Snail (NASDAQ:SNAL) reported a return to profitability in the third quarter of 2026 as a series of downloadable content releases for ARK: Survival Ascended helped drive higher revenue and player engagement.
Net revenue rose to $33.1 million for the quarter ended Sept. 30, from $13.8 million a year earlier. Net income was $6.7 million, compared with a net loss of $7.9 million in the prior-year period, Chief Financial Officer Heidy Chow said on the company’s earnings call.
The gains were partially offset by lower sales from ARK: Survival Evolved, ARK Mobile and Salty TV, Chow said. Third-quarter EBITDA, a non-GAAP measure, improved to $7.2 million from a loss of $9.7 million a year earlier.
ARK Content Drives Engagement
Peter Kang, senior vice president and director of business development and operations, said the quarter’s primary performance driver was the same-day launch in early July of three ASA downloadable content releases: Genesis Part 1 Ascended, Tides of Fortune and Dragontopia.
ASA sold 1.2 million units during the quarter, with average daily active users of approximately 121,000 and a peak of about 184,000, Kang said. Across its portfolio, Snail sold 2 million units in the quarter, up from 1.1 million a year earlier.
Quarterly bookings, another non-GAAP measure, rose to $23 million from $17.6 million, supported by higher ASA and Bellwright sales. Chow said those gains were partly offset by lower bookings from ARK: Survival Evolved.
Asked what the quarter revealed about player demand, Kang said the reception to new downloadable content indicated that fans were eager to continue the ARK storyline. He said Snail expects downloadable content to remain a primary sales driver in 2027, alongside cosmetic and creature-related offerings such as Fantastic Tames. The company is also developing user-generated content through its partnership with Overwolf, he said.
Full-Year Outlook and 2027 Slate
For the first nine months of 2026, revenue increased to $80 million from $56.1 million a year earlier. Net income was $5.8 million, compared with a net loss of $26.4 million, while bookings rose to $71.7 million from $67 million.
Unrestricted cash stood at $12.1 million on Sept. 30, up from $8.6 million at the end of 2025.
Chow said the fourth-quarter content slate is more modest than the third quarter’s, but the company expects full-year results to show continued growth compared with both 2025 and 2024. Planned fourth-quarter releases include additional content for the Fantastic Tames Season 1 pack and Dragontopia, including a new map.
For 2027, Kang outlined three ASA downloadable content releases: ARK Atlantis, Galaxy Wars and Legacy of Santiago. The company also plans the ARK Maker content-creation tool, a new PixARK Worlds title and ARK: Survival of the Fittest. The latter’s release was pushed to 2027 as Snail continues refining the competitive game, Kang said.
Broader Pipeline and Creator Initiatives
Snail is developing Nine Yin Sutra: immortal, Nine Yin Sutra: wuxia and For The Stars as potential growth drivers beyond the ARK franchise. Kang said the company showcased the titles at industry events and plans to provide further development updates.
Kang also highlighted Bellwright, which surpassed 1 million units sold in the first quarter. Its sales increased by $4.6 million over the nine-month period, supported by its June launch on PlayStation and Xbox, he said. A major update is expected in the fourth quarter.
Beyond game releases, Snail is working with the Noiz platform on initiatives that include a digital warehouse initially offering game keys. Kang said creators would be able to participate as affiliates or wholesalers. Asked whether wholesalers could undercut prices on Steam, he said pricing would be maintained but that the company was not ready to disclose the full mechanics.
Snail subsidiary Egofold is also developing AI companions called Non-Human Players, which are intended to learn and adapt alongside players. Kang said the company would provide updates as it reaches milestones.
About Snail (NASDAQ:SNAL)
Snail, Inc. (NASDAQ:SNAL) is a global developer and publisher of interactive digital entertainment. Through its subsidiaries, including Snail Games USA, the company creates, publishes and distributes video games for personal computers, consoles and mobile devices. The company is best known for its involvement with the ARK franchise, including ARK: Survival Evolved , an action-adventure survival game. Snail’s broader portfolio has included games such as Bellwright , Dark and Light and PixARK , along with other internally developed and third-party titles.
