Snail (SNAL) investor relations material

Executive summary

• Net revenue for Q1 2026 was $27.3 million, up 35.7% year-over-year, driven by ARK franchise and Bellwright sales, with ARK accounting for 85.7% of revenue and 2.2 million units sold.

• Net income reached $2.1 million, reversing a $1.9 million loss in Q1 2025, with EBITDA of $2.4 million and a net income margin of 7.8%.

• Significant product pipeline expansion includes three AAA titles in final development, new ARK DLCs, Bellwright console ports, and new IP announcements.

• SaltyTV content business expanded rapidly, with 279 IPs, over 400,000 app downloads, and 6,000+ subscribers as of May 2026.

• USDO stablecoin platform is functionally complete and moving toward launch, with compliance and distribution channels in place.

Financial highlights

• Gross profit increased to $11.7 million from $5.8 million year-over-year, with gross margin improving to 42.8%.

• Operating expenses decreased to $9.6 million, with lower G&A and marketing costs offsetting higher R&D.

• EBITDA improved 173.3% to $2.4 million from a $3.2 million loss year-over-year, with EBITDA margin at 8.8%.

• Bookings increased 21.1% to $26.9 million, supported by strong sales promotions and new content releases.

• Unrestricted cash was $14.3 million as of March 31, 2026, up from $8.6 million at year-end 2025.

Outlook and guidance

• Revenue mix expected to evolve with the launch of For The Stars and Nine Yin Sutra titles, and several ARK content expansions and new titles are scheduled for release throughout 2026 and 2027.

• Management anticipates year-over-year growth in Q2 2026, with $11 million in deferred revenue to be recognized upon the release of Genesis Part 1.

• Focus on diversifying revenue beyond ARK, with new IP launches and expansion of third-party publishing.

• Continued focus on cost-conscious development spending and operating expense moderation post-AAA development cycle.