Snail 2025 Q3 Earnings Severe Net Loss Amid Deferred Revenue Growth

Snail (SNAL) reported a 38.7% revenue decline to $13.82 million and a $7.87 million net loss, missing expectations. The company highlighted $5.8 million in Q4 deferred revenue recognition from ARK: Lost Colony and stablecoin development as strategic growth drivers.

Revenue

Digital revenue accounted for the largest share at $11.42 million, while mobile generated $1.82 million. Physical retail and other segments contributed $582,750, with total revenue from contracts amounting to $13.82 million. The year-over-year decline reflected deferred revenue timing and shifting consumer preferences in gaming segments.

Earnings/Net Income

Snail swung to a loss of $0.21 per share, a 2200% negative change from Q3 2024. The net loss of $7.87 million marked a 3473.5% deterioration, driven by fixed license fees, deferred revenue, and rising administrative and marketing expenses. The significant swing to a loss of $0.21 per share, a 2200% negative change, underscores the impact of deferred revenue and rising expenses on profitability.

Price Action

The stock price of Snail has climbed 5.09% during the latest trading day, has edged down 0.00% during the most recent full trading week, and has edged down 0.96% month-to-date.

Post-Earnings Price Action Review

Following the earnings release, Snail’s stock initially gained 5.09% in the latest trading day but faced challenges in the subsequent week and month. The stock edged down 0.00% for the week and 0.96% month-to-date, reflecting investor caution amid the reported net loss and deferred revenue dynamics.

CEO Commentary

CEO Hai Shi emphasized strong ARK engagement and deferred revenue growth, with $10.9 million in backlog. Strategic priorities include advancing a proprietary stablecoin infrastructure and leveraging the GENIUS Act for regulatory alignment. Despite Q3 losses, he expressed cautious optimism tied to ARK: Lost Colony’s December release.

Guidance

The company expects $28.8 million of deferred revenue to be recognized within 12–60 months, with $5.8 million in Q4 2025. It anticipates progress in stablecoin regulatory approvals and continued bookings growth from ARK pre-sales.

Additional News

Snail’s stablecoin project advanced with multistate regulatory applications, positioning it as a gaming industry pioneer. The company confirmed $26.5 million in deferred revenue recognition within 12 months, bolstering Q4 2025 expectations. Additionally, ARK: Lost Colony pre-sales reached 306,000 units, surpassing targets, with a December 4 release date.