Snail, Inc. Reports $22.2M Revenue with $16.6M Net Loss for Quarter Ended June 30, 2025

Snail, Inc. reported its financial results for the quarter ended June 30, 2025, revealing a net revenue of $22.2 million, a 2.7% increase from $21.6 million in the same period last year. For the first half of 2025, the company generated $42.3 million in revenue, up 18.4% from $35.7 million in the first half of 2024. Despite the revenue growth, Snail, Inc. experienced a significant net loss of $16.6 million for the quarter, compared to a net income of $2.3 million in the prior year. The loss for the six-month period was $18.5 million, contrasting with a net income of $0.5 million for the same period in 2024.

The company's cost of revenues increased to $15.2 million for the quarter, a 12.8% rise from $13.5 million in the previous year, primarily driven by higher software license royalties and merchant fees. Operating expenses surged by 61.5% to $8.8 million, largely due to increased spending in general and administrative, research and development, and advertising and marketing. The company also recognized an impairment of film assets amounting to $0.4 million, reflecting underperformance in certain titles.

In terms of operational metrics, Snail, Inc. reported an average of 242,000 daily active users for its ARK franchise during the quarter, an increase from 218,241 in the same period last year. The ARK franchise continues to be a significant revenue driver, contributing approximately 90.1% of total revenues in the quarter. The company also noted a total of 106.3 million installs of the ARK franchise across platforms as of June 30, 2025.

Strategically, Snail, Inc. completed the acquisition of the remaining 66% equity interest in Matrioshka Games LLC, enhancing its software development capabilities. The company is also exploring a digital asset initiative, including the potential development of a proprietary stablecoin. This initiative is expected to require significant capital and may involve various regulatory compliance costs. The company has not yet sold any shares under its equity line purchase agreement but has the option to raise up to $5 million through this mechanism.

Looking ahead, Snail, Inc. anticipates continued revenue growth driven by its ARK franchise and new game releases. However, the company faces challenges related to its debt covenants, having received waivers for non-compliance, and it may need to seek additional financing to support its operations and strategic initiatives. The management remains focused on enhancing its product offerings and expanding its user base while navigating the complexities of the gaming industry.