Snail Q2 revenue falls on lower ARK franchise sales

Snail

11/08/2026 21:21

Overview
US digital entertainment developer's Q2 revenue fell yr/yr, driven by lower ARK franchise sales
Q2 net loss narrowed 81.6% yr/yr, helped by lower income tax provision and improved gross profit
Company continues to invest in new AAA titles and AI gaming initiatives

Outlook
Company expects strong outlook for second half of 2026 driven by new content releases
Snail plans to release multiple ARK franchise DLCs and new titles through 2027
Company continues to invest in internally developed AAA titles and AI gaming initiatives

Result Drivers
ARK FRANCHISE DECLINES - Lower sales of ARK: Survival Ascended, ARK: Survival Evolved, and ARK: Ultimate Mobile Edition drove revenue decrease
BELLWRIGHT LAUNCH - Increased revenue from Bellwright partially offset ARK franchise declines

Company press release: ID:nGNX6MCWhQ

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$19.70 mln
$29 mln (1 Analyst)
Q2 Net Loss
 
$3 mln
 
Q2 EBITDA
 
-$3 mln
 

Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Snail Inc is $87.50, about 1,835.8% above its August 10 closing price of $4.52
The stock recently traded at 1 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads
Aug 11 - Playstudios Q2 revenue misses estimates on legacy portfolio pressure 
Aug 10 - GameSquare Q2 revenue jumps 137% on recent acquisitions 
Aug 10 - China's Sohu.com Q2 revenue rises on growth in online gaming

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)