Snail, Inc. Reports Third Quarter 2026 Financial Results
CULVER CITY, Calif., Nov. 12, 2026 (GLOBE NEWSWIRE) -- Snail, Inc. (Nasdaq: SNAL) (“Snail Games” or the “Company”), a leading global independent developer and publisher of interactive digital entertainment, today announced financial results for the third quarter ended September 30, 2026.
Third Quarter 2026 and Recent Operational Highlights
ARK Franchise Updates:
Game Portfolio and Business Updates:
Business and Operational Updates
ARK Content Pipeline
Diversified Content Pipeline
Management Commentary
“Our third quarter results reflected the continued execution of our ARK content pipeline, which extends through 2027 and remains a key driver of engagement and monetization across ASA,” said Snail CEO Hai Shi. “The release of three ASA DLCs at the beginning of the quarter provided a strong foundation for our performance, demonstrating the importance of our ongoing content strategy to expand the franchise’s reach and longevity.
“Beyond our revenue-generating ARK content, the past several months have provided valuable opportunities to showcase the breadth and progress of our broader development portfolio. We unveiled and publicly debuted our two 9 Yin Sutra titles at ChinaJoy and Gamescom, supported by new trailers and the official launch of their respective Steam pages. These milestones mark important steps in building early awareness and engagement, particularly among the IP’s established fan base in China. We also featured For The Stars at Gamescom, where we released a new gameplay trailer and offered exclusive demos to attending media, and again at IGN Fan Fest. The positive reception and continued development progress across these projects reinforce our confidence in the commercial potential of our AAA pipeline. As these highly anticipated titles continue advancing toward launch, industry events and community engagement initiatives remain important platforms to build momentum and provide players with greater visibility into our development progress.
“Looking ahead, we are encouraged by the opportunities in front of us. We expect our recently released titles, together with the anticipated ARK: Dragontopia skyworld map in December, to support fourth quarter performance. More importantly, our visibility beyond the current year remains strong. With an established ARK content roadmap extending throughout 2027 and multiple AAA titles continuing to make solid development progress toward key milestones, we believe we are well positioned to build on the momentum generated this year. Our focus remains on disciplined execution, consistent content delivery, and advancing our high-conviction development initiatives.”
Third Quarter 2026 Financial Highlights
Net revenues increased 139.2% to $33.1 million compared to $13.8 million in the same period last year. The increase was primarily due to a $13.9 million change in deferred revenue, a $4.9 million increase in ASA sales, which was primarily driven by the base game and the release of ARK: Tides of Fortune and ARK: Dragontopia, a $1.0 million increase in Bellwright sales, and a $0.4 million increase in Honeycomb: The World Beyond sales, partially offset by a decrease of $0.5 million in ASE sales, a decrease of $0.2 million in ARK Mobile sales, and a decrease of $0.2 million in SaltyTV sales.
Total units sold increased 73.3% to 2.0 million units compared to 1.1 million units in the same period last year, primarily driven by increased sales of ASA by 0.7 million units and an increase in sales of Bellwright of 0.1 million units.
Net income improved to $6.7 million compared to a net loss of $(7.9) million in the same period last year. The increase was primarily due to an increase in gross profit of $17.6 million, partially offset by an increase in the provision for income taxes of $2.0 million, an increase in total operating expenses of $0.6 million, and an increase in total other expense of $0.5 million.
Bookings increased 30.4% to $23.0 million compared to $17.6 million in the same period last year. The increase was primarily due to higher sales of ASA and Bellwright, partially offset by a decrease in bookings from ASE.
EBITDA improved to $7.2 million compared to $(9.7) million in the same period last year. The increase was primarily driven by the $14.5 million increase in net income, a decrease in interest income and interest income – related parties of $0.4 million, and an increase in the provision of income taxes of $2.0 million.
Nine Months 2026 Financial Highlights
Net revenues increased 42.6% to $80.0 million compared to $56.1 million in the same period last year. The increase was primarily due to the change in deferred revenue of $19.2 million, an increase in ASA sales of $4.8 million, which was primarily driven by the sales of the base game, ARK: Bob’s Tall Tales, ARK: Lost Colony, and the newly released ARK: Tides of Fortune and ARK: Dragontopia, an increase of $4.6 million in Bellwright sales, and an increase of $0.4 million in Honeycomb: The World Beyond sales. The increase in revenue was partially offset by a decrease in ASE revenue of $3.2 million, a decrease in ARK Mobile revenue of $1.5 million, and a decrease in SaltyTV application revenue of $0.4 million.
Total units sold increased 28.0% to 6.2 million units compared to 4.8 million units in the same period last year, primarily due to an increase in ASA sales of 1.7 million units and an increase in Bellwright sales of 0.3 million units, partially offset by a decrease in ASE sales of 0.8 million units.
Net income improved to $5.8 million compared to a net loss of $(26.4) million in the same period last year. The improvement was primarily due to an increase in revenue of $23.9 million, a decrease in the provision of income taxes of $10.4 million, and a decrease in cost of revenue of $0.3 million, partially offset by an increase in total operating expenses of $1.9 million and total other expense of $0.6 million.
Bookings increased 7.0% to $71.7 million compared to $67.0 million in the same period last year. The increase was primarily due to higher sales of ASA and Bellwright, which benefited from promotional pricing during the period, offset by ASE as the title continued to mature and consumer demand shifted toward ASA and its related downloadable content.
EBITDA improved to $6.5 million compared to $(15.6) million in the same period last year. The increase was primarily due to an increase in net income of $32.1 million, partially offset by a decrease in provision for income taxes of $10.4 million.
As of September 30, 2026, unrestricted cash was $12.1 million compared to $8.6 million as of December 31, 2025.
Use of Non-GAAP Financial Measures
In addition to the financial results determined in accordance with U.S. generally accepted accounting principles, or GAAP, Snail believes EBITDA, as a non-GAAP measure, and Bookings as a key operating metric, are useful in evaluating its operating performance. Bookings and EBITDA are non-GAAP and key operating financial measures that are presented as supplemental disclosures and should not be construed as alternatives to net income (loss) or revenue as indicators of operating performance, nor as alternatives to cash flow provided by operating activities as measures of liquidity, both as determined in accordance with GAAP. Snail supplementally presents Bookings and EBITDA because they are key operating measures used by management to assess financial performance. Bookings adjusts for the impact of deferrals and, Snail believes, provides a useful indicator of sales in a given period. Management believes Bookings and EBITDA are useful to investors and analysts in highlighting trends in Snail’s operating performance. At the same time, other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which Snail operates, and capital investments.
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.
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:
Webcast Details
The Company will host a webcast at 4:30 PM ET today to discuss its third quarter 2026 financial and operational results. Participants may access the live webcast and replay via the link here or on the Company’s investor relations website at https://investor.snail.com/.
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: upcoming tames and content releases for ARK: Fantastic Tames Season 1 and ARK: Dragontopia in November and December 2026; the further development of Bellwright, including the traversal update planned for the end of 2026; the commercial potential of Snail’s AAA pipeline; Snail’s ARK content pipeline extending through 2027 and Snail’s ongoing content strategy to expand the franchise’s reach and longevity; Snail’s recently released titles, together with the anticipated ARK: Dragontopia skyworld map in December supporting fourth quarter performance; and being well positioned to build on the momentum generated this year.
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