Snail Inc posts Q4 net loss, partly hurt by higher operating expenses

Overview

• Interactive entertainment developer's Q4 revenue fell yr/yr to $25.1 mln on lower deferred revenue

• Company posted Q4 net loss of $0.9 mln, versus net income year ago

• Q4 EBITDA was negative $1.3 mln, vs positive $1.6 mln a year ago

Outlook

• Company expects momentum across the ARK franchise over the next two years

Result Drivers

• DEFERRED REVENUE IMPACT - Co said Q4 revenue decline was primarily due to a decrease in deferred revenues recognized in 2025

• ARK AND BELLWRIGHT SALES - Higher sales of ARK titles and Bellwright partially offset revenue decline

• OPERATING EXPENSES - Increased operating expenses contributed to net loss in Q4

Company press release: ID:nGNX2SCHGk

Key Details

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 $3.00, about 390% above its March 18 closing price of $0.61

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 21 three months ago

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