10-Q · May 13, 2026
For Q1 2026, Snail, Inc. reported significant growth in revenues and a return to profitability compared to the same period in the prior year. Revenues of $27.3 million exceeded estimates by $9.3 million while net income…
Earnings analysis · 10-Q
SNAL earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
Snail's second-quarter revenue of $19.7 million missed the $29.0 million consensus estimate, and diluted EPS of $(0.36) missed the $0.31 estimate. Revenue declined from $27 million in the prior quarter and $22 million…
Read full summary
Snail's second-quarter revenue of $19.7 million missed the $29.0 million consensus estimate, and diluted EPS of $(0.36) missed the $0.31 estimate. Revenue declined from $27 million in the prior quarter and $22 million in the prior-year quarter, while the company returned to a quarterly loss after reporting $0.30 of diluted EPS in 2026 Q1. Net loss improved 81.6% to $3.0 million, but heavy ARK and platform concentration, continued Nasdaq compliance issues, and the absence of quantitative guidance leave the risk/reward unfavorable despite management's positive second-half 2026 outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.36
- Segment
- ARK franchise: 83.0% of net revenue for the three months ended June 30, 2026; 84.6% for the six months ended June 30, 2026.
- Segment
- Five best-selling franchises, including ARK: 97.1% of net revenue for the six months ended June 30, 2026.
- Segment
- Third-party platform distribution: 96.0% of revenue for the six months ended June 30, 2026.
What stood out
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Revenue declined sequentially and year over year
Second-quarter revenue was $19.7 million, down from $27 million in 2026 Q1 and $22 million in 2025 Q2, indicating sequential and year-over-year contraction.
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EPS improved year over year but turned negative
Diluted EPS was $(0.36), reversing the $0.30 profit reported in 2026 Q1, although it improved from $(2.20) in 2025 Q2.
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Net loss narrowed materially
Net loss improved 81.6% to $3.0 million, according to the quarterly earnings disclosure.
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ARK continues to support the business
The ARK franchise contributed 83.0% of net revenue in the quarter and 84.6% for the six months ended June 30, 2026, providing meaningful franchise monetization but also supporting management's planned ARK content through 2027.
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Management remains positive on 2H 2026
Management cited progress on three AAA titles and new business initiatives as support for its positive second-half 2026 outlook; no numerical outlook was disclosed.
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Disclosure controls remained effective
The filing states that disclosure controls and procedures were effective as of June 30, 2026, and that no material control changes occurred during the quarter.
What to watch
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Nasdaq delisting risk remains material
Nasdaq scheduled a hearing for August 13, 2026 after a July 1, 2026 Staff Determination to delist the Class A common stock for continued noncompliance with the minimum bid-price requirement. Although the company regained bid-price compliance on July 21, 2026, it remained noncompliant with other Nasdaq Requirements and could face delisting after September 22, 2026.
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Low market value may require dilution
The company stated that its market value of listed securities was less than $5 million as of the filing date. If the $5 million MVLS Rule becomes effective, actions to increase market value could dilute existing stockholders.
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Heavy dependence on hit franchises
ARK accounted for 83.0% of quarterly net revenue and 84.6% of six-month net revenue, while the five best-selling franchises accounted for 97.1% of six-month net revenue. A weak release, delayed content, or license disruption could therefore materially affect results.
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Customer and receivables concentration increased
Three customers accounted for approximately 79% of consolidated gross receivables as of June 30, 2026, compared with two customers accounting for 73% as of December 31, 2025; one customer represented 42% of current gross receivables.
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Platform dependence remains elevated
The company reported that 96.0% of six-month revenue was generated through third-party platforms, leaving distribution, fee, policy, outage, and access risk concentrated among platform providers.
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Stablecoin initiative adds regulatory risk
New stablecoin-related risk disclosures state that the company may need additional capital and could face licensing and compliance costs; the proposed initiative may require licensing as a money transmitter, payment-services provider, bank, custodian, broker-dealer, exchange, or other regulated entity.
Management's outlook
Management maintained a positive second-half 2026 outlook, citing ARK content through 2027, progress on three AAA titles, and new business initiatives. No quantitative revenue or EPS guidance was provided.
Earlier filings 4
10-K · March 19, 2026
Snail reports net revenue of $81.2 million in 2025 (down from $84.5 million in 2024) and a material swing to a net loss of $27.2 million in 2025 versus net income of $1.8 million in 2024. The business remains highly…
10-K · March 26, 2025
Snail’s 2024 10-K highlights material revenue and profitability improvement: net revenue rose to $84.5 million in 2024 from $60.9 million in 2023 and the company reported net income of $1.8 million in 2024 versus a $9.1…
10-Q · November 13, 2024
Snail reported Q3 (three months ended September 30, 2024) revenue of $22,530,372, a large increase versus Q3 2023 revenue of $8,981,135 and roughly flat versus the prior quarter (~$22M). Gross profit was $8,706,428…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.