Snail 2025 Q2 Earnings Profits Turn to Losses Amid 834.6% Net Income Drop

Snail (SNAL) reported its fiscal 2025 Q2 earnings on August 19th, 2025. The company’s performance fell significantly short of expectations, marked by a dramatic shift from profit to loss and poor stock performance in the post-earnings period.

Revenue
Snail’s total revenue increased by 2.7% to $22.19 million in Q2 2025, compared to $21.61 million in Q2 2024. This modest growth was driven by its digital segment, which contributed $19.52 million. Mobile revenue stood at $2.04 million, while physical retail and other segments generated $626,623.

Earnings/Net Income
Snail swung to a net loss of $16.56 million in Q2 2025, reflecting a 834.6% deterioration from the net income of $2.25 million in Q2 2024. On a per-share basis, the company posted a loss of $0.44, a stark contrast to a profit of $0.06 per share in the same period last year.

Price Action
The stock price of Snail dropped 5.38% during the latest trading day, fell 1.59% during the most recent full trading week, and plummeted 32.60% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Snail (SNAL) shares after its Q2 revenue increased on the financial report release date and holding for 30 days resulted in significant underperformance. The approach delivered a compound annual growth rate (CAGR) of -25.11%, an excess return of -112.87%, and a Sharpe ratio of -0.21. The maximum drawdown was recorded at 0.00%, underscoring the high risk and substantial loss associated with the strategy.

CEO Commentary
Co-CEOs Hai Shi and Tony Tian described Q2 as a “pivotal and transformative period” for Snail, highlighting the strategic development of a proprietary stablecoin aligned with the GENIUS Act. Hai Shi called the initiative a “significant evolution” in the company’s business model, potentially enhancing game economies and enabling secure transactions. The company has retained legal and industry experts, established a dedicated subsidiary, and initiated capital formation through an at-the-market offering. Tony Tian noted strong momentum in the core gaming business, driven by the Steam Publisher Sale and ARK franchise updates, including a 10-year anniversary celebration and new content. Both expressed optimism about the strategic direction and long-term opportunities tied to the stablecoin and game portfolio growth.

Guidance
The company did not provide specific quantitative guidance for future financial performance or revenue expectations in the filing. However, the CEOs expressed forward-looking confidence in the stablecoin initiative’s potential to integrate into the gaming business and unlock scalable solutions in digital payments, while also highlighting continued momentum in the core game portfolio.

Additional News
In the three weeks following Snail’s Q2 earnings report on August 19th, 2025, the company and broader market saw several notable developments. One of the most significant was the announcement of a strategic partnership with a blockchain technology firm, aimed at accelerating the development of Snail’s proprietary stablecoin initiative. This move has been seen as a critical step in aligning the company with the GENIUS Act’s regulatory framework, potentially positioning it as a key player in the evolving digital payment landscape. Additionally, the company confirmed the hiring of a new Chief Technology Officer with a strong background in fintech and digital currencies, signaling a deepening commitment to the initiative. Another notable development was a major capital-raising event through an at-the-market offering, which provided the company with additional flexibility as it moves into the next phase of its strategic transformation.