Snail, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenues increased 139.2% year-over-year to $33.1 million for Q3 2026, compared to $13.8 million in Q3 2025.
• Net income improved to $6.7 million for Q3 2026, reversing a net loss of $(7.9) million in the prior year period.
• EBITDA improved to $7.2 million for Q3 2026, compared to a loss of $(9.7) million in Q3 2025.
• Bookings increased 30.4% to $23.0 million for Q3 2026, compared to $17.6 million in Q3 2025.
• Total units sold increased 73.3% to 2.0 million units for Q3 2026, compared to 1.1 million units in Q3 2025.
• For the nine months ended September 30, 2026, net revenues increased 42.6% to $80.0 million, compared to $56.1 million in the prior period.
• Net income for the nine months ended September 30, 2026, was $5.8 million, compared to a net loss of $(26.4) million in the prior period.
• EBITDA for the nine months ended September 30, 2026, was $6.5 million, compared to a loss of $(15.6) million in the prior period.
• Bookings for the nine months ended September 30, 2026, increased 7.0% to $71.7 million, compared to $67.0 million in the prior period.
• Unrestricted cash was $12.1 million as of September 30, 2026, compared to $8.6 million as of December 31, 2025.
• Revenue growth was primarily driven by a $13.9 million change in deferred revenue, a $4.9 million increase in ARK: Survival Ascended (ASA) sales, a $1.0 million increase in Bellwright sales, and a $0.4 million increase in Honeycomb: The World Beyond sales.
• Revenue growth was partially offset by decreases in ARK: Survival Evolved (ASE) sales ($0.5 million), ARK Mobile sales ($0.2 million), and SaltyTV sales ($0.2 million).
• Nine-month revenue growth was driven by a $19.2 million change in deferred revenue, a $4.8 million increase in ASA sales, a $4.6 million increase in Bellwright sales, and a $0.4 million increase in Honeycomb: The World Beyond sales.
• Nine-month revenue growth was partially offset by decreases in ASE revenue ($3.2 million), ARK Mobile revenue ($1.5 million), and SaltyTV application revenue ($0.4 million).

Guidance and Future Outlook:

• Management expects recently released titles and the anticipated ARK: Dragontopia skyworld map in December 2026 to support fourth quarter performance.
• The ARK content pipeline is established through 2027.
• Multiple AAA titles are advancing toward key milestones with solid development progress.
• Upcoming tames and content releases for ARK: Fantastic Tames Season 1 and ARK: Dragontopia are planned for November and December 2026.
• A traversal update for Bellwright is planned for the end of 2026.

Business Segments and Product Lines:

• ARK: Survival Evolved (ASE): Sold approximately 559,000 units in Q3 2026; average DAU was 99,000 with peak DAU of 126,000.
• ARK: Survival Ascended (ASA): Sold approximately 1.2 million units in Q3 2026; average DAU was 121,000 with peak DAU of 184,000.
• ARK: Ultimate Mobile Edition (ARK Mobile): Approximately 14.5 million downloads as of September 30, 2026; average DAU was 134,000 in Q3 2026.
• Other ARK IPs: Released PixARK: Terracrypt DLC and debuted the first public demo of ARK: Survival of the Fittest during ChinaJoy 2026.
• AAA Game Pipeline: Unveiled 9 Yin Sutra: Immortal at ChinaJoy 2026 and 9 Yin Sutra: Wuxia at Gamescom 2026, both revealing new trailers and Steam pages. Showcased For The Stars at Gamescom 2026 and IGN Fan Fest.
• New Launches: Launched Honeycomb: The World Beyond across Steam, Epic Games Store, PlayStation 5, and Xbox Series X|S.
• Early Access/Indie Titles: Showcased a demo of Bellwright at Gamescom 2026; launched Stoneguard on Steam Early Access with a "Mostly Positive" rating; launched The Fame Game II: LA Heartbreaker with an "Overwhelmingly Positive" rating and over 500 reviews; launched Dead Party on Steam. Released new demos for Dead Party, Whispers of West Grove, and Veil of Madness during Steam Next Fest.
• AI Initiatives: Subsidiary Egofold debuted the AI Ranch initiative and Non-Human Player (NHP) AI gaming companion at the Ai4 2026 conference.
• SaltyTV: Released 350+ short film dramas as of September 30, 2026.
• Upcoming ARK Content: ARK Dragontopia (DLC) scheduled for December 2026; ARK Maker, ARK Survival of the Fittest, PixARK Worlds, ARK Atlantis, ARK Galaxy Wars, and ARK Legacy of Santiago scheduled for 2027.
• Upcoming Diversified Content: Bellwright content update scheduled for 2026; Veil of Madness (2026/2027), Whispers of West Grove (2027), Gobby Gang (2027), For The Stars (TBD), 9 Yin Sutra: Immortal (TBD), and 9 Yin Sutra: Wuxia (TBD).

Management Commentary and Tone:

• CEO Hai Shi stated that Q3 results reflected continued execution of the ARK content pipeline, which remains a key driver of engagement and monetization across ASA.
• Management highlighted the strong foundation provided by the release of three ASA DLCs at the beginning of the quarter.
• CEO noted that showcasing the broader development portfolio at industry events like ChinaJoy, Gamescom, and IGN Fan Fest has built early awareness and engagement, particularly for the 9 Yin Sutra IP in China.
• Management expressed confidence in the commercial potential of the AAA pipeline and the momentum generated by the year.
• The tone emphasized disciplined execution, consistent content delivery, and advancing high-conviction development initiatives.

Other Key Points:

• Proceeds from at-the-market offering, net of issuance costs, were $4.796 million for the nine months ended September 30, 2026.
• Repayments on convertible notes totaled $3.125 million for the nine months ended September 30, 2026.
• Repayments on the revolving loan totaled $2.5 million for the nine months ended September 30, 2026.
• Liabilities converted to equity upon exercise of warrants were $606,541 for the nine months ended September 30, 2026.
• Debt converted to equity was $866,250 for the nine months ended September 30, 2026.
• The Company will host a webcast at 4:30 PM ET on November 12, 2026, to discuss results.
• Class A common stock shares outstanding increased from 1,806,412 as of December 31, 2025, to 3,205,095 as of September 30, 2026.
• Total liabilities decreased from $81.19 million as of December 31, 2025, to $61.23 million as of September 30, 2026.
• Total stockholders' deficit improved from $(21.88) million as of December 31, 2025, to $(9.74) million as of September 30, 2026.