SNAL

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the second quarter's performance to a 'measured' release schedule, with Bellwright's console launch successfully validating the strategy to diversify revenue beyond the core ARK IP. The year-over-year revenue decrease was primarily due to lower sales of ASE as the title continued to mature and consumer demand shifted, though the timing of major DLC releases also shifted from June into early July, moving that revenue recognition into the third quarter. Operational focus has expanded to include 'Egofold,' a new subsidiary developing 'Non-Human Player' (NHP) AI technology designed to learn from human playstyles rather than relying on traditional scripts. The company is leveraging its sandbox survival expertise to transition from a single-IP developer to a multi-franchise publisher, supported by three AAA titles currently in active development. Engagement metrics for ARK remain stable across platforms, providing a foundational user base to support the phased rollout of new content packs like Fantastic Tames and Dragontopia. Management highlighted a structural improvement in gross profit margins, driven by a reduced licensing fee structure for the ARK franchise that began in April 2026. Management expects to recognize approximately $11 million from the deferred revenue balance in Q3 2026 following the successful July launch of the Genesis Part 1 Ascended DLC. Revenue for new content packs, including Fantastic Tames and Dragontopia, will be recognized in phases through Q4 2026 as specific creatures and updates are delivered to owners. The R&D expense run rate is expected to remain consistent as major AAA titles like 'For The Stars' and '9 Yin Sutra: Immortal' approach their respective launch windows. Strategic initiatives in the second half of 2026 include the launch of ARK Maker tools and the return of ARK: Survival of the Fittest to sustain community engagement. The company is pursuing a multi-channel distribution strategy for its USDO stablecoin, including potential real-world on-ramps via crypto ATMs in California, pending regulatory approvals. A new ARK licensing agreement resulted in approximately $500,000 in monthly savings ($1.5 million per quarter), which is being reinvested into internal game development. The company reported a significant improvement in net loss primarily due to the absence of a $14 million one-time income tax provision recorded in the prior year period. Regulatory dependency remains a key factor for the USDO stablecoin initiative, with money transmitter license applications currently pending across multiple states. Phased content delivery models for new DLCs have created a lag between bookings and revenue recognition, increasing the importance of the deferred revenue balance as a performance indicator. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed the $1.5 million in quarterly savings is being directly reinvested into 'in-home' development for future titles. The savings contributed to an increase in gross profit despite a decrease in total revenue for the quarter. The $28.5 million deferred revenue balance is largely tied to performance obligations for ASA maps; the July release of Genesis 1 will trigger a significant Q3 recognition event. Management explained that under ASC 606, revenue must stay deferred until specific map content promised at the 2023 launch is officially delivered. Management indicated that investment in current AAA development projects is 'closing to the end,' suggesting R&D levels are peaking. G&A and R&D expenses are expected to remain consistent quarter-over-quarter without significant anticipated increases. Applications have been submitted to various states chosen for initial business conduct; the company is currently waiting for state regulators to complete their reviews.

CULVER CITY, Calif., Aug. 11, 2026 (GLOBE NEWSWIRE) -- Snail, Inc. (Nasdaq: SNAL) (“Snail Games” or the “Company”), a leading global independent developer and publisher of interactive digital entertainment, today announced financial results for the second quarter ended June 30, 2026. Second Quarter 2026 and Recent Operational Highlights ARK Franchise Updates: ARK: Survival Evolved (“ASE”): ARK: Survival Ascended (“ASA”): ARK: Ultimate Mobile Edition (“ARK Mobile”): Other ARK IPs Game Portfolio and Business Updates: AAA Game Pipeline Bellwright launched on PlayStation and Xbox Launched Survivor Mercs 1.0 across Steam, Xbox, and PlayStation, and launched Above The Snow on Steam Business and Operational Updates Egofold, the Company’s subsidiary, publicly debuted the AI Ranch initiative and Non-Human Player™ (NHP), an AI gaming companion for consumers, at the Ai4 2026 conference As of June 30, 2026, SaltyTV released 300+ short film dramas ARK Content Pipeline Diversified Content Pipeline Management Commentary “Over the last several months, we have begun executing against the robust gaming pipeline we previously outlined, which has established a strong foundation for the second half of 2026,” said Snail CEO Hai Shi. “During the second quarter, we launched the ARK: Fantastic Tames Season 1 Pack and brought Bellwright to Xbox and PlayStation, with the console launch providing an important contribution during an otherwise measured quarter for new game releases. Shortly after the second quarter ended, we released three ARK DLC expansion maps: Tides of Fortune, Genesis Part 1 Ascended, and Dragontopia. These launches, together with our broader slate of planned ARK content, have established a strong foundation for the rest of the year. Additionally, we continue to invest in our next generation of internally developed AAA titles, which we view as critical drivers of Snail’s long-term growth profile. For The Stars and 9 Yin Sutra Immortal were showcased across select gaming events over the past several months, demonstrating meaningful development progress and growing visibility for these titles as they move through the later stages of development. “Operationally, we have made significant progress across a new developing initiative that expands beyond traditional game development and publishing. Just last week, we announced our attendance at the Ai4 2026 conference, where we unveiled the AI Ranch initiative and our new product in development called Non-Human Player (NHP), an AI companion product for consumers designed to learn, adapt, and interact like a real human teammate. NHP is designed to deliver a personalized gaming experience tailored to each user’s playstyle. We believe this technology has the potential to address key challenges casual and hardcore gamers face while creating a personalized AI companion that can help players enjoy and improve their gaming experience across multiple titles. “The outlook for the second half of 2026 remains strong as we continue to execute across multiple gaming pipelines and business opportunities. With a strong slate of ARK content through 2027, meaningful progress across three upcoming AAA titles, and the introduction of new business initiatives, we are well-positioned to support the transformation of Snail’s profile over the next several quarters.” Second Quarter 2026 Financial Highlights Net revenues were $19.7 million compared to $22.2 million in the same period last year. The decrease was primarily due to a $4.2 million decrease in sales of ARK: Survival Ascended, a decrease of $1.8 million from ARK: Survival Evolved, a decrease of $0.4 million from ARK: Ultimate Mobile Edition, a decrease of $0.2 million from SaltyTV, and a decrease of $0.2 million from other various titles, offset by an increase in revenues related to Bellwright of $1.5 million and $2.8 million change in deferred revenues. Total units sold were 2.0 million units compared to 2.1 million units in the same period last year, primarily driven by lower sales of ARK franchise titles of 0.2 million units, partially offset by an increase in sales of Bellwright of 0.1 million units. Net loss improved 81.6% to $3.0 million compared to a net loss of $16.6 million in the same period last year. The increase was primarily due to a reduction of $14.0 million in the income tax provision from the prior-year quarter and an improvement in gross profit, partially offset by higher general and administrative and research and development expenses. Bookings were $21.8 million compared to $27.1 million in the same period last year. The decrease was primarily due to lower sales of ARK: Survival Ascended and ARK: Survival Evolved, partially offset by bookings generated from Bellwright. EBITDA was $(3.0) million compared to $(2.4) million in the same period last year. The decrease was primarily due to an improvement in net loss of $13.5 million and a decrease in depreciation expense of $0.1 million, more than offset by a decrease in the provision of income taxes of $14.0 million. Six Months 2026 Financial Highlights Net revenues increased 11.1% to $47.0 million compared to $42.3 million in the same period last year. The increase was primarily attributed to a $3.6 million increase in sales of Bellwright and a $5.3 million change in deferred revenues, partially offset by a decrease in ARK: Survival Evolved revenue of $2.7 million and a decrease of $1.4 million attributable to lower sales of ARK: Survival Ascended. Total units sold increased 13.8% to 4.2 million units compared to 3.7 million units in the same period last year. The increase was primarily due to increased sales of ARK: Survival Ascended of 1.0 million units and an increase in Bellwright of 0.2 million units; partially offset by a decrease in ARK: Survival Evolved sales of 0.7 million units. Net loss improved 95.1% to $(0.9) million compared to $(18.5) million in the same period last year. The improvement was primarily due to the absence of the $12.4 million income tax provision recorded in the prior-year period, which resulted from the valuation allowance recognized against the Company’s deferred tax assets, together with a $6.5 million improvement in gross profit. Bookings were $48.7 million compared to $49.4 million in the same period last year. The decrease was primarily due to lower sales of ARK: Survival Evolved as the title continued to mature and consumer demand shifted toward ARK: Survival Ascended and its related downloadable content, partially offset by increased sales of ARK: Survival Ascended and Bellwright, which benefited from promotional pricing during the period. EBITDA improved 88.8% to $(0.6) million compared to $(5.8) million in the same period last year. The improvement was primarily due to an improvement in net loss of $17.6 million, partially offset by a decrease in the provision for income taxes of $12.4 million. As of June 30, 2026, unrestricted cash was $13.3 million compared to $8.6 million as of December 31, 2025. Use of Non-GAAP Financial Measures In addition to the financial results determined in accordance with U.S. generally accepted accounting principles, or GAAP, Snail believes Bookings and EBITDA, as non-GAAP measures, are useful in evaluating its operating performance. Bookings and EBITDA are non-GAAP financial measures that are presented as supplemental disclosures and should not be construed as alternatives to net income (loss) or revenue as indicators of operating performance, nor as alternatives to cash flow provided by operating activities as measures of liquidity, both as determined in accordance with GAAP. Snail supplementally presents Bookings and EBITDA because they are key operating measures used by management to assess financial performance. Bookings adjusts for the impact of deferrals and, Snail believes, provides a useful indicator of sales in a given period. Management believes Bookings and EBITDA are useful to investors and analysts in highlighting trends in Snail’s operating performance. At the same time, other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which Snail operates, and capital investments. Bookings is defined as the net amount of products and services sold digitally or physically in the period. Bookings is equal to revenues, excluding the impact from deferrals. Below is a reconciliation of total net revenue to Bookings, the closest GAAP financial measure. We define EBITDA as net income (loss) before (i) interest expense, (ii) interest income, (iii) provision for (benefit from) income taxes and (iv) depreciation expense. The following table provides a reconciliation from net income (loss) to EBITDA: Webcast Details The Company will host a webcast at 4:30 PM ET today to discuss its second quarter 2026 financial and operational results. Participants may access the live webcast and replay via the link here or on the Company’s investor relations website at https://investor.snail.com/. About Snail, Inc. Snail, Inc. (Nasdaq: SNAL) is a leading, global independent developer and publisher of interactive digital entertainment for consumers around the world, with a premier portfolio of premium games designed for use on a variety of platforms, including consoles, PCs, and mobile devices. For more information, please visit: https://snail.com/. Forward-Looking Statements This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “may,” “predict,” “continue,” “estimate” and “potential,” or the negative of these terms or other similar expressions. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding Snail’s intent, belief or current expectations. These forward-looking statements include information about possible or assumed future results of Snail’s business, financial condition, results of operations, liquidity, plans and objectives. The statements Snail makes regarding the following matters are forward-looking by their nature: recent game launches and the Company's broader slate of planned content establishing a strong foundation for the rest of the year; the Company's next generation of internally developed AAA titles serving as critical drivers of Snail’s long-term growth profile; the For The Stars and 9 Yin Sutra Immortal titles demonstrating meaningful development progress and growing visibility and moving through the later stages of development; the AI Ranch initiative and the development of the Non-Human Player (NHP) product; the Company's gaming pipeline being well-positioned to support the transformation of the Company's profile ;the Non-Human Player (NHP) having the potential to address key challenges casual and hardcore gamers face while creating a personalized AI companion that can help players enjoy and improve their gaming experience across multiple titles; and the outlook for the second half of 2026 remaining strong as Snail continues to execute across multiple gaming pipelines and business opportunities. Any forward-looking statements included herein reflect our current views, and they involve certain risks and uncertainties, including, among others, acceptance of our titles in the marketplace and the successful development, marketing or sale of our titles and our ability to retain our key employees or maintain our Nasdaq listing. These risks should not be construed as exhaustive and should be read together with the other cautionary statement included in our Annual Report on Form 10-K for the year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it was initially made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law.Investor Contact: John Yi and Steven ShinmachiGateway Group, [email protected]

Snail, Inc. SNAL is scheduled to release second-quarter 2026 results on Aug 11. The Zacks Consensus Estimate for SNAL’s second-quarter 2026 earnings per share (EPS) is pegged at 31 cents, indicating a 94.5% decline from $5.65 reported in the prior-year quarter. The consensus mark for earnings has witnessed downward revisions in the past 60 days. SNAL’s earnings have surpassed the Zacks Consensus Estimate in three out of the trailing four quarters and missed on one occasion, with an average beat being 2,808.4%. The consensus mark for second-quarter 2026 revenues is pegged at $29 million, indicating a 30.7% increase from the year-ago quarter’s reported figure. Our proven model does not predict an earnings beat for Snail this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. SNAL’s Earnings ESP: SNAL has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Snail Zacks Rank: The company carries a Zacks Rank #4 (Sell) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Snail is likely to have benefited from a strong slate of ARK-related content in the second quarter, with player engagement and monetization potentially receiving a lift from new releases. The company had planned the Fantastic Tames Season 1 Expansion Pack for May and ARK Tides of Fortune for June, providing fresh content for ARK: Survival Ascended during the quarter. The franchise entered the period with solid momentum, as ASA sold 1.4 million units in first-quarter, helped by promotional activity and the success of the Lost Colony DLC. A major potential catalyst for second-quarter 2026 revenue is the planned release of the ASA remake of ARK Genesis Part 1. Snail expects this launch to trigger recognition of roughly $11 million of revenues that had previously been deferred. The revenue recognition could therefore create a meaningful year-over-year increase in quarterly sales, particularly alongside contributions from other ARK content. Bellwright could provide another source of revenue growth, supported by the positive response to its late-2025 content update. The title helped drive first-quarter 2026 performance, while the company’s broader portfolio of indie games and licensed properties provides additional revenue opportunities. Snail also has a number of ARK-related releases and other projects scheduled across 2026, which should help broaden its revenue base beyond the core franchise. On the downside, declining revenues from ARK Mobile and ARK: Survival Evolved could temper the overall improvement in sales. Profitability might have faced pressure from continued investment in Snail’s expanding game pipeline. The company is advancing three AAA titles while simultaneously funding ARK DLCs and other projects.  Although management said it remains disciplined on spending, elevated development activity could continue to weigh on the bottom line in second-quarter 2026. Shares of Snail have surged 105.2% in the past three months against the industry’s decline of 16.3%. The stock has also outperformed other industry players like Take-Two Interactive Software, Inc. TTWO and Playtika Holding Corp. PLTK, as shown in the chart. Image Source: Zacks Investment Research From a valuation standpoint, SNAL trades at a forward price-to-sales (P/S) multiple of 0.36, above the industry’s average of 1.85. Conversely, industry players, such as Take-Two Interactive Software and Playtika Holding, have P/E multiples of 5.21 and 0.4, respectively. Image Source: Zacks Investment Research Given the sharp recent rally, the lack of a favorable earnings signal and the company’s continued investment requirements, investors may want to remain cautious on SNAL ahead of its second-quarter results. Although ARK content and the expected recognition of deferred revenues could support sales, the company remains heavily reliant on the ARK franchise while older titles face pressure. At the same time, advancing multiple AAA projects and developing additional content could keep costs elevated and limit bottom-line improvement. The absence of a positive earnings surprise signal further reduces the near-term catalyst for the stock. With the shares already having rallied strongly, expectations appear elevated, leaving greater scope for disappointment if quarterly execution or the outlook falls short. Overall, the combination of potential earnings pressure, continued development spending, dependence on ARK and limited near-term visibility makes it prudent for investors to avoid SNAL ahead of the second-quarter results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snail, Inc. (SNAL) : Free Stock Analysis Report Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report Playtika Holding Corp. (PLTK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

US stocks ended mostly lower on Wednesday as investors took a breather after two strong sessions, with rising oil prices and caution ahead of a wave of closely watched earnings keeping buying in check. The Dow Jones finished little changed, slipping 6 points to 52,219. The S&P 500 fell 10 points, or 0.1%, to 7,499, while the Nasdaq underperformed, dropping 146 points, or 0.6%, to 25,691. Trading was uneven throughout the session as investors stepped back from the artificial intelligence and semiconductor stocks that had powered the market's recent rebound. After two days of solid gains, traders appeared content to lock in profits while waiting for the next major catalyst. Attention now shifts to a busy slate of earnings due after the closing bell, led by Tesla and Alphabet, whose results are expected to provide fresh insight into both AI spending and consumer demand. IBM, ServiceNow, Southwest Airlines and Wyndham Hotels & Resorts are also scheduled to report, adding to what is shaping up to be one of the busiest weeks of the earnings season. Meanwhile, higher oil prices added another layer of caution to the market, raising concerns that persistent strength in energy could complicate the inflation outlook. Custom Health Holdings Inc (TSX:CHLT) signed a binding letter of intent to acquire Evergreen Pharmacy in a US$3.5 million deal expected to add more than US$78 million in annual revenue. Varon Corp (OTCID:OZSC) announced that its Ballislife Drink joint venture signed a multi-year exclusive agreement to distribute Ballislife HYDRO Sports Drink across Canada, beginning with a C$100,000 purchase order. Aftermath Silver Ltd (TSX-V:AAG, OTCQX:AAGFF, FRA:FLM1) has launched new drilling programs at its Berenguela project in Peru and its Challacollo project in Chile to expand copper, silver and gold mineralization. Snail Inc (NASDAQ:SNAL) said it will attend Gamescom 2026 in Germany, where it plans to showcase its growing game portfolio and unveil a previously undisclosed title. TNR Gold Corp (TSX-V:TNR, FRA:TNW, OTC:TRRXF) announced that Altius Minerals increased its strategic stake in the company by purchasing an additional 7.435 million shares, bringing its total holdings to about 30.94 million shares. Super Micro Computer Inc (NASDAQ:SMCI) shares surged about 20% after the AI server maker reported stronger-than-expected preliminary fourth-quarter gross margins and a record order backlog. AT&T Inc (NYSE:T, XETRA:SOBA) shares rose 4.3% after the telecom company reported second-quarter earnings that beat expectations, supported by strong postpaid phone and broadband subscriber growth. Oatly Group (NASDAQ:OTLY) shares jumped 29% after the oat drink maker reported stronger second-quarter revenue, improved margins, progress toward profitability and raised its full-year revenue outlook. Pegasystems shares fell about 15% after the enterprise software company reported second-quarter earnings and revenue that missed Wall Street expectations. GE Vernova shares declined about 6.4% after widening losses in its wind business overshadowed better-than-expected quarterly revenue and record order growth. Custom Health Holdings Inc (TSX:CHLT) signed a binding letter of intent to acquire Evergreen Pharmacy in a US$3.5 million deal expected to add more than US$78 million in annual revenue. Rocket Lab USA Inc (NASDAQ:RKLB) shares gained about 3% after the company secured a US$266 million contract from the US Air Force and US Space Force to provide suborbital launch services. Varon Corp (OTCID:OZSC) announced that its Ballislife Drink joint venture signed a multi-year exclusive agreement to distribute Ballislife HYDRO Sports Drink across Canada, beginning with a C$100,000 purchase order. Aftermath Silver Ltd (TSX-V:AAG, OTCQX:AAGFF, FRA:FLM1) has launched new drilling programs at its Berenguela project in Peru and its Challacollo project in Chile to expand copper, silver and gold mineralization. Alphabet Inc (NASDAQ:GOOG) (Alphabet Inc (NASDAQ:GOOG)) reports second-quarter results after Wednesday's close, with Wall Street bracing for a print that could either validate the company's AI spending spree or intensify investor unease about it. Bank of America is firmly in the bullish camp, reiterating its Buy rating and raising earnings estimates ahead of the print. The bank projects revenue of $102.1 billion and EPS of $8.38, both well above Street consensus of $101 billion and $2.90. Much of that EPS gap traces to an estimated $80 billion boost to operating income from the revaluation of Alphabet's stake in Anthropic, whose valuation climbed from $380 billion in the first quarter to $965 billion in the second. Capital spending remains the swing factor. Alphabet already guided full-year 2026 capex to $180 billion to $190 billion, and Bank of America thinks that range could climb another 5%, to $190 billion to $200 billion, given accelerating AI demand and rising memory costs. Tesla Inc (NASDAQ:TSLA) (Tesla Inc (NASDAQ:TSLA)) reports second-quarter results after the bell Wednesday, and the numbers investors already have in hand tell a split story: a blowout on deliveries, a question mark on spending. The bigger debate on the call is likely to center on what Tesla is doing with its money, and its robots. The company set aside a $25 billion capital budget for 2026 to fund AI infrastructure and Optimus development, a spending pace analysts expect to push free cash flow to roughly negative $3.25 billion for the quarter. Shares were flat Wednesday heading into the release. Super Micro Computer Inc (NASDAQ:SMCI) (Super Micro Computer Inc (NASDAQ:SMCI)) shares opened about 20% higher on Tuesday after the company released preliminary fourth quarter fiscal 2026 results showing significantly stronger-than-expected gross margins and a record order backlog, despite revenue tracking near the low end of its guidance. The AI server maker said revenue for the quarter ended June 30 is expected to be near the lower end of its previously issued guidance range of $11.0 billion to $12.5 billion. Wall Street analysts had been expecting revenue of about $11.73 billion. The company also reported receiving more than $60 billion in new orders during the quarter, lifting its backlog to a record level at the end of fiscal 2026. Supermicro said the orders are expected to be delivered over future quarters. There has been another uneven open on Wall Street, with investors selling out of technology stocks ahead of key earnings from Alphabet and Tesla after the close. The Dow Jones has opened up 225 points, or 0.4%, while the Nasdaq fell 0.2%, with the S&P 500 oscillating around the flatline. Industrial and defensive names led the Dow gains, with Honeywell, Verizon, 3M and Chevron the top risers. Meanwhile, the Nasdaq's fall resulted from declines in semiconductor and AI-linked stocks, with AppLovin, SanDisk, Workday, Palantir and Lam Research leading falls as investors take profits after the rally yesterday. An exception is Super Micro Computer, which jumped over 20% after the company released preliminary results showing significantly stronger-than-expected gross margins and a record order backlog, despite revenue tracking near the low end of its guidance. Wall Street stocks looked set for a weaker open on Wednesday as investors lock in profits in technology stocks ahead of crucial earnings from Google owner Alphabet and Tesla, while escalating tensions in the Middle East push oil prices to six-week highs. Dow Jones futures were down 0.2%, while the S&P 500 was called 0.4% lower and the hardest hit is expected to be the Nasdaq, where futures have dropped 1%, with chipmakers leading the pre-market declines after a sharp rebound in the previous session. The cautious mood follows a strong rally the day before, when the Dow Jones rose 380 points, or 0.7%, to 52,443, the S&P 500 gained 0.9% to 7,546, and the Nasdaq climbed 1.3% to 29,316, helped by a powerful recovery in semiconductor stocks after weeks of heavy selling. Earnings from Alphabet and Tesla are due after the bell, with analysts seeing these as key tests for the artificial intelligence trade. Markets will be watching Alphabet for updates on AI-related capital spending and monetisation, while Tesla's results are expected to provide fresh detail on autonomous driving, robotics and vehicle demand. Results from Texas Instruments, IBM and ServiceNow will also be closely watched in the evening, while Philip Morris, GE Vernova and AT&T report before the opening bell. Chip stocks were under pressure in pre-market trading as investors took profits following a 5.5% jump in the sector the previous session. Semiconductor stocks have been under heavy pressure in recent weeks as hedge funds aggressively unwound crowded AI trades, driving the sector around 25% below its early June peak. Tuesday's rebound came as "the Momo guys [momentum traders] ran out of stock to sell, so the pressure was off," said market strategist Kenny Polcari at Slatestone Wealth, suggesting the wave of forced selling may have largely run its course. Meanwhile, Brent crude traded above $94 a barrel after another night of US strikes on Iranian targets and renewed threats to shipping routes in the Middle East from Yemen. The stronger oil price has revived concerns that inflation could prove more persistent, complicating the Federal Reserve's policy outlook just as investors had begun to scale back expectations of further interest-rate increases. "10 straight days of US strikes and continued attacks on military targets have kept a geopolitical premium firmly embedded in oil prices and that will become more of an issue next month and the months after," said Polcari. There is little in the way of economic data due on Wednesday, putting more of the onus on corporate earnings and developments in the Middle East.

Image source: The Motley Fool. Mar. 19, 2026 at 1 p.m. ET Senior Vice President, Director of Business Development and Operations — Peter Kang Chief Financial Officer — Heidy Kingwan Chow Chief Executive Officer — Shi Hai Peter Kang, Senior Vice President, Director of Business Development and Operations of Snail. Sir, please proceed. Peter Kang: Thank you. Good afternoon, everyone. Thank you for joining us today to review our financial and operational results for the fourth quarter and full year ended December 31, 2025. The fourth quarter capped a pivotal year for Snail and the ARK franchise. We closed 2025 with several key milestones, including the successful launch of ARK: Lost Colony DLC, the debut of a robust multiyear content pipeline for ASA and meaningful advances across our broader portfolio and initiatives. Since ASA's launch in 2023, the remastered title primarily focused on updates, which centered on introducing targeted features, improving game stability and ongoing polishing. While these enhancements in the release of ARK Astraeos and ARK: Bob's Tall Tales strengthened the foundation and experience of the game, we have not yet released a full-scale expansion pack that truly brought into the narrative, game play depth or overall scope of the ASA experience to fully realize its long-term engagement potential. ARK: Lost Colony changed that trajectory. Released last December, Lost Colony represents the first of many major stand-alone DLCs designed specifically to expand the ASA universe and deliver the kind of immersive content-rich experience our global community has been anticipating. We were very encouraged by the early response of the DLC with presale demand exceeding our internal projections and reinforcing the consumer appetite for deeper ASA content. More broadly, 2025 was a momentum-building year for ASA. Since launch, the title surpassed 4 million units sold, supported in part by a meaningful acceleration in Steam, PlayStation and Xbox downloads during the second quarter of the past year. Taken together, the traction we see across our titles and the sustained levels of player engagement continue to reinforce the durability and long-term strength of the ARK franchise. During the fourth quarter, ASA delivered strong performance with approximately 692,000 units sold, an average DAU of over 91,000 and a peak DAU of over 147,000. ASE also remained a consistent contributor with approximately 580,000 units sold in the quarter, average DAU of roughly 105,000 and peak DAU of about 137,000. Meanwhile, ARK Mobile surpassed a major milestone of 10 million cumulative downloads and sustained an average DAU of approximately 130,000. Building on the strength of ASA's fourth quarter performance and the steady consistent result from both ASE and ARK Mobile, we are entering a content-rich and strategically important period for the ARK franchise, with ASA at the center of this next phase. During our December 2025 Investor Day, we outlined the next chapter of ASA's growth trajectory. The event featured Studio Wildcard Co-Founder, Jeremy Stieglitz, who unveiled a comprehensive multiyear content road map for ASA that includes a robust slate of DLCs and content expansions designed to deepen the ASA universe, elevate engagement and support durable long-term growth for the franchise. Beginning in 2026, we plan to release 4 major DLCs and content updates, including the ARK: Survival of the Fittest remake followed by ARK: World Creator, ARK: Bob's True Tales - Tides of Fortune and ARK: Dragontopia to close out the year. Looking ahead in 2027, we plan to launch ARK: Atlantis, ARK: Bob's True Tales - Galaxy Wars and ARK: Legacy of Santiago. In total, these 7 significant releases represent one of the most ambitious expansion cycles ever planned for ASA and provide snow with meaningful revenue visibility through 2027. Just last week, during the 2026 Game Developers Conference, we held a private invite-only event to provide additional insights into the timing of some of these upcoming content releases. Jeremy Stieglitz has kicked off the event with new details on ARK: World Creator, Bob's True Tales - Tides of Fortune and Dragontopia. ARK: World Creator is a brand-new in-game content creation tool for ASA that will support both console and PC players. Up till now, user-generated content in ARK was largely limited to PC players using external tools. World Creator removes this barrier and broadens the accessibility of user-generated content to console players as well. While this is not a paid for DLC or expansion pack, ARK: World Creator introduces a wealth of new personalized content tailored to each player's preference, and we hope to further drive long-term engagement on ASA. We are targeting a May release for this new feature. Following that is the launch of ARK: Bob's True Tales - Tides of Fortune DLC scheduled for June, along with the free revamped Genesis Part 1 map for ASA. We also debuted an event exclusive trailer highlighting the renewed look for ARK survival of the finish and provided details around the upcoming ARK: Dragontopia scheduled for December 2026. Separate from ASA, we were pleased to introduce PixARK Worlds, a new title and development featuring advanced user-generated content designed to expand the ARK universe onto Nintendo Switch 2 console. Needless to say, we are thrilled about the opportunities 2026 presents Snail as we continue to elevate the ARK franchise globally for players across both PC and consoles. Beyond ARK, we also announced several updates across our broader gaming portfolio. Starting with our indie portfolio, we unveiled a brand-new title, Gobby Gang, during the GDC. Additional indie titles in the pipeline include Stoneguard, Above The Snow and Survivor Mercs, to name a few. We also recently celebrated Bellwright surpassing 1 million units sold. In 2026, we will be launching Bellwright's console ports to Xbox and PlayStation, while we're working towards the eventual 1.0 release. We will also see Honeycomb in 2026 for a full 1.0 launch across PC and console platforms. Lastly, we are pleased to announce the significant progress made across 3 developing titles For The Stars, Nine Yin Sutra: Immortal, and Nine Yin Sutra: Wushu. These 3 titles are all AAA projects, meaning they are high budget, high-profile games designed to deliver expansive worlds cutting-edge visuals and strong marketing campaigns that far exceed typical games we have launched and licensed. As a reference, ARK is considered a AAA game as well. While the 3 games I mentioned are smaller in scale than ARK, these titles offer immense upside potential. We have invested considerable time and resources into each game, and they are now in the final stages of their development cycle. We believe we are approaching the point where our long-term investment can fully realize its potential, and we look forward to sharing updates as we make progress throughout the year and into 2027. At GDC, we shared an event exclusive trailer and early concept ARK: For The Stars, providing a deeper look at the title's open universe exploration, player-driven research systems and evolving frontier civilization themes. We believe Snail is well positioned for meaningful upside over the next 2 years with ARK remaining the cornerstone of Snail, supported by a rich pipeline of content, continued investment in our indie titles and 3 upcoming AAA games with substantial upside. We are excited about our trajectory and remain committed to delivering consistent long-term results. With that, I will now turn the call over to Heidy to discuss our financial results for the fourth quarter and full year ended December 31, 2025. Heidy? Heidy Kingwan Chow: Thank you, Peter, and good afternoon, everyone. Thank you all for joining us today as I review our financial results for the fourth quarter and full year ended December 31, 2025. Net revenue for the fourth quarter was $25.1 million compared to $26.2 million in the same period last year. The decrease was primarily due to a decrease of deferred revenues that were recognized during 2025 of $3.5 million that were partially offset by our increased sales of the ARK franchise of $1.3 million and our Bellwright franchise of $1.2 million. On a sequential basis, we are pleased to see Q4 net revenue increased 82% compared to $13.8 million in Q3 2025. Net revenues for the full year ended December 31, 2025, were $81.2 million compared to $84.5 million in the same period last year. The decrease was primarily due to a decrease in recognition of deferred revenue of $15.5 million related to the ARK franchise, decrease in Bellwright and Myth of Empire sales of $1.5 million and $1.3 million, respectively, offset by an increase in ASA sales of $11.3 million, ARK Mobile sales of $2.4 million and revenue generated from SaltyTV app of $800,000. Net loss for the fourth quarter was $900,000 compared to a net income of $1.1 million in the same period last year. The decrease was primarily due to a decrease in gross profit of $1.7 million and an increase in operating expenses of $2.8 million, partially offset by an increase in other income of $2 million and a benefit from income taxes of $500,000. On a sequential basis, net loss improved significantly compared to the $7.9 million net loss in Q3 2025. Net loss for the full year ended December 31, 2025, was $27.2 million compared to net income of $1.8 million in the same period last year, primarily due to a noncash tax expenses related to the full valuation of our deferred tax assets of $10.1 million, increase in general and administrative expenses of $5.2 million, increase in research and development of $2.9 million, increase in advertising and marketing of $3.7 million and impairment expenses of $1.5 million. EBITDA for the fourth quarter was loss $1.3 million compared to $1.6 million in the same period last year. The decrease was primarily due to the increase in operating expenses of $2.8 million. EBITDA for the full year ended December 31, 2025, was lost $16.8 million compared to $3.2 million in the same period last year. The decrease was primarily due to the increase in general and administrative expenses of $5.2 million, increase in research and development of $2.9 million, increase in advertising and marketing of $3.7 million and impairment expenses of $1.5 million. While we experienced some one-off nonrecurring headwinds during Q2 and Q3, we continue to reaffirm the strong fundamentals of the small business. For the year, total units sold increased 32.7% to $6.3 million compared to 4.7 million units in the same period last year. This growth was primarily driven by an increase of 1.7 million units sold across the ARK franchise, partially offset by a combined decrease of approximately 100,000 units in Bellwright and West Hunt sales. Bookings for the fourth quarter increased to $20.8 million compared to $17 million in the same period last year. The increase was primarily driven by a lower portion of our sales deferred in 2025. Changes in deferred revenue decreased by $4.9 million, while our net revenue decreased of $1.1 million. Bookings for the full year ended December 31, 2025, increased 16.2% to $87.8 million compared to $75.7 million in the same period last year. The increase was primarily due to an increase of ASA sales driven by the launch of ARK: Lost Colony, ARK: Astraeos and ASE's first sales event in June 2025 since the price drop in August 2023. Especially with the robust ARK content pipeline for the next 2 years, we do expect bookings to continue growing on a quarterly basis while adjusting for gradual content launches coming off the backlog. Lastly, as of December 31, 2025, unrestricted cash was $8.6 million compared to $7.3 million as of December 31, 2024. To review our detailed financial statements, please refer to the earnings press release and the Form 10-K filed with the SEC. To close out the call, I would like to reiterate a few of the points Peter highlighted surrounding the significant momentum we carried out of 2025. As Peter mentioned, the latter half of 2025 was an especially exciting period for Snail and our ARK franchise. The increased visibility of the ARK pipeline, we have provided put us in a strong position to deliver consistent annual results over the next 2 years. We also remain strategic and committed to expanding our broader game portfolio. We continue to invest in smaller titles such as Bellwright, Honeycomb and our indie games, while also advancing our international films business. As of Q4 end, SaltyTV had released over 100 short-film dramas. Interactive films also expanded beyond short-form content into narrative-driven game development, which is a direction we expect to continue moving forward. Importantly, our 3 upcoming AAA titles have reached the final stages of their development cycle. We believe these projects offer tremendous upside for the company, and we have dedicated as much time and resources to meet the potential these games hold. We expect profit margins to remain meaningful, higher than what we typically see with external license titles. Additionally, the expensive content for each title supports a strong overall game lifespan. Beyond our gaming business, we also minted the first official U.S. deal stablecoin during our December Investor Day event. We are currently working towards a potential partnership opportunity tied directly to our stablecoin business, and we look forward to share more details later this year. 2026 and 2027 represent an exciting period for Snail as we further prove our standing in the broader digital entertainment ecosystem. The time and resources invested across many of our projects and initiatives are beginning to bear fruit, and we remain focused on executing our strategy to drive long-term sustainable growth. Thank you all for joining us today. We will now open the line for Q&A. Operator? Operator: [Operator Instructions] Our first question comes from the line of Michael Kupinski with NOBLE Capital Markets. Michael Kupinski: I have a couple of quick questions. What is the deferred revenue balance in the quarter? Could you just give me that number? If you have it, Heidy. Heidy Kingwan Chow: Thank you, Michael. Our deferred revenue number, I think, is stated on our 10-K, I think, around $30 million. Michael Kupinski: Okay. And I was wondering if you could give us an update. I know that we talked about this in the past about the technology gap. Is that still persistent? Are they -- or have there been some changes there? Heidy Kingwan Chow: Good question, Michael. I'll defer this question to our CEO, Mr. Hai Shi. He will answer that in Chinese, and I will have a translator as well. Shi Hai: [Interpreted] Mr. Shi stated that he became full-time CEO at Snail Inc. in 2024. And the main goal for Mr. Shi was to make sure that he could revamp the overall system for Snail as a publicly listed company so that Snail's main focus could shift from a company that mainly publishes external games to have its own production pipelines, especially for game development side. So to answer your question, out of the entire Snail system, one of the important projects is For The Stars or FTS. And initially, we're using our internal proprietary game engine is called Flexi Engine to develop that game. And the advantage of Flexi Engine includes its server management processing capabilities for big data as well as data security. However, compared to Unreal Engine, we can see that there's disadvantages for Flexi Engine for rendering as well as efficiency. So as a result, we upgraded our engine to Unreal at the end of 2024. So now we're still using Flexi Engine to support the server side. And for the client side, since we really want to create the secure shaped planets in games and also want to make sure that we have different mobile terrains, which for Unreal, there's not yet enough mature plug-ins to support that kind of goals. So right now, we're overusing Unreal Engine and it's working very well for us, especially that we have a very good server support and client-side support and also we can guarantee efficiency in development. And there recently, we have fully upgraded to Unreal Engine 5.7. So right now, we don't see any technology -- technical gap in game development anymore. Michael Kupinski: Terrific. If I could slip in just a couple of quick ones. Do you have a launch window for your AAA games at this point? Heidy Kingwan Chow: Thank you, Michael. I'll defer that to our CEO, Mr. Hai Shi. Shi Hai: [Interpreted] So actually, our internal development system has been fully transformed and built in the past 2 years. So right now, it's a great timing for us. So before, Snail only had 1 internal development studio. However, now we already have 4 development studios. And out of these 4, 3 of them are working on their own in-house projects. And for one of the studios, because the revenue trend is very positive. So it's looking like we will be able to double the revenues of last year. So we are doing a very successful job at studio development. And then we have this ambitious goals for the internal -- 3 internal in-house titles that we're working on right now. We are looking at about tens of millions of revenues here. So all of these 3 in-house IPs will be immense IPs. We are aiming to achieve $5 million -- $500 million in overall revenues for each IP. So the first IP is For The Stars. This is a space-themed game. So For The Stars, if for any mature gaming companies, if they're able to achieve a game of this size, then they will be able to also gain great revenues out of the projects. For example, we have Starfield, No Man's Sky and Star Citizen. We have spent 3 years on the development of For The Stars and now we are folding in on the development cycle. The core development team is based in the U.S. Some of the production tasks are taken over by the Poland studio. [indiscernible] and some of the tasks were outsourced to our Chinese teams. So the development cycle of this game includes 8 sprints in total. By the end of this year, we are anticipating that we will start external testing or public testing of the game. Actually, we have initially showcased the game at GDC, and we will show more in-game capture in the later half of this year. And For The Stars, we're able to achieve all the streams of all the players who are passionate about space games. So actually, the other 2 IPs were based off of the successful IP that we have released in the past in China. In the IP's name is Nine Sutra. This is coming from the Chinese culture. And in the past dozen of years, the IP has generated more than or about USD 800 million in revenue. So for these 2 IPs, the first one is Nine Sutra Immortal. We are seeing that there is still great market potential market to tap into, especially because this is a new genre for the gaming industry because so far, there's no real cultivation or cultivation games yet out on the market. We want to put in just the same efforts as we used to -- just like how we develop the Chinese Nine Sutra games. For the second IP under Nine Sutra, it's called Nine Sutra Wushu. So in the past, for the Chinese IP Age of Wushu, there were not major changes or innovative changes in the original framework. However, now with Nine Sutra Wushu, we can consider it almost as a sequel of the original Chinese IP. We have implemented many different changes, and we are hoping that we can impress all the players. That's why we are very ambitious with this IP. For both of these IPs -- for both of the Nine Sutra IPs, we will start testing this year. We have also confirmed that we will showcase all these IPs -- or both of these Nine Sutra IPs in 3 major gaming events this year. They include [indiscernible], ChinaJoy and Gamescom, which means that we will have the campaign running of the full -- the entire year for these IPs. Michael Kupinski: Terrific. I really appreciate it. If I can slip one more question in. You have a very strong release road map through 2027. And I was wondering if you could just talk a little bit about the impact to margins, particularly as it relates to R&D and marketing spend. So if you could just talk a little bit about the marketing spend cadence around the upcoming launches. Heidy Kingwan Chow: Thank you, Michael. I'll defer the question for Mr. Shi to continue to answer the question. Shi Hai: [Interpreted] As Mr. Shi mentioned earlier, all of these 3 IPs are -- will be the main revenue drivers of our company, and they're all big IPs that we're working on. And to be more specific, we're hoping that the minimum we can have at least $60 million to $80 million in revenues from each IP. So that's why we also don't want to fully release the games until they're definitely ready, and then we have big hopes for the revenues of [ these IPs ]. So for our revenue growth in 2026, we're looking -- mainly looking at several different projects. The first one is Bellwright developed by Donkey Crew in Poland. So, so far, the revenues of Bellwright is performing quite well. And this year, we're going to release the console version of Bellwright. So -- and this genre is actually not yet present on consoles yet. And then based on the revenues in the first quarter, our projections is that the revenues after a console release can at least double the revenues of last year. All right. So it looks like -- based on the current performance of the rights, we can expect $12 million in revenues from Donkey Crew. The second one is Studio Sirens who worked on Aquatica last year. The product itself is quite decent. However, there were certain issues that might not be fully resolved in terms of the technologies, which might have caused concerns among the communities. But through developing this game, Studio Sirens is now more mature with their capabilities overall. And this year, they will work on ARK: Survival of the Fittest, which is the eSports game. And we're hoping that this game can bring a new peak to the ARK players and then also increase the revenues. So other than building our development teams in the public company, we also want to include more IPs into our company, which includes PixARK. We want Studio Sirens to take over the development for PixARK, which has made over $2 million last year. We have great hopes for Studio Sirens to work on this project because based on the past experience, they might go through a similar trajectory like Donkey Crew and can create millions of revenues in the future. Of course, Studio Sirens also has other plans and other projects to work on. But overall, we will not be at a loss with the studio anymore. The third studio is Matryoshka games. So in the past, Matryoshka games was involved in the combat development for Nine Sutra Immortal. Now this year, they are also working on their own project, which was announced at Gobby Gang. We have great hope for this project as well. Gobby Gang is more of a fastly-iterated project similar to Peak is under the friendslop genre. And then we have -- we are hoping that the game can perform very well on the market. If the game's performance is only medium, maybe we can at least sell about 1 million units. However, if you're able to actually achieve the expectations of the development team, then it should be easy for us to exceed the 1 million units target. We can probably even sell 10 million units. The fourth studio that we have is [indiscernible], which is based in Poland. Right now, they're helping with the -- For The Stars project, so they don't have their own projects to develop. And we have another company called Interactive Films. And then this year, we will also work on a lot more short dramas with this company. So last year, interactive films already produced over 100 short dramas. And then this year, we will add another additional 700 to 800 short drama projects. And then this year, interactive films will also come out with this interactive game that is [indiscernible] genre. And our goal for that interactive game is to sell around 5 million to 6 million units. However, we don't really have a successful experience in this field yet, so we cannot really guarantee that success. So our revenue growth for this year mainly comes from the previous mentioned areas and also from the games that we are publishing. And so basically, in general, the revenue will have a 20% to 30% of growth compared to last year. So you said that you're interested in the plan for 2027. However, most of the major actions will probably happen by then. And we hope that we can achieve something very great by the end of this year. If not, it will happen in 2027. Operator: Ladies and gentlemen, I'm showing no further questions in the queue. At this time, this concludes Snail Inc.'s Fourth Quarter and Full Year 2025 Conference Call. If your question was not taken, please contact Snail Inc.'s IR team at [email protected]. Thank you for your participation. You may now disconnect. 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See the 10 stocks » *Stock Advisor returns as of May 20, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Snail (SNAL) Q4 2025 Earnings Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by the ARK franchise's continued engagement, specifically the successful launch of the ARK Lost Colony DLC and Steam Winter Event momentum. Management is executing a strategic shift from a single-IP company to a fully integrated developer and publisher supporting multiple AAA franchises simultaneously. The company amended its ARK: Survival Ascended licensing agreement to reduce annual fees by $6 million, intending to reinvest these savings into the development of new titles. A 'two-product strategy' is being deployed for the Nine Yin Sutra IP to capture both long-time fans of the original MMORPG and a new generation of players interested in the cultivation genre. The development of 'For the Stars' utilizes a phased approach, starting with co-op gameplay before evolving into a large-scale MMO ecosystem to manage production complexity. Operational focus has shifted toward the final phases of development for three major AAA titles, which management views as a multi-year inflection point for the company. Management expects to recognize approximately $11 million in deferred revenue upon the official launch of the ARK Genesis Part 1 remake in June 2026. The content roadmap for the ARK franchise is now established through 2027, aiming to provide more predictable and stable growth compared to previous years. Revenue mix is expected to evolve significantly over the next few years as the company moves beyond its reliance on the ARK franchise toward its new AAA pipeline. The company plans to release two interactive games combining vertical dramas with gameplay in Q3 2026, with internal projections of 1 million units each. Future growth in the Nine Yin Sutra franchise is predicated on leveraging Unreal Engine 5 to deliver cinematic quality that addresses a decade of pent-up demand in the Chinese market. The company is transitioning its stablecoin business (USDO) from the building phase to launch readiness, involving complex multi-state money transmitter license applications. Management noted a decrease in revenue from legacy titles ARK Mobile and ARK: Survival Evolved as players migrate toward newer iterations. Operating expenses are being managed through a 'cost-conscious' approach despite the simultaneous development of multiple high-budget projects. The SaltyTV short-video business has expanded its content library by 5.7x through licensing and acquisitions to capture the emerging interactive drama market. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management identified approximately 11 upcoming releases for 2026, including three new tames, the Fantastic Tames Expansion Pack, and the Dragontopia release in December. The console ports for Bellwright on PlayStation and Xbox are also slated for release within the current year. The platform has grown to 279 IPs as of May 2026, primarily through licensing and internal development, with over 400,000 total downloads. The strategy involves merging vertical dramas with interactive gaming to drive short-term revenue while AAA titles remain in development. Management claims to be maintaining a cost-conscious profile despite multiple projects, though they did not provide a specific date for when expenses will moderate. The CEO emphasized that internal teams are handling the large-scale AAA projects to control costs. The USDO platform infrastructure is functionally complete, including wallet management and on-chain minting/burning capabilities. The company is pursuing three distribution channels, including a proprietary gaming digital goods platform and a crypto ATM network prototype.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is transitioning Snail from a single-IP company focused on ARK into a fully integrated developer and publisher supporting multiple global franchises. Revenue growth of 35.7% was primarily driven by ARK: Survival Ascended (ASA) and the successful launch of the Lost Colony DLC, alongside strong performance from Bellwright. The company has entered the final development phase for three AAA titles—For the Stars, Nine Yin Sutra: Immortal, and Nine Yin Sutra: Wushu—which are intended to compete in the same tier as ARK. Strategic diversification includes a 'two-product strategy' for the Nine Yin Sutra IP to capture both legacy MMORPG fans and the rapidly growing cultivation subgenre in the Chinese market. Operational efficiency was bolstered by amending software license agreements for ASA, which is expected to reduce annual licensing fees by $6 million. Management intends to reinvest the $6 million in annual licensing savings directly into the development of the upcoming AAA pipeline to accelerate the company's inflection point. Management anticipates a shift in revenue mix over the next few years as the company moves away from ARK-dependency toward a multi-franchise model. The ARK roadmap is secured through 2027, with the upcoming ASA Genesis Part 1 release expected to trigger the recognition of approximately $11 million in deferred revenue. For the Stars is being developed with a phased approach, starting as a co-op experience before evolving into a long-term MMO-style ecosystem. The company plans to leverage major industry events like Gamescom, Bilibili World, and ChinaJoy later in 2026 to unveil critical updates for the AAA pipeline. Guidance assumes continued stability in the core ARK franchise while scaling the indie portfolio and preparing for the launch of the new flagship titles. The SaltyTV short-form video business has expanded its content library by 5.7x, growing from 49 to 279 IPs through licensing and internal development. Management is integrating vertical dramas with interactive games, targeting 1 million units in sales for two interactive titles scheduled for Q3 2026 release. The USDO stablecoin project is moving from building to launch readiness, with money transmitter license applications currently progressing across multiple states. A proprietary gaming digital goods platform, Noise Digital Warehouse, will serve as the primary go-to-market channel for the USDO integration. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management identified approximately 11 content releases for the remainder of the year, including three new tames and the Genesis Part 1 remake for ASA. Key catalysts include the console ports for Bellwright on PlayStation and Xbox, alongside the release of the internally developed Gobby Gang. Management stated they remain 'cost conscious' despite working on multiple AAA projects and do not anticipate significant spikes in operating expenses. The company is utilizing internal development teams for large-scale projects to manage costs while pursuing short-term revenue through vertical dramas and interactive games. The USDO platform infrastructure is functionally complete, including wallet management, on-chain minting/burning, and KYC verification. Distribution will occur through three parallel channels: the Noise Digital Warehouse, a crypto ATM network with a functional prototype, and a digital marketplace currently in internal testing.

Playtika Holding (PLTK) came out with quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -40.03%. A quarter ago, it was expected that this mobile game developer would post earnings of $0.14 per share when it actually produced earnings of $0.24, delivering a surprise of +71.43%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Playtika, which belongs to the Zacks Gaming industry, posted revenues of $744.7 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 8.31%. This compares to year-ago revenues of $706 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Playtika shares have lost about 9.6% since the beginning of the year versus the S&P 500's gain of 7.6%. While Playtika has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Playtika was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.11 on $686.05 million in revenues for the coming quarter and $0.57 on $2.77 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Gaming is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Snail, Inc. (SNAL), is yet to report results for the quarter ended March 2026. This company is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of -250%. The consensus EPS estimate for the quarter has been revised 200% higher over the last 30 days to the current level. Snail, Inc.'s revenues are expected to be $18 million, down 10.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Playtika Holding Corp. (PLTK) : Free Stock Analysis Report Snail, Inc. (SNAL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

PENN Entertainment (PENN) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to a loss of $0.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +131.58%. A quarter ago, it was expected that this casino operator would post a loss of $0.23 per share when it actually produced earnings of $0.07, delivering a surprise of +130.43%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. PENN Entertainment, which belongs to the Zacks Gaming industry, posted revenues of $1.78 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.92%. This compares to year-ago revenues of $1.67 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. PENN Entertainment shares have added about 0.1% since the beginning of the year versus the S&P 500's gain of 4.3%. While PENN Entertainment has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for PENN Entertainment was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.35 on $1.82 billion in revenues for the coming quarter and $1.01 on $7.27 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Gaming is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Snail, Inc. (SNAL), another stock in the same industry, has yet to report results for the quarter ended March 2026. This company is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of -250%. The consensus EPS estimate for the quarter has been revised 200% higher over the last 30 days to the current level. Snail, Inc.'s revenues are expected to be $18 million, down 10.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PENN Entertainment, Inc. (PENN) : Free Stock Analysis Report Snail, Inc. (SNAL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research