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Snail, Inc. Class A (SNAL)
NASDAQ:SNAL
US Market
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Snail, Inc. Class A (SNAL) AI Stock Analysis

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SNAL

Snail, Inc. Class A

(NASDAQ:SNAL)

Rating:52Neutral
Price Target:
Snail, Inc.'s overall stock score reflects mixed financial performance with strong liquidity but challenges in operational efficiency and cash flow. Technical indicators suggest a bearish trend, while valuation metrics indicate moderate pricing. Earnings call data presents a mixed sentiment, highlighting strong annual growth yet quarterly declines. These factors collectively suggest cautious optimism with underlying operational risks.

Snail, Inc. Class A (SNAL) vs. SPDR S&P 500 ETF (SPY)

Snail, Inc. Class A Business Overview & Revenue Model

Company DescriptionSnail, Inc., together with its subsidiaries, develops, markets, publishes, and distributes interactive digital entertainment for consumers worldwide. It offers games, content, and support for various platforms, including game consoles, personal computers, mobile phones, and tablets. The company was founded in 2009 and is based in Culver City, California.
How the Company Makes MoneySnail, Inc. generates revenue primarily through the sale of its video games and in-game purchases. The company offers its games on multiple platforms, including consoles, PCs, and mobile devices, allowing it to reach a wide range of consumers. In addition to direct sales, Snail, Inc. monetizes its games through microtransactions, where players can purchase virtual goods, upgrades, or additional content within the games. The company may also earn revenue through licensing agreements, where third-party companies pay for the rights to use or distribute Snail's gaming content. Strategic partnerships with other technology and gaming companies can enhance distribution channels and provide additional revenue opportunities.

Snail, Inc. Class A Earnings Call Summary

Earnings Call Date:Aug 19, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The call highlighted significant achievements, including the launch of a pioneering stablecoin project and strong engagement metrics for the ARK franchise. However, these positives were balanced by financial challenges, including a notable net loss and issues with a game launch.
Q2-2025 Updates
Positive Updates
Stablecoin Project Announcement
Snail Inc. announced a proprietary stablecoin project, positioning it as a pioneer within the gaming industry to adopt such initiatives. The project is expected to have substantial long-term ROI potential.
Significant Growth in Bookings and Units Sold
Bookings rose by 18.5% to $27.1 million, and units sold increased by 58.4% to 2.1 million for the quarter, driven by strong performance in June and new content launches.
ARK Franchise Engagement
ARK achieved its highest peak concurrent users and daily active users on Steam in 2025, with ARK Mobile seeing a 27.4% increase in first-time downloads and a 17.8% increase in daily active users.
New Game Releases and Expansions
Several new Indie titles were launched, and ARK: Lost Colony presale slightly exceeded internal projections, contributing significantly to bookings.
Annual Steam Publisher Sale Success
The publisher sale event drove daily unit sales 10.8x the average non-promotional periods in 2025, with ARK: Survival Evolved seeing a 3.8x increase in total units sold.
Negative Updates
Net Loss Increase
Net loss for the quarter was negative $16.6 million compared to net income of $2.3 million in the same period last year, primarily due to increased operational costs and a valuation allowance against deferred tax assets.
Decrease in EBITDA
EBITDA for the second quarter was negative $2.4 million compared to $3.1 million in the same period last year, driven by increased net loss and operational expenses.
Issues with Aquatica Launch
There were problems with the Aquatica launch, requiring a rollback to a previous version, and ongoing updates are needed to resolve these issues.
Company Guidance
During Snail Inc.'s Second Quarter 2025 Earnings Conference Call, the company highlighted a transformative period marked by the announcement of their proprietary stablecoin project, which aligns with their business model and aims to generate long-term ROI potential. Financially, Snail reported a modest year-over-year revenue increase to $22.2 million, driven by a significant 18.5% growth in bookings to $27.1 million and a 58.4% increase in units sold to 2.1 million. Despite these gains, the company recorded a net loss of $16.6 million for the quarter due to increased operating expenses, headcount, R&D, and marketing. The EBITDA was negative $2.4 million, reflecting strategic investments and a valuation allowance against deferred tax assets. The call also detailed the successful launch of ARK: Lost Colony presale and deep discounts during the publisher sale event, which drove substantial player engagement and sales across their portfolio. Additionally, Snail's stablecoin initiative is backed by strategic partnerships and aims to leverage regulatory clarity from the GENIUS Act, with plans to maintain transparency and shareholder communication as the project progresses.

Snail, Inc. Class A Financial Statement Overview

Summary
Snail, Inc. shows mixed financial performance with strong liquidity but operational and cash flow challenges. Revenue fluctuations and inconsistent profitability metrics indicate potential instability. The balance sheet strength is a positive, but cash flow concerns may impact future operations.
Income Statement
45
Neutral
The income statement shows volatility with fluctuating revenues and profit margins. Revenue for the latest period was $84,500, a significant decline from $609,020.98 the previous year. Gross profit margin improved to 35.85%, but net profit margin was 0% due to net income being zero. Historical data shows inconsistent EBIT and EBITDA margins, indicating operational challenges.
Balance Sheet
60
Neutral
The balance sheet reflects a strong liquidity position with cash and equivalents at $8.24 billion, surpassing total debt of $1.5 billion. However, the debt-to-equity ratio is 0.16, signaling manageable leverage. The equity ratio is 15.55%, highlighting low equity compared to assets, but return on equity is null due to zero net income.
Cash Flow
30
Negative
Cash flow analysis reveals a negative operating cash flow of -$1,600, indicating operational cash challenges. Free cash flow also decreased significantly. The operating cash flow to net income ratio is not meaningful due to zero net income. Free cash flow to net income is negative, suggesting cash flow struggles.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue42.35B84.47M60.90M74.44M106.73M124.94M
Gross Profit12.82B29.93M12.16M24.94M43.05M57.64M
EBITDA-4.10B3.49M-8.15M7.70M26.18M51.80M
Net Income-1.96B1.83M-9.09M947.81K8.47M30.69M
Balance Sheet
Total Assets57.96M62.19M90.86M72.77M80.09M123.62M
Cash, Cash Equivalents and Short-Term Investments7.91M7.30M15.20M12.86M11.66M27.59M
Total Debt12.33M7.22M14.87M22.03M18.64M17.96M
Total Liabilities71.45M58.02M88.06M63.41M70.03M89.28M
Stockholders Equity-7.99M9.67M8.30M14.86M15.59M39.36M
Cash Flow
Free Cash Flow-12.84M-1.57M465.87K-3.36M10.85M48.46M
Operating Cash Flow-10.96M-1.57M465.87K-3.36M15.85M48.49M
Investing Cash Flow-3.03M0.000.001.21M-35.85M-18.14M
Financing Cash Flow6.15M-6.49M-3.44M4.84M2.63M-7.56M

Snail, Inc. Class A Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.86
Price Trends
50DMA
1.18
Negative
100DMA
1.13
Negative
200DMA
1.40
Negative
Market Momentum
MACD
-0.08
Negative
RSI
34.93
Neutral
STOCH
36.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNAL, the sentiment is Negative. The current price of 0.86 is below the 20-day moving average (MA) of 0.94, below the 50-day MA of 1.18, and below the 200-day MA of 1.40, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 34.93 is Neutral, neither overbought nor oversold. The STOCH value of 36.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNAL.

Snail, Inc. Class A Risk Analysis

Snail, Inc. Class A disclosed 60 risk factors in its most recent earnings report. Snail, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Snail, Inc. Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$473.24M4.4512.05%0.51%-8.46%
69
Neutral
$263.43M6.78
22.78%-5.57%
60
Neutral
$46.60B4.09-11.41%4.12%1.85%-42.71%
56
Neutral
$142.27M494.74-8.87%97.84%-268.53%
52
Neutral
$41.11M26.3822.59%24.25%-978.22%
49
Neutral
$17.16M630.9131.90%-2.69%-114.02%
37
Underperform
$12.57M-26.18%-74.59%86.00%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SNAL
Snail, Inc. Class A
0.86
0.02
2.38%
GMGI
Golden Matrix Group
1.02
-1.20
-54.05%
BHAT
Blue Hat Interactive Entertainment Technology
1.74
-36.16
-95.41%
DDI
Doubledown Interactive Co
9.55
-5.08
-34.72%
GDEV
Nexters
14.53
-7.81
-34.96%
MSGM
Motorsport Games
2.97
1.63
121.64%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 30, 2025