Snail (SNAL) Q4 2025 earnings summary

Executive summary

• Achieved key milestones in 2025, including the launch of ARK: Lost Colony DLC, ARK x Teenage Mutant Ninja Turtles Cosmetic Pack, and a robust multi-year content pipeline for ASA, with strong engagement across the ARK franchise and indie portfolio.

• Surpassed four million units sold for ASA since launch, with Q4 unit sales of 692,000 for ASA and 580,000 for ASE, and ARK Mobile exceeding 10 million cumulative downloads by year-end 2025.

• Outlined a multi-year roadmap with seven major ASA DLCs and expansions through 2027, providing revenue visibility and growth opportunities.

• Expanded internal development capacity to four studios, each contributing to new IPs and projects, with three major in-house AAA games nearing testing phases.

• Bookings for Q4 2025 rose to $20.8 million from $17.0 million year-over-year; full year bookings increased 16.2% to $87.8 million.

Financial highlights

• Q4 2025 net revenue was $25.1 million, down from $26.2 million year-over-year, but up 82% sequentially from Q3.

• Full year 2025 net revenue was $81.2 million, compared to $84.5 million in 2024, mainly due to lower deferred revenue recognition.

• Q4 net loss was $0.9 million versus net income of $1.1 million last year; full year net loss was $27.2 million versus net income of $1.8 million in 2024.

• Q4 EBITDA loss was $1.3 million (vs. $1.6 million gain last year); full year EBITDA loss was $16.8 million (vs. $3.2 million gain in 2024).

• Q4 bookings rose to $20.8 million (from $17 million), and full year bookings increased 16.2% to $87.8 million.

• Total units sold in 2025 grew 32.7% to 6.3 million, driven by ARK franchise and Bellwright sales.

• Deferred revenue at year-end was approximately $30 million.

• Gross profit for Q4 2025 was $9.6 million, down from $11.3 million in Q4 2024; full year gross profit was $22.4 million, down from $30.2 million.

Outlook and guidance

• Expect continued quarterly bookings growth, supported by a robust ARK content pipeline and gradual content launches.

• Projecting 20%-30% revenue growth in 2026, with major contributions from Bellwright, ARK expansions, and new AAA titles.

• AAA game development remains a strategic focus, with several high-profile titles in progress and expected to contribute to future growth.

• Anticipate higher profit margins from internally developed titles versus licensed games.

• Plans to broaden the portfolio, diversify revenue streams, and drive long-term shareholder value.