Back to top

Image: Bigstock

Snail Q1 Earnings & Revenues Surpass Estimates, Stock Down

Read MoreHide Full Article

Snail, Inc. (SNAL - Free Report) reported first-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year, while the bottom line declined from the prior-year quarter’s figure. Following the results, SNAL’s shares lost 2.5% in the after-hours trading session yesterday.

For the first quarter, the company reported robust user engagement. Daily active users on Steam and Epic platforms climbed 16% year over year to 243,000, driven by the release of new maps and DLCs for ARK: Survival Evolved, ARK: Survival Ascended and the mobile version. The franchise’s mobile title, ARK: Ultimate Mobile Edition, has maintained solid momentum since its launch last quarter, helping broaden the ARK audience by removing hardware limitations and attracting a wider player base.

In a strategic move to diversify its content offerings beyond gaming, the company signed a memorandum of understanding with Mega Matrix to co-develop at least 10 short dramas. To support this effort, Snail soft-launched Salty TV. As the company works to finalize this agreement, it remains focused on expanding its global footprint, driving scalable growth and delivering innovative, cross-platform experiences across gaming and entertainment throughout the remainder of 2025.

SNAL’s Q1 Earnings & Revenues

For the first quarter of 2025, SNAL reported an adjusted loss per share of 6 cents, narrower than the Zacks Consensus Estimate of a loss of 11 cents. The company reported an adjusted loss per share of 5 cents in the prior-year quarter.

Snail, Inc. Price, Consensus and EPS Surprise

Snail, Inc. Price, Consensus and EPS Surprise

Snail, Inc. price-consensus-eps-surprise-chart | Snail, Inc. Quote

Quarterly revenues of $20.1 million beat the consensus mark of $18 million by 11.7%. The top line increased 42.5% from $14.1 million reported in the year-ago quarter. The upside was driven by a $2.7 million rise in total ARK sales and a $1.3 million boost in ARK Mobile sales, fueled by the launch of ARK: Ultimate Mobile Edition.

During the quarter, bookings totaled $22.2 million compared with $19.6 million reported in the prior-year quarter. The upside was largely attributed to the release of the ARK: Survival Ascended DLC Astraeos in early 2025, along with the prior-year launches of Bob’s Tall Tales and Bellwright in the latter part of 2024.

Snail’s Q1 Operating Highlights

During first-quarter 2025, gross profit came in at $5.8 million compared with $2.1 million reported in the prior-year quarter.

Net loss in the first quarter came in at $1.9 million compared with $1.8 million reported in the prior-year quarter. The decline was primarily due to increased cost of revenues and operating expenses, reflecting expanded headcount as well as elevated research, development and marketing spending.

EBITDA during the quarter came in at a loss of $3.2 million, compared to a loss of $1.9 million in the prior-year period. The decline was mainly due to a $1.0 million increase in income tax benefit, a $0.3 million reduction in interest expense and a $0.1 million rise in net loss. These factors were partially offset by a $0.1 million decline in both interest income and interest income from related parties.

Balance Sheet

As of March 31, 2025, cash and cash equivalents amounted to $9.3 million compared with $7.3 million as of Dec. 31, 2024.

SNAL’s Zacks Rank

Snail currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Consumer Discretionary Releases

Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported first-quarter 2025 results, with earnings and revenues missing the Zacks Consensus Estimate. Both the top and bottom lines decreased on a year-over-year basis.

Results in the quarter were hurt by a 2% decline in Capacity Days, stemming from a higher number of Berths out of service due to larger ships undergoing dry-dock, as well as a strategic move to reduce passenger air participation rates. For 2025, Norwegian Cruise anticipates occupancy to be approximately 102.5% compared with the prior guidance of 103.4% and Capacity Days to be about 24.545 million.

MGM Resorts International (MGM - Free Report) reported first-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines declined from the prior-year quarter’s level.

Management remains optimistic about the outlook for the rest of 2025, supported by strong forward bookings and expectations for record hotel performance in April on the Las Vegas Strip. MGM Resorts stated progress on the $200 million EBITDA enhancement plan and expects more than $150 million to be realized in 2025.

Caesars Entertainment, Inc. (CZR - Free Report) reported mixed first-quarter 2025 results, with earnings missing the Zacks Consensus Estimate and revenues surpassing the same. Nonetheless, both the top and bottom lines improved on a year-over-year basis.

Caesars Entertainment’s first-quarter performance was driven by record results in the Digital segment. Growth in the regional segment, supported by recently opened properties and solid performance in Las Vegas, despite a tough comparison to last year’s Super Bowl period, also aided the quarter’s performance.

Published in