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SI

Snail, Inc. (SNAL)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 net revenues grew year over year to $22.19M but missed Wall Street consensus ($26.0M*), while bookings rose 18.5% to $27.1M; net loss swung to $(16.56)M largely due to a $12.9M valuation allowance against deferred tax assets .
  • EPS of $(0.44) missed the consensus of $(0.01); EBITDA of $(2.4)M was below the $(0.125)M estimate, driven by higher cost of revenues and operating expenses .
  • Engagement catalysts included the 10-year ARK anniversary and a June Steam Publisher Sale (daily unit sales 10.8x non-promo run-rate), plus 8M downloads of ARK: Survival Ascended via PS Plus in May .
  • Strategic pivot: management formally announced a proprietary USD-backed stablecoin initiative (subsidiary formed, legal advisors engaged, ATM for reserves), positioning a dual-pronged strategy alongside core gaming .

What Went Well and What Went Wrong

What Went Well

  • Bookings increased 18.5% YoY to $27.1M; total units sold rose 58.4% to ~2.1M, supported by June sale events and Lost Colony presale outperforming internal projections .
  • ARK franchise momentum: 8M ASA downloads via PlayStation Plus in May; ASE Q2 units ~1,196,583 and ASA units ~807,065; ARK Mobile crossed 6.9M cumulative downloads .
  • Steam Publisher Sale drove discovery and monetization: daily unit sales were 10.8x non-promotional periods; “steep discounts to date” reinvigorated back catalog and indie titles .

What Went Wrong

  • Revenue and EPS missed consensus; EBITDA below expectations as cost of revenues and OpEx rose; GAAP loss driven by $12.9M tax valuation allowance .
  • Deferred revenue increased (press release cites $3.7M impact in Q2), muting recognized revenue despite strong bookings; Bellwright revenue fell by $3.0M YoY .
  • Product headwinds: Aquatica DLC issues required a rollback option, indicating quality challenges and potential near-term churn risk .

Financial Results

Consolidated KPIs vs Prior Periods

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$26.214 $20.111 $22.186
Net Income (Loss) ($USD Millions)$1.120 $(1.947) $(16.563)
Diluted EPS ($USD)$0.03 $(0.06) $(0.44)
Bookings ($USD Millions)$17.0 $22.2 $27.1
EBITDA ($USD Millions)$1.6 $(3.2) $(2.4)
Unrestricted Cash ($USD Millions)$7.3 $9.4 $7.9

Actuals vs Wall Street Consensus (S&P Global)

MetricQ4 2024Q1 2025Q2 2025
Revenue Actual ($USD Millions)$26.214 $20.111 $22.186
Revenue Consensus ($USD Millions)$25.0*$18.0*$26.0*
EPS Actual ($USD)$0.03 $(0.06) $(0.44)
EPS Consensus ($USD)$0.07*$(0.10)*$(0.01)*
EBITDA Actual ($USD Millions)$1.6 $(3.2) $(2.4)
EBITDA Consensus ($USD Millions)$3.74*$(4.50)*$0.125*

Values marked with * are from S&P Global consensus. Values retrieved from S&P Global.

Franchise KPIs

KPIQ4 2024Q1 2025Q2 2025
ASE Units Sold (Quarter)621,000 690,775 1,196,583
ASA Units Sold (Quarter)—751,960 807,065
ASA PS Plus Downloads——8,000,000
ASE Avg DAU (Quarter)——156,947
ASA Avg DAU (Quarter)——84,585
ARK Mobile Downloads (Cumulative)2,000,000 4,800,000 6,900,000
ARK Mobile Avg DAU (Quarter)—143,976 104,135

Note: June Steam Publisher Sale drove daily unit sales to 10.8x non-promotional periods .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue, EPS, EBITDA, Margins, OpEx, Tax RateFY 2025 / Q3 2025—No formal guidance provided in press release or callMaintained as N/A

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Stablecoin / Digital Asset StrategyNo prior formal announcementFormal announcement to develop USD-backed stablecoin; SNAL Coins LLC formed; legal advisors engaged; ATM initiated for reserves New strategic pillar; early-stage build-out
ARK Franchise EngagementASA since launch sold 3.4M units; avg DAU ~94k; ARK Mobile launched with 2M launch-month downloads ASE units ~1.20M; ASA units ~0.81M; ASA 8M PS Plus downloads; 10-year anniversary content drops driving peak DAU/CCU Strengthening engagement via content + promotions
Indie Portfolio ExpansionShowcased expanding catalog; acquired 11 games in 2024 New titles launched (e.g., Castle of Secrets, Robots at Midnight); acquired rights to Rebel Engine, Whispers of West Grove Ongoing diversification; steady pipeline
Subscription/Platform Partnerships—ASA included in PS Plus; $3.0M revenue recognition tied to platform subscription Positive distribution tailwind
Product Quality/Operations—Aquatica DLC issues; rollback branch provided to players Operational fix in progress
Regulatory/Legal (Stablecoin)General risk disclosures (forward-looking statements) Initiative linked to GENIUS Act regulatory momentum Supportive framework; compliance focus

Management Commentary

  • “Beyond our stablecoin initiative, our core gaming business continues to demonstrate strong momentum… Looking ahead… our teams are focused on preparing for the launch of ARK: Lost Colony… advancing a slate of indie titles” — Co-CEO Tony Tian .
  • “We identified a unique opportunity… centered on the development and issuance of a proprietary U.S. dollar-backed stablecoin… We have… retained… legal advisors… and formed Snail Coins LLC” — CFO (prepared remarks summarizing initiative) .
  • “This year's [Steam Publisher Sale] event drove daily unit sales 10.8 times the average non promotional periods in 2025… powerful discovery engines” — SVP Peter Kang .
  • “Bookings rose by 18.5% to $27.1M and units sold increased by 58.4% to 2.1M for the quarter… pre-sale performance slightly exceeded our internal projections” — Co-CEO Tony Tian .

Q&A Highlights

  • No Q&A session was conducted; the operator concluded the call after prepared remarks .

Estimates Context

  • Q2 2025 results missed consensus: Revenue $22.19M vs $26.0M*; EPS $(0.44) vs $(0.01); EBITDA $(2.4)M vs $0.125M .
  • Prior quarters: Q1 2025 beat on revenue ($20.11M vs $18.0M*), EPS beat (−$0.06 vs −$0.10*), EBITDA better than consensus (−$3.2M vs −$4.50M*) . Q4 2024 revenue beat ($26.21M vs $25.0M*), EPS missed ($0.03 vs $0.07*), EBITDA below consensus ($1.6M vs $3.74M*) .

Values marked with * are from S&P Global consensus. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Strong bookings and unit growth in Q2 signal robust underlying demand, driven by June promotions and Lost Colony presale; recognized revenue was dampened by higher deferred revenue .
  • Material GAAP loss driven by a $12.9M valuation allowance; expect non-GAAP vs GAAP divergence to persist as bookings/deferrals and tax effects run through results .
  • ARK ecosystem remains a traffic engine (ASE/ASA unit momentum; ASA PS Plus), providing near-term engagement and monetization catalysts ahead of Lost Colony .
  • Operational risk surfaced around Aquatica DLC; management provided rollback branch and is working toward full resolution, which bears watching for user sentiment and monetization .
  • Balance sheet shows negative stockholders’ equity ($(13.49)M) and elevated current liabilities; liquidity remained modest with $7.9M unrestricted cash at quarter end .
  • Strategic optionality: stablecoin initiative could unlock new monetization/use cases over time; near term, execution milestones (partners, compliance, reserves) will drive narrative .
  • With limited analyst coverage (# of estimates = 1), estimate dispersion is thin; expect models to adjust downward on Q2 miss and tax valuation impacts while recognizing bookings strength and content pipeline [GetEstimates].

Appendix: Non-GAAP Notes and Reconciliations

  • Bookings reconcile to revenue plus change in deferred revenue: Q2 2025 revenue $22.2M and +$4.9M change in deferred revenue → bookings $27.1M; six months bookings $49.4M .
  • EBITDA reconciliation provided (net loss, interest, taxes, D&A) with Q2 2025 EBITDA $(2.4)M and six months $(5.8)M .

Other Relevant Q2 2025 Press Releases

  • No additional Q2 press releases were found in the period June 1–September 30, 2025 beyond the 8-K earnings release and call materials [ListDocuments Jun–Sep returned none].