2.3 million in the same period last year. This was primarily due to increases in the cost of revenues and operating expenses, a result of the company's increased headcount, research and development, and marketing expenses, and the recognition of a valuation allowance against the company's deferred tax assets of $12.9 million.
Bookings $27.1 million, an 18.5% year-over-year increase from $22.9 million. The increase was primarily driven by various sale promotions in 2025 that did not occur in 2024, specifically around ARK: Survival Evolved and the release of ARK: Lost Colony to presale in 2025.
EBITDA Negative $2.4 million compared to $3.1 million in the same period last year. The decrease was primarily due to an increase in net loss of $18.9 million, partially offset by an increase in the provision of income taxes of $13.3 million and a decrease in interest income and interest income related parties of $100,000.
Unrestricted Cash and Cash Equivalents $7.9 million as of June 30, 2025.
Proprietary Stablecoin Project: Snail announced the launch of its proprietary stablecoin project, positioning itself as a pioneer in the gaming industry to adopt such initiatives. The project aligns with their business model and offers long-term ROI potential. The company has initiated a capital formation strategy and engaged strategic partners to ensure success.
New Content for ARK Franchise: Snail launched new content updates for ARK: Survival Ascended and ARK Mobile, including the Astraeos DLC, ARK Ragnarok, and Genesis: Part 1. These updates drove significant player engagement and growth.
New Game Launches: Snail released several new Indie titles, including The Cecil: The Journey Begins, Chasmal Fear, Castle of Secrets, Robots at Midnight, and Zombie Rollerz: The Last Ship. Additionally, they announced a new dating simulation game, The Fame Game: Welcome to Hollywood, to be launched later this year.
ARK Franchise Growth: The ARK franchise saw a 58.4% increase in units sold and an 18.5% rise in bookings, driven by the 10-year anniversary celebration and publisher sale event. ARK: Survival Evolved experienced a 3.8x increase in units sold during the sale.
Expansion of Indie Publishing Portfolio: Snail expanded its Indie publishing portfolio under the Wandering Wizard label, acquiring publishing rights to additional projects and releasing new titles.
Increased Engagement Metrics: ARK: Survival Evolved and ARK: Survival Ascended achieved high engagement metrics, with cumulative playtime reaching 4.1 billion hours and average DAU of 157,000 and 85,000, respectively. ARK Mobile surpassed 6.9 million downloads.
Publisher Sale Event: The annual Steam publisher sale event drove a 10.8x increase in daily unit sales compared to non-promotional periods, significantly boosting player acquisition and engagement.
Dual-Pronged Growth Strategy: Snail is pursuing a dual strategy focusing on its core gaming business and the stablecoin initiative. The stablecoin project is expected to create synergies with the gaming portfolio and unlock long-term value.
Regulatory and Strategic Partnerships for Stablecoin: Snail formed Snail Coins LLC to oversee the stablecoin project and engaged industry experts and legal advisors to ensure compliance and success.
Stablecoin Initiative: The stablecoin project, while innovative, carries significant risks including regulatory uncertainties, potential delays in implementation, and the need for substantial capital reserves. The project also depends on external consultants and legal advisors, which could introduce execution risks.
Financial Performance: The company reported a net loss of $16.6 million for Q2 2025, compared to a net income of $2.3 million in the same period last year. This was driven by increased costs in R&D, marketing, and headcount, as well as a valuation allowance against deferred tax assets. This financial strain could impact operational flexibility.
Deferred Revenue and Bellwright Sales: There was a $3.7 million increase in deferred revenue and a $3 million decrease in Bellwright sales, which could indicate challenges in revenue recognition and product performance.
Aquatica Issues: The launch of Aquatica faced issues, requiring a rollback to a previous version. This could harm customer trust and satisfaction, impacting future sales and engagement.
Dependence on ARK Franchise: The company heavily relies on the ARK franchise for revenue and engagement. Any decline in the franchise's popularity or performance could significantly impact the company's financials.
Capital Formation for Stablecoin: The company has initiated an At The Market Offering to build reserves for the stablecoin project. This could dilute shareholder value and indicates a dependency on external capital for strategic initiatives.
Regulatory Risks: The stablecoin initiative is tied to the GENIUS Act and other regulatory frameworks. Any changes or delays in regulatory approval could adversely affect the project's viability.
Operational Costs: Increased operational costs, including R&D and marketing, are straining financial performance. This could limit the company's ability to invest in other strategic areas.
Stablecoin Initiative: Snail Inc. is advancing its proprietary U.S. dollar-backed stablecoin project, which is expected to generate long-term ROI and synergies with its gaming ecosystem. The company has initiated its capital formation strategy and engaged strategic partners and legal advisors to ensure regulatory compliance and infrastructure development. The project is aligned with the GENIUS Act, which provides a regulatory framework for stablecoins. Snail Coins LLC has been formed to oversee the stablecoin's issuance and management. The company plans to remain transparent and provide updates as the project progresses.
Gaming Content Roadmap: Snail plans to sustain player engagement through seasonal events, community-driven mods, and regular content updates for the ARK franchise. The company is preparing for the launch of ARK: Lost Colony, which bridges storylines across ARK titles and has shown strong preorder performance. Additionally, Snail is set to release new titles across various genres, including Honeycomb, Echoes of Elysium, Rebel Engine, and The Fame Game: Welcome to Hollywood.
Dual-Pronged Growth Strategy: Snail is pursuing a dual strategy focusing on its core gaming business and the stablecoin initiative. The gaming operations remain the cornerstone of near-term focus, while the stablecoin project represents a long-term strategic opportunity. The company aims to integrate these two pillars to deliver innovative user experiences and unlock long-term value.
The selected topic was not discussed during the call.
The earnings call summary reveals mixed signals. Financial performance shows a decline in net revenue and an increase in net loss, which is negative. However, there is strong demand and engagement, and deferred revenue is expected to be recognized soon, which is positive. The Q&A section provided clarity on deferred revenue, but concerns about gross margin contraction and increased expenses remain. Without clear guidance or major positive catalysts, the overall sentiment is neutral. The company's strategic plans in gaming and stablecoin initiatives hold potential but are not immediate drivers.
The earnings call presents mixed signals. The company reported a net loss, increased operational costs, and challenges with product performance, which are negative indicators. However, there are positive elements like revenue growth and strategic partnerships. The stablecoin initiative introduces regulatory risks and potential shareholder dilution. Overall, the financial strain and uncertainties outweigh the positives, leading to a negative outlook for the stock price over the next two weeks.
The earnings call shows mixed signals: strong revenue growth and strategic partnerships are positive, but increased net loss and unclear guidance on new ventures create uncertainty. The MOU with Mega Matrix is promising but lacks concrete revenue impact details. The absence of a share repurchase program and increased losses could concern investors. Given these mixed factors, the stock price is likely to remain stable, resulting in a neutral outlook.
The earnings call reveals mixed financials with decreased Q4 revenue and bookings, but improved full-year EBITDA and net income. However, the lack of a share repurchase program, unclear guidance on new game releases, and significant bookings decline weigh negatively. Analysts' concerns during the Q&A about game release timelines and platform availability further dampen sentiment, leading to an overall negative outlook.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
